WORLD BAN

PAKISTAN
ISSUE NO . 3

JULY

Public Disclosure Authorized

Public Disclosure Authorized

THE

2008

Events

49124

WB-AKTC Collaboration for

the Urban Regeneration of
the Lahore Walled City> 10
Launch of 2008 World
Development Report in
Pakistan> 10
WBI In Country Training to
Build Capacity for Education

Public Disclosure Authorized

Assessment> 12
Pakistan at a Glance> 14
Latest Publications> 19
Interview > 20

LEAPS
The report presents facts and
findings from a survey of all public

Public Disclosure Authorized

Water Supply Sub-project, TMA Jhelum

In the small and medium towns and cities of Punjab, a culture of

performance management in local governments to improve municipal
service delivery, is slowly taking root ...

........................... ..................... ...................................................................

P A '::iE 02

Balochistan: Developing Publ icPrivate Partnerships for Education

. Service Delivery
Balochistan, home to eight of the ten most
deprived districts in Pakistan, is the poorest
of Pakistan's four provinces with limited
economic opportunities, lagging social. ..
...... ............. .. .. ..... ... .. .. ...... ... ...............

PA G E 06

and private primary schools in 112

villages in t hree districts of Punjab
Province, and lays out important
policy options based on detailed
data to facilitate evidence-based
policy making .

......................................

P AGE 08

Punjab Municipal Services Improvem ent Project

Introducing Performance Management in Municipal Service Delivery

In the small and medium towns

and cities of Punjab, a culture of
performance management in local
governments to improve
municipal service delivery, is
slowly taking root. The Tehsil
Municipal Administrations (TMAs)
willing to participate in the
initiative, are beginning to show
greater transparency and
responsiveness to the needs of
their constituents.
Devolution of powers to local
governments (LGs) has globally
proven to be an effective means of
bringing government closer to the
people it is meant to serve,
thereby improving local
governance and enhancing public
accountability.
However, if the
authorities devolved are not
accompanied by commensurate
administrative and financial
capacity, little improvements can
happen towards improving the
quality of life of citizens through
enhanced service provision.

02

Participatory Workshop on Performance Management System

administrative decisions, and yet lack of provincial support

and oversight mechanisms. The issues facing LGs did
result in the launch of a number of capacity building
initiatives. However, most accomplished little in terms of
sustainable capacity enhancements as they generally
encompassed conventional, supply-driven trainings for LG
staff.

Background
In Pakistan, the big bang
devolution of powers in 2001
created the district governments,
tehsil municipal administrations,
and the union administrations
with the promulgation of the Local
Government Ordinance (LGO).
The newly created TMAs were
made into body corporates and
mandated with provision of all
municipal services.
However,
they were neither provided with
the requisite skills in adequate
numbers, nor the support to
develop systems and human
resources to deliver on the
responsibilities and expectations
invested in them.

The Project Concept

The World Bank funded Punjab Municipal Services
Improvement Project (PMSIP) became effective in June
2006. It aims to improve the viability and effectiveness of
urban services provided by participating TMAs, and to
make these improvements sustainable and replicable
through the creation of performance-based management
framework at the TMA and provincial levels. TMAs selected
against a stringent performance criteria, are provided
capacity grants for institutional strengthening and
development grants for infrastructure investments. The
project is being implemented through the Punjab Municipal
Development Fund Company (PJVIDFC), a governmentsponsored Company established in 1998 under a previous
Bank initiative, as an apex organization under the
Companies Ordinance. The project thus represents a
paradigm shift in the way public resources for urban
development are being allocated by the Province of Punjab.

Other inherent issues inhibiting

TIVIAs' capacity to grow into
effective municipal service
delivery institutions included
excessive reliance on financial
transfers from higher levels of
government, continuing overlaps
in responsibilities, need for
provincial approvals for most

Project Approach
Since performance management is the core concept
underlying the project, development of the performance
monitoring framework and selection of performance
indicators are of fundamental importance, says Shahnaz
Arshad, the Task Leader of the project. Each TMA agrees
on a Performance Improvement Plan, with a specific set of
targets and indicators to measure performance in
conjunction with a capacity grant and, if requested, a
development grant.

Punjab Municipal Services Improvement Proj ect

IntroduCing Performance Management in Municipal Service Delivery

The Capacity Grants have to

date included the establishment of
a performance management
system; action planning for
improved service delivery;
establishment of financial
management system; setting up
of citizens compliant cell &
compliant tracking system;
development of TMA website;
performance monitoring &
evaluation system; and on-thejob and classroom trainings of
TMA staff in the systems
established.
Learning from the earlier largely
unsuccessful LG capacity building
experiences, PMSIP has focused
its capacity building approach
around providing demand driven,
results oriented, on-the-job
support and training to TMA staff,
in skills required for dispensation
of their mandates in an effective
and efficient manner. Moreover,
TMA eligibility for subsequent
capacity and development grants
under PMSIP is linked to
measurable and tangible
improvements in performance
against agreed indicators.
Complementing this approach is
the project's focus on building
management systems, enabling
the TMAs to institute selfsustaining and lasting
improvements in their core
business areas.
Incentives for
improved performance are further
strengthened through inculcating
a greater client orientation by
introducing greater public
accountability and transparency,
through the automated citizen
complaint cells and tracking
systems, partiCipatory service
delivery target-setting, and the
development ofTMA websites.

The Development Grants are

financing rehabilitation or
extension of municipal
infrastructure and enhancement
of services in the partner TMAs,
based on priorities developed
through a participatory
investment planning process,
03

Planning Prioritization Workshop-TMA Kasur

culminating in an inclusive prioritization involving

stakeholder consultations and workshops. It confirms the
service delivery need, optimal technical design, a sound
development and management plan, and an agreement on
the monitoring of performance indicators. During the first
project year, the partner TMAs have received intensive
support for capacity building in planning to enable them to
develop a more robust capital investment prioritization
process. As the TMA capacity to plan, prioritize, and
implement infrastructure investments grows, it is
envisioned that the size and complexity of investments
would also increase.
The development grant requires a contribution by the TMA
of 15% of the total investment cost. The TMA also needs to
provide a service improvement plan and an assurance that
it will be able to finance the Operations and Maintenance
costs associated with the investment. Project funds assist
TMAs to improve their management of existing
infrastructure through the capacity grants.
A
development grant is available for infrastructure
investments in water supply, sewerage, sanitation, solid
waste management, roads, storm-water drains, street
lighting, and community centers. In essence, the project
takes a multi-pronged, multi-level approach in tackling the
management and capacity constraints towards improving
municipal service delivery in Punjab.

