J)ouIm of

The World Balk

FOR OmCLxL JS ONLY

bpa No. P-6044-PA

MEK0RMM ANID RtECOaW&ATIO

OF THTE

lWSIlEEIT OFr TM

INTfEAIoNAL DEMLPMW ASSOCI'ON

TO TME

IEOTI DIRCTORS

ONA

PROPOSED CREDIT

OF SDR 20.4 ILLION

TO THE

ISLWMC REPUIBLIC OF PAISTAN

FOR A

IDRTUEN RESOuRC NAAGENK PmECT

MY 24, 1993

MICROFICHE COPY

Report No. :P- 6044 PAK Type: (PM)Title: NORTHERN RESOURCE I4ANAGE14ENT PAuthor: HOTHA, G.Ext. :82050 Room:E 9015 Dept.:SA3AG

This docUment has a resticted distribution anW wosy be used by recpieots only in tbe performae of*elr offilW duties. lts contbe may not otherwise be disclooed ithout Wo,ld Bank aaoratbitz

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CURRENCY EQUIVALENTS

Currency Uhit = Rupees (Res)US$1.00 - Rs 26.27 (May 1993)

FISCAL YEAR (FY)

July 1 - June 30

ACRONYMS USED

AERU - Agricultural Economics Research UnitAJK - Azad Jammu and KashmirAKRSP - Agha Khan Rural Support ProgramATI - Agricultural Training instituteDOA - Department of AgricultureDOAH - Department of Animal HusbandryDOF - Department of ForestryECNEC - Executive Committee of the National Economic CouncilGOP - Government of PakistanNCS - National Conservation StrategyP&DD - Planning and Development DepartmentPWD - Public Works DepartmentSMUT - Social Mobilization UnitVDC - Village Development Committee

FOR OFFICIAL US0 ONLY

ISLAMIC REPUBLIC OF PAKISTAN

NORTHERN RESOURCE MANAGEMMET PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: Islamic Republic of Pakistan

Beneficiaries: Azad Jammu and Kashmir

Amount: SDR 20.4 million (US$ 28.8 million equivalent)

Terms: Standard, with 35 years maturity.

On-Lending Terms: Not applicable

Financing Plan:

MS million

IDA 28.8GOP 5.7Farmers 1.51

6 .o0a/

A/ contribution of labor by farmers.2.1 Includes taxes and duties.

Economic Rate of Return: 13*

Staff Appraisal Report: Report No. 11751-PAK

Map: IBRD 24703

Thsb document a sticted distributon and may be usd by reipients oy In the poefonnanceof de officW dutios Its contnts may n otherwise be discsed without Word Bank autodaton.

MEMORANDUM AND RECOM1==DATION OF THE PRESIDENTOF THE INTERNATIONAL DEVEWPMNET ASSOCIATION

TO THE EWXCUTIVE DIRECTORSON A PROPOSED CREDIT

TO THE ISLAMIC REPUBLIC OF PAKISTANFOR A NORTHERN RESOURCE MANAGEMENT PROJECT

1. I submit for your approval the following report and recommendationon a proposed development credit to the Islamic Republic of Pakistan for SDR20.4 million, US$28.8 million equivalent, on standard IDA terms, with amaturity of 35 years to help finance a Northern Resource Management Project.

2. countrylsector, Back tud. Pakistan has a fragile environmentwhich is sensitive to misuse. Rapid growth of human and livestock populationsin recent decades has put increasing pressure cn the country's naturalresources. The Government of Pakistan (GOP) has recognized the growingimportance of resource conser-xation, and has recently prepared and endorsed aNational Conservation Strategy (NCS). The NCS stresses the need for policyand regulatory reforms, and strengthening of resource management institutions,especially community based institutions at the village level

3. The project area, Azad Jammu and Kashmir (AJK), is located in thefoothills of the Himalayas. Per capita income is low at about US$280 comparedto US$410 for Pakistan. AJK is undergoing serious natural resourcedegradation, mainly loss of soil cover and wildlife habitat because ofdeforestation of the hillsides. There is a close interaction between povertyreduction, agricultural productivity and environmental degradation andappropriate government services and policies are necessary to minimizedegradation.

