Document of

The World Bank

FOR OFFICIAL USE ONLY

GAJ~~ 3Z6f<Report No. P-5217-PAK

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALENT TO USt148.5 MILLION

AND

A PROPOSED CREDIT

IN AN AMOUNT EQUIVALENT OT US01.5 MILLION

TO THE

ISLAMIC REPUBLIC OF PAKISTAN

FOR AN

AGRICULTURAL CREDIT PROJECT

MAY 4, 1990

This document has a restricted distribution and may be used by recipients only in the performance oftheir offical duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENC-Y EOUIVALENS

US$1 - Rs 21.1 (November 1989)Rs 1 m US$0.047Rs 1 M - US$47,393

WEIGHTS AND MEASURES

British/US Units Metric Units

2.469 acres (ac) = 1 hectare (ha)1 ac - 0.405 ha1 square mile (sq. mi) - 259 ha1 cu ft/sec (cusec) = 0.028 m8/sec

PRINCIPAL ABBREVIATI)NS AND ACRONYMS USED

ACO - Agricultural Credit OfficerADBP - Agricultural Development Bank of PakistanFSAL - Financial Sector Adjustment LoanGOP - Government of PakistanIFAD - International Fund for Agricultural DevelopmentMCO - Mobile Credit Officer.NCBs - Nationalized Commercial BanksPBC - Pakistan Banking CouncilPFP - Policy Framework PaperPHI - Private Minor IrrigationSAF - Structural Adjustment FacilitySBP - State Bank of PakistanSSE - Small-scale Enterprise

FISCAL YEAR

July 1 - June 30

FOR OMCIAL USE ONLY

PAKISIAN

AGRICULTURAL CREDIT PROJECT

OAN/CREDIT AND PROJECT SUMMARY

Borrower: Islamic Republic of Pakistan

imDlementing Agencies: Agricultural Development Bank of Pakistan (ADBP), fivenationalized commercial banks (NCBs), State Bank of Pakistan(SBP), and the Revenue Board of Punjab.

Beneficiaries: About 1.5 million Pakistani farmers and other beneficiariesborrowing through ADBP and the NCBs, including about 85,000 women.

Amount: US$150.0 million(Loan: US$148.5 million)(Credit: US$1.5 million)

=Terms: Twenty years, including a five-year grace period, at the Bank'sstandard variable interest rate for the loan, and standard, with35 years maturity, for the credit.

Onlending Terms: Government (GOP) would onlend the proceeds of the Bank loan toADBP and the NCBs at cost for 12 years, including a three-yeargrace period. The credit would be made available as grants to theGovernment of Punjab (US$0.5 million) and SBP (US$1 million).Medium-/long-term sub-loans to farmers and other beneficiarieswould generally be for 2 to 12 years. Incremental short-termloans would be for 18 months or less. The foreign exchange riskwould be assumed by GOP, with ADBP paying a premium for suchcoverage resulting from an increase in the discount rate for fundsfrom SBP. Additional recoveries by GOP would result from thematurity transformation of the loan.

Financing Plan: Farmers US$ 279.5 millionIFAD US$ 25.0 millionIBRD/IDA US$ 150.0 millionADB US$ 150.G millionParticipating Banks US$1,677.6 millionGovernment YSS 1.1 millionTOTAL US$2,283.2 million

Economic Rates of Return: 14-65X depending on type of investment

Staff ApUraisal Report: 8263-PAK

IBRD 22060IBRD 22061

This document has a restricted distribution and may be used by recipients oni., n the performanceof their official duties. Its contents may not otherwise be disclosed withaut Wor4 Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN AND CREDIT

TO THE ISLAMIC REPUBLIC OF PAKISTANFOR AN AGRICULTURAL CREDIT PROJECT

1. The following memorandum and recommendation on a proposed loan forUS$148.5 million and credit for SDR 1.2 million (US$1.5 million equivalent) tothe Islamic Republic of Pakistan is submitted for approval. The pr;.posed loanwould have a term of 20 years, including a five-year grace period, at theBank's standard variable interest rate, and the proposed credit would be onstandard IDA terms with 35 years maturity and would help finance anAgricultural Credit Project. The project would be cofinanced by the AsianDevelopment Bank (ADB) (US$150.0 million) and the International Fund forAgricultural Development (IFAD) (US$25.0 million)

