960413

ADB's SAP

review mission

due today

ASHRAF KHAN

KARACHI: A 10-member mission of Asian Development Bank (ADB) is due in islamabad on Sunday for finding in the Social Action Programme (SAP) affairs.

The mission headed by Jahed-ur-Rehman, ADB's senior project specialist, will look into the possibilities of the bank's continued participation in the SAP financing beyond its current commitments, an official told Business Recorder, here on Saturday.

The confirmation of the bank's understanding with the Pakistan government to provide $200 million for the SAP, 1996-97, will depend on the mission's findings, the official said.

Other sources said that the mission will examine the financial sustainability of current commitments of the government to increase resource allocation for the social sector by 0.1 percent of GDP.

Sources further said the government "commitment will be assessed, among others in terms of the agreement with International Monetary Fund (IMF), as to the use of privatisation proceeds in the SAP.

The mission will also assess the implementation status of province-specific key reform measures pertinent to the SAP.

Sources said the policy aspects of the proposed assistance and formulation of condition for the bank's and other donors' participation in financing SAP beyond the current eyar, will also come under discussions.

Sources said the mission would visit all the provincial capitals in addition to Islamabad.

In Islamabad the team will coordinate and consult with the donors, particularly possible cofinanciers, including the World Bank; the Dutch government, Overseas Development Agency (ODA) of UK and Japan.

The bank has earlier participated regularly in the deliberations of Islamabad-based donor task forces organized by the Multi-donor Support Unit (MSU) as well as in the SAP review mission.

The government desires that the bank should continue financing SAP for further four years along with other donors.