ADB report: Pak project performance drops to 58pc in 2018-2020

ISLAMABAD: The Independent Evaluation Department of the Asian Development Bank (ADB) has disclosed that Pakistan’s project performance dropped to 58pc in 2018-2020 from 70pc in 2017-2019 due to poor performance in the Public Sector Management (PSM) and water sectors.

This poor performance shows that Islamabad had to pay multimillion dollars on account of commitment charges under the PTI-led regime. The ineffective implementation has witnessed a surge in the penalty amount in the last few years.

According to IED of ADB report on Friday, Pakistan’s country partnership strategy final review validation (CPSFRV) 2015–2019 rated the country program less than successful. The challenging political environment and a succession of boom-and-bust economic cycles have hampered Pakistan’s development progress.

Pakistan’s Country Partnership Strategy (CPS) was based on two pillars: infrastructure development to improve economic connectivity and productivity for jobs and better access to basic public services; and institutional reforms to cover policy, regulatory, and administrative systems, as well as public financial management. The program has been more efficient than previously and ADB has improved its ability to manage a large portfolio in the challenging country context. However, program effectiveness was affected by gaps in government commitment that resulted in implementation delays, particularly in energy projects. Sustainability was hampered by uncertain cost-recovery arrangements because of increased fiscal instability. Overall, development impacts were considered less than satisfactory.

Ten of the 11 infrastructure projects in the energy sector were assessed satisfactory or better for their contribution to private sector development and ADB strategic development objectives. A liquefied natural gas regassification project in Pakistan was assessed excellent. The project exceeded most of its outcome and output targets. For instance, it provided 400 million cubic feet per day (mmcfd) of incremental natural gas supply from commencement of operations and increased its output to 600 mmcfd beginning in 2017.

About 78pc of country programs were assessed successful in 2018-2020, compared with 83pc in 2017–2019 and 87pc in 2016–2018. The dip in performance was mainly driven by lower effectiveness and, particularly, sustainability, which affected the overall performance of the programs in the Pacific, Pakistan, and PNG, three of the six country programs IED evaluated in 2020.

Effectiveness was commonly impacted by shortfalls in achieving project and program-level outputs and outcomes, and by weak causal links between program activities and objectives, notably those related to inclusive and environmentally sustainable economic growth. Sustainability was mainly undermined by continued weak institutional capacity and limited funding for O&M.

An urban water and sanitation project in Pakistan was discontinued without meeting its objectives due to loss of government commitment to the proposed reforms under the project related to improving efficiency and quality of devolving water and sanitation at the local/citylevel units.

Pakistan is among the countries in the Asia-Pacific region that have established clear SDG coordination structures. Each of the 32 line ministries in Pakistan have been assigned specific SDG goals and indicators depending on their function. Economic-related SDG indicators, for example, are assigned to the Ministry of Finance, health-related SDG indicators to the Ministry of National Health Services, Regulation and Coordination, and migration-related SDG indicators to the Ministry of Overseas Pakistanis and Human Resource Development. Each line ministry nominates SDG focal persons and develops its own technical committees for SDG monitoring and implementation. Line ministries also liaise with provincial governments and institutions to support SDG monitoring and implementation. At the national level, a Federal SDGs Section has been established at the Ministry of Planning Development and Special Initiatives and this serves as the national coordinating entity for SDG monitoring and achievement.