2. Background. Agriculture, accounting for 24X of GDP, 511 ofemployment and 541 of export earnings, is the mainstay of Pakistan's economy.The expansion of agricultural credit is a major element of GOP's program topromote the growth of both the agriculture sector and the economy. GOP iscommitted to a medium-term -tructural adjustment program initiated in FY89 andaimed at addressing structural imbalances in the economy. The measures toachieve balance of payments viabiiity while maintaining satisfactory growthnerformance during FY90-92 are set out in a Policy Framework Paper (PFP) '¼I;. support of GOP's program, the Fund approved a three-year arrangement underthe Structural Adjustment Facility (SAF) as well as a 15-month stand-byarrangement. Within the PFP framework, the Bank approved three sectoraladjustment loans: an Agricultural Sector Adjustment Loan (Ln. 2986-PAK), aFinancial Sector Adjustment Loan (FSAL, Ln. 3029-PAK), and a Second EnergySector Loan (Ln. 3107-PAK). Of particular relevance in the context of theproposed project is the FSAL, which supports financial reforms needed formacroeconomic stability and sustained economic growth. Its objectives are to:(a) improve GOP debt ma.aagement by introducing an auction system for GOP debtand reducing taxation on the financial sector; (b) reduce segmentation of thecredit market by phasing out concessional interest rates and limiting directedcredit schemes; (c) strengthen the prudential supervisory functions of SBP,restructuring/recapitalizing those NCBs that are shown to be deficient, andstrengthening and unifying the legal and regulatory framework governing thebanking sector; (d) increase competition by improving the autonomy andaccountability of bank management, easing market entry requirements forprivate domestic banks, moving towards privatization of the NCBs, anddeveloping capital markets. The aim is to implement a defined first phase ofreforms which would be pursued and deepened by succeeding financial sectoradjustment loans and financial intermediation operations, including theproposed project.

3. Since 1965, six agricultural credit projects have been approved bythe World Bank Group and implemented by the Agricultural Development Bank of

Pakistan: Second-Year Policy Framework Paper, 1989-90 to 1991-92, Pakistan Authorities, November 29, 1989.

Pakistan (ADBP). ADBP's share in the total volume of agricultural credit grewfrom 19X in FY79 to 601 in FY89, while the share of the nationalizedcommercial banks (NCBs) conversely shrank from some 601 to 211. Thisreduction was due to several factors, including abolition of interest-freelending in FY89 and introduction of the "lead bank" system which permits onlyone NCB to extend agricultural loans in one union council, thus effectivelycontrolling misallocation and multiple borrowing. Also, due to lossesincurred in agricultural lending which NCBs were obliged to subsidize fromother, more profitable operations, they clearly lacked enthusiasm for lendingto the sector.

4. In 1988, as part of an effort to strengthen the agriculturalcredit system, GOP, jointly with the Bank, undertook a comprehensive review ofthe credit system. The proposed project is based on the findings andrecommendations of that review. The review endorsed gradual movement toward aliberalized financial market in which both ADBP and NCBs would have adequateincentives to compete for agricultural customers. It considered the NCBs'continued association with agricultural credit important to facilitate accessby farmers to institutional credit which, after a transitional phase, would beat a level of profitability comparable to that of other sectors. It held thatAD!? as a specialized bank would have to mobilize resources more effectivelyto become less dependent on GOP funds for its future growth and to create thedelivery mechanisms necessary to meet the credit needs of small farmers andspecial target groups. The considerable expansion of agricultural creditduring the past 10 years has led to increased agricultural investment andconsequent gains in production of wheat and cotton; however, small farmers ingeneral and women in particular have limited access to agricultural credit, aswell as to other inputs and technology. Farms below 5 ha cover 381 ofcultivated area and constitute 74% of all farms in Pakistan. Women are activeparticipants in the rural economy and participate extensively in cropproduction, post-harvest activities, livestock and poultry production andcottage industries. It is evident, therefore, that future increases inyields, cropping intensities and agricultural productivity depend to a largeextent on these groups.

Rationale for Bank Involvement

5. Although the Bank has previously assisted six agx-cultural creditprojects which have channelled funds needed for agricultural development inPakistan through ADBP, much still needs to be done regarding institutionaldevelopment and policy reform in the credit subsector. ADBP, the majorinstrument for providing agricultural credit, is handicapped by a thin networkof branches. Despite the successful int,oduction of a supervised creditsystem operating through mobile credit officers (MCOs), it is not in aposition to meet effectively the needs of millions of farmers whose access tocredit is quite limited. Its efforts therefore, need to be complemented bythe NCBs which have an extensive network of branches. The proposed projectseeks to promote the latter's active involvement on an economically viablebasis. The Bank has a continuing role in promoting sound financial policiesto strengthen the function and effectiveness of credit institutions and in

directing a stronger effort to meet the credit needs of smaller farmers,particularly of women who are severely constrained in obtaining credit. TheBank's support of the project will also result in research being undertaken onprior and ongoing crEdit programs in order to identify policy shortcomings andpromote sound and viable credit programs.