Implementing Mechanism: The PMDFC as an apex

body provides advisory, planning, design, and
performance management services across partner TMAs,
and also acts as an oversight, coordination, and monitoring
agent on behalf of the Government of Punjab. PMDFC
teams work closely with the partnerTMAs for instituting the
multiple capacity development initiatives, and on the
design and supervision of infrastructure improvement subprojects. As an implementing mechanism, PMDFC is thus

Punjab Municipal Services Improvement Project

Introducing Performance Management in Municipal Service Delivery

Conversion of Filter Beds into Underground Storage Tanks-TMA T.T Singh

proving its merit as a one-window

municipal development agency
providing performance criteriabased funds, as well as demanddriven capacity building.
At the provincial level, PMSIP is
also assisting the Local
Government and Community
Development Department
(LG&CDD), as the parent
department of all LGs, in
operationalizing a TMA
performance monitoring system
covering all TMAs in Punjab, by
replicating and scaling up the
pioneering approach adopted
under PMSIP for its partnerTMAs.
The Cultural Heritage
Component:
Through this component under
PMSIP, the World Bank has gotten
engaged in the Cultural Heritage
(CH) sector after a long hiatus.
Under two earlier projects of the
1990s that had CH components
under them, substantial
documentation work on historic
buildings of the Walled City of
Lahore (WCL) was undertaken;
selected monuments were
restored and put to adaptive
reuse; and some neighborhoods
upgraded with provIsion of
municipal services.

More recently, there has been a growing recognition that

CH assets of Pakistan have a rich economic potential that
can contribute to growth and poverty reduction, if
appropriately tapped for cultural tourism. PMSIP's cultural
heritage component is designed to provide assistance to
Government of Punjab's Sustainable Development of the
Walled City Lahore (SDWCL) unit for undertaking studies to
recommend rationalization of institutional mandates for
management of heritage assets; undertaking legal and
technical studies to recommend appropriate amendments
to the existing legislative frameworks; and implementing a
pilot project to showcase methods and benefits of
conservation of cultural assets and their productive refuse.
The pilot project envisages the creation of a Heritage Trail
that would lead visitors from the Delhi Gate to the Lahore
Fort linking a variety of cultural assets comprising of
monumental buildings, private residential buildings,
traditional bazaars, and open spaces as a sequence of
experiences in a historic built environment. This historic
Royal Route (Shahi Guzargah) is the route that the Mughal
emperors followed to reach the royal fort palace, when
returning from Delhi to Lahore. They entered the WCL
through the Delhi gate, bathed in the Shahi Hammam
(Royal Bath), and prayed in the Wazir Khan Mosque
enroute to the fort. Over the years, many of the private
buildings along the route have either fallen into disrepair or
have been replaced, and the public spaces encroached
upon.
The monuments however remain gems of architectural
heritage, and primary visitor attractions. In the medium
term, and based on the lessons learnt through the pilot, a
more comprehensive urban restoration and regeneration
project for the WCL could be considered, to make it into a
world class destination.

Punjab Municipal Services Improveme nt Project

Introducing Performance Management in Municipal Servi ce Delivery

indicates that these investment sub-projects coupled with

the institutional development initiatives, are already
beginning to bring about tangible improvements in service
delivery coverage and quality to the beneficiary
communities. Additionally, the setting up of systematic
complaint registration and tracking systems, participatory
investment planning, and the launching ofTMA websites, is
beginning to keep stakeholders informed and involved, and
the TMAs more accessible and responsive. Under the CH
Component, the SDWCL unit has been set up and fully
operationalised .
The Punjab Historic Areas Planning,
Development, and Regulation Ordinance 2007 has been
promulgated and notified, and the Punjab Historic Areas
Authority is to be notified shortly.
Moreover detailed
studies, surveys and the physical documentation of
buildings along the Shahi Guzargah has been initiated in
preparation for implementation of the pilot project.
Testing of Tubewell Machinery, Water
Supply Sub-Project, TMA Jhelum

Impact
The participating TMAs are
already showing signs of
improved institutional and service
delivery performance. Capacity
building activities funded under
the capacity grants component
have led to significant
improvements towards the
establishment of performance
management systems in the 19
participating TMAs. These include
baseline data collection and target
setting for performance
monitoring; staff trainings;
operationalization of complaint
tracking systems; launch of TMA
websites; establishment of
geographic information systems,
including preparation of base and
land use maps; launch of financial
management systems; and
completion of participatory
planning exercises leading to
consensus on prioritized subprojects for infrastructure and
service delivery improvements.
Moreover, 12 infrastructure
development projects are under
implementation, while another 14
are at various stages of design,
preparation, and award. Initial
monitoring data obtained from the
project's robust central M&E
system that is tracking TMA
performance improvements,

os

The initiative has also attracted the interest of the Aga

Khan Trust for Culture (AKTC), which has since become a
development partner in it with the Government of Punjab
and the World Bank. A subsidiary of AKTC, the Aga Khan
Cultural Services Program, has established an office in
Lahore. It is providing guidance and technical assistance
to SDWCL unit on the detailed preparatory activities for the
Shahi Guzargah pilot project. Fostering and strengthening
such partnerships is also a critical determinant of
GoPunjab's increased institutional effectiveness and
capacity in managing the city's cultural assets in the
medium to long term.

Challenges Ahead
The process of improving municipal service delivery under
PMSIP has only just begun.
For the improvements
instituted to be sustainable, replicable, and effective in the
longer term would require sustained political commitment
and efforts at the provincial and local levels. The ongoing
political transition in the country may test the resilience of
the institutional arrangements that are currently delivering
the project, but the globally proven concepts of
decentralized service delivery that the project espouses,
and the promise that it holds of accountable LGs and
effective and efficient service delivery, will hopefully help
overcome any such challenges. Other major challenges
include a severe scarcity of human resources to sustainably
enhance the financial and technical viability of urban
services being provided by TMAs. There is also a severe
need for improving operations and maintenance (O&M)
capacities, for existing and new infrastructure assets being
created under PMSIP and other development initiatives.
Finally, there is an urgent need for a greater coordination
and synchronization of the various investment decisions
currently being made in local government jurisdictions
through multiple funding sources. If continued to be made
in isolation or without coordination across various
stakeholders, these run the risk of working to the detriment
of each other, or duplicating each other, and thus wasting
scarce public resources.

Ba lochistan: Developing Public- Private

Partnerships for Educat ion Service Delivery

Abdullah Khori Community School, District Kech

Balochistan, home to eight of the

ten most deprived districts in
Pakistan, is the poorest of
Pakistan's four provinces with
limited economic opportunities,
lagging social indicators and large
gender gaps. In addition the
province is plagued by tribal,
ethnic and sectarian conflict which
has been exacerbated in recent
times by a low- level nationalist
insurgency and the fallout from
the war on terror in Afghanistan.
Overall literacy rates in
Balochistan, at 37% (17% for
females), compare unfavorably
with that for Pakistan at 52%
(38% for females). Gross
enrollment rates in primary
education in Balochistan have
improved from 62% in 2001-2 to
72% in 2006-07.
But this
compares unfavorably with the
Pakistan average of 72% and 91 %
respectively. Clearly, other parts
of Pakistan have shown faster
progress in getting students
enrolled in school. The difference
in enrollment rates is mostly
explained by the expansion of
non-government and private
provision of education in the rest
of Pakistan where they account for
38% of all primary enrollment, in
contrast with Balochistan where
the corresponding figure is 11%
only. Over the years, low public
o e.

investment in education and dissipating administrative

capacity at all levels has led to a system that is
characterized by low enrollment, high teacher and student
absenteeism, little or no engagement by communities that
feel unempowered.