4. The institutions resronsible for natural resource management inAJK, the Departments of Agriculture (DOA), Animal Husbandry (DOAH), andForestry (DOF) are weak and ill-equipped to effectively address landmanagement problems in a comprehensive manner. Unsuccessful attempts havebeen made since 1974 to restructure these institutions. Staff of DOA, DOAHand DOF are poorly trained and are primarily involved in activities which arebetter handled by the private sector. This has resulted in a diversion ofresources away from the core activity of technology dissemination -demonstration and promotion of sustaiiable land management techniques. Theseinstitutions also lack skills in group participation, agro-forestry and soilconservation techniques. The staff strength in livestock services isextremely limited and is further constrained by the lack of operating fundsfor equipment and preventive treatments. In addition, DOA and DOAH have nocapacity for planning and economic analysis, or for evaluation of policyactions or programs.

S. The policy framework also needs reform. There is an excessiveinvolvement of government in production and input distribution activitieswhich could be undertaken by the private sector and for which the privatesector has shown interest. In addition, inputs are heavily subsidized,leading to inefficient use of these resources. AJK also has weak transportinf.rastructure, which limits access to agricultural inputs and sale of output

6. Strategy. The strategy for hill area development pursued underthis project is consistent with the overall Bank country assistance strategyfor Pakistan, which is to: (i) expand the provision of basic social services;

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(ii) diversify and expend the productive base; (iii) improve the managementand use of the country' natural resources; and (iv) overcome severe physicalinfrastructure bottlenecks. Within this overall strategy, the project aimsto: (i) increase the productivity and incomes of the local farming community;and (ii) develop and use natural resources in AJK in an economicallysustainable and ecologically sound manner. The strategy under the projectemphasizes: (i) developing and strengthening human resources and localinstitutions; (ii) reorienting the policy framework through transfer ofactivities to the private sector and subsidy removall (iii) formulatingextension and adaptive research programs; and (iv) focussing on communitygroups and adaptive research aimed at introducing environmentally friendly andprofitable farming techniques.

7. LesngnS Learned from Preu_ Bank/IDA Involvemnt. The strategytakes into account the lessons learned from earlier Bank projects, and theexperi-inces of other donors oporrating in AJK and of the Agha Khan RuralSupport Program (AXRSP), especially in group formation and communityparticipation. These include: (i) local conmumnity involvement in the planningand implementation of projects; (ii) early establishment of managerial andtechnical staff to ensure adequate focus on project problems; (iii) provisionof improved technical packages for the upper watersheds, including naturalforests and rangelands; and (iv) clear identification of activities where themarket mechanism could cause an efficient allocation of resources and where itcannot do so because of market failure or externalities. Furthermore, roadimprovement designs should incorporate features and mechanical structures tominimize environmental damage.

8. The proposed project would benefit from the availability oftechnical staff and of economically and financially profitable technicalpackages. Adaptive research trials and demonstrations would be required toensure modification of packages to emphasize resource management practices andreplicability over a wider area. Local comunity involvement would besupported through local technical assistance to help in group formation. Theproject draws on experience in Pakistan including AIRSP in communityinvolvement.

9. URtSona2e for IA lInvolvement. The current roles and functions ofkey institutions responsible for resource management need to be realigned tomeet redefined objectives. Past government's efforts to restructure theseinstitutions have not been successful. Through this project, IRA would assistAJR in restructuring of key institutions and reorienting of programs andpolicies: restructuring with emphasis on core services of technologydissemination and working with communities; introducing policy changes aimedat a phased elimination of subsidies; and transfering public sector activitiesto the private sector. IDA would also support the introduction of hithertountried environmentally sound and sustainable resource management programs.Moreover, IDA would support AJR in testing, on a pilot basis, programs wherebycommmnities would take management and financial responsibility for planningand implementation of activities covering resource management. IDA is wellplaced in coordinating the efforts of donors involved in AJR, working in closecollaboration with AXRSP.

