ISLAMABAD: The Economic Coordination Committee (ECC) has approved Rs4 billion technical supplementary grant (TSG) for actions to Strengthen Performance for Inclusive and Responsive Education (ASPIRE) programme being implemented with the financial support of the World Bank.
Ministry of Federal Education and Professional Training (FE&PT) is implementing program titled, Actions to Strengthen Performance for Inclusive and Responsive Education (ASPIRE) with the financial support of the World Bank amounting to US$ 200 million.
Sources said that Ministry in a summary to the ECC meeting dated 10th May 2023 informed that the Financing Agreement was signed on 21 August 2020 by the CAD for the programme that provides performance grants to provinces on an annual basis to reduce poverty and increase access to education in lagging districts of Pakistan.
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The WB disburses the funds directly to the Federal Consolidated Account on achievement of Disbursement Linked Indicator (DLIs). Under this program, $150 million has been earmarked for five years as budgetary support for federal and provincial education departments. These funds are required to be allocated at US$ 30 million per year (Rs6 billion) in the current non-development budget of Ministry of Federal Education and Professional Training.
And remaining US$ 50 million in this program are included as a budgetary support for the Federal Finance Division to facilitate the annual allocation of funds. The disbursement of US$ 50 million is contingent upon the allocation of US$ 30 million equivalent amount in Pakistani rupees from the Finance Division on an annual basis for five years.
The WB has already disbursed Rs15.7 billion, equivalent to US$ 92.4 million, in Federal Consolidated Account in two trenches – Rs8.41 billion equivalent to US$ 52.38 million were transferred to Account-1 vide SBP Advice dated 27-January-2021 and Rs7.26 billion equivalent to US$ 40 million vide SBP Advice dated 29-March-2022. In fiscal year 2021-22, the Finance Division allocated and released Rs3.6 billion to the Ministry of FE&PT, equal to US$ 22.5 million. These funds were transferred to all four provinces as per their respective share; however, since the target of US$ 30 million was not achieved and US$ 10 million was lapsed.
In fiscal year 2022-23, the Ministry of FE&PT requested the Finance Division to allocate Rs4.8 billion to current non-development budget of the FE&PT Ministry in lieu of funds already received by the federal government from the WB; however, the Finance Division has only allocated Rs2 billion. The Ministry of FE&PT is expecting an additional US$40 million in disbursement from the World Bank in fiscal year 2022-23 upon achievement of disbursement linked results (DLRs), however, additional fund allocation of Rs4 billion equivalents to US$ 20 million is required to achieve these DLRs and the target of US$30 million.
Copyright Business Recorder, 2023
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