Pakistan : Supporting Private Sector Development and Export Growth through Evidence-Based Policy Formulation

Sovereign Project | 55351-001

The proposed knowledge support technical assistance (TA) will enhance evidence-based policy formulations for private sector development and export promotion, capacity building for economic modeling, and support for the knowledge hub to accelerate sustainable economic reforms. The TA will prepare analytical studies and briefs focusing on innovative technology and new businesses for policy formulations, including e-commerce. For capacity building, the TA will provide training for applying complex and/or advanced analytical techniques such as Computable General Equilibrium models, guiding policy formulation. The TA will identify reputable academic institutions, think tanks, and research centers as a national knowledge hub for the last sub-component. The TA will connect knowledge hubs to international think tanks like Central Asia Regional Economic Cooperation Institute and Asian Development Bank Institute and support conferences and knowledge dissemination activities.

Project Details

  • Project Officer
    Taniguchi, Kiyoshi
    Central and West Asia Department
    Request for information
  • Country/Economy
    Pakistan
  • Sector
    • Industry and trade
Project Name Supporting Private Sector Development and Export Growth through Evidence-Based Policy Formulation
Project Number 55351-001
Country / Economy Pakistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6973-PAK: Supporting Private Sector Development and Export Growth through Evidence-Based Policy Formulation
Technical Assistance Special Fund US$ 500,000.00
Operational Priorities OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Industry and trade / Industry and trade sector development

Gender Some gender elements
Description The proposed knowledge support technical assistance (TA) will enhance evidence-based policy formulations for private sector development and export promotion, capacity building for economic modeling, and support for the knowledge hub to accelerate sustainable economic reforms. The TA will prepare analytical studies and briefs focusing on innovative technology and new businesses for policy formulations, including e-commerce. For capacity building, the TA will provide training for applying complex and/or advanced analytical techniques such as Computable General Equilibrium models, guiding policy formulation. The TA will identify reputable academic institutions, think tanks, and research centers as a national knowledge hub for the last sub-component. The TA will connect knowledge hubs to international think tanks like Central Asia Regional Economic Cooperation Institute and Asian Development Bank Institute and support conferences and knowledge dissemination activities.
Project Rationale and Linkage to Country/Regional Strategy

Policymaking is a multidimensional exercise that involves dealing with varying degrees of uncertainty and complexity. The first step towards adequately addressing the multifaceted challenges beset private sector development and export growth in Pakistan is sound policy formulation. Pakistan's public institutions often do not have the adequate capacity to formulate evidence-based policymaking. It is critical to conduct quantitative and qualitative analyses of own and other country's data to make informed decisions. By appropriately applying evidence from real-world situations, efficient and effective policy solutions accelerate growth in the private sector and boost exports. This TA will offer that evidence through various knowledge products, including analytical and diagnostic studies, research papers, and policy briefs, focusing on innovative technology and e-commerce. This TA will also provide capacity building to relevant stakeholders to formulate evidence-based policymaking. The Government of Pakistan is actively seeking assistance for an e-commerce strategy through an action plan. The knowledge products generated through this TA will help support that strategy to promote the private sector development and support export-led growth.

Low, almost stagnant growth in exports poses a significant development challenge for Pakistan. This trend continued even during the recent period of sharp currency depreciation started in 2019. Food and textiles remain Pakistan's key exports, but they continue to suffer from declining external demand, low value-addition, poor trade facilitation, and higher competition from other countries. Pakistan lags in export competitiveness, resulting in a continual loss of market share. Therefore, evidence-based policy formulation for export sectors that aims to enhance exports' value-addition, increase diversification, and pave the way for more robust export-led growth is critical to ensuring sustainable economic growth in the country.

Human capital quality and performance closely link with public sector organizations' ability, capacity, and performance for effective policy formulation and implementation. The role of public sector employees in offering key inputs in policy formulation and ensuring successful implementation is instrumental. This underscores the need for public officials' continuous training and capacity development to fill knowledge and/or skills gaps that may develop over time. Under the current diverse and rapidly changing environment, policymakers in the public sector must continually learn and acquire new skills, tools, and methodologies that enable them to effectively deliver solutions to complex problems. This TA will support this objective by offering training on applying complex and/or advanced analytical techniques that bolster the formation of well-informed, evidence-based policy solutions.

Another important objective of this TA is to support knowledge creation and sharing among policymakers to introduce new and innovative technology in the space for small- and medium-sized enterprises and public-private partnerships. New technology, like e-commerce and e-business, is expected to enhance female labor participation. TA will also promote linking various academic institutions, think tanks, and research organizations. Knowledge hub, the knowledge-sharing platform across crucial players in the policymaking apparatus, will have a robust multiplier effect for sharing knowledge and best practices among policy experts and professionals in the public and private sectors. It will render problem-solving experiences reusable and enable the application of valuable knowledge and skills in similar situations. Moreover, a knowledge hub will facilitate speedier and better decision-making, diminish the loss of important knowledge, and boost innovation, creativity, and growth. Adopting a collaborative approach will expand contributions from multiple stakeholders in identifying effective and timely solutions.

Impact

Trade deficit reduced and private sector development promoted

Project Outcome
Description of Outcome

Formulation of evidence-based economic policies for private sector development and export promotion supported

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Roadmap for strategic knowledge and capacity needs for evidence-based policy formulation generated

Knowledge products for evidence-based policy formulations for private sector-led export promotion presented

Training on capacity building for economic modeling provided

International conferences on sustainable development, export promotion, and regional cooperation supported by the identified knowledge hubs

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
Responsible ADB Officer Taniguchi, Kiyoshi
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission (PRM)
Executing Agencies
Ministry of Commerce
Timetable
Concept Clearance 03 May 2022
Fact Finding 23 May 2022 to 31 May 2022
MRM -
Approval 18 Oct 2022
Last Review Mission -
Last PDS Update 21 Oct 2022

TA 6973-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Oct 2022 19 Nov 2022 19 Nov 2022 31 Oct 2025 - -
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 26 Apr 2024 117,625.76

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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.


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

Title Document Type Document Date
Strengthening School Teaching in Pakistan Papers and Briefs Dec 2023

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.

Tenders

Tender Title Type Status Posting Date Deadline
Supporting Private Sector Development and Export Growth through Evidence-Based Policy Formulation Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.