6. Project QbJectives. The proposed project aims at transforming thedevelopment of the agricultural credit system into a viable system that canmeet the expanding needs of the agriculture sector and increase itsproductivity. Through further financial sector liberalizaticn and progressin increasing competition among banks, the project would support theconsolidation of the gairis already made in strengthening agricultural credit.It would (i) expand the delivery of credit, with a particular effort aimed atassisting women, farmers with holdings below 2.5 ha,'/ and the landless, whootherwise would not have access to institutional credit, and improve theefficiency of loan supervision and collection; (ii) establish a policyframework that would improve the efficiency of financial intermediation andthe viability of financial institutions by adopting market-determined rates ofreturn after a defined transitional period; and (iii) provide additional long-term funds to financial institutions, while also requiring them to make astronger effort in generating deposits. The project's innovative features are(a) the allocation of credit funds to female beneficiaries through a speciallydesigned mobile delivery system; and (b) support for the provision ofagricultural credit by NCBs, which would supplement lending by ADBP, thusencompassing more than 80X of the institutional outlays for agriculturalcredit in the country.

7. Prolect Descrigtion. The proposed project would support medium-/long-term lending both by ADBP and the NCBs (for farm mechanization, privateminor irrigation, livestock production, orchard development, inlandfisheries, and other on-farm development); and by ADBP for rural small-scaleenterprises and time-saving technologies, incremental short-term lending (forcrop production and processing, sheep and goat fattening and small-scaleenterprises); and the institutional development of ADBP and the NCBs. ForADBP, institutional development would include innovative approaches related to(i) establishing a credit delivery system for lending to women through femalecredit staff; (ii) use of group guarantees as collateral for loans where groupmembers (those owning less than 2.5 ha) are jointly and severally responsiblefor all loans disbursed; and (iii) direct lending to and use of non-governmental organizations in lending-related activities. For the NCBs, theinstitutional development component would reinforce their existing supervisedcredit scheme. The project would also develop linkages between credit andextension, provide funds for vehicles and equipment, training, technicalassistance, fellowships and study tours, and incremental administrative costson a declining basis, and promote environmental safeguards in the use ofpesticides and fertilizer procured with credit funds. It would also support

1 2.5 ha is the average size of all holdings in the category up to5.1 ha.

- 4 -

research on agricultural credit nationwide and the computerization of landrecords in one district on a pilot basis.

8. Eligible expenditures for institutional development in.urrilbetween January 1, 1990 and the loan and credit signing would be covered byretroactive financing up to US$1 million under the loan and US$0.2 millionunder the credit. The total cost of the project is estimated at US$2,283million equivalent, with a foreign exchange component of 261. A breakdown ofcosts and the financing plan are shown in Schedule A. Schedule B showsamounts and methods of procurement and the disbursement schedules. Atimetable of key project processing events and the status of Bank Groupoperations in Pakistan are given in Schedules C and D, respectively. Two mapsare also attached. The Staff Appraisal Report (No. 8263-PAK), dated May 4,1990 is being distributed separately.

9. Agreed Actions. (a) At negotiations, the Bank has reachedagreement with Gover.ment concerning, inter all, the following: (i) GOP wouldcover the foreign exchange risk and receive a premium for this coverage, partof which would be deri d from the benefits from the maturity transformationof the Loan and the Cr,dit, and the remainder by a premium to be paid throughan increase ir the discount rate at whicn ADBP would obtain funds from SBP;(ii) GOP, through SBP, would onlend the proceeds of the Bank and IFAD loans atcost for a period of 12 years, including three years of grace; (iii) GOP wouldenable the itutermediaries to charge rates of return for their entireagricultural lending that would (a) from uly 1, 1990 (A) be at least positivein real terms'/ and thereafter remain pos ive, and (B) for short-term loans,be not less than 71 per season of not m than eight months for all cropsexcept sugar cane for which the rate of urn would be 101 per annum,(b) from July 1, 1991, cover their cost o. funds and reasonable administrativecosts attributed to agricultural lendini., and (c) from July 1, 1992, covertheir cost of funds and administration, adequate provisions for expected loanlosses on agricultural loans, and a rea.;-4nable margin of profit; (iv) GOPwould ensure that participating banks, as a condition of their participationin the project, would be and conluinue to be creditworthy to the satisfactionof the Bank. GOP confirmed at negotiations that in assessing creditworthinessthe participating banks would be required: (a) to be in full compliance withthe prudential regulations of SBP, (b) take steps, satisfactory to the Bank,towards achievement of a minimum ratio of capital to callable liabilities of31 as specified under FSAL, and (c) achieve by December 31, 1991 andthereafter maintain such ratio to the satisfaction of the Bank; (v) GOP wouldconvert the proceeds of the IDA credit into grants of US$0.5 million to theGovernment of Punjab and US$1 million to SBP, respectively, to carry out thecomponents on computerization of land records and agricultural creditresearch; and (vi) GOP would cause the Government of Punjab to approve thedocumentation regarding computerization of land records.

Rates are considered positive if they exceed the increase in GOP'sConsumer Price Index.