10. Prolect ObhectiVes. The primary objective of this five-yearproject is to provide for the sustainable and economically efficient use of

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land resources in one of Pakistan's poorest and most environmentallyvulnerable areas through: (i) improving the policy framework (including therespective roles of the private and public sectors) that influences the useand conservation of land resources; (ii) restructuring and strengtheningpublic institutions responsible for land management resources; and (iii)piloting testing programs where communities take management and financialresponsibility for planning and implementation of activities for sustainableresource management.

11. Project Description. The project would include the following:

(a) Policy reforms. The input production and distribution activitieswhich are carried out by DOA, DOAR and DOP would be phased out, andstaff would be re-deployed in core activities of technologydissemination to farmers. Associated with the transfer is aprogram for the phased elimination cf subsidies on inputs. Thespecific activities for transfer to the private sector and subsidyremoval are: (i) seed potato, vegetable seed, fruit tree and foresttree seedling production; (ii) field crop seed (wheat, maize andoats) and fertilizer distribution; and :iii) poultry vaccination;

(b) Institutional restructurinq and strencrthenincr. Project supportwould be for restructuring and strengthening DOA, DOAH and DOP.DQA would be reorganized into two directorates - extension andtraining, and technical support. The two Directorates wouldconcentrate on core Jupport activities. Extension and adaptiveresearch activities would be strengthened. The Planning andEconomic Services would be moderately expanded. DOAH would berestructured along functional lines, one to cover extension,research and development and the other, animal health. Researchcapability would be enhanced to enable research on fodder, breedimprovement and nutrition. A Social Forestry Wing would be addedto DOP in line with the project's support for community-basedreforestation and soil conservation programs. The Planning andDevelopment Department (P&DD) of AJK would also be strengthened toassist in project formulation, and monitoring of resourcemaagement and conservation programs. The Land Use Planning Unitwould be moved from DOF to P&MD, and strengthened to play a morecentral and active role in resource management planning;

(c) Basic Technical Services. The project would support root stockpropagation, production of foundation and pre-basic seed, extensionof facilities for research, training and communal forestryprograms;

(d) Pilot Proarams. Project support is for setting up pilot programsin community management of natural resources in five sub-watershedscovering several villages. The project would also assist in settingup community based institutions, and provide for the drawing up andimplementation of resource management plans, incorporatingagriculture, livestock, soil conservation, and forestry activities;and

(e) Rural Road ImnrovemMet. Twelve roads in the vicinity of the pilotareas would be improved to fair weather standard to support theeconomic viability of the pilot schemes.

12. The project's cost is estimated at US$ 36.0 million, with a foreignexchange component of US$ 9.4 million, and taxes and duties of US$ S.4million. A breakdown of project costs and the financing plan are presented inSchedule A. Amounts and methods of procurement are in Schedule B. SchedulesC and D respectively give a timetable of key project processing events and thestatus of Bank Group operations in Pakistan. The attached map shows theproject area. The Staff Appraisal Report, No.11751-PAK dated May 24, 1993 isbeing circulated separately.

13. IDA would retroactively finance project costs incurred after April1, 1993 to a limit of SDR 1.5 million (7O of the credit). These expendituresinclude consultant services, designs of road improvements, initial nurserycosts, and other preparatory activities.

14. PXoject Iniementation. The project would be implemented by theDOA, DOAH, DOF, Public Works Department (PWD), and local communityerganizations, both formal and informal. A Privatization and ReorganizationUnit (PRU) under P&DD, with assistance from the Pakistan privatizationCommission, would monitor the phased. transfer of activities, subsidy removal,re-deployment and training, and provision of information and advice to theprivate sector. The program of applied research would be linked to theAgricultural Bconomics Research Unit (AEPU) set up under the Bank assistedAgricultural Research Project. Mass awareness programs would be closelycoordinated with extension activities.

15. Pilot schemes in community management involve planning, execution(including maintenance and protection), and benefit sharing in both communal

and private lands. A Village Development Committee (VDC) would be set up ineach participating village with assistance of the Social Mobilization Unit(SMU). The rural road improvement activities would be executed by the PD,while implementation would be through private contractors. This Unit wouldensure that designs incorporate features and mechanical structures to minimizeenvironmental damage.

