Documecnt oi

The World Bank

FOO CIL USE ONXS

Rqiort No. P-6129-PAK

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

OF SDR 10.7 MILLION

TO THE

ISLAMIC REPUBLIC OF PAKISTAN

POR A

MLOCHISTAN NATURAL RESOURCE MANAGEMENT PROJECT

MARCH 1, 1994

MI CROGRAPH I CS

Report No: P- 6129 PAKType: MOP

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

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CURRENCY EQUIVALENTS(January 1994)

Rupee 1.00 = US$0.03US$1.00 = RS 30.5

WEIGHTS AND MEASURESMetric Unit System

Metric UTnit British/US Equivalent

1 centimeter (cm) 0.39 inch1 meter (m) 39.37 inchs1 kilometer (kim) 0.62 mile1 hectare (ha) 2.47 acres1 square kIlometer (kun) = 0.386 square mile1 cublic meter (in3) 35.31 cubic feet1 liter (1) 0.264 gallon (USA)1 kilogram (kg) 2.205 pounds1 metric ton (m ton) 2,205 pounds

FISCAL YEAR

July 1 to June 30

ABBREVIATIONS

GOBal - Government of BalochistanBEPA - Balochistan Environmental Protection AgencyBFD - Balochistan Forest DepartmentNCS - National Conservation StrategyGOP - Government of PakdstanEPRC - Environmental Protection and Resource ConservationES - Environmental Section within Planning and DevelopmentP&D - Balocbistan Planning and Development Department

FOR OMFCA4L USE ONLY

PAKISTAN

BALOCMSTAN NATURAL RESOURCE MANAGEMENT PROJECT

Credit and Project Summary

Borrower: Islamic Republic of Pakistan

Beneficiaries: Balochistan's Planning and Development Department,Environmental Protection Agency and Forest Department

Amount: Credit: SDR 10.7 million (US$14.7 million equivalent)

Terms: Cr-dit: Standard with 35 years maturity

Onlending Terms: Not applicable

Financing Plan:

Local Foreign Total(US$ million)

GOBAL 2.5 - 2.5Community

Households 0.6 - 0.6IDA 9.3 5.4 14.7

Total 12.4 5.4 17.8

Economic Rateof Return : Varies from 10% to 15% for different natural resource rehabilitation

subprojects

Poverty Category: Not applicable

Staff AppraisalReport : Report No. 12223-PAK

Maps: IBRD 24917

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Dank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DIRECTORSON A PROPOSED CREDIT

TO THE ISLAMIC REPUBLIC OF PAKISTANFOR A

BALOCHISTAN NATURAL RESOUPIrE MANAGEMENT PROJECT

1. I submit for your approval the following report and recommendation on a proposeddevelopment credit to the Islamic Republic of Pakistan for SDR 10.7 million, the equivalent of US$14.7million, on standard IDA terms with a maturity of 35 years to help finance a project for BalochistanNatural Resource Management. The project focuses on environmer.tal protection and natural resourcemanagement.

2. Country/Sector Background. Balochistan's economy relies heavily on the productivityof its natural resources. However, over the last 40 years rapid human and livestock population growthand improper land use have caused its natural resource base to deteriorate rapidly. Desertificatiorn isincreasing. Excessive tree cutting in watersheds is denuding already sparse hillsides and causing erosionand flash-flooding. Over-grazing and uprooting of small shrubs are further degrading already badlyimpaifed natural rangeland pastures, dtcreasing water infiltration, and reducing wildlife habitat. Over-pumping of upland aquifers is seriously lowering water tables. Sand dune movement on the coastline isdestroying roads, buildings, airports and port facilities. Hunting and the destruction of natural habitatare seriously depleting Balochistan's wildlife.

3. In Balochistan, as throughout Pakistan, natural resource mismapagement is closely tiedto poverty, to market, policy and institutional failure, to inadequate legislation and enforcement and toa low level of public awareness. Increasing human and livestock populations are destroying naturalforests. In addition, such pressures and exposure to outside influences are breaking down traditional ortribal rangeland management systems. Groundwater use policies are contributing to the over-pumpingof aquifers rather than to the efficient, sustained use of groundwater. The present provincial legislationlimiting the siting and number of tubewells drilled is ineffective and not based on sound technical data.Sever:-i Govermnent of Balochistan (GOBal) agencies are subsidizing the cost of drilling by up to 40%of the commnercial rate. Electricity charges for pumping are also subsidized, and only exacerbate theproblem. Under the proposed Power Sector Development Project, the Bank will address this as well asseveral other price policy issues.

