Govt assures World Bank to expedite projects’ execution

ISLAMABAD: The government on Tuesday assured the World Bank to remove obstacles that are causing delays in execution of the bank’s funded projects.

Minister for Planning Development and Special Initiatives Asad Umar said the government is committed to expedite the projects funded by the World Bank to continue the reforms agenda.

“The government is committed to fast track projects funded by the World Bank,” Umar said during a meeting with the newly-appointed bank's country director Najy Benhassine. The World Bank portfolio in Pakistan includes 56 active projects amounting to approximately $11 billion. The portfolio supports reforms and investments to strengthen institutions, particularly in fiscal management and human development; multi-sectoral initiatives in children's nutrition, education and skills, irrigated agriculture, tourism, disaster risk management, and urban development; and clean energy, and social and financial inclusion.

Umar said the World Bank contributed to the socioeconomic development of Pakistan. He appreciated the working relationship between the government and the World Bank and support provided by the World Bank during the coronavirus outbreak.

Benhassine said the World Bank is supporting the government through Covid-19 emergency response projects to help the country prevent, detect and respond to the pandemic and strengthen public health preparedness.

In June, the World Bank approved $500 million in financing for the resilient institutions for sustainable economy program to help Pakistan strengthen fiscal management, promote transparency and private sector growth, and undertake foundational reforms in the energy sector to transition to low-carbon energy. These reforms are critical to build fiscal resilience and stimulate recovery from impacts of the COVID-19 pandemic.

Both sides reaffirmed to strengthen the relationship and remove bottlenecks in executing the development projects funded by the World Bank.

The federal and provincial governments termed lack of permanent appointment of project directors, no bank accounts, problem in land acquisition and lack of coordination among different agencies as main hurdles in execution of multi-billion dollar projects financed by multilateral institutions.

Lack of proper planning and execution of the projects resulted in monetary penalties on account of commitment charges on a per annum basis. The commitment charges run into millions of dollars.

Provincial authorities have been asked to address the technical issues and safeguard the compliances to improve the performance of the foreign-funded projects.

Sources said the economic affairs division has prepared a comprehensive report on causes of delays in project execution and that will be discussed to avert penalties.