June 14, 2003	Saturday	Rabi-us-Sani 13, 1424

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PESHAWAR, June 13: Expressing concern over transfers and postings of top officials in various sectors, the World Bank has withheld $ 90 million assistance to the NWFP seriously affecting its budget for 2003- 2004, senior government officials admitted on Friday.

Officials acknowledged that Rs 5.699 billion assistance given to the NWFP as part of a three-year structural reform programme was in jeopardy after the World Bank teams which visited Peshawar last month discovered that the reform actions were not being adhered to in letter and spirit.

The World Bank, the officials said, though gave an over all satisfactory rating to the NWFP, it showed its concern over frequent transfers and postings at the top level which had a negative bearing on the smooth functioning of the government.

The bank, these officials said, had also shown its concern over slippages in development expenditure, slow pace  of privatisation of Bank of Khyber.

The Implementation & Completion Report Mission which visited Peshawar in May detected slippages in the programme. It however, felt optimistic that the NWFP would be able to complete its activities by the end of the financial year.

The Review Mission which arrived last month gave a mixed report. It raised the issue of governance in the context of frequent transfers and postings at the top bureaucratic level, low utilization of development funds in the priority areas of health and education and slow pace of the privatization of Bank of Khyber.

A spokesman for the World Bank said that SAC1 was part of a three year structural reform programme under which the bank had agreed in principle to provide annual budgetary support at the beginning of the fiscal year, based on agreed reform actions.

He said the reform actions agreed for second year support, especially in the areas of fiscal management, civil service reforms, social sector service delivery improvement enabling environment  for  private sector development, privatisation had not yet been fully met.

“The government has reaffirmed its full commitment to the reform programme and assessment of the Bank’s recent review is that it could be a few months before all agreed second year actions are complete.”

“As and when the agreed reform actions and targets are fully met and there is a credible structural reform programme for the coming years, the reform programme would be presented to bank management and the board for possible future bank assistance,” the spokesman said.