4. Balochistan's environmental protection institutions are weak and inadequately financed.BEPA, Balochistan's Environmental Protection Agency, which GOBal established early in 1992 is yetto become fully operational. It needs overall strengthening to prepare and initiate work programs. TheBalochistan Forest Department (BFD), which is responsible for forests and rangelands, operates withoutdated management. It has adhered to a narrow view of its responsibilities, that is, traditional"topdown" forest management, and has shown even less interest in protecting rangelands.

5. GOBal's natural resource management strategies are derived from the NationalConservation Strategy (NCS) which was recently completed. To promote effective natural resourcemanagement, NCS proposes achieving greater community partnership in development and naturalresource management, merging environmental and economic concerns in decision making, and focussingon durable improvements in education, health and income. GOBal's natural resource managementstrategies, which the Bank and other donors generally support, stress the importance of capital

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accumulation and income growth to reduce poverty and encourage sustainable natu: al resource use.Capital accumulation here encompasses all its forms, particularly human, institutional and cultural as wellas natural, physical and financial.

6. Country Assistance Strategy. The World Bank Group's country assistance strategy forPakistan (last discussed with the Board July 2, 1992, and scheduled for next review later this financialyear) focuses on reducing constraints to sustained growth; and alleviating poverty. To support the growthobjective, Bank Group efforts have concentrated on: structural reforms, emphasizing public finance issuesand improving the enabling environment for the private sector; strengthening inadequate basicinfrastructure; reducing constraints on agriculture productivity; and protecting Pakistan's natural resourcesbase. Beyond growth, which will help on income-related aspects of poverty, the Bank's approach topoverty focuses on imnproving inadequate basic social services to improve social indicators. rhis projectfits into the Bank Group's country assistance strategy as it would directly help to protect and developBalochistan's natural resources through strengthening Balochistan's environmental protection institutions,involving the private sector in natural resource development and management, improving natural resourceuse policies and rehabilitating damaged natural resources.

7. Lessons from Past IDA Involvement. The proposed project incorporates successfulfeatures, and lessons learned, from earlier natural resource management projects in Pakistan andelsewhere in the world. The main features include: (a) developing or changing policies to reducedistortions in natural resource values and costs caused by market and policy failure; (b) establishingprograms to improve data bases and knowledge concerning polluition and natural resource degradation,including monitoring changes in pollution and resource degradation levels; (c) involving localcommunities in project design and impiementation, plus strengthening their organizations and skills; (d)strengthening government institutions so they have the capability to work with local communities, andto properly administer the natural resources for which they are responsible; (e) adopting a multi-enterpriseapproach to natural resource development; and (f) using adaptive research and pilot programs to solvesocio-technical problems concerning natural resource use.

8. Rationale for Bank Involvement. This project forms an integral part of the Governmentof Pakistan's (GOP) environmental protection and natural resource management strategies which IDAsupports. Through both the macro-economic dialogue at the central level and the more technicallyoriented investments at the project level, IDA is well placed to assist GOP and the provincial governmentsin tackling the range of policy, institutional and technical issues that relate to environment and naturalresource management. IDA can also make a major contribution to encouraging coordination betweendonors on key policy and institutional issues. The project would also complement the PakistanEnvironmental Protection and Resource Conservation Project (Cr. 2383-PAK) (EPRC) which wasapproved in June 1992. EPRC is aimed at strengthening environmental institutions, developinglegislation, policies and programs, training staff and addressing high priority natural resource problemsat the federal level, in the other three provinces and in Azad Jammu and Kashmir.

9. Project Objectives. The project's objectives are to: (a) strengthen the principalinstitutions in Balochistan responsible for environmental protection and natural resource management; (b)develop policies for improved and sustainable use of natural resources; (c) increase policy-makers,government officials and the publics' awareness of damage being done to the enviromnent; and (d)addrnss some immediate high priority resource management problems in the province.