Challenges
In this atmosphere the Bank team set out to design a
project that would actively engage the communities on a
long-term baSiS, and tap the entrepreneurial spirit of the
private and non-government sector to deliver primary
education, in particular for girls, to the poorest
communities.

Approach
As first step the Balochistan Education Foundation (BEF),
originally mandated to encourage private sector
participation in education service delivery, and was
identified as a potential pivot for all project activities. The
Bank team and the Government of Balochistan worked
together to restructure the BEF into an autonomous, well
governed and private sector managed apex financing and
monitoring body. BEF in turn competitively selected NGOs'
and other organizations as Implementing Partners to help
in identification, establishment, monitoring and capacity
building of communities, schools and teachers in poor rural
areas. The BEF was tasked with setting up 650 Community
Schools in poor rural communities which would be free at
the point of use. The communities were given control of all
school resources, including teacher hiring and firing,
salaries, and school construction. For urban and semiurban areas BEF competitively selected private school
operators set up 300 low-fee schools over the project
period, with a promise to subsidize them up to 6 US$ per
student per month for 3 years. In addition they were

Balochistan: Developing Public-Private

Partners hips for Education Service Delivery

Goth Abdul Rahim Community School, District Lasbela

allowed to charge up to Us$ 5 in

monthly fees. Over 90% of
schools actually charge less than
US$ 2 per month. In all cases
schools were to be set up in
communities without schools,
with an emphasis on enrolling out
of school children, especially girls.
Impact in the First Two Years
In the first year BEF and its
partners set up 197 new rural
Community Schools in 17 districts
of Balochistan, with an enrollment
of over 8000 students, including
over 3900 girls. An additional 237
new community schools have
been established in the second
year with enrollment at over
8,500 students, over 4,000 of
which are girls.
As a result, 434 BEF community
schools, with total enrollments of
16,000 children have now been
set up in 29 of the 30 districts in
Balochistan as against an initial
target of 350 schools with an
enrollment of 10,500 students by
end June 2008.
It is heartening to note that Parent
Education Committees of
community schools were
proactively involved in managing
the schools and were acutely
0 7

aware of their authority and responsibility in ensuring

teacher hiring and attendance, student attendance and
management of school funds and records are being
reasonably well maintained.
In addition to the 83 low-fee Private Schools established in
2007 in peri-urban and urban areas, a further 55 have been
set up in 2008. The total enrolment in 134 private schools is
over 10,000 (with around 4000 girls) against a target at
appraisal for the first two years of 200 schools with around
10,000 students. Schools have been opened in low-income
. communities where private operators were unlikely to open
schools without BEF support, however it is already
apparent that there is less scope for fee charging private
schools than was envisaged at appraisal stage. Capacity
building activities including intensive and regular training
of teachers, communities, NGOs, and BEF staff is
underway.
The Road Ahead
BEF and its partners are on target to identify 217 additional
community school sites by January 2009 (one year ahead
of schedule). In addition BEF will be inviting applications for
establishment of additional private schools, and progress is
being made to open all these schools to be opened by
March 2009 (two years ahead of schedule). There is an
intensified focus on improving quality of education though
off-site and ongoing on-site teacher training, and regular
student and teacher assessment are underway. Two rounds
of assessments have already been carried out and a third
round is scheduled for March 2009. A mid-term review of
project activities is scheduled for December 2008.

Learning &. Educational Achievements in

Punjab Schools (LEAPS)

Facts:
Student enrollment
increased by 10 0/0
between 2001 and
2005 in Pakistan.
The highest increase
occurred in Punjab
province (120/0).
Between 2000 and
2005, the number of
private schools
increased from 32,000
to 47,000.
1 in every 3 enrolled
children at the primary
level was studying in a
private school.
Since 1995, 50 0/0 of all
new private schools
have set up in rural
areas.
Executive Summary
A large fraction of rural Pakistani
households no longer lives in a
village with one or two
government schools-half the
population of rural Punjab, for
instance, lives in villages where
parents routinely have 7-8
schools to choose from. This new
educational landscape is best

os

described as an active educational marketplace with

multiple schools vying for students whose parents are
actively making educational decisions. From evaluating
policy reform to understanding how the private sector can
help educate the poor, the rise of such schools represents a
significant opportunity and challenge, not only in Pakistan
but also in the wider South-Asian context. Furthermore,
with enrollments looking up, debate will likely shift to what
children are learning in school. Enrollment does not imply
learning. Low-income countries routinely place at the
bottom of the charts in international comparisons.
Measuring what children are learning in public and private
schools and understanding how the educational
marketplace can foster learning is a first step towards
formulating policy in the new millennium.
Introduction
This report is based on a large and independent survey and
testing exercise that provides information on every aspect
of the educational marketplace in selected districts of rural
Punjab. This report presents findings from the first survey
in 2003; a forthcoming report will incorporate information
from all four survey rounds between 2003 and 2007. The
first four chapters-on learning, schools, teachers, and
households-present an overview of the education sector.
The final chapter presents questions for debate and
discussion based on these facts and suggests a new
"modified" role government can play in this new
educational landscape.
Are Students Learning?
This chapter of the LEAPS report examines how much
primary school students are learning in rural Punjab
Province and how much factors like school facilities,
parental education, and wealth matter. The sampling for
the LEAPS report was done in two stages. In the first stage,
three districts were chosen from the province of Punjab.

Learning & Educational Achievements in

Punjab Schools (LEAPS)
(two if gender separated), one private-and the difference
between the two lies in their quality and price. Reality is
very different. One-third of all villages and 50 percent of
the rural population in Punjab have, on average, 8 schools
to choose from. This finding has led to a host of new
questions.

Do Teachers Teach?
A teacher in a public school is absent one-fifth of the time
and has students that perform very poorly but still earns 5
times more than a teacher in a private school who is
present nearly every day and has students that perform
very well. One implication may be that the educational
system would benefit if this government teacher were to
stay at home, pocket 85 percent of his salary and use the
other 15 percent to pay a teacher in the private sector to
take his/her place.

The choice of districts follows the

accepted division of the province
into the "better" performing North
and Central parts (Attock and
Faisalabad) and a "poorer"
performing South (Rahim Yar
Khan). Within these districts, 112
villages were chosen randomly
from a list of all villages with a
private school in 2003. The total
sample yields over 800 public and
private schools. The LEAPS survey
tested all 12,000 children in Class
3 enrolled in these schools on
three subjects-English,
Mathematics and Urdu. We
describe the outcomes from these
tests in two sections.