16. Proiect Sustalnability. The project emphasizes the strengtheningof the permanent institutions that manage natural resources in AJK throughtechnical assistance and training with a view to building local capacity atboth the government and local organization level. Building up of localorganizations for community participation, and cost and benefit sharing wouldhelp fill an institutional vacuum at village level and enhance communityparticipation in operation and maintenance of completed works. It would alsorelieve the fiscal burden of government.

17. Actimns to be "oreed. At negotiations, agreements were reached onthe following: (i) a time-phased implementation plan for transfer ofproduction and input distribution activities, elimination of subsidies andstaff re-deployment; (ii) that the Agricultural Training Institute (ATI)Diploma would be a prerequisite for recruitment as Field Assistant positionsin DOA by September 30, 1996; (iii) setting up a revolving fund in DOAK fordeposit of vaccination fees and purchase of subsequent vaccine supplies;

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(iv) that project account would be audited by auditors acceptable to IDA; and(v) Bxecutive Committee of the National Economic Council (ECNBC) approval ofthe project and provision of budgetary funds prior to credit effectiveness.

18. h'tironmental ARgRaS. The project is aimel specifically atimproving the environment through the introduction of sustainable resourcemanagement practices,

19. Projcot Objective Categorfiss. This is a resource managementproject. The project also focusses on poverty alleviation as it aims to raisethe incomes of subsistence farmers. The project also supporto private sectordevelopment through the phased transfer of fertilizer and seed distribution,seedling production, and poultry vaccinations to the private sector.

20. lenefjjj. The overall economic rate of return for the project ic13*. Farmers crop yields and incomes would increase through adoption oftechnically proven and profitable packages. Significant institutionalbenefits are expected, but are not readily quantifiable. These include theempowerment of rural communities and creation of local managementcapabilities, and an enhaaced role for women in the management of resources.In addition, government institutions would be strengthened throughrestructuring and training of staff. The road improvement program would openup remote agricultural areas and induce higher production. Project activitieswould minimize illegal cutting of trees, reduce water run off and erosion andreduce reservoir siltation.

21. Risks. A possible risk is that the local community may be slow informing community participatory groups. However, it is expected that theexperience already gained by the community, the active involvement of the SMU,technical input from government extension and technical services, and masseducation and training would contribute to a high level of farmer incerest.Another risk is that the time phased transfer of activities and subsidyelimination program may be delayed. However, adequate safeguards have beenbuilt into the project such as the PRU, technical assistance, staff formonitoring and annual evaluations of the program, which would ensure that theprogram remains on track.

22. The proposed project would be carried out in AJK, an area overwhich India and Pakistan have been in dispute since 1947. By financing theproject under the proposed credit, IDA does not intend to prejudice thedetermination of the claims of the parties.

23. ecommendation I am satisfied that the proposed credit wouldcomply with the Articles of Agreement of the Association, and recommend thatthe Executive Directors approve the proposed credit.