- 5 -

10. (b) Inter alia, AM has agreed to: (i) expand the number of itsNCOs to 2,000 including 282 female MCOs, by June 30, 1993, and to recruit 552female Village Assistants by the same date; (ii) modify its loan targetingsystem to achieve progressively increasing disbursement to farmers withholdings of less than 2.5 ha and the landless; (iii) undertake a study on itsorganization and management by December 31, 1991, and implement the agreedstudy recommendations by December 31, 1992; (iv) prepare and implement anaction plan regarding the mobilization of rural savings by June 30, 1991;(v) take legal measures to remove impediments to the mobilization of ruraldeposits by MCOs by December 31, 1990; (vi) charge rates of return on loansthat would be positive in real terms and sufficient to cover all lending-related charges and a reasonable margin of profit; (vii) carry out, byDecember 31 of each year, reviews of its past and projected income and profit-generating capacity and start implementing the agreed proposals on rates ofreturn not later than July 1 of teach year, beginning in 1991; and (viii) takeall measures necessary to reach minimum recovery rates of 80X of totalrecoverables from general credit by June 30, 1993.

11. (c) The FDA have agreed to (i) expand the number of agriculturalcredit officers (ACOs) by 600 by June 30, 1993; (ii) create the necessarycrganizational structures for participation in the project by December 31,1990; and (iii) strengthen their cost-accounting capability to carry outannual reviews of the adequacy of their rates of return in agriculturallending and make recommendations on any modification of the rate structurethat may be necessary.

12. (d) All garticipating banks (ADBP and NCBs) have agreed to(i) recruit additional staff in accordance with recruitment policies whichwould be based on competition and merit and would involve tho end-userdepartment in the selection of staff; (ii) undertake, jointly with GOP, IBRDand other cofinanciers, a Kid-term Review at the end of FY92 to evaluateprogress in project implementation, and recommend potential modifications ofthe various programs; (iii) raise sub-borrower contributions to subprojectsfor tractors, implements and private minor irrigation to adequate levels;(iv) introduce monetary loan ceilings, ranging from Rs 15,000 to Rs 50,000,depending on type of investment or loan for lending to the landless and tofarmers with holdings of 2.5 ha or less; and (v) establish training coursesfor their MCOs/ACOs to address environmental concerns in lending forpesticides and fertilizers.

13. Justification. Project benefits would accrue from improvedproductivity in agriculture through increased cropping intensities and greateryields resulting from investments in mechanization and irrigation. Theintroduction of credit delivery systems designed to reach women, smallfarmers, and the landless would have a significant broadening effect uponagricultural production and income distribution. Increased crop and livestockproduction would assist both export promotion and import substitution.Through the institutional support component of the project, financialintermediation would become more efficient in meeting the credit needs Aftarget groups as well as farmers and rural communities in general, and also

- 6 -

become more sustainable over the longer run. Agricultural credit researchwould contribute to providing inputs for policy decisions. The pilotcomputerization of land records would lay the ground work for a nationwidesystem that would greatly improve the prompt availability of data onagricultural land and production.

14. Risks. Because ol the established nature of ADBP's lendingoperations, there are no unusual risks in its general credit programs. Thereare, however, two innovative features in the project which entail risks: Thefirst is a special effort directed towards meeting the needs of femaleborrowers, and the second, to reach farmers with fewer than 2.5 ha and thelandless, both endeavors also being the focus of IFAD assistance. NeitherADBP nor the NCBs have in the past made special efforts to address the needsof these groups, and building up the necessary organization and its staffcomplement (including women) is likely to be expensive and its outcome notentirely predictable. However, these new thrusts are critical for openins upopportunities for less-privileged borrowers, and the learning process inherentin it is unavoidable. Close monitoring by the participating institutions andthe Bank will ensure that corrective steps are taken promptly to remedyshortcomings. ADBP faces the risk that, with its enhanced lending and newerclientele, its loan recovery rate may suffer. However, its new management isaware of the potential risk, and is gearing up to undertake its new mandate.The NCBs face the risk that they may be required by GOP to lend at rates whichwill not fully cover all their costs and yield som- profits. However, thebroader understundl.ngs with GOP in the context of FSAL, including somespecific provisions in the proposed project governing the rate of returnstructure, would preclude any directives to NCBs which will require them tolend at subeconomic rates.

15. Recommendation. I am satisfied that the proposed loan and creditwould comply with the Articles of Agreement of the Bank and the Association,respectively, and I recommend that the Executive Directors approve theproposed loan and credit.