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1C. Project Description. Individual project components are. (a) establishing anEnvironmental Section (ES) within Balochistan's Planning and Development Department (P&D) byproviding staff, training, technical assistance, equipment, vehicles and operating funds; (b) strengtheningBEPA through providing staff, training, technical assistance, equipment, vehicles znd operating funds;(c) strengthening BFD through providing training in community extension, project planning and nationalpark management; (d) studies and actions to improve policies concerning the use of natural resources,particularly aquifers, rangeland and wooded areas, and feasibility studies to prepare other natural resourceuse projects; (e) initiating mass awareness programs to educate decision makers and the public concerningenvironmental issues through workshops, short programs on radio and television, articles in newspapersand magazines, the use of billboards and posters, and other means; (f) two operational subprojects torehabilitate and develop damaged natural resources, that is: {i) sand dune stabilization at Gwadar, Pasniand Pishukan on the Mekran coast; and (ii) development and management of the Hazarganji-Chiltannational park near Quetta; and (g) two pilot program subprojects to develop site-specific methods ofrehabilitating and developing damaged niatural resources, that is: (i) rangeland and watershed rehabilitationin Northem Balochistan (250 to 400 mm rainfall); and (ii) conservation of the juniper forest near Ziarat.All subprojects were selected because they address pressing problems of natural resource degradation,are acceptable to the local population, have internal rates of return of at least 10% (where calculable),conform to GOBal and Bank strategies and priorities and are within GrOBal's capabilities to implementwith reasonable technical assistance support. The rangeland and watershed pilot subproject would test,under farmer management, the introduction of a more productive fodder shrub (Atriplex canescens) torangeland gra7ing systems. The juniper forest conservation pilot subproject would test both a new systemof managing the juniper areas (rezoning plus local conmmunity input) and the feasibility of growing shrubfuelwood plantations to substitute for the commnunities' presint rights to gather fuelwood from the juniperareas. At the mid-term review, besides reviewing the two pilot programs' general direction, GOBal andIDA will decide whether to expand the fuelwood plantations at Ziarat.

11. The project has an estimated cost of US$17.8 million equivalent with a foreign exchangecomponent of US$5.4 million (30%). IDA's proposed credit of SDR 10.7 million (US$14.7 millionequivalent) would finance 83% of project costs, including 100% of foreign exchange costs and 75% oflocal costs. The remaining project costs would be financed by the community farmers and households(3 %) and GOBal (14%). Schedule A shows a breakdown of project costs and the financing plan, whileSchedule B shows amounts and methods of procurement and disbursements, and the disbursementschedule. Schedules C and D respectively give a timetable of key processing events, and the status ofBank Group operations in Pakistan. The attached map shows the location of the natural resourcesubprojects which the project would implement, while the Staff Appraisal Report, No 12223-PAK, datedMarch 1, 1994, is being circulated separately.

12. Implementation. P&D (through ES), BEPA and BFD tog.ther would implement theproject, with BFD considerably involving local communities in implementing the operational and pilotprogram subprojects. ES would be responsible for coordinating environmental matters withinBalochistan, and formulating environmental policy, legislation and regulations. It would review andmonitor natural resource management, and initiate the design and introduction of improved naturalresource use policies when necessary. BEPA is mainly a regulatory agency and would be responsiblefor measuring and monitoring pollutant discharges, legally enforcing national/provincial environmentalquality standards, assisting in designing and implementing environmental impact assessment proceduresand implementing mass awareness programs. BFD would be responsible for implementing the naturalresource rehabilitation subprojects and pilot programs. GOBal would establish a project steeringcomnmittee to coordinate the agencies' work, and ES would act as the committee's secretariat, preparingits agenda and monitoring its decisions. BFD would ensure meaningful community participation in

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project components through awareness programs, diagnostic studies, "round-table" conferences betweenimplementing agencies and communities, employing local sociologists to act as social organizers andinterface between agencies and communities, and agreement on action plans by communities andimplementing agencies before commencing program works.

