The World Bank is likely to approve shortly a $100 million concessional loan from its International Development Association (IDA) wing for 'Third Punjab Education Development Policy Credit (PEDPC-III)' to enhance access and quality of education and improve gender parity in the province.
Sources told Business Recorder that PEDPC-III would be the last of a series of three development policy credits to support Punjab Government's three-year Education Sector Reform Program (PESRP).
The program would contribute to helping Punjab progress towards the Millennium Development Goals (MDGs) related to poverty reduction, achieving gender parity and universal primary enrolment.
According to the Bank, Pakistan's education indicators compare poorly with those of other countries of similar economic standing. Therefore, improving human development outcomes is a key priority for Pakistan, and forms a core objective of the national Poverty Reduction Strategy Paper (PRSP).
The project will focus on improving fiscal management, service delivery and public finance reforms to increase public spending for education (and other pro-poor services). It will also ensure fiscal sustainability and reforms to strengthen devolution and improve governance as well as education sector reforms.
The project was planned to be financed through International Development Association (IDA) and its maturity period would be 35 years with a grace period of 10 years. The implementing agency would be the government of Punjab.
The purpose of this third development policy credit is to provide budget support for Punjab, which is implementing a wide-ranging sector reform agenda backed by fiscal and fiduciary reforms.
Sources said that the WB's program documents of the first and second Punjab Education Sector Adjustment Credit evaluated the three-year Punjab Education Sector Reform Program (PESRP).
There has been steady progress during the first two years of the programme, which has been supported through the first and second credit, and a number of sector initiatives have shown impact, including promising increases in enrolment.
Before the first credit, sources said, PESRP was considered a high-benefit, high-risk program. However, the first year of implementation showed a reduction in risk and higher benefits than anticipated.
They said that, given the success of the first and second year program, the overall risk rating was moderate for the second year program. Nevertheless, according to the Bank, there was a need to maintain continued vigilance in case of change in priorities and focus through political pressure, both at the provincial and districts level.
According to sources, the main benefits will be reversing decline in education indicators, bringing more children into schools up to grade eight (particularly poor children and girls) sooner than previously expected, providing better quality education.
Another indirect, but important, benefit is that the program is strengthening decentralisation by increasing the role of districts, and promoting accountability between service users (parents and students) and service providers (schools and teachers).