Are Schools Functional?

This chapter looks at over 800
schools offering primary schooling
in 112 LEAPS project villages.
That's an average of almost 8
schools serving primary age
children in any village. Before
starting this work, our view of the
schooling environment in a typical
village was the same one shared
by others in Pakistan-that a
typical village is served by one
school and that the decision for
parents was simple---to send
their children to school or not.
Similarly,we also held the view
that villages with private schools
have 2 schools-one government

This chapter shows that such compensation schemes may

still have benefits if used appropriately. The chapter
analyzes why and how government and private
compensation schemes are so different and suggest ways
to build on the strengths of both to improve the overall
quality of education.

Parents and Their Children

This chapter presents detailed information on the choices
that parents make regarding their children's schools, the
time and money they spend on their children, the daily
activities that a child engages in, and reiterates the critical
constraints that distance to school has for enrollment,
especially among girls. While some findings from the
survey data accord well with some of the commonly held
beliefs mentioned above, other findings suggest a closer
evaluation of the Pakistani rural household and its role in
educating their children is in order.
Thoughts for Discussion and Debate
Article 37 (b) & (c) of the Constitution of Pakistan (1973)
affirms that "the State shall remove illiteracy and provide
free and compulsory secondary education within the
minimum possible period." What Pakistan needs to debate
is whether any attempt is being made to address the
affirmation that the "State shall remove illiteracy". It also
needs to debate the implications of the rapid rise of wellperforming private schools for achieving this goal.
This chapter examines five issues related to the quality of
education and future education policy that are frequently
debated in Pakistan. The goal of this chapter is to argue
that evidence can yield important insights for policy and
provide a framework for further debate.

Events

World Bank Vice President Mr. Praful Patel and the General Manager
AKTC Mr. Luis Monreal Signing the MOU

WB-AKTC Collaboration for

the Urban Regeneration of the
Lahore Walled City
The World Bank and the Aga Khan
Trust for Culture (AKTC) , an
agency of the Aga Khan
Development Network, signed a
Memorandum of Understanding
for collaboration on the Urban
Regeneration of the Walled City of
Lahore . The signing ceremony
took place at the Bank
headquarters in Washington DC,
with the World Bank Vice
President for the South Asia
Region, Mr. Praful C. Patel and the
General Manager AKTC, Mr. Luis
Monreal as the co-signatories.
His Highness the Aga Khan, and
the Bank's Managing Director
Ngozi Okonjo-Iweala were also
present on the occasion.

Launch of 2008 World

Development Report in
Pakistan
The 2008 World Development
Report features agriculture as its
central theme. After 26 years,
agriculture development is once
again at the forefront of
development agenda. This year's
Report is particularly timely in the
wake of current high poverty
10

incidence, climate change threats, and food price crisis in

Pakistan. The World Bank's Pakistan Country Office
launched the 2008 World Development Report (WDR) in
May in Islamabad. In Pakistan, the launch could not have
come at a better time in the wake of growing food prices
currently threatening millions of citizens' in the country.
Launching the World Development Report in Pakistan
affirmed the need for greater investment in agriculture
sector - a key area of policy and programming for the new
Government in the country. The World Bank Country Office
co-hosted the launching event with the Ministry of Food,
Agriculture and Livestock (MINFAL), Government of
Pakistan. The launching event was attended by around 120
people representing the federal and provincial
governments, international agencies, private sector, civil
society, and academia.
During the launching, several aspects of the Report were
highlighted for their relevance to Pakistan. According to the
Report, agriculture can offer pathways out of poverty if
efforts are made to increase productivity in the staple foods
sector; connect small holders to rapidly expanding highvalue horticulture, poultry, aquaculture, as well as dairy
markets; and generate jobs in the rural non-farm
economy.
Yusupha B. Crookes, World Bank's Country Director in his
opening remarks sa id, During the last 12 months Pakistan
has witnessed unprecedented increases in the price of key
food commodities, which have profound effects on poor
and vulnerable people. Mr. Crookes further emphasized
that, at present the performance of agriculture sector in
Pakistan remains significantly below its potential and
achieving rapid for the sector will require overcoming
constraints related to unequal land distribution and access
to water, low productivity of crops, inadequate

Events

infrastructure and ineffective

service delivery. Zia-ur-Rehman,
Secretary Ministry of Food,
Agriculture and Livestock
emphasized the role of agriculture
in country's economic and social
growth. Pakistan has been active
in the Doha Round agriculture
negotiations, as part of the Cairns .
Group and the G-20, to insure that
access to these developing
country markets is improved for
other developing countries, said
Mr. Rehman. He also said that the
challenge for Pakistan is to take
advantage of the new
opportunities created by the Doha
Round through higher commodity
prices and better market access.
Dr. Derek Byerlee, the principal
endorsed by some 150 countries . The New Deal embraces
co-author of the Report presented
short, medium and long-term responses,
highlights of the Report. He
including safety nets such as school
pointed to the low agricultural
feeding, food for work, and conditional
productivity, unequal
cash transfers. It also calls for
distribution of land and
increased agricultural production; a
access to water,
better understanding of the impact
inadequacy of
Adolfo Brizzi,
of bio-fuels; and action on the
infrastructure and
World Bank's Sector
trade front to reduce distorting
poor public service
Manager for
subsidies and trade barriers.
delivery as the
During the Q&A, many
Agriculture and Rural
major constraints
participants discussed and
hampering rapid
Development said: "there
debated over specific aspects
growth for
is an opportunity for
of the existing government
Pakistan's
policies and highlighted the
Pakistan to increase its
agriculture
need for more forward
sector. He also
agriculture exports by
looking approaches to make
said
that
investing in high value
agriculture a vibrant sector in
increasing water
products. Innovations in
the country's economy. The
scarcity, which is
discussants suggested the
expected to
technological advancements
immediate need for designing
worsen with
have proved economic gains
well-governed employment
climate change in
for other countries in the
schemes for rural population
the face of
and
introduction of targeted
increasing demand
region and Pakistan can
safety
nets as means for
for water is another
too benefit from
reducing
poverty
in Pakistan. The
major concern.
these
lessons"
representatives
from
the private
Pakistan has relatively
sector stressed the need for
better land per capita
improving rural investment climate to
availability which presents
enable innovative public-private
the cou ntry with better
partnership models. The event concluded with
opportunities to use small holding
a consensus over jOint efforts by public and private sector
farmers for agricultural growth.
as well as the civil society and farming community for
taking concrete actions that are needed to revitalize the
Mr. Brizzi informed the audience
agriculture sector.
about World Bank's New Deal on
Global Food Policy, which was
proposed in April this year and

11

Events

Yus upha Crookes, World Bank Country Director for Pakistan, 3rd from
Left at the Inaugural Session of the WBI Training Program

WBI In Country Training to

Build Capacity for Education
Assessment
The World Bank, Government of
Pakistan and the World Bank
Institute (WBI) arranged and
conducted an in country training
program as part of the objective of
capacity building for assessments
under the National Education
Assessment System (NEAS).
NEAS, supported by a World BankDFID project, is now functioning
as a mainstream institution within
the Ministry of Education to
develop and implement regular
assessments of key subjects for
Class IV and Class VIII students.