13. Both BEPA and BFD have most of their project staff already in place. While ES hasrecruited and placed its key staff, it is a new group within P&D, and thus would take some time tobecome fully functional. Two non-governmental organizations, the World Wide Fund for Nature andthe Balochistan Rural Services Group, will assist govermnent agencies implement the project.

14. Sustainability. Overall, the project emphasizes the establishing and strengthening of ES,BEPA, BFD and local organizations to sustain changes and actions which the project introduces. Thisstrengthening of agencies, however, will only result in the hiring of some 20 additional middle and higherlevel staff. Consequently the recurrent expenditure obligations which GOBal will assume under theproject represent only marginal increases in existing budgets. As well, at the project's mid-term reviewand in its final year IDA and GOBal would aszess the long-run appropriateness of the project's proposedstaffing and decide which positions should be made permanent at the project's conclusion. IDA will fundthe project's incremental recurrent expenditures on a strictly declining basis, and by project completionGOBal will be meeting 50% of these costs.

15. Actions Agreed. At negotiations IDA and GOBal agreed on the following: (a) bySeptember 30, 1994, P&D would recruit and place the balance of ES's staff, that is, one Director, oneAssistant Director, and four Research Assistants, plus the remaining required support staff; (b) by June30, 1996, ES would complete the study to develop technical criteria for regulating access to Balochistan'saquifers, and would have drafted appropriate legislation; (c) during July 1, 1994 to Jan-uary 1, 1997,GOBal agencies would eliminate in three stages, all subsidies they provide when drilling tubewells, thatis, by no later than July 1, 1994, reduce the drilling subsidies to 70% of the level at which they stoodon July 1, 1993; by no later than July 1, 1995 to 409% of this level; by no later than July 1, 1996 to 10%of this level: and by January 1, 1997 completely eliminate all drilling subsidies; (d) by December 31,1994, ES, BEPA and BFD would finalize arrangements and sign contracts for engaging internationallyrecruited consultants, with qualifications and under conditions acceptable to IDA, to assist inimplementing the project; (e) during the project's final implementation year, P&D, BEPA and IDAtogether would review the staffing and effectiveness of ES and BEPA and agree which staff (higher-leveland support) should be made permanent after project completion, that is, funded from the province's non-development budget; (f) BFD shall, before commencing any programs under the four subprojects, takesuitable steps to identify the community groups that would participate in such programs and agree withthem on the necessary action plans to catry out these programs; and (g) P&D, BEPA and BFD, inaccordance with terms of reference acceptable to IDA, and jointly with IDA and observers fromappropriate non-governmental organizations, would undertake a mid-term review of the overall projectand individual subprojects by no later than September 30, 1996, and would produce a report identifyingany required changes in project implementation with whicl the project agencies would comply. Thecredit would not become effective until the Executive Committee of the National Economic Council hasapproved the project's Planning Commission Forms No. 1 and sanctioned project expenditures.

16. Enviromnental Aspects. The project falls within the Bank-Group environmentalscreening category B. The project is aimed specifically at improving the environment through theintroduction of sustainable natural resource management practices.

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17. Project Objectives. This is a resource management project. The project also focusseson poverty alleviation as it aims to raise the incomes of subsistence farmers and fishermen.

18. Benefits. Primary project benefits are expected to include: (a) building GOBal'scapabilities to deal with environmental protection and conservation of natural resources: (b) improvingthe public's understanding and awareness of harmful effects of environmental and natural resourcedegradation; (c) preserving a portion of Ziarat's juniper forest; (d) preventing damage to public buildings,homes and infrastructure, including a fishing port, on the Mekran coast; (e) producing and implementinga management plan for Hazarganji-Chiltan National Park, and creating educational and recreationalfacilities for the public; and (f) improving range management with resulting increases in livestockproductivity and farmer incomes.

