Home » News » Finance » Talks with World Bank on 3 new $550 million Structural Adjustment Credit projects

Talks with World Bank on 3 new $550 million Structural Adjustment Credit projects

ISLAMABAD (November 16 2002) : The government and the World Bank have started preparation for negotiations on three new $ 550 million Structural Adjustment Credit projects one $ 350 million project for federal government and two pertain to provinces NWFP and Sindh worth $ 100 million each.

Federal government has received two SACs of $ 350 million and $ 500 million, while NWFP got $ 90 million and Sindh $ 100 million for SAC during Sep 2002. These projects are being financed by IDA concessional funds laden with tough but necessary terms and conditions, which paved the ways for larger fiscal reforms because of their unpopular reform conditionalities.

In the federal SAC-III, the objective of the project is to support implementation of the government's Poverty Reduction Strategy, which focuses on: (a) reforming governance in the areas of taxation, devolution, decentralisation, financial management, civil service administration and public access to information; (b) strengthening the foundations for economic growth in the areas of power, oil and gas pricing, regulatory reform and privatisation; and (c) improving delivery of social services.

North West Frontier Province Structural Adjustment II: The objective of the project is to support the provincial government's resolve for implementation of reforms to improve fiscal and financial management, governance and public service delivery in education, health, rural development and the regulatory framework for private sector development. Project preparation is under way.

Sindh Structural Adjustment II: the objectives of the project is to finance implementation of reforms to improve fiscal and financial management, governance, public service delivery, and the state's regulatory framework. Project preparation is under way. Furthermore, it focuses on (a) improvement of fiscal and financial management; (b) financial resource mobilisation and institutional development; (c) capacity building of core government departments; (d) reconciliation of public accounts; (e) information technology specialist work; and (f) technical support.

Leave a Reply

X