Lewis T. PrestonPresident

AttachmentsWashington D CMay 24, 1993

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Schodule APage 1 of I

Estimated Costs and Finaacing Plan

US$ million

Estimated Costs Local Foreign Total

A. Institutional Restructuring/Support;

Agricultural Services 1.4 2.2 3.6

Extension and Adaptive Research 0.4 0.4 0.8

Commnity Forestry & Resource Managenent S.4 0.6 6.0

Commiunty Awareness & Education 0.1 0.1 0.2

Policy Planning & Bv'aluation 2.0 O.T 2.7

Suba-Total 9.3 4.0 13.3

B. Basic Technical Services S.4 1.6 7.0

C. Road Improvement 6.9 1.5 8.4

D. Pilot Schemes 2 Q 0.9 A.6

Total Dane Costs 22.6 8.0 30.6

Physical Contingencies 2.1 0.8 2.9

Price Contingencies Li O, La

Total Project Costs 26.6 9.4 36.0

Financia Plan

US$ million

Local Foreign Total

Beneficiaries 1.S 1.5

GOP 5.7 s.7

IDA 19 J 28.8

Total 26.6 9.4 36.0

US$ million

IDA Fiscal Year

Estimated IDA Disbursements 94 95 96 97 98 99 00

Annual 1.0 4.1 4.4 4.7 6.8 6.7 1.1

Accumulative l1. 0 5.1 9. 5 14..2 21.0 27.7 28.8 S

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Page 1 of 2

ISLAMIC REPUBLIC OF PAKISTAN

NORTHERN RESOURCE MANAGEMENT PROJECT

Amounts and Methods of Procurament(US$ MillionF)v

Category of Bxp.nditure ICB LCQ OTHER3/ NIFV TOTAL

Civil Works - 11.6 - 0.4 / 12. 0(9.3) (9.3)

Field Works - - S. 1.4V 7.1

(5.3) (5.3)

vehicles 2.1 - - - 2.1(1.3) (1.3)

Equipment and 1.2 - 2.4 - 3.6Materials (0.9) (1.9) (2.8)Technical Assistance - - 4.2 - 4.2

(4.0) (4.0)Training and Studies - - 0.9 - 0.9

(0.9) (0.9)Incremental staff and - - 6.1 6.1Operating Costs (5.2) (5.2)

Total 3.3 11.6 19.3 1.8 36.0(2.2) (9.3) (17.3) - (28.8)

A1 Includes taxes, duties, and contingencies. Figures in parenthesis arethe respective amounts financed by the InA credit.

ai Includes force account, international and local shopping, consultantservices, training and project management expenditures.

3/ Not IDA financed.J Purchase of land.) Contribution by community.

-8

Schedulg BPage 2 of 2

ISLAR.IC REPUBLIC OF PAKISTAN

NORTHERN RESOURCE MANAGEMENT PROJECT

Allocation and Disbursement of the Proposed IDA Credit

Category US$ million Percent to be financed

(1) Civil works, field works 12.61 80* of expendituresand forestry planting

(2) Foreign and local training, 5.19 lOC% of expendituresconsultancies and studies

(3) Vehicles, equipment and materials 3.84 100I of foreign expenditures;100% of ex-factory prices oflocally manufactured items;70% of local costs for otheritems procured locally

(4) Incremental staff and 4.28 100% until an amountoperating costs equivalent to SDR 1.7

million; 60% thereafter anduntil an amount equivalent toSDR 2.8 million; and 30*thereafter.

(S) Unallocated:

Civil works and field works 1.40

Vehicles, equipment and materials 0.42

Technical Assistance, training 0.59and studies

Operating costs 0.47

Subtotal 2.8

Total 28.80

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Schadale_VPage i of 1

ISLAMIC REPUBLIC OF PAKISTAN

NORTHERN RESOURCE MANAGEMENT PROJECT

Timetable of Key Processing Events

(a) Time taken to prepare: 27 months

(b) Prepared by: Government of Azad Jammu andKashmir with assistance fromFAO/CP and IDA

(c) First IDA mission: March 1992

(d) Appraisal mission departure: March 1. 3

(e) Negotiations: May 1993

(f) Planned date of effectiveness: (August 1993;

(g) List of relevant PCRs: PCR for IntegratedHill Farming DevelopmentProject dated January 6,1933 (Cr.1461-PAX)JI.

PCR No. 6577 for Hill FarmingTechnical DevelopmentProject dated December 1986 (Cr.751-PAR).

No. 8448-PAK for Agha Khan RuralSupport Program - Second InterimEvaluation dated March 1, 1990.

21 The PCR was sent to ORD on January 6, 1993 and is scheduled to be ,_.esentedto the Board on a date yet to be determined.

