Outline of Japans ODA to Pakistan

1. Summary
Japan started ODA to Pakistan in 1954 by providing technical training in line with Colombo Plan, and the first Japanese ODA loan was extended in 1961. After Pakistans nuclear test in May 1998, Japan took economic measures, suspending new Japanese ODA loans and grant aid. The economic measures were discontinued in October 2001. In April 2009, Japan co-hosted the Pakistan Donors Conference with the World Bank in Tokyo to support Pakistan addressing the counter-terrorism and economic reform and pronounced assistance up to one billion US dollars in two years, premised on the continued steady implementation of the IMF program. In November 2009, Japan announced Japans new assistance package to Afghanistan and Pakistan with a view to swift implementation of the pledge of assistance up to one billion US dollars in two years. Concerning the most serious flood disaster in the history of Pakistan which occurred from late July 2010 Japan has implemented emergency and reconstruction assistance.
(Pop.:169.7millions, GNI/capita:$1,020, Economic Growth Rate:3.6% (2009, WB))

Ministry of Foreign Affairs of Japan March 2011

4. Japanese ODA Loan

Japan has supported development of infrastructure in Pakistan through Japanese ODA loans in such areas as transport and energy. Among them, the Indus Highway Projects is especially a symbol of friendship between the two countries. Recently, in January 2011, new Japanese ODA loans of 19.7 billion yen were extended for the flood disaster of 2010. As a result, the accumulated total amount of Japanese ODA loans to Pakistan since 1961 adds up to about 971 billion yen.
Indus Highway Projects
Japan extended Japanese ODA loans totaling 67.0 billion yen to the Indus Highway Projects for the construction of the 92% of the total length of the highway (945km out of total 1,024km) which will connect northern and southern parts of the country.

Kohat Tunnel Projects

Japan also extended Japanese ODA loans totaling 12.6 billion yen for constructing the 1.9km long Kohat tunnel (the total length of 30km, including access roads), a part of the Indus Highway, purposing to alleviate traffic congestion in the steep Kohat pass.

2. Goal and significance of Japans ODA

To contribute to consolidating peace and stability not only in the region but also across Asia by assisting steady development of Pakistan, which is in the process towards moderate and modern Islam and playing a crucial role as a front-line state in fight against terrorism.
(Kohat tunnel, Northern part of the Indus Highway)

3. Focus Areas
Three priority goals of Japans Country Assistance Program for Pakistan formulated in February 2005; (i) ensuring human security and human development (mainly in the area of education and health), (ii) development of a sound market economy (agricultural sector, diversification of industries, economic infrastructure), (iii) achievement of balanced regional socio-economic development (enhance economy in Karachi, development of Peshawar economic area, etc.).

Japanese ODA Loan Project in FY 2010 (Total amount: 19.7 billion yen)
Khyber Pakhtunkhwa Emergency Rural Roads Rehabilitation Project (14.7 billion yen : US$ 174 million) This project aims for rehabilitating the rural roads and bridges damaged by the flood in Khyber Pakhtunkhwa. Emergency Import Support Loan (5 billion yen : US$ 59 million) This loan will be utilized to cover payment of essential items and subordinate services for flood disaster restration.

5. Grant Aid
Japan implemented about 17.4 billion yen of the grant aid in 2009 and has implemented assistance in the water and sewerage and health sector as well as emergency assistance for the flood disaster in 2010. Since its beginning in 1970, the accumulated total amount of grant aid to Pakistan adds up to 236.9 billion yen by FY 2009. Projects in FY 2010 (Total: 17.40 billion yen) (1) The Project for the Improvement of Water Supply System in Abbottabad (about 3.64 billion yen): This project aims to improve water supply system in Abbottabad, Khyber Pakhtunkhwa. (2)The Project for the Eradication of Poliomyelitis(about 0.40 billion yen) This project aims to procure the Polio vaccine for immunization activities in the border region of Pakistan and Afghanistan through UNICEF. (3) Emergency assistance of foods, goods health, water and sanitation for the flood disaster through FY 2010 supplementary budget through UN agencies (about 25.1 billion yen)

Ministry of Foreign Affairs of Japan

Japans ODA to Pakistan

million yen
Fiscal Year 2000 2001 2002 Japanese ODA Loan 0 4,032 3,149 Grant Aid 2,042 10,783 7,590 Technical Cooperation 865 875 1,418

2003
2004 2005 2006 2007 2008 2009

0
0 27,582 23,157 0 47,943 23,300 951,300

6,313
4,863 10,013 5,196 4,763 6,089 17,402 236,931

1,799
1,732 2,140 2,530 1,393 1,179 1,900 42,087

6. Technical Cooperation
In FY 2009, Japan provided 1.9 billion yen for technical cooperation to Pakistan including development study. The cumulative amount of Japans technical cooperation is about 42.09 billion yen up to the end of FY 2009. By the end of FY 2009, 5,070 trainees have been received by Japan, and 1,240 experts had been sent to Pakistan. Agreement on Technical Cooperation between Japan and Pakistan In April 2005, the Governments of Japan and Pakistan signed the Agreement on Technical Cooperation with the aim to promote smooth implementation of the bilateral technical cooperation. On-going Projects in FY 2010 (1)The Project for Development of Center of Excellence for Technical Education(Dec 2008 - Dec 2013) which aims to improve capacity for providing technical education in Government College based on industrial needs. (2)Trade Policy Advisor(Dec 2009 - Dec 2011) which aims to advise and instruct about planning and implementation of the policy of export promotion. (3)Investment Climate Improvement Advisor(May 2010 - May 2012) which aims to advise and instruct about planning and implementation of the policy of investment circumstance improvement.

Cumulative Amount

(Ref.) Japanese ODA Loan and Grant Aid are E/N based. Technical cooperation is JICA-disbursement based.

Japans ODA Project

Ministry of Foreign Affairs of Japan

The Project for the Improvement of Water Supply System in Abbottabad (Grant Aid)

The Project for the Eradication of Poliomyelitis (Grant Aid)

Investment Climate Improvement Advisor (Technical Cooperation)

The Kohat Tunnel Construction Project (Japanese ODA Loan)

The Project for Development of Center of Excellence for Technical Education (Technical Cooperation)

Khyber Pakhtunkhwa Emergency Rural Roads Rehabilitation Project (Japanese ODA Loan)

National Transmission Lines and Grid Stations Strengthening Project (Japanese ODA Loan)

Trade Policy Advisor (Technical Cooperation)

(Khyber Pakhtunkhwa, Sindh, Punjab, etc)

Humanitarian Assistance for flood disaster (FY 2010 supplementary budget) (Grant Aid)