Established merely three years

ago, NEAS is now undertaking
analysis to identify weak areas of
learning in various subjects, and is
sharing the findings with
stakeholders such as teacher
training institutes, curriculum
wing, provincial education
departments in order to help them
improve the system . To further
strengthen capacity in areas that
requires specialized skills, this
WBr training was offered in
Pakistan to benefit all the resource
persons and staff directly involved
in various aspects of assessment .
The training, offered as three
modules between March - May
12

2008, included sessions on:

1. National Assessment and Policy Making-to target policy

makers and make them aware of the function and

importance of assessments
2 . Sampling Techniques for National and Provincial-level
Assessments-to build skills of statisticians and analysts
working in the NEAS national and provincial/area
centers
3. Test Development, Questionnaire Design, and
Preparation of Administration Manuals-all relevant NEAS
staff and resource persons who develop tests
4. Analysing National Assessment Data-targeting the
statisticians and report writers
The training was imparted by lead experts in their fields Mr. Vincent Greaney, Ghulam Choudhry, Thomas
Kellaghan, and Gerry Shiel.
The feedback received from participants strongly endorses
this approach of conducting training in country to benefit a
large number of relevant staff (more than 80 people
benefited from this training series), who found the training
relevant for their on the job requirements - as it was
targeted at building skills directly related to what the staff
working in NEAS are required to do .

Global Monitoring Report 2008

MDGs and the Environment- Age nda for Inclusive and Sustainable
Developme nt

At the halfway mark to the

Millennium Development Goals
(MDGs) deadline of 2015, the
world has not made the necessary
progress, but success is still
possible given certain conditions,
said World Bank economist Zia
Qureshi, lead author of this year's
Global Monitoring Report. While
much of the world is on track to
halve extreme poverty by the
deadline, prospects are much
graver for the goals of reducing
child and maternal mortality, and
serious shortfalls are also
expected in education, nutrition,
and sanitation. On current trends,
Sub-Saharan Africa could miss all
the MDGs, despite impressive
growth performance of recent
years. South Asia is seriously
behind on the goals related to
health and education. "Behind
these statistics are of course real
people, and lack of progress has
immediate and tragic
consequences," said Qureshi.
"Some targets are literally a
matter of life or death: There are
now 3 million more children who
survive past the age of five, but
there are 10 million children a
year who don't."

Six-Point Process Proposed to

Speed Progress
Difficult, yes, but not impossible,
says the report. Most countries
could still achieve most of the
MDGs if developed and developing
countries do their parts as agreed
to in the 2002 Monterrey
Consensus. The Global Monitoring
Report proposes a six-pOint
agenda to move the process
along, calling for stronger and
more inclusive growth in Africa
and fragile states, more effort in
health and education, integration
of the development and
environment agendas, more and
better aid, movement on trade
negotiations and stronger and
more focused support from
international institutions like the
Bank. Speaking at the Center for
Global Development, Bank
president Robert B. Zoellick called
13

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for a New Deal for Global Food Policy to address the

"forgotten MDG": nutrition. "Even though hunger and
malnutrition fall under the very first MDG, beyond
traditional food aid, they receive only about one tenth of
the resources appropriately directed to HIV/AIDS, another
killer. Yet malnutrition is the MDG with the greatest
"multiplier" effect: it is the largest risk factor for kids under
five and the underlying cause of an estimated 3.5 million of
their deaths each year. More than 20 percent of maternal
deaths are traced to malnutrition," said Zoellick. "Hunger
and malnutrition are a cause, not just a result, of poverty."
Zoellick has also stressed that the 2008 halfway point must
be a turning point, joining the UN, the UK and other donors
in declaring this a Year of Action on the MDGs.

Environment-Development Link Emphasized

This year's Global Monitoring Report, stresses the link
between environment and development and calis for
urgent action on climate change. It argues that
environmental sustainability underpins progress on other
IVIDGs. If forests are lost, soils degraded, and water and air
polluted, and greenhouse gas emissions not contained,
achievements in poverty reduction and human
development will not be sustainable. While per capita GDP
growth in developing countries has contributed strongly to
poverty reduction, developing countries will need support
in order to achieve growth with environmental
sustainability if they are not to lose hard-won gains.
Developing countries will suffer most from climate change
and are least able to adapt. Transition to climate-resilient
and low-carbon growth will require financing and
technology transfer to developing countries, the report
says. "Developing countries need more foreign aid and
domestic resources to reach the MDGs. High economic
growth and a stable macroeconomic environment remain
essential for reducing poverty and increasing investment in
health and education," said Dominique Strauss-Kahn, IMF
Managing Director.

- ...

Pakistan at a Glance

POVERTY and SOCIAL

2006
Population, mid-year (millions)
GNI per capita (Atlas method, US$)
GNI (Atlas method, US$ biffions)

Pakistan

South Asia

Low-Income

159.0
800
126.7

1,470
684
1,005

2,353
580
1,364

2.4
3.8

1.7
2.1

1.9
2.3

35
65
79
38
91
47
87
99
75

29
63
66
45
84
60
110
116
105

31
59
80
39
75
62
104
110
99

Average annual growth, 2000-06

Population ('Yo)
Labor force ('Yo)
Most recent estimate (latest year avaIlable, 2000-06)
Poverty (% of population below national poverty line)
Urban population (% of total population)
Life expectancy at birth (years)
Infant mortality(per 1, 000 live births)
Child malnutrition (% of children under 5)
Access to an improved water source (% of population)
Literacy (% of population age 15+)
Gross primary enrollment (% of school-age population)
Male
Female
KEY ECONOMIC RAnOS and LONG-TERM TRENDS
1986

1996

2005

2006

GOP (US$ billions)

38.1

76.2

109.5

126.8

Gross capital formation/GOP

Exports of goods and services/GOP
Gross domestic savings/GOP
Gross national savings/GOP

18.5
10.3
6.7
16.5

18.9
14.0
12.0
15.2

19.1
15.7
15.2
25.6

21.7
15.3
13.7
23.6

Current accou'lt balance/GOP

Interest payments/GOP
Total debt/GOP
Total debt service/exports
Present value of debt/GOP
Present value of debt/exports

-2.0
1.5
39.3
25 .0

-6.0
1.6
39.1
28.3

-1.0
0.7
30.8
10.9
25.8
125.9

-4.3
0.7
28.4
8 .8

2005

2006

2006-10

4.2
1.8
8.2

7.7
5.1
9.6

6.9
4 .7
9.9

6.6
4.5
4.1

1986-96

(average annual growth)