19. Risks. Possible project risks include the following: (a) environmental institutions maybe delayed in recruiting suitablv qualified staff; (b) the harsh climatic conditions on the Mekran coast mayslow tree planting and adversely impact on the subproject's internal economic rate of return, while theuse of a single tree specie for sand dune fixation increases the risk of plantation failure due to disease;(c) the tribespeople who recently camped near the eastern boundary of the Hazarganji-Chiltan NationalPark may continue to illegally collect firewood and graze their animals in the park; (d) the cost ofestablishing Atriplex canescens in rangelands may be too high fo; it to be economically attractive tofarmers; and (e) local communities near Ziarat may not accept the zoning of the juniper forest areas, andthe proposed community fuelwood plantations may be technically infeasible. While these adversepossibilities could occur, the project has been designed to keep the probability of occurrence to anacceptable level. These design features include: (a) considerable local and foreign training to upgradelocal staff's capabilities; (b) a project launch workshop which will emphasize early nursery establishmentand a research program to widen the tree specie base for sand dune stabilization; (c) while thetribespeople's present camp site is temporary (these people, who recently returned from Afghanistan, arecurrently settled at the site because of an inter-tribal dispute, but should eventually return to their triballands) and the government has increased the statr regulating access to the park, the project would providea local sociologist who would interface between BFD and the tribespeople, and GOBal and IDA haveagreed that, if necessary, BFD will not implement the proposed park development plan until it providesfor a solution to the issue satisfactory to IDA; (d) atriplex planting operations would be varied to helpfind a least cost approach, and project staff would closely monitor all aspects of this pilot operation sothey can determine its economic, social and technical feasibility; and (e) ensuring community agreementto the proposed forest zoning by project staff actively and meaningfully involving them in the design andimplementation of the operation. Community fuelwood plantations will be located at the most favorablesites regarding climate and soils, and will only be planted to fast growing woody shrubs.

20. Recommendation. I am satisfied that the proposed credit would comply wit:, the Articlesof Agreement of the Association, and recommend that the Executive Directors approve it.

Lewis T. PrestonPresident

AttachmentsWashington, D.C.March 1, 1994

- 6 - Schedule A

PAKISTAN

BALOCHISTAN NATURAL RESOURCE MANAGEMENT PROJECT

Estimated Costs and Financing Plan

Estimated Costs

Local Foreign Total-(US$ milion)-

Institutional Development 1.2 2.1 3.3

Sand Dune Stabilization 5.2 1.3 6.5

National Park Development 0.6 0.6 1.2

Rangeland Rehabilitation 0.4 0.1 0.5

Juniper Forett Conservation 2.8 0.8 3.6

Total Baseline Costs 10.2 4.9 15.1

Physical Contingencies 1.3 0.3 1.6

Price Contingencies 0.9 0.2 1.1

Total Project Costs 12.4 5.4 17.8k'

Financing Plan

Local Foreig Total-(US$ million)-

GOBal 2.5 - 2.5

Community Households 0.6 - 0.6

IDA 9.3 5.4 14.7

Total 12.4 5.4 17.8

1 1 V.B...A... V_ T4b~A f ........ 11±__ .___..

7-Schedule B

PAKISTAN

BALOCHISTAN NAT'JRAL RESOURCE MANAGEMENT PROJECT

Procurement Arrangements(US$ mifllon)y'

Procurement Method TotalProject Element ICB LCB Other NB- Cost

Civil Works 1.2 1.2(1.1) (1.1)

Forest Works 8.3 0.6 8.9(7.5) ( l0

Fieldwork 1.3 1.3(1.2) (1.2)

Vehicles 0 5 0.5t ) (0.3)

Mach, Eqltwp & Materials 0.3 0.1 0.2 0.6(0.2) (0.1) (0.1) (0.4)

Technical AssistanceProj Pre.aration & Implementation 1.1 1.1

(1.0) (1.0)Institutional Development 0.6 0.6

(0.6) (0-6)Studies

Policy Support 0.3 0.3(0.3) (0.3)

Project Preparation 0.3 0.3(0.3) (0.3)

Foreign Training 0.6 0.6(0.6) (0.6)

Local Training 0.1 0.1(0.1) (0.1)

M,Lss Awareness 0.4 0.4(0.4) (0.4)

Increm Salaries 0.9 0.9(0.6) (0.6)

Increm Operating Costs3' 1.0 1.0(0.3) (0.3)

Total 0.8 1.3 15.1 0.6 17.8(0.5) (1.2) (13.0) (14.7)

1/ Includes taxes, duties and contingencies. Figures are rounded to the nearest US$100,000.Figures in parentheses are the respective amounts financed by the IDA Credit.

