PESHAWAR, Sept 17: The NWFP government is optimistic about getting the second tranche of $90 million from the World Bank under the structural adjustment credit (SAC) programme to support the provincial reforms programme (PRP) in its second year of the implementation, said official sources.
“There is a possibility that the World Bank will continue financial assistance to the NWFP’s PRP,” said an officer holding important post in the provincial government.
The provincial government’s authorities concerned expressed the hope to get continued the financial assistance following their recently-concluded series of meetings with the World Bank’s final review mission.
During the meetings, the mission members including senior executives and subject specialists reviewed the provincial government’s performance, viz. achievement of bench marks and targets set under different sectors covered under SAC-1.
Officials sources close to the mission’s proceedings said the provincial government— except for certain issues— “convincingly” allayed the WB’s concerns expressed earlier by its third review mission which had held meetings during the first three quarters of fiscal 2002-03.
“Except for certain contentious issues to be discussed between the two sides, the bank’s Islamabad-based authorities appear to be satisfied as far as the implementation of the PRP is concerned,” claimed one of the official sources.
A wrap-up mission led by the World Bank’s country director for Pakistan, John Wall, is due to visit Peshawar on Thursday and hold separate meetings with provincial chief minister Akram Khan Durrani and senior minister Sirajul Haq.
The two sides, said the sources, were scheduled to explain their point of view on the implementation of SAC-1, continuation of the financial assistance to SAC-2 during the current financial year and certain issues about the fulfilment of conditions of the loan agreement signed by the last military-backed civil government in the province.
Official sources said the NWFP was exerting pressure on the bank for the release of the second tranche latest by November— fifth month of the fiscal year.
“Though it is not yet clear as to when would the second tranche be released to the province, there are greater prospects and indications that it would get restored the funding line which had been suspended temporarily,” said a finance manager of the province.
The bank had withheld the second tranche to finance SAC-2 in 2003-04, showing dissatisfaction over the performance of the MMA-led NWFP government.
The provincial government’s performance was marred by low use of development funds provided to it under SAC-1 coupled with the shortfall recorded under the province’s own receipts during the same period.
Implementation of reforms in the public sector entities particularly belonging to the social sector also remained much below the satisfactory level.
“The government managed to put an impressive show as far as utilization of development funds and revenue generation is concerned during the fourth quarter of the last financial year,” said the officer while explaining reasons of the World Bank’s renewed confidence in the provincial government.
An officer said that though the provincial government wanted the bank to release the second tranche in November, it might get delayed due to the approval procedure of the World Bank.
The lending agency, said the sources, wanted the province to reduce the number of development schemes as a result of the NWFP government’s decision to include hundreds of new development schemes in the ADP of 2003-04.
The bank also wants the province to speed up disinvestment of public sector assets already on the list of privatization.