US$ 20 million loan signed with ADB for Public Sector Enterprises Reforms Project

Today, 27th January, 2015, the Government of Pakistan and Asian Development Bank signed Loan and Project Agreements amounting to US$ 20 million for Loan No. 3214:- Public Sector Enterprises Reforms Project. Mr. Muhammad Saleem Sethi, Secretary, Economic Affairs Division (EAD) signed the Loan Agreement with Mr. Werner E. Liepach, Country Director, ADB. The Public Sector Enterprise Reforms Project will strengthen the Government of Pakistan’s capacity to privatize and restructure its designated public sector enterprises (PSEs). The expected impact will be reduction of the fiscal and economic costs associated with Pakistan PSEs. The Project will finance consulting services to strengthen the technical capacity of the Privatization Commission to manage privatization transactions and monitor transactions advisory services. The recruitment of experienced transaction managers to the Privatization Commission will enable it to handle more complex and higher numbers of transactions. The Project will enhance the current strategy for privatization to make it more comprehensive time-bound and with clear guidelines for prioritizing PSEs to be privatized. The Project will also support professional development of Board members of PSEs subject to restructuring.

 

2.         The Project will fund accounting, management and financial consulting services to develop the capacity of the Finance Division to effectively monitor the PSE portfolio. The Project will support enhancement of the database of government’s shareholding position in PSEs that has been developed by Finance Division.

 

3.         The Project will finance technical experts to support sector efficiency assessments and preparation of sector restructuring roadmaps. The Economic Reforms Unit (ERU) will coordinate work in these regulatory reform challenges. The project may also finance competitions assessment studies in sectors impacted by privatization and restructuring of PSEs. The Project will recruit consultants to support the Project Management Unit (PMU) that will implement and manage all activities funded by the Project. The consultants will provide expertise in project management, financial management, and procurement. The PMU will be established in the Finance Division, which will be responsible for overall coordination of the work, reporting on overall implementation progress, recruitment and performance of consultants.