2/ Not Bank-Group financed.3/ IDA financing would be limited to operational and maintenance expenditures on vehicles and civil

Schedule B-8- Page 2

Proposed Disbursements

Category Amown % Disbursed-US$ miUion)

1. Civil works, forest wvorks 8.2 90% of expendituresand field works

2. Vehicles, motorcycles, equipment, 0.6 100% of foreign expenditures,furniture and technical books 100% of ex-factory prices of

locally manufactured items, 70% oflocal costs for imported itemspurchased locally

3. Consultant services, studies, and 2.6 100% of expenditures less taxesforeign training

4. Mass awareness program and local 0.4 100% of expenditures less taxestraining

5. Incremental salaries and operating 0.8 80% until US$0.32 millioncosts disbursed; then 70% until US$0.60

m-illion disbursed; then 50%thereafter

6. Unallocated 2.1

Total 14.7

Estimated Credit Disburmements

1994 1995 1996 1997 1998 1999 00-4 -S $ millon)

Annual 0 1.0 1.6 3.3 3.8 3.5 1.5

Cumulative 0 1.0 2.6 5.9 9.7 13.2 14.7

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Schedule C

PAKISTAN

BALOCHISTAN NATURAL RESOURCEk MANAGEMENT PROJECT

Timetable for Key Processing Events

(a) Time to Prepare Two years

(b) Prepared By GOBal, in collaboration with the Bank Groupand with financial support from the RoyalNorwegian Govermnent. The Banlk, whileacting as executing agency of a projectpreparation Trust Fund which the Bank andNorwegian Government established, engeRgedand managed a consultant team which assistedGOBal prepare the project.

(c) First IDA Mission July 1992

(d) Appraisal Mission Dearture March 31, 1993

(e) Negotiations January 1994

(f) Planned Date of Effectiveness June 1994

(g) List of Relevant PCRs and PPARs Pakistan Integrated Hill Farming DevelopmentProject, Cr. 1461 (PCR Jan. 6, 1993); HazaraForestry Pre-investment Project, Cr. 751-PAK(PPAR No. 6577); Kandi Watershed and AreaDevelopment Project, india (PCR No. 8366);Upper Magdalena Pilot WatershedManagement Project, Colombia (PCR No.8481); and Central Rangelands DevelopmentProject, Somalia (PCR No. 7804).

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Schedule DPage I of 3

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

(As of December 31. 1993)

Amount (US$ million)Fiscal (less cancellations)

