February 13, 2002	Wednesday	Ziqa’ad 29, 1422

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ISLAMABAD, Feb 12: The Asian Development Bank (ADB) will provide $650 million for four new uplift projects during 2002.

Sources said here on Tuesday, the bank had initially finalised funding for four development schemes which included Capital Market Follow up Loan ($250m), Sindh Rural Development Loan ($50m), Devolution Support Programme Loan ($250m), and Districts Schools Management Loan ($100m).

There were about six more loans to be finalised out of $1 billion assistance lined up by the ADB for this year.

Government officials concerned and ADB representatives were currently finalizing the list of the new projects to be undertaken during 2002, the sources said.

They said the bank was seeking transparency in the projects, specially in the devolution support plan.

The government has assured the bank that funding to the district governments for further devolution of powers at grass roots was being ensured by President Gen Pervez Musharraf himself.

Mr Musharraf had directed Finance Minister Shaukat Aziz to personally ensure that funds were not misuse by anyone, the sources added.

The bank believed that Pakistan needed to be supported as Sep 11 events had adversely affected its fiscal and external balances, and put in jeopardy the progress made thus far in stabilisation and structural reform.

The bank had provided $900 million in 2001, and now it has increased the amount of assistance.

The sources said the bank had shown willingness to offer additional funds for alleviating poverty in Pakistan which also included soft loan to the Small and Medium Enterprise Bank and Kushhal Pakistan Bank. The government had earlier made available Rs2 billion for both the banks.

However, they needed more funds to adequately extend soft credit for reducing the rate of unemployment, for which the government had sought the support of the donor agencies including the Asian Development Bank.

The president had appealed to the donors on Jan 24, at a conference in Islamabad to provide generous loans for removing poverty.

The ADB had earlier decided to increase by 20 per cent its annual assistance for social sectors to substantially alleviate poverty.

The bank may sign a pact with the government of Pakistan in March to implement poverty alleviation strategy to boost social sectors effectively.

The ADB warned that it would withdraw from financing in case undue delays in projects were not stopped by the government.

The bank also told the authorities that failure in the appointment of professionals, specially projects directors, was causing delay in executing the projects, and thus depriving the people of benefits of development.

The ADB said there had been two to three years’ delays in the uplift projects.

The Planning Commission and provincial departments concerned should take notice for improving portfolio management so that the bank could disburse funding in time, the bank suggested.