ISLAMABAD: The World Bank is in the process of closing trade and transport facilitation project in Pakistan, and has cancelled unused funds of $19 million provided by its affiliate, International Development Association (IDA), for the project.

The $25 million trade and transport facilitation project was to improve performance of trade and transport logistics by facilitating the implementation of the National Trade Corridor Improvement Programme (NTCIP) and simplification and modernisation of Pakistan’s international trade procedures and practices.

A report on implementation of the project released by the World Bank on Tuesday, said that cancellation of part of the unused IDA funds from the project will enable the government to reserve these funds for other to-be-determined IDA programme in Pakistan to be approved by the World Bank board not later than June 30–the end of government’s fiscal year.

Giving overall ratings, the report termed progress towards achievement of project objectives and implementation progress as “unsatisfactory” while giving overall risk rating as “substantial”.

According to the report, there was no measurable achievement as to the project outcome indicators since development objectives of the project depend on the implementation of the national trade corridor improvement programme (NTCIP) which was aimed to reduce the cost of trade and transport logistics and thus to reduce to cost of doing business.

But the NTCIP was not implemented by the government which took over power in 2009, hence substantially defeated the purpose of the project aimed at simplification and modernisation of Pakistan’s international trade procedures and practices.

The project lacked commitment at the higher political level, and, therefore, slow mobilisation of staff at the management units, lacked efficiency and lack of adequate and timely budget allocations for the respective components resulting in slow recruitment of consultants, slow payments throughout most of the implementation period.