Loan No Year Borrower Purpose Bank IDA Undisbursed

57 Loans and 75 credits have been fully d'sbursed 2225.75 1963.78

Cr. 1243-PAK 1982 Republic of Pakistan Balochistan Agricultural Dev. 14.00 0.78Cr. 1375-PAK 1983 Republic of Pakistan Fourth Drainage 33.74 6.62Cr. 1532-PAK 1985 Republic of Pakistan Left Bank Outfall Drain - Stage 1 15ui.00 124.94Cr. 1602-PAK 1985 Republic of Pakistan Second Primary Education 52.50 14.42Ln. 2656-PAK 1985 Republic of Pakistan Fifth WAPDA Power 100.00 4.05Cr. 152-PAK 1986 Republic of Pakistan Karachi Sr al Development 70.00 16.20Cr. 1670-PAK 1986 Republic of Pakistan Second V#, itional Training 40.20 28.79Ln. 2743-PAK 1987 Republic of Pakistan Telecommunications V 100.00 2.78Cr. 1755-PAK 1987 Republic of Pakistan Third Technical Assistance 7.00 3.68Cr. 1762-PAK 1987 Republic of Pakistan Agric. Extension & Adaptive If 42.10 14.62Cr. 1821-PAK 1987 Republic of Pakistan Third Primary Education 145.00 74.92Ln. 2792-PAK 1987 Republic of Pakistan WAPDA VII-Pwr Plant Efficiency 70.00 6.64Ln. 2814-PAK 1987 Republic of Pakistan Fourth Highways 152.00 44.15Ln. 2839-PAK 1987 Republic of Pakistan Small Industries III 54.00 36.47Ln. 2842-PAK 1987 Republic of Pakistan Refinery Energy Conservation 21.00 16.5eLn. 2884-PAK 1988 Republic of Pakistan Cement Industry Modernization 96.00 1.23Cr. 1888-PAK 1988 Republic of Pakistan Second IrrigaLon Systems Rehab 79.50 40.40Cr. 1895-PAK 1988 Republic of Pakistan Punjab Urban Development 90.00 47.54Cr. 1936-PAK 1988 Republic of Pakistan National Oilseed Development 20.00 13.10Ln. 2973-PAK 1988 Republic of Pakistan National Oilseed Development 31.40 31.40Ln. 2982-PAK 1988 Republic of Pakistan Private Sector Energy Development 150.00 132.49Cr. 1982-PAK 1989 Republic of Pakistan Industrial Investment Credit III 2.00 0.28Ln. 3019-PAK 1989 Republic of Pakistan Industrial Investment Credit II) 148.00 20.16Cr. 1987-PAK 1989 Republic of Pakistan Karachi Water & Sanitation II 125.00 71.68:.n. 3107-PAK 1989 Republic of Pakistan Energy Sector Loan II 250.00 17.04Cr. 2004-PAK 1989 Republic of Pakistan Private Tubewell Dev. 34.40 4.18Ln. 3147-PAK 1990 Republic of Pakistan Power Trans. Ext. & Reinforce. 162.00 106.28Cr. 2078-PAK 1990 Republic of Pakistan Rural Electrification 37.00 27.88Ln. 3148-PAK 1930 Republic of Pakistan Rural Electrification 123.00 121.04Cr. 2102-PAK 1990 Republic of Pakistan Sindh Primary Education 112.50 87.82Cr. 2153-PAK 1990 Republic of Pakistan Agriculture Credit 1.50 1.45Ln. 3226-PAK 1990 Republic of Pakistan Agriculture Credit 148.50 84.15Cr. 2154-PAK 1990 Republic of Pakistan Agriculture Research II 57.30 56.64Ln. 3241-PAK 1990 Republic of Pakistan Transport Sector Investment 184.00 119.83Ln. 2884-1-PAK 1991 Republic of Pakistan Cement Industry Modem. 56.40 35.81Ln. 3107-1-PAK 1991 Republic of Pakistan Energy Sector Loan II Suppl. 28.00 18.78Ln. 3252-PAK 1991 Republic of Pakistan Corp. Restruct. & Systems Expan. 130.00 60.90

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Schedulo DPage 2 ot 3

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

(As of December 31, 1993)

Amount (US$ million)Fiscal (less cancellations)

Loan No Year Borrower Purpose Bank IDA Unditbursed

Ln. 3252-1-PAK 1991 Republic of Pakistan Corp. Restructuring SuppI. 60.00 6:

Cr. 2228-PAK 1991 Repubtlc of Pakistan Rural Water Supply & Sanitation 136.70 123.20

Ln. 3318-PAK 1991 Republic of Pakistan Mlcroenterprise 26.00 22.70

Cr. 2240-PAK 1991 Republic of Pakistan Family Health 45.00 41.90

Cr. 2245-PAK 1991 Republic of Pakistan Third On-Farm Water Management 47.30 21.05

Ln. 3327-PAK 1091 Republic of Pakistan Third On-Farm Management 36.30 36.30

Cr. 2257-PAK 1991 Republic of Pakistan Second SCARP Transition 20.00 18.64Ln. 3335-PAt 1991 Republic of Pakistan Karachi Port Modernization 91.40 72.12

Cr. 2354-PAK 1992 Republic of Pakistan Middle SchoolIng 115.00 111.49

Cr. 2383-PAK 1992 Republic of Pakistan Env. Prot. & Res. Co. 29.20 29.64

Ln. 3500-PAK 1992 Republic of Pakistan Domestic Energy Resources 180.00 180.00

Cr. 1987-1-PAK 1993 Republic of Pakistan Karac i Water & Sanitation II 91.90 91.96

Cr. 2410-PAK 1993 Republic of Pakistan East. Sadiqla So Phase 54.20 52.73

Cr. 2484-PAK 1093 Republic of Pakistan Family Health II 48.00 48.45

Cr. 2468-PAK 1993 Republic of Pakistan 1992 Flood