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ScheduleDPae I of3

THE STATUS OF BAK GROUP OPERATIONS IN PAK18TANA. STATEMENT OF MANK LOANS AND IDA CREDITS

(As of March 81. 106)

Amount (US million)Fiscal nelatoane)

Loan No Year Borrower Purpose Bank IDA Undiebursed

65 Loans and 70 credits have been fully dlebured Sm... 17883a

Cr. 12431P.K 1982 Republio od Pakietan Baloohistan Agricultural Ow. 14.00 2.61Cr. 1848-PAK 103 Republic of Pakistan Lahore Urban Development 16.00 4.84Cr. 1375-PAK 1983 Republic of Pakisten Fourth Drainage 83.74 8.81Cr. 1497-PAK 1084 Republic of at an Command Water Manageent 406.0 4.40Cr. 1499-PAK 1984 Republio of Palistan Second Small Indutrles 80.00 4.07Cr. 12-PAK 1085 Republlo of Pakistan Left Bank Outlfl Drain - Sta I 160.00 182.57Ln. 249-PAK 1985 Republic of Pakistan Fourth WAPDA Power 100.00 2.83Cr. 1602-PAK 108i Republic of Pakistan Second Primary Education 62.60 15.60Ln. 268-PAK 1085 Republic of Pakistan Ffth WAPDA Pawer 100.00 0.2Lin. 2048-PAK 186 Republic of tPakitn Induerialnment Oredit 148.00 0.e4cr. 1862-PAK 100 Republic of Pakistan Krahi Special Development 70.00 22.i88Cr. 170-PAK 1666 Republic of Pakistan Second Vocational Training 40.20 27.77Cr. 169-PAK 1M80 Republi of Pakestan SCARP Transiton Pilot 10.00 6.69Cr. 169-PAK 1980 Republic of tPakitan Agrio. w. Bank of Pakistan V' 86.00 0.64Ln. 2743-PAK 1087 Republic of Paitan TeleoanmunIcations V 100.00 4.0Cr. 1755PAK 1087 Republic of Pakistan Third Tehnioal Assietnce 7.00 4.5Cr. 1762-PAK 187 RepublIc of Pa'dian Agrio. xtnsion & Adaptve II 42.10 20.46Cr. 1821-PAK 1087 Republic of Pa[istan Third Primary Education 146.00 90.71Lin. 27-PAM * 1987 Republic of Pakistan WAPDA Vil-Pwr Plant Efflohnoy 70.00 162Ln. 2814-PAK 1087 Repubfll of Paisetan Fourth Highways 152.00 110.61Ln. 2838-PAK 1087 Republ of Pakistan Small lndustries 8il 54.00 16.83Ln. 2842-PAK 1087 Republic of Paldatan Refinery ergy Coneervation 21.00 17.00Lin. 2884-PAK Iq8 Republic ot Pakistan Cement Industry Modernizaion 8.00 4.04Cr. 188-PAK 1988 Rpublic of Paistdan Soond Irrigatin Systems Rehab 79.50 45.88Cr. 1896-PAK 1988 Republic of Pakdstan Punjab Urban DeveWpmt 60.00 62.6Cr. 196-PAK IM Repubiic of Pakitdan Naiona Olse Development 20.00 14.14Lin. 2973-PAK 1688 Republic of Pakistan National Olsed Dievelopment 31.40 81.40Ln. 2082-PAK 1988 Repubio of Pakdetan Private etor e nergy Developmt 10.00 149.62Cr. 1982-PAK 1989 Republi d Paldstan Industril Investment Credit III 2.00 0.24Ln. 3010-PAK 1980 Repubilo of Pakdstan Industrila Investment Credit III 148.00 80.47Cr. 1987-PAK 108 Republic of Pakistan Karachi Water & Sanitation 11 126.00 08.9

* Ln. 107-PAK 19 Republic of Pakdstan Energy Seotor Loan II 260.00 19.13Cr. 2004-PAK 1989 Republic of Pakistan Prvate Tubevil Dev. 34.40 6.1Ln. 3147-PAK 1990 Republic of Pakistan Power Trans. Ex & ReInfore. 162.00 120.03Cr. 2078-PAK 190 Republic of Pakistan Rural BEeotrlficon 87.00 34.41Ln. 3148-PAK 1990 Repubio of Pakistan Rural Elecrifiction 118.00 183.00Cr. 2102-PAK 1900 Repubic of Pakistan Sndh Primary Educeaton 112.60 08.41Cr. 21-PAM 1960 Republ of Pakstan Agriculure Ciedit 1.60 1.47Ln. 3220-PAM 1990 Republic of Pakistan Aoriulture Credit 148.60 u8.00