GOP
GOP per capita
Exports of goods and services

5.0
2.3
8.0

1996-06

STRUCTURE of the ECONOMY

1986

1996

2005

2006

(% ofGDP)
Agriculture
Industry
Manufacturing
Services

27.6
23.4
16.3
49.0

24.7
23.5
15.2
52.2

21.5
27.1
18.6
51.4

19.4
27.2
19.5
53.4

Household final consumption expenditure

General gov't final consumption expenditure
Imports of goods and services

77.3
10.7
16.9

74.4
10.5
17.8

76.9
7.8
19.6

75.5
10.9
23.3

2005

2006

1986-96
4.3
5.8
5.2
5.1

2.4
5.5
7.1
4.8

6.5
12.1
15.5
8.5

1.6
5.0
10.0
9.6

Household final consumption expenditure

General gov't final consumption expenditure
Gross capital formation
Imports of goods and services

4.7
3.0
4.3
4.3

3.7
4.5
2.2
3.1

12.1
1.7
16.7
40 .5

3.3
48.3
12.1
18.7

Note: 2006 data are preliminary estimates. Group data are for 2005.

lY

1996-06

(average annual growth)

Agriculture
Industry
Manufacturing
Services

Pakistan at a Glance

PRICES and GOVERNMENT FINANCE

1986

1996

2005

2006

Domestic prices
(% change)
Consumer prices
Implicit GDP deflator

3.8

10.8
8.7

9.3
7.0

7.9
9.3

Government flnance
(% of GOP, includes current grants)
Current revenue
Current budget balance
Overall surplus/deficit

14.6
-0.8
-6.8

15.0
-2.4
-6 .0

13.7
-0.8
-3.1

14 .2
-0.6
-3.7

TRADE

1986

1996

2005

2006

2,945
513
342
2,055
6,002

8,311
507
504
4,989
12,015
1,519
2,010

14,401
111
933
8,268
18,753
706
4,534

16,764
124
1,011
9,881
23,967
783

119
113
106

124
131
94

128
142
90

(US$ millions)
Total ex ports (fob)
Cotton
Rice
Manufactures
Total imports (cif)
Food
Fuel and energy
Capital goods

1,039

Export price index (2000=100)

Import price index (2000=100)
Terms of trade (2000=100)

BALANCE of PAYMENTS

1986

1996

200S

2006

(US$ millions)
Exports of goods and services
Imports of goods and services
Resource balance

3,796
7,230
-3,434

9,977
15,227
-5,250

17,801
25,608
-7 ,807

20,345
33,232
-12,887

Net income
Net current transfers

-640
3,302

-1,953
2,610

-2,386
9,125

-2,676
10,105

Current account balance

-772

-4,593

-1,068

-5,458

Financing items (net)

Changes in net reserves

1,200
-428

4,163
431

458
610

6,588
-1,130

Memo:
Reserves including gold (US$ millions)
Conversion rate (DEC, local/US$)

1,638
16.1

2,839
33.5

10,722
59.4

12, 053
59.9

EXTERNAL DEBT and RESOURCE FLOWS

1986

1996

2005

2006

14,954
605.
1,560

29,829
3,007
3,480

33,675
2,238
6,865

36,079
2,151
7,777

IDA

1,626
88
26

3,287
436
63

2,443
404
167

2,269
383
152

Composition of net resource flows

Official grants
Official creditors
Private creditors
Foreign direct investment (net inflows)
Portfolio equity (net inflows)

315
398
55
106
3

200
1,115
556
922
285

911
590
933
2,183
451

World Bank program

Commitments
Disbursements
Principal repayments
Net flows
Interest payments
Net transfers

756
249
50
199
63
136

558
651
265
386
234
152

1,550
845
427
419
145
274

1,498
975
387
588
148
440

(US$ millions)
Total debt outstand ing and disbursed
IBRD

IDA
Total debt service
IBRD

834
852
3,500

Note; 2006 data are preliminary estimates. Group data are for 2005.

15

I ncreasing World Food Prices

Increasing World Food Prices

World food prices have been
increasing rapidly since 2006, and
the rate of increase during 2007
had been much higher than
average. According to the Food
and Agriculture Organization
(FAO), overall food prices have
increased by 75 percent in dollar
terms since 2000.

Shanta Devarajan, World Bank

Chief Economist for South Asia,
who has now moved to Africa
region said, "Most countries in
South Asia are net importers of
food and have suffered severe
terms of trade shocks of 1 percent
of GDP," The foreign exchange
earnings and international
purchasing power for these
countries have also decreased.
He said that many countries in the
region have cash-transfer
programs and schemes that
provide grains at lower costs
directly to the poor. He advised
the governments "to enlarge the
safety nets by increasing the
amount of cash- transfers and the
number of people receiving low
cost grains while still passing on
the price increase to other
domestic consumers who can
better afford it." Devarajan
believes that food prices are likely
to continue to increase in the near
16

future. He attributed this phenomenon to raising

standards of living in countries like China and India,
increased use of food
crops for bio-fuels
and animal feeds,
and increased oil
Expanding
and fertilizer
existing social
prices. In South
Asia, which has
assistance
the I a r g est
concentration
programs that
of poor people
in the world,
directly target poor
the increase in
households is
par tic u I a r I y
food prices is
dam a gin g necessary to protect sin c e f 0 0 d
accounts for a
South Asia's poor
sub s tan t i a I
share of poor
in the face of a p e 0 pie's
dramatic increase
income. South
in global food
Asian countries,
however, have
prices
very few options
available to deal
wit h
the
c h a I len g e
Devarajan advised
that governments have to
be careful that such
measures do not end up hurting those they want to help.
Options for South Asian Governments
Price Controls:
In the past, South Asian governments have resorted to
imposing price controls which actually created food
shortages that ultimately hurt the poor. "Imposing price
controls benefits the middle-class families and the nonpoor," said Devarajan. If food prices are controlled, it
makes farmers less likely to produce crops to meet the
increasing demand. This will have an even more adverse
impact on food prices.
Subsidies:
Devarajan also recommended against untargeted
subsidies, which are mostly counter-productive as they
put bigger stress on the budget because governments
have to pay for the support. Borrowing from the ~entral
bank is one way of financing the subsidies, but this lead
to higher inflation.

Increasing World Food Prices

Devarajan said targeted subsidies

are a better option. They have
been used in South Asia to provide
relief for poor families in the past,
and, by definition, they are not
universal and exclude the betteroff who can afford to pay market
price. As an example, he cited
Bangladesh where mostly poor
people consume low-cost coarse
grain. The government was able
to provide relief following the
recent floods and cyclones by
targeting poor people with this
type of grain.
By using targeted subsidies,
governments will be able to
protect poor families without
distorting the relative prices of
food products, while reducing the
overall cost to the budget.

