The program will help Pakistan reduce its current account deficit, promote macroeconomic stability, and foster sustained high growth by improving trade competitiveness and exports. The program will (i) introduce important tariff and tax-related policy reforms to support Pakistan's export industries and increase their competitiveness internationally; and (ii) strengthen key trade-facilitating institutions such as accreditation bodies, the EXIM Bank of Pakistan (EXIMBP), and the National Single Window (NSW).
| Project Name | Trade and Competitiveness Program (Subprogram 1) | ||||
| Project Number | 52049-001 | ||||
| Country | Pakistan |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships Private sector development |
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| Sector / Subsector | Industry and trade / Industry and trade sector development |
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| Gender Equity and Mainstreaming | Some gender elements | ||||
| Description | The program will help Pakistan reduce its current account deficit, promote macroeconomic stability, and foster sustained high growth by improving trade competitiveness and exports. The program will (i) introduce important tariff and tax-related policy reforms to support Pakistan's export industries and increase their competitiveness internationally; and (ii) strengthen key trade-facilitating institutions such as accreditation bodies, the EXIM Bank of Pakistan (EXIMBP), and the National Single Window (NSW). | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The vision of the strategic trade policy framework (STPF), 2019 2023 is for Pakistan to become a dynamic and efficient domestic market and a globally competitive, export-driven economy. Vision 2025 articulates the government's aim to encourage trade, increase exports, and improve the competitiveness of domestic industries in Pakistan as a means to reduce the current account deficit and foster macroeconomic stability and sustained high growth. The STPF objective is to make exports a driver of economic growth, reduce the relative disincentive for export industries by removing structural anomalies, and improve the trade ecosystem by increasing institutional efficiencies and reducing the cost of doing business. The STPF's main goals are to (i) increase exports at a minimum compound annual growth rate of 15% per year until FY2023; (ii) improve the competitiveness and efficiency of industry, especially the export industry, by restoring average mean tariffs to FY2011 levels; (iii) step up regional integration by raising regional trade's share of total trade by 20%; and (iv) promote sustainable, socially compliant, inclusive, and gender-sensitive export development. The program will help define and implement key reforms to tackle Pakistan's development challenges including (i) constraints on export performance, (ii) high raw material costs hurting exports, (iii) overvalued exchange rate, and (iv) weak institutional capacity; as well as to improve Pakistan's export performance. | ||||
| Impact | Economic benefits from trade enhanced (Vision 2025) | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Improved competitiveness and increased exports |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Tax and tariff rationalization Institutional strengthening |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Mukhopadhyay, Hiranya |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, CWRD |
| Executing Agencies |
Ministry of Finance, Revenue and Economic Affairs Block Q, Pakistan Secretariat Islamabad, ICT, Pakistan 44000 |
| Timetable | |
|---|---|
| Concept Clearance | 05 Sep 2018 |
| Fact Finding | 10 Jun 2019 to 15 Jun 2019 |
| MRM | 04 Jul 2019 |
| Approval | 07 Aug 2019 |
| Last Review Mission | - |
| Last PDS Update | 07 Aug 2019 |
Loan 3804-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 07 Aug 2019 | 07 Aug 2019 | 08 Aug 2019 | 31 Dec 2020 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 500.00 | Cumulative Contract Awards | |||
| ADB | 500.00 | 07 Aug 2019 | 500.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 07 Aug 2019 | 500.00 | 0.00 | 100% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 3804-PAK: Trade and Competitiveness Program (Subprogram 1) | Loan Agreement (Ordinary Resources) | Aug 2019 |
| Trade and Competitiveness Program (Subprogram 1): Report and Recommendation of the President | Reports and Recommendations of the President | Jul 2019 |
| Trade and Competitiveness Program – Subprogram 1: Concept Paper | Concept Papers | Sep 2018 |
| Trade and Competitiveness Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Sep 2018 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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$500 Million Loan to Pakistan to Boost Trade, Address Deficit, and Support Economic Reforms
ADB has approved a $500 million policy-based loan to support Pakistan’s reforms to improve trade competitiveness and exports as a defense against external shocks and to help finance the country’s trade deficit.
Tenders
No tenders for this project were found.
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.