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Shetidule DPage 20 t9

THE STATUS OF BANK GROUP OPERATIONS IN PAK1STANA. STATEMENT OF RANK LOANS AND IDA CREDITS

(As of March 31, 196S)

Amount (US$ million)Fiscal (lsO oelbiation)

Loan No Near Borrower Purpose Bank IDA Undisbursed

Cr. 21t4-PAK 190 Republic of Pakistan Agrioulture Researoh iS 57.80 67.0Ln. 284-1-PAK 1090 Republic of Pakisan Cement Indusy Modem. 88.40 42.48Ln. 3107-1-PAK 1S90 Republic of Pakistan Energy Sector Loan II Suppl. 28.00 27.48Ln. 3241-PAK 1980 Republic of Paistan TransWt Sector Investment 184.00 145.90Ln. 39252-PAK 1991 Republic of Pakitdan Corp. Restruot. & Syms Expan. 180.00 79.8SLn. 3252-1-PAK 1991 Republic of Pakitan Corp. Restructudng Suppl. e0.00 6o.00Cr. 2228-PAK 1091 Republic of Pakistan Rural Wate Supply& Sanitation 136.70 127.48Ln. 9318-PAK 1091 Republic of Pakistan Mloroenterpulse 26.00 24.40Cr. 2240-PAK 1091 Recubllo of Pakistan Family Health 45.00 42.8Cr. 2245-PAK 1091 Republic of Paldetan Third On-Farm Water Management 47.80 81.73Ln. 27-PAK 1S91 Repubic of Paidstan Third On-Farm Management 38.30 3SSoCr. 2257-PAK 1991 Republic of Pakistan Second SCARP Transition 20.00 19.47Ln. 3886-PAKi 1901 Republic of Pakistan Karachl Port Moderizaton 91.40 81.07Cr. 2354-PAK 1902 Republic of Paidetan Mlddlec Shooling 116.00 111.74Cr. 2383-PAK 1992 Republic of Pakistan Env. Prot. & Res. Co. 20.20 29.70Cr. 2410-PAK 1e93 Republic of Pakistan East. Sadlqia So Phase 54.20 64.97Ln. 3600-PAK 1929 RepublIc of Pakistan Domestic Energy Resources 180.00 180.00Cr. 1987-1-PAK 19903 Republic of Pakistan Karachi Water & Sanitation 11 91.60 96.17Cr. 2484-PAK 1993 Republic of Pakistan Family Health II 48.00 48.58Cr. 2488-PAK 1993 Republic of Pakistan 1992 Flood Damage Restotion 100.00 101.05Cr. 2482-PAK 193 Republic of Pakistan Salochietan Primary 106.00 106.00

Total 4624.69 3882.87 la 2986.65of which has been repaid 965.a6 181.70

ToWta now outstanding 3S65.84 3701.17

Amount sold 38.09of which has been repaid 32.24

Total undisbursed 2896.66

/a IDA vredits beginning with the 6th Replenishment are denominated In SDRe, and are showttIn US$ equivaWents at the time of negotiatons. Disbursed amounts are oomputed at theexchange rate applicable at the date of this statement.

Indicates SAL/SECAL Loans and Credits** This project of loiaiy closed on December 31, 1002. However, in keeping with ourrent Sank pracioe,

the project ascounts will remain open unUIl April 30, 199 (4 months after the closing date)to allow for disbursements against withdrawal applications reoelved o.o.b. April 30. 199In respect of elgible expenditures incurred prior to the project's closing date.These projete offically olosed on June 30. 192. but the acounts have been kept open pendingreceipt of monies owed the Sank In connection with the operation of speoial acoourts.

