Pakistan: Preparing the Financial Market Development Program
The transaction TA will support diagnostic studies, policy dialogue, and the preparation of the proposed Financial Markets Development Program. It will also help the Pakistan Government formulate a national capital market development master plan. The reforms under the program will serve to remove the binding constraints to the achievement of a vibrant capital market, such as (i) ad hoc government debt management practices and absence of a clear capital market development strategy for debt issuances; (ii) shallow and illiquid corporate bond and equity markets, and ineffective market facilitation; and (iii) fragile market stability. The TA will also explore the measures required to encourage broader participation of institutional investors in Pakistan's securities markets, and to lay the groundwork for introducing alternative financing instruments, such as derivatives, as the financial markets develop.
McCartney, Andrew C.
Central and West Asia Department
Request for information
|Project Name||Preparing the Financial Market Development Program|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Finance / Finance sector development
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The transaction TA will support diagnostic studies, policy dialogue, and the preparation of the proposed Financial Markets Development Program. It will also help the Pakistan Government formulate a national capital market development master plan. The reforms under the program will serve to remove the binding constraints to the achievement of a vibrant capital market, such as (i) ad hoc government debt management practices and absence of a clear capital market development strategy for debt issuances; (ii) shallow and illiquid corporate bond and equity markets, and ineffective market facilitation; and (iii) fragile market stability. The TA will also explore the measures required to encourage broader participation of institutional investors in Pakistan's securities markets, and to lay the groundwork for introducing alternative financing instruments, such as derivatives, as the financial markets develop.|
|Project Rationale and Linkage to Country/Regional Strategy||
A central objective of the Pakistan government''s economic development strategy, as reflected in Pakistan 2025: One Nation, One Vision, is to elevate Pakistan's' status from a lower-middle-income to an upper-middle-income country by 2025. The government targeted the generation of jobs and an increase in income levels as top priorities. Achieving these objectives will require substantial investments of private and public capital to accelerate economic growth. Robust and well-functioning financial markets will help mobilize these resources, and can also meet the financing needs for housing and infrastructure, two other top priorities of the government. In collaboration with ADB, the government has implemented major financial market reforms since the late 1990s, through three sector development programs. These were effective in gradually liberalizing the financial markets and brought significant progress. The government recognizes the importance of continuing on this path and to build a strong and inclusive finance sector.
ADB's Strategy 2030 prioritizes the development of the finance sector and capital markets to encourage the participation and growth of the private sector and enhance financial stability. Private sector investment is seen as a key driver of economic growth, and its facilitation is key in Pakistan's endeavor to transform the economy into a competitive marketplace. It is also a strategic area for ADB support in the country partnership strategy, 2015 2019 for Pakistan.
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
ADB will engage a team of individual consultants to implement the TA. It is estimated that the TA will require 12 person-months of international and 7 person-months of national consultant services. The consulting team will have expertise in capital market development and facilitation across diverse technical areas (including institutional, legal and regulatory, and infrastructure aspects), and in the development of alternative financing platforms and instruments. ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration and/or staff instructions.
In addition to the consultants, the TA will engage resource persons to provide complementary international or national perspectives and up-to-date knowledge, and participate in and present at the workshops, seminars, or conferences. The number of resource persons and the person-months will be determined during TA implementation.
|Responsible ADB Officer||McCartney, Andrew C.|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, CWRD|
Ministry of Finance
Q-Block, Finance Division,
Pak Secretariat, Red Zone, Islamabad,
|Approval||15 Aug 2019|
|Last Review Mission||-|
|Last PDS Update||21 Aug 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|15 Aug 2019||06 Sep 2019||06 Sep 2019||31 Aug 2020||31 Dec 2021||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|500,000.00||0.00||0.00||0.00||0.00||0.00||500,000.00||18 Nov 2021||258,796.07|
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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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Preparing the Financial Markets Development Program: Technical Assistance Report||Technical Assistance Reports||Jul 2019|
|Preparing the Financial Markets Development Program: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jul 2019|
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.
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.
|Tender Title||Type||Status||Posting Date||Deadline|
|Program Implementation Advisor||Individual - Consulting||Closed||24 Apr 2021||03 May 2021|
|Research Associate||Individual - Consulting||Closed||27 Oct 2020||02 Nov 2020|
|Capital Market Specialist||Individual - Consulting||Closed||15 Sep 2020||21 Sep 2020|
|Capital Market Legal and Regulatory Expert (National)||Individual - Consulting||Closed||26 Oct 2019||05 Nov 2019|
|Auditing Expert||Individual - Consulting||Closed||26 Oct 2019||05 Nov 2019|
|Taxation Expert||Individual - Consulting||Closed||26 Oct 2019||05 Nov 2019|
|Capital Market Programs Specialist (Program Coordinator)||Individual - Consulting||Closed||31 Aug 2019||06 Sep 2019|
|Capital Market Legal and Regulatory Expert||Individual - Consulting||Closed||08 Aug 2019||14 Aug 2019|
|Equity Market Expert||Individual - Consulting||Closed||19 Jul 2019||30 Jul 2019|
|Capital Market Specialist||Individual - Consulting||Closed||19 Jul 2019||30 Jul 2019|
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