Barber B. ConablePresident

Attachmer.tsWashington, D.C.Nay 23, 1990

-7-

AMC M ,CPdEDIT pRJWET

ISTD9AT!D COSTS AFD FINRNCING PLAN

stimated Costa Local Foreign Total-------(US $ million)------

A. Fern Devalopsent and Small-Scal Enterprise LansTractors 460.3 252.6 712.9FPar DIplements 124.1 38.1 182.2Private Minor Irrigation 97.6 28.8 128.4Other Ci-rarm Development 453.9 3.2 457.1Small-Scale Enterprise Loans 69.4 29.4 98.8

Subtotal 1,205.3 352.1 1,557.4

B. Fisheries Development Lama 10.9 10.7 21.6C. Project Lnams for Agroindustry 97.2 96.8 194.0D. Incremental Short-Tenn Loans 355.6 110.0 465q.

Subtotal All Loam 1,669.0 569.6 2,238.6

F. Institutional DevelopuAnt Adsistancel/Vehicles and Equipuent 12.1 8.0 20.1Technical Specialists and Fellowships 0.5 5.1 5.6Local Trai'ing (.7 0.0 0.7Incremental AdmAi. Expenditure 7.2A _.0 .

Subtotal 20.5 13.1 33.6

F. Agricultural Credit Research 1.2 0.1 1.3G. Computerization of LanA Records 0.5 0.1 0.6

Total Base Cost 1,691.2 582.9 2,274.1

Physical Contingencies"/ 3.3 2.1 5.4Price Contingmenies LA 1.3 3.t

Subtotal 5.7 3.4 9.1

Total Project Cost 1,696.9 586.3 2,283.2

FinancingUs PlaLocal Foreign Total------- (US 8 milloan)------

Borrowers 279.5 - 279.5IFAD 0 25.0 25.0IBRD/IDA 0 150.0 150.0ADB 0 150.0 150.0NCBs 82.4 52.2 134.6ADBP 1,334.2 208.8 1,543.0GOP . 0..8 0.3 1.1Total 1,696.9 586.3 2,283.2

1/ All items for institutional developent ar expre ssed in constant terms.2/ For institutional developeat component.

-8-

Page 1

PAKI}SA

AGRICULTURAL CREDIT PROJECT

Procurement Method and Disbursements

Procurement MethodwICB Other NAbe Total Cost--------- (USa million)--------------

Lending Program:Tractors 0.0 712.9 0.0 712.9

(0.0) (36.6) (0.0) (36.6)Farm Implements 0.0 162.2 0.0 162.2

(0.0) (11.1) (0.0) (11.1)Private Minor Irrigation 0.0 126.4 0.0 126.4

(0.0) (9.9) (0.0) (9.9)Other On-Farm Developmentand SSE Loans 0.0 1,237.1 0.0 1,237.1

(0.0) (72.6) (0.0) (72.6)

Institutional Development:Vehicles 24.04/ 0. 2" 0.0 24.2

(8.2) (0.1) (0.0) (8.3)Equipment 1.1 0.4 0.0 1.5

(0.6) (0.2) (0.0) (0.8)Consultancy and Fellowships 0.0 8.2"/ 0.0 8.2

(0.0) (5.4) (0.0) (5.4)Incremental AdministrativeExpenditures 0.0 0.0 10.7 10.7

(0.0) (0.0) (5.3) (5.3)

Total 25.1 2,247.4 10.7 2,283.2(8.8) (135.9) (5.3) (150.0)

a/ Including physical and price contingencies. Figures in parentheses arethe amounts financed by the IBRD Loan and IDA Credit.

b/ Procurement procedures not applicable.c/ Contract of less than US$100,000 up to an aggregate of US$1 million for

ADBP and NCBs and of less than US$20,000 up to an aggregate of US$200,000for SBP and Punjab.

d/ Procurement in accordance with Bank guidelines.

-9-

Schedule Page 2

DisburagaMes

Amount of XLoan and Credit of Expenditures

Category Allocated to be Financed(USS million)

Lending Program 127.2 8-301w of amounts disbursedby banks

Institutional Developmevt:

Vehicles and Equipment 9.7 80X of foreign expendituresand 801 of local ex-factorycostsb/

Consultancy and Fellowships 4.8 801 for fellowships and 65Xfor consultancyo/

Incremental AdministrativeExpenditures 6.7 561, 401, and 241,

respectivesyQ

Unallocated 1.6

Total 150.0

a/ Depending on type of investment, term of subloan, and disbursementpercentage of IFAD and ADB.

b/ IFAD to disburse another 201.c/ IFAD to disburse another 20X and 151, respectively.d/ Disbursement on a declining scale; IFAD to disburse another 14X, 101

and 61, respectively.

Estimated IBRD/IDA Disbursements IBRD Fiscal Year

21 22 93 94 25 96S---------(us million)---------------------

Annual 34 34 39 32 7 3Cumulative 34 68 107 139 146 150

- 10 -

Schedule C

PAKISTAN

AQgIULTIJRAL CREDIT PROJECT

Key Processing Events

(a) Time to prepare: One year.