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Schedule DPages of S

THE STATUS OF BANK GROUP OPERATIONS IN PAKISTANB. STATEMENT OF IFC INVESTMENTS

(AsolMarch 9t. 109

Amount (mlUlons)Date Bonower Purpose Loan Equity TOtal

1968 Steel Corp. of Paldstan Iron & Steel 0.63 0.6s1058 AdamJee Indusies Ltd. Texties 0.78 0.761061185 Ghailbwal Cement Ltd. Cement 4.76 0.42 6.1816S8M4W78 PICIC DFC 3.00 3.008718S219158I80121 Packages Umited Paper Poducts 17.00 1.24 1824878810116 CrescentJute Textiles 1.83 0.11 1.941S67 Padan Paper Corp. Paper 4.83 2.02 8.86109o 0 Dawood Hercules Fertlizer 18.80 2.92 21.221979 FauR Foundation Pdypropylene Btgs 1.78 1.781870 Atck Refnery Ltd. Chemias & Petrochemicals 7.60 0.86 8.861979 Milkpak Ltd. Food Processng 1.90 0.40 2.80197G012 Pakstan Olields Ltd. Chemicals& Ptroohemiloals 7.00 1.18 8.181S0O PremIr Board Pacble Board 2.70 2.70'881 Habib ArkAdy Ltd. Foud & Food Procssing 3.15 0.16 3.311.182 Asbe Cement nd. Ltd. Cenent & Conetucton Maderal 4.02 0.81 4.31A8I8 Paidstan Peroleum Ltd. Chemicals & Petrochemicals 25.30 1.66 26.86*100 NDLO Leaing 6.49 0.87 6.861082 Mari Gas Company Ltd. Chemles& Petrochemicals 44.48 44.481087180 Anglo-usse Chemicals& PetrochemIcils 6.80 6.801988 FectoCement Cement& Constuction MaterIal 18.68 18.581S88 Miliat Tractors Traotors 4.90 4.001t89 ShameTextiles Texties & Fibmers 2.76 2.76080 suraJ Cotton Textis& Fibers 2.78 2.76

1609 Hala Spinning Textile Spinning 3.26 0.66 8.921080 Patr Gumzd Automolive 18.17 18.17100 Rupall Polyester SynthetiTextils 22J8 2.00 24.381090 RiB Capia Markets 1.57 1.571090 Housing Rnance Corp. Capiai Markets 5.68 0.49 0.02101 Engro Chemicals Palt. Ltd. Chemicals & Petrochemicals 38.20 8.60 44.70100 PILCO Capital Markets 5.00 5.001801 Prudentlia Discount Guarsn Capita Markets 0.40 0.401091 EOM, The Fund Capitl Markets 0.78 0.781001 EIL Capital Markets 0.24 0.241902 J.S. Stock Brokerage Capital Markets 0.86 0.861002 RupaIil Umited 8ynth ticTextiles 14.88 0.84 14.7210SS Sarah Textils Textiles 6.00 1.80 7.80100 Central Securities Depoitor Capital Markets 0.26 0.251993 MusimCommCialbnk CapitaliMarkets 15.00 15.001999 Paldktn Serices Umited Tourism 12.00 3.00 15.00

Tow lGrossCommitments 318.34 42.14 380.48

Less Cacations, Termination ExchangesAdlustments, Prepaymnts and SalesWrteofs and Sales 286.01 26.21 261.22

Total Commitments now held by IFC 82.33 16.03 09.2

Totda Undlibursed 34.18 4.48 38.06

IBRD 24703

A573m 74m A .,om 75' d .4p" biy, 35- -wA 621 F _.d- WC n.

N. W. F. P.

(44>22tJ> A;;.t. * .4295m.

SF A.ss . ~P A K I S T A N

NORTHERN RESOURCEt20 0 L *226m MANAGEMENT PROJECT

PROJECT AREA

0 SELECTED TOWNS

Appro;dmate ~A ELEVATIONS (meters)34Ulne of ~ - STATE BOUNDARIES

...... ADISTRICT BOUNDARIES

0 25 .~50 75 75

75.

TURKMENISTAN CHINA~TA~

AFGHANISTA /

) INDIA

74' Aabian. Seo

APRIL 1993