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Pakistan: Preparing the Financial Markets Development Program

Sovereign (Public) Project | 53221-002 Status: Active

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 Details

Project Officer
Syed Ali-Mumtaz H. Shah Central and West Asia Department Request for information
Country
  • Pakistan
Sector
  • Finance
 
Project Name Preparing the Financial Markets Development Program
Project Number 53221-002
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9789-PAK: Financial Markets Development Program
Technical Assistance Special Fund US$ 500,000.00
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.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

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 Syed Ali-Mumtaz H. Shah
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Q-Block, Finance Division,
Pak Secretariat, Red Zone, Islamabad,
Pakistan
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 15 Aug 2019
Last Review Mission -
Last PDS Update 21 Aug 2019

TA 9789-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Aug 2019 06 Sep 2019 06 Sep 2019 31 Aug 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 15 Aug 2019 0.00

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.

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None currently available.

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

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Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
Capital Market Programs Specialist (Program Coordinator) Individual - Consulting Closed 31 Aug 2019 06 Sep 2019
Capital Market Legal and Regulatory Expert (National) Individual - Consulting Closed 08 Aug 2019 14 Aug 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
Taxation Expert Individual - Consulting Closed 19 Jul 2019 30 Jul 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.