(b) Prepared by: ADBP, NCBs and PBC with assistance of IBRDand IFAD.

(c) First IBRD mission: June 1988

(d) Appraisal mission departure: June 25, 1989

(e) Post-appraisal mission: November 6-20, 1989

(f) Negotiatior,s: February 26 to March 7, 1990

(g) Planned date ofeffectiveness: July 1, 1990

(h) List of relevant PCRs andPPARs: ADBP IV Project, Cr. 957-PAK (PPAR No.

6261); ADBP V Project, Cr. 1380-PAK,Ln. 2305-PAK (PCR of October 17, 1989).

- 11 - SCHEDULE DSTATUS OF AK GRGUP OPERATIONS IN PAKISTAN Page

A. STATENENT OF ANlK LOANS AND IDA CREDITS (as of Narch 31. 1990).............................................................................

(USS miltion)Lon (Amnt net of canellation)C;.dit Fiscal Undis-Nuafer Yer Borrowr Purpose ank IDA bursed

124 loans nd credits fully disbursed 1045.3 1461.2

Of h1ieb SECALS, SALs and Program Loan- a/

Ln. 2166 1982 Repubflc of Pakistan Structural Adjustment Loan 60.0Cr. 1255 1962 Republc of Pakistan Structural Adjustmnt Credit 80.0

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

Sub-Total 60.0 80.0

Cr. 754 1978 Repubile of Pakistan Salinity Control & Reclamtion 70.0 35.2

Cr. 877 1979 Repulic of Pakistan Salinity Control & Reel. (Narden) 60.0 21.0

Cr. 1157 b/ 1981 Repblic of Pakistan Grain Storage 23.4 S.2Ln. 2247 1983 Repltic of Pakistan Reerlir Maintenne Faeilities 10.2 - 2.3

Ln. 2324 1963 Sul North OPL LTD Fifth Sui Northern Gas Pipeline 43.0 - 0.3

Cr. 1243 b/ 1982 Repubile of Pakistan Baluchistan Ninor Irrig. & Agr. 14.0 8.8Cr. 1348 b/ 1963 Repblic of Pakistan Lahore Urban Development 16.0 11.5

Cr. 1374 bI 1983 Repblic of Pakistan KIarahi water Supply 25.0 5.5Cr. 1375 bI 1983 Repblic of Pakistan Fourth Drainage 65.0 63.6

Ln. 2351 1984 Reoublic of Pakistan Petrolte Exploration 51.5 0.1Ln. 2380 1984 Repblic of Pakistan Industrial Investment Credit II S0.0 9.6Cr. 1439 bI 1984 Repblic of Pakistan Industrial tnvestment Credit II - 50.0 6.2Cr. 1461 bI 1964 Reblic of Pakistan Integrated Hill Farming Oev. 21.0 14.6

Cr. 1480 b/ 1984 Republic of Pakistan Second Technical Assistance 7.0 1.0Cr. 1487 bI 1984 Rqepblic of Pakistan Command Water Management 46.5 33.5Cr. 1499 bI 1984 Republic of Pakistan Second Smell Industries 50.0 6.5Cr. 1532 b 1985 Rpublic of Pakistan Left Sank Outfall Drain Stage 1 150.0 168.3Cr. 1533 b/ 1985 Republic of Pakistan 8aluchistan Agricultural Extension - 8.3 4.8

Ln. 2499 1985 Water/Power Auth. Fourth WPDA Power 100.0 - 36.4

Cr. 1602 b/ 1985 Republic of Pakistan Second Primery Education - 52.5 53.6

Cr. 1603 bI 1985 Republic of Pakistan Second On-Farm Water anemet - 34.5 3.5

Ln. 2552 1985 Repubtlic of Pakistan Enry Sector Loan 178.0 1.4

Ln. 2556 1985 Water/Pour Auth. Fifth WAPOA Power 100.0 57.3

Ln. 2648 1986 Republic of Pakistan Industrial Investment Credit 148.0 - 24.6Cr. 1646 b/ 1986 RepubLic of Pakistan Industrial Investment Credit - 2.0 1.3

Cr. 1652 b/ 1986 Republic of Pakistan Karachi Special Develpmnt - 70.0 65.0Cr. 1670 bI 1986 Repblic of Pakistan Second Vocational Training 40.2 43.6Cr. 1693 1986 Republic of Pakistan SCARP Transition Pilot 10.0 7.0

Cr. 1699 1966 Repblic of Pakistan Agric. Dev. Bank of Pakistan VI 55.0 3.4Ln. 2693 1986 Republic of Pakistan Agric. Dev. Bank of Pakistan VI 165.0 - 32.7

Ln. 2698 1986 Water/Powr Auth. Kot Addu Combined Cycle 90.0 - 27.5

Ln. 2743 1987 Repblic of Pakistan Telecafminications V 100.0 54.8

..... Continued ..

