January 29, 2003	Wednesday	Ziqa’ad 25,1423

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ISLAMABAD, Jan 28: The Asian Development Bank on Tuesday called for establishing a multilateral security agency to ensure the protection of the proposed gas pipeline from Turkmenistan to Pakistan via Afghanistan.

“Pakistan, Turkmenistan and Afghanistan should set up a multilateral security agency to make sure that no harm is done to their proposed gas pipeline,” said the visiting Director-General of ADB’s South Asian department, Yoshihiro Iwasaki.

Mr Iwasaki told a news conference that Asian Development Bank was interested in the project and had allocated considerable funds for its feasibility study.

Referring to the attacks on gas installations by subversive elements, he proposed that the government should develop a storage capacity to have uninterrupted supply in case of any eventuality.

“But such attacks are not a matter of grave concern for us as the government has repaired the pipeline immediately,” the official said. He, however, stressed that the government must ensure disruption-free supplies.

In reply to a question, Marshuk Ali Shah, the resident representative of the Bank, said poverty had not been reduced substantially in Pakistan. “It (poverty) might have worsened beyond 1998,” he said, adding there was 40 per cent poverty in rural areas.

Mr Iwasaki said he would be discussing the poverty issue with Prime Minister’s Adviser on Finance Shaukat Aziz on Wednesday.

He said the government needed to reduce the operational and line losses of the Karachi Electricity Supply Company.

He observed that since international business environment was not favourable it was becoming difficult for the government to privatize the Karachi Electricity Supply Company.

He said the Asian Development Bank was interested in buying some equity share in the Karachi Electricity Supply Company.

The government, said Mr Shah, was losing Rs1 billion annually due to losses of the Karachi Electricity Supply Company.

The director-general said he was visiting Pakistan to consult the new government on various issues. “I am glad that Prime Minister Jamali and his team are assuring us of continuing the reform process.”

He said: “We have decided to support the new government to achieve higher growth, reduce poverty and create new job opportunities in Pakistan”.

He said implementation of projects was a main problem in Pakistan and added “this is due to a delay in appointing project directors and other staff”.

Asian Development Bank’s another concern, he said, was the delay in introducing reforms for promoting small and medium enterprises.

“We would not provide our $100 million loan for Small and Medium Entrepreneurs if reforms are not undertaken in this sector,” he declared.

Answering another question, he said the Asian Development Bank was in favour of India-Pakistan cooperation in the power sector. Both countries, he pointed out, had been discussing the import of electricity in the past.

In reply to yet another question, he said the Asian Development Bank was charging 0.75 per cent interest rate on undisbursed Ordinary Capital Resource loans.

“One-third of our aid portfolio is facing implementation difficulties due to which the government has to pay some interest rate on undisbursed loans,” he elaborated.