Long-term Solution:
Even with targeted subsidies,
many of the programs will be seen
as permanent if food prices
continue to rise. Targeted or
untargeted, eventually these
programs will be a drain on the
treasury. Therefore, such
schemes have to be time bound,
and governments have to develop
a long-term strategy to address
food price increases.

17

One of the best ways to reduce food prices is to increase

agricultural productivity. The World Development Report
2008, entitled "Agriculture for Development," has called
for a revival of agriculture in South Asia.

Suggestions for South Asia

Bangladesh: Most affected by price increase
Bangladesh, which imports a substantial portion of major
grains consumed by its people, has been particularly badly
affected by the continued increase in world food prices.
Natural disasters in the past year - two major floods in July
and August 2007 and a cyclone in November 2007 destroyed about 2 million metric tons of rice crops.
Bangladesh is currently importing rice from its immediate
neighbors, India and Myanmar, to meet the shortage.
Devarajan pOinted out that this has already created a
problem because, several times in past few months, India
has imposed ban on rice exports or has increased the
minimum export price, and each time, the price of rice in
Dhaka spiked .
However, Devarajan is confident that Bangladesh "has the
potential to cushion the blow on its poor. The country has
very well run social assistance programs that have worked
well during the floods and cyclone of 2007 . At the same
time, Bangladesh should try to avoid measures such as
price controls or untargeted subsidies even if they are
politically popular," cautioned Devarajan .

Pakistan: New Government

Unlike Bangladesh, Pakistan does not have a widespread
social assistance program that targets the poorest of the
poor. In addition, most Pakistani families consume the
same kind of wheat, making it difficult to target poor
people. Any subsidy on wheat will thus be an untargeted
subsidy. Since a newly elected government has just come

Increasing World Food Prices

transfers, where leakage is minimized. We know this can be

done because we saw the excellent response from the
government after the earthquake where affected families
were provided relief and cash transfers quickly and
effectively."

India: Phase out Minimum Support Price (MSP)

The Indian government buys wheat from farmers at a
Minimum Support Price (MSP), which is highly distortionary
and contributes to high costs for its budget. Devarajan
suggests that the government should use this opportunity
to do away with this policy, since the world food prices are
about the same as MSP. "The subsidy has a high leakage to
higher-income groups," he said.

into power, it is imperative that it

withstands pressure to act in ways that
may not be efficient in addressing the
needs of poor.

Sri Lanka: High Inflation

Devarajan said Sri Lanka is also a net importer of food
products, and food price inflation is estimated at 34
percent. However, the country is already facing high
inflation with an average of 20 percent, independent of
food prices . The high inflation is partly due to government
borrowing a large amount of money from the central bank.

Nepal: Scale up
Nepal also depends on food imports from India
and other countries to manage its needs.
During a recent visit to Pakistan,
Devarajan said "Nepal needs to expand
Fast-Track
Praful Patel, World Bank Vice
already existing social assistance
Facility for Food
President for South Asia,
programs in rural areas." However,
Crisis
said that high international
he pOinted out that Nepal has a
The World Bank Group has
limited social assistance program
prices for petroleum and
food commodities are
to protect the urban poor.
recently announced a new $1.2
creating challenges for
billion rapid financing facility to
Urban and Rural Poor
the
Pakistan'S
address immediate needs,
While almost all urban poor
economy. Patel
including $200 million in grants
people are net food
discussed with
targeted at the vulnerable in the
consumers, the situation with
Pakistani leaders
the rural poor is different.
ways to protect the
world's poorest countries. As it
Farmers who are net
poor as domestic
announced several measures to
producers are benefiting
prices are adjusted.
address immediate to longer-term
from higher food prices.
Patel offered World
However, farmers with small
Bank technical food challenges, the Bank Group said
it would boost its overall support for arable lands and landless
assistance to build
laborers are net consumers of
upon international
global agriculture and food to $6
food,
as they may not produce
best practice in
billion next year, up from $4
sufficient amounts for their
responding to the
billion, and would launch risk
families'requirements.
cu rrent situation.

management tools, and crop

insurance to protect poor
"Any adjustment will be
painful," said Patel. "But
countries and smallthere must be an appropriate
holders
safety net for the poor. The
incoming government has requested
our support, and we will help ensure
there are smart subsidies to the
poorest. These must be well targeted
and efficient programs, including cash

19

Latest Publications

Strategic Environmental Assessment for Policies: An Instrument for Good Governance

Environmentally and socially sustainable policies are essential for good governance. Strategic
Environmental Assessment (SEA) is the key tool for integrating environmental considerations into
policies, programs and plans. This book focuses on SEA applied to policies. Through lessons
learned from previous use of SEA on policies, it draws lessons on the strengths and weaknesses of
current SEA methodology. It then goes on to analyze how policies are formulated and
implemented and proposes a new conceptual framework for conducting SEA of policies that
potentially could be more useful in influencing decision makers to integrate environmental
sustainability considerations into policy formulation and implementation.
Small States, Smart Solutions: Improving Connectivity and Increasing the
Effectiveness of Public Services
Small states face special hurdles in achieving development gains. These states spend significantly
more of their GDP on producing public goods and services, and they face higher connectivity costs
than do their larger brethren. Small States, Smart Solutions examines how some small states use
international trade and telecommunications technology to outsource services such as justice,
banking supervision, public utilities regulation, high-quality medicine, and education. Sourcing
these services internationally poses unique challenges but also opens broad opportunities. The
eight case studies in this book, based on interviews with government officers and citizens,
describe pioneering initiatives undertaken by some small states to better the quality of life of their
citizens.
Accounting for Infrastructure Regulation: An Introduction
This title provides a practical guide for regulators, policy-makers, and utility managers for
establishing regulatory accounts that can be the cornerstone for better, more complete, and more
reliable information. It sets out the essential accounting features of regulatory accounts and
provides practical guidance on controversial areas such as cost allocation, asset valuation, and
depreciation. It emphasizes the essential requirements for consistency with Generally Accepted
Accounting Principles (GAAP).
Linking Education Policy to Labor Market Outcomes
Linking Education Policy to Labor Market Outcomes examines current research and new evidence
from Ghana and Pakistan-representative of two of the poorest regions of the world-to assess
how education can increase income and help people move out of poverty. This study indicates that
in addition to early investments in cognitive and noncognitive skills-which produce a high return
and lower the cost of later educational investment by making learning at later ages more
efficient-quality, efficiency, and linkages to the broader macro-economic context also matter.
Education and relevant skills are still the key determinants of good labor market outcomes for
individuals. However, education policies aimed at improving skills will have a limited effect on the
incomes of that skilled workforce or on the performance of a national economy if other policies that
increase the demand for these skills are not in place.
Inclusive States: Social Policy and Structural Inequalities
The heterogeneity of social structures and cultural identities in many developing countries,
together with traditional hierarchies, rivalries, and deep-seated biases, has perpetuated
inequities. IncluSive States: Social Policy and Structural Inequalities examines the role of the state
and society in addressing structural inequalities and identifies a set of policy recommendations to
redress them . This book defines structural inequality as a condition arising from unequal status
attributed to a category of people in relation to others, a relationship perpetuated and reinforced
by unequal relations in roles, functions, decision rights, and opportunities. Inclusive states are
those that direct poliCies to address the needs of all, that respect the rights of citizens to exercise
voice and influence on which services are provided and how they are delivered, and that have an
interest in strengthening the social contract with their citizens. A central focus of policy remains a
concern for equity, both to level the playing field to encourage social mobility and to ensure equity
in the distributional effects of policy reforms and development interventions.
Unleashing Prosperity: Productivity Growth in Eastern Europe and Former Soviet Union
Many countries of Eastern Europe and the former Soviet Union have experienced strong growth
over the past five years, with a rapid improvement in living standards. Key to this positive dynamic
has been a productivity surge driven by substantial progress along the transition path, including:
(i) a progressive shift of resources towards the higher productivity service sector, (ii) reallocation
within the service, manufacturing, and agriculture sectors toward higher productivity uses; (iii)
increasing importance of "within-firm" productivity growth as a driver of productivity growth,
especially in the more advanced countries; and (iv) declining contribution of firm turnover as
transition matures. Both domestic and globalizing factors have contributed to the productivity
surge which has also helped to narrow the productivity gap between lower income and higher
income countries, as well as between more advanced and less advanced reformers. While first
generation reforms that accelerate the reallocation process and promote new entry and exit of less
productive firms remain important, second generation reforms to promote within-firm
productivity growth are becoming more important. The latter need to rely more on reducing labor
market rigidities, trengthening the quality of human capital, promoting competition in product and
factor markets, fostering innovation, and furthering financial deepening.
MiniAtlas of Human Security
Drawing upon data from the Human Security Report 2005, this miniAtlas of Human Security uses
colorful world maps and other graphics to chart the incidence and severity of global violence. With
easy-to-read text and captions, this fourth volume in the World Bank miniAtlas series provides a
visually-compelling introduction to a dramatic but largely unknown trend: the decline in the
number and deadliness of armed conflicts and wars over the past 1 5 years.