- 12 -SCHEDULE D

STATUS Of SANK GROP OPERATtONS IN PAKISTA PaSEe 2A. STATEMENT OF AK LOANS AND tDA CREDITS (as of March 31. 1990)

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

CUSS mitlion)Loan (Amomt not of canceltationCredit Ficwal Undis-

tu r Yetr Oorrowr Purpo Snk IDA bursed

Cr. 1735 b/ 1987 Republic of Pakistan Third Technac Assistane 7.0 S.3Cr. 1762 bi 1987 Repblic of Pakistan AS. Extension IV 42.1 37.5

Cr. 1821 bI 1986 Repubic of Pokistan Third Primry Education 14S.0 135.7Ln. 2792 1967 Vlater/Per Auth. Poer Plant ffficiacy 70.0 - .9Ln. 2814 1987 Reptblic of Pakistan Fourth Nighways 1S2.0 123.7Ln. 2839 1987 Repubic of Pakistar. Third Smell Industries 54.0 48.9In. 2842 1987 State Petr./Petroch. Pef inery Energy Conservation 21.0 17.8Ln. 2864 1988 Republic of Pakistan Cement Industry odeamization 96.0 - 93.9

Cr. 1888 1988 Republic of Pakistan Second Irrigation System aehab. - 79.5 74.1Cr. 1895 1988 Republic of Pakistan Punlab Urban Development 90.0 78.6Cr. 1936 1988 Republic of Pakistan National Oilseed Oevelopant 20.0 17.3In. 2973 1988 Republic of Pakistan National Oilseed Development 31.4 - 31.4

Ln. 2982 1968 Repubite of Pakistan Private Sector Energy Development 150.0 1SO.O

Ln. 2986 1989 Republic of Pakistan Agriculture Sector Adjustment 200.0 102.1Cr. 1982 1989 Republic of Pakistan Industrial Investment Credit III - 2.0 1.9

Ln. 3019 1989 RepAbfic of Pakistan Industrial Investment Credit tit 148.0 142.S

Cr. 1987 1989 Republic of Pakistan Karatchi Water Supply 12S.0 120.6* Ln. 3029 1989 Republic of Pakistan Financial Sector Adjustmnt 150.0 - 75.0

* Ln. 3107 1989 Republic of Pakistan Energy Sector Ln. II 250.0 - 215.0

Cr. 2003 1989 Republic of Pakistan Flood Restoration - 40.0 27.0Cr. 2004 1989 Republic of Pakistan Private Tubweilt - 34.4 34.0

Ln. 3147 c/ 1990 Water/Power Auth. Power Transmission & Extension 162.0 - 162.0

Cr. 2078 cI 1990 Republic of Pakistan Rural Electrification 37.0 37.6Ln. 3148 c/ 1990 Republic of Pakistan RuraL Electriffication 123.0 - 123.0Cr. 2102 c/ 1990 Republic of Pakistan Sindh Primery Education - 112.S 110.1

Total 3808.4 3226.1 2835.Sof which has boen repaid 678.1 105.4

Total now outstanding 3130.3 3120.7Amnrmt sold 33.5 12.0of which has been repaid 27.8 12.0

Total now held by IBRD/IDA 3096.8 3108.7

Total urdisbursed 1S92.9 1242.? 2835.S.......... ...... ,....

,.............. .............................. .... ...... ....... .............. ........ ..............................

a/ Approved During or After FY80.bl IDA Credits under the 6th and 7th Replenishments are denmminated in SoRs. The

princpal and non-effective Credits are sheen in USS equivalent at the time of

negotiations. Disbursed oanunts are conputed at the exchange rate appticableon the transaction dates. Undisbursed amomnts are valued at the exchang rateapplicable on the date of this statement.

c/ Not yet effective.

- 13 -

SCHEDULE DPage 3

STATUS OF OAUK CROUP OPERAT IOS IN PAKISTAN.................... ..................................

S. STATEMENT OF IFC IW STMENTS....................... ................................ t..

(As of March 31, 1990)

Irnestment Fiseal Am.eaut US t MillionNuaber Year Obligator Type of Business Loon Equity Total

140 1956 Steel Corp. of Pakistan Rotled Steel Products 0.63 0.63

90 1959 Adsmjee Indastries Ltd. Taxti lee 0.75 0.75

440/920 19b2/65 Oharibual Cement Cement 5.25 0.42 5.67Industries Ltd.

65S052 1963/69/ PICIC Developing Finance 3.63 3.637610-7611 75/99

870 1965 Crescent Jute Products Textiles 1.84 0.11 1.95

910/5070/ 1965180/ Packages Ltd. Paper Products 26.01 1.01 27.026150S51/ 829280-81

1230-31 1967/716 Pakistan Paper Corp. Ltd. Paper 5.38 2.02 7.40

1330 1969 Dawood Hercules Fertilizers 18.30 2.92 21.22Chemicals Ltd.

