ADB’s IED rates tech aid for supporting economic corridor successful, relevant

ISLAMABAD: The Independent Evaluation Department (IED) of the Asian Development Bank (ADB) has rated technical assistance for “Pakistan: Supporting Economic Corridor Development through Strategic Planning Frameworks” as successful and relevant.

The IED in its validation report stated that the technical assistance (TA) project was aimed to provide knowledge support to Pakistan government in preparing its national plan with focus on promoting efficient growth and connectivity, particularly through economic corridor development (ECD).

The TA report noted that the growth and trade performance of the government of Pakistan had stalled and was largely driven by consumption with low levels of investment due to perceived security issues, energy shortages, and a poor business regulatory environment.

In 2016, ADB approved a small-scale TA to provide basis for initial assessment of viable economic corridors in Pakistan. Economic corridor development was reflected in the [People’s Republic of] China-Pakistan Economic Corridor, as well as in the corridor projects under the Central Asian Regional Economic Cooperation (CAREC).

At the request of the government of Pakistan, the subject TA was approved as a follow-on TA to (i) further assess the potential of ECD to boost industrial productivity, exports, and job creation and (ii) thereby contribute to sustained, increased, and equitable economic growth.

The development of an ECD policy and operational framework were intended to support Pakistan’s participation in global value chains and enhance its trade and economic competitiveness, supported by feasibility studies for ECD identification, design, and implementation, and an ECD knowledge hub to support capacity and decision making.

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The overall logic of the results chain was clearly shown such that the intended outputs to be adopted or established at completion (i.e., framework, analytical tools, and ECD hub) could directly contribute toward better integrated ECD planning.

However, the intended outcome of increased investments was ambitious for a policy-relevant TA and would entail a wider and longer-term ADB partnerships and operations in Pakistan and in the region.

The TA extension was approved in June 2020. The main justification for extending the TA for another year was the setback in establishing an ECD hub in view of the need to wait for the delivery of three outputs. This validation views that there could have been a more thorough review of the feasibility of establishing an ECD hub at the time when governments worldwide were addressing the pandemic, and further collaboration and integration in this area became the least priority.

Extending the TA mainly to give time to deliver Output 1, Output 2, and Output 4, as well as the possible re-scoping of Output 3 (ECD hub establishment) given the recent global health crisis, would have been a more appropriate justification.

The TCR rated the development of frameworks (Output 1 and Output 4) as achieved, while the development of analytical tools (Output 2) was partly achieved, and the establishment of ECD hub (Output 3) was not achieved.

The ECD and special economic zone (SEZ) strategic policy frameworks were incorporated into national policies, as part of the Ministry of Commerce (MoC) Strategic Trade Policy Framework 2018–2023. In addition, the TA’s knowledge product Economic Corridor Development in Pakistan was referenced by the Ministry of Industries and Production as part of its mandate to prepare Pakistan’s industrial policy framework.

The TCR noted that the TA presented case studies on global best practices, held meetings with federal and provincial governments, and consulted with stakeholders through focus group discussions, and seminars on the potential and challenges of ECD.

The TCR noted that 10 analytical tools on ECD were developed in close consultation with the GoP and stakeholders. It also noted that the tools were taken up by the State Government of Punjab’s urban unit for data collection and that the tools informed the main ECD study listed in Output 1. The TCR did not note though that these analytical tools were adopted.

The establishment of the ECD hub was intentionally sequenced to follow the other three outputs. ADB undertook some preliminary activities to scope think tanks for their potential to contribute to the hub.

The TCR noted that the ECD hub was not established. The TCR noted that the policy framework for improving competitiveness was incorporated as part of the MoC Strategic Trade Policy Framework, 2018–2023, which entailed preparing a national policy for improving competitiveness, a national tariff policy, and a trade-related investment policy framework.

Copyright Business Recorder, 2023