1"9

Interview With World Bank Staff

Qazi Azmat Isa

What is your
educational
background?
I
studied
Chartered
Accountancy in
the UK and then
did a Masters in
R u r a I
Development,
but
the
education that I have valued the most
has come from the people of this
beloved land of ours in villages and
kutchi abadis their profound wisdom
has been a source of great learning,
understanding and inspiration for me.

also pr?vides continuous opportunities of learning and growth

and with Its Immense convening power to forge genuine
partnerships between key players in the development process.
However, to be effective and make all these resources work for
the poor, each one of us must bring a passionate commitment
deep knowledge of our clients and the courage to take risk and t~
act . .ThiS paradigm of Ishq (passion); 11m (knowledge); and Amal
(action) has become my guide in all that I do. And the best way
that I have found to stay true to this paradigm and keep the fire
,~.urnlng'. ha,~ been to remain close to those we serve, through
Immersion; a process, largely developed and used by me in
prepanng, appraising, and supervising projects which includes
staYing nights in villages to have first hand knowledge of the
Impact of our interventions, build trust with the client and above
all know their dreams, hopes and aspirations.

How long have you been working

with the Bank? and What
encouraged you to join the Bank
It has been ten years this year - quite
a milestone! Well it was for a very
specific reason that I joined the Bank.
Prior to joining the Bank I was heading
the Balochistan Rural Support
Program trying to make a difference in
the lives of the poor who inhabit some
of the toughest environments in the
world and though our work received
great recognition, very few donors
were willing to commit resources and
we were always struggling for funds not a very healthy situation! Bilaterals
had their own specific agendas,
supporting a particular sector or had a
preference for a particular province
and somehow it was seldom
Balochistan; and the multilaterals did
not support civil society organizations
- so civil society was left to the
vagaries of political agendas or
neglect. So an idea of having an
indigenous apex funding organization
that would support civil society
organizations without prescribing a
particular ideology was planted and I
realized that the best organization to
fund this apex would be the World
Bank as it had the clout both in terms
of resources but also in terms of
influencing policy.

Can you brie!ly tell us about your sector and the projects
you are workmg on?
My ten years with. ~he World Bank have been spent mostly in
prepanng, appraising and supervising community driven
development (CDD) projects across sectors and my very diverse
portfoliO has Included the Pakistan Poverty Alleviation Fund,
Sindh . Onfarm Water Management, Balochistan Primary
Education, the Punjab Municipal Development Fund Balochistan
Small Scale Irrigation; including more recently proje~ts that have
responded and have dealt with disasters, both at the relief and
rehabHitation stages, for instance Drought Mitigation in
Balochlstan, the Sindh Coastal Development initiative and
Earthquake reconstruction in the north done through the PPAF.
How are these projects contributing towards Pakistan's
development?
Three fundamental and positive changes have taken place in the
development landscape of Pakistan in the last decade. Firstly,
there IS now an understanding and recognition, beyond the NGO
world that we must invest in "institutions of the poor" for it is
these that give them voice, agency and empower them to interact
with the public and private sectors. Secondly, civil society has
come . of age - we see the manifestation of this through the
effective advocacy role that it has been playing on a range of
Issues and also the range of services that it is providing to the unserved In the country. And thirdly, micro-credit has finally arrived
in Pakistan, with micro-finance institutions achieving the first one
million borrower breakthrough. In all these developments, I am
pleased to say PPAF has played a substantial role. PPAF is
partnering with 73 civil society organizations from Gilgit to
Gwadar; has reached over 30,000 villages and formed nearly
100,000 community organizations. Delivering to them over one
million micro-credit loans; nearly twenty thousand infrastructure
schemes, over 100,000 skill and management training, one
hundred and fourteen thousand seismically safe houses, training
ne~rly each of these home owners along with nearly 20,000
artisans In seismically safe building techniques. PPAF has evolved
in a unique manner. It is a true example of a cross sectoral
operation, touching many varied aspects of the lives of poor
Pakistanis in a very positive way.

Would you like to share your

experience at the Bank with us?
My experience at the Bank has been
fantastic; the organization provides a
wonderful opportunity to make a
difference in the lives of the poor. The
global experiences, best practices,
incredible colleagues all under one
organization make for a heady
mixture and a great place to work. It

THE

WORLD BANK
PAKISTAN
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Mariam Altaf - Public Information Centre (PIC)

20-A, Shahrah-e-Jumhuriat, Ramna 5, G-5/1,
Islamabad 44000, Pakistan .
Ph: +92512279641-7, Fax : +92512823295
Email: mariamaltaf@worldbank.org
Sina K. P +92 4 5 sio :i 59g : E ~i ~~;il@;i.;.;~il~~~

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