4570-73/ 1979 Nilkpak Ltd. Food & Food Processing 2.40 0.40 2.809410

4720-21/ 1979 Pakistan Oiltfields Ltd. Chemicals & Petro- 29.00 2.04 31.046060/6800 awd Attock Refinery Ltd. chemicals

5060 1980 Fauji foundation Woven Potypptylene Sags 1.78 - 1.78

984 1988 Fecto Cemmnt Cement and Construction 18.58 18.58Materials

953/1161 1987/89 Anolo Suisse Chemicals and Petro- - 6.80 6.80chemicats

5080 1980 Premier Board Nills Ltd. Particle Board 2.70 - 2.70

9790 19P8 NiLlat Tractors 4.90 4.90

5760-61 1981 Habib Arkedy Food & Food Processing 3.15 0.16 3.31

6210 1982 Asbestos Cement 3.50 0.51 4.01

..... .Continued....

- 14 -

SCHEDULE DPage 4

STATU OF UlK GRW TIERATtS IN PAKISTAN.............................................

B. STATBET OF IFC INVESTNTS......................... ................................ ....

(As of March 31. 1990)

Investmnt fisal .Mwtt US# Ml lionIuber Year Obtigtor Tope of usineso Loan Equity Totat

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

6550-52/ 1903 Pakistan Petroteue Ltd. Chemical and Petro- 104.50 1.56 106.067610-11 cehuicale

1069 1989 Shn Textile textiles ad Fibes 2.76 - 2.76

7500-7501 1985 National O.velopment Nnhar*nd Capital Narket 5.49 0.37 5.86Lesing Corp.

1070 1989 Suraj Cotton Textites and Fibe1 2.76 2.76

1112 1969 Hale Spiming Ptant 3.27 3.2

8220-8223 1986 Mari Gas Chmicals and Petro- 46.53 46.53Chemicals

1220 1990 Pakistan Suiuki Notor Vehicles and 15.14 - 1S.14Accessories

1204 1990 Rupali Textiles and Fibers 19.56 - 19.S6

Total Gross Comitmnts 324.18 21.95 346.13

Less Cancellations, Terminations, 234.10 12.58 246.68Repsyemnts and sales ...... ...... ......

Total Coaitments ow Noeld by IFC 90.08 9.37 99.45

Undifbursed (including participants) 39.70 1.61 41.31

IBRD 22060

P A K I S T A N j U. S. S.RAGRICULTURAL CREDIT PROJECT (jS _.4INA

ADBP REGIONAL OFFICES 02--36, A ADBP REGIONAL OFFICES (A r Qb \36

* NATIONAL CAPITAL Oh° 8 ,

O CITIES AND TOWNS 1.NATIONAL ROADSPRIMARY AND SECONDARY ROADS J)

q-| | RAILROADS >¢- 4 ) / b.

4~AIRPORTS 4t. C'N s.do

-- PROVINCE BOUNDARIES* *vo r_ _INTERNATIONAL BOUNDARIES ( e

.IAMMU and XASHMI!RIVERS \

3r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3

X ~AF G HAN ISTAN

= Cjxs~~~~~~~~~~~~~~~~Sbi INDDIA

26 2$

'SLAMICREPUBLIC OF 4 \ k / S 'ku,

IRAN 1 - 100 200 300 400

N D ' KILOMETERS0 ,Tu bst sDu 50 100 t50 200 250

,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ _ imgH$oe --- ---- j1 *S

('A ~~~~~~~~~~~~~~~~~~~~~~ I ~~~~~~~~~~~~MILESTurbat

't~~~~~~~~~~~~~~ ft cow Of d errc-2 Pt ma' *V o vwk*- for tyw

Xf Hyeoo .i tWvtotBf 11Ws 3*1 Eod. >f, o the CfefleOffee., Ans eenOI tttwtfrU

Coo'Om The 7

24' Of, ha l"W dovt 'Offee. o' DEC 2418

Of oily, a scce,y o'oy

DECEMBER 1"99

PAKISTAN L U. S. S. R. .-. H

AGRICULTURAL CREDIT PROJECT H ,A

RAINFED LAN,DS AAnaril Rainfall an inchs.$More than 20 <12 - 20

Less than 12FLOOD AND TORRENT WATERED LANDS,Less t-han 1-2

Conal Irrigated Lcndslsohyets an anches

D National Capital* Province CapitalsO Other Cities and Towns

RiversDistrict Boundaries JAMMUProvinceO-8aodarieAIVInternational Bo.ndaries KAASHMIR

o so iso 130 200 250 300 330 400

o 30 00o IF 200 230

33.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2

A F G H A N I S T A N

N D ~ ~ ~ ~ -

StA;C~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~md No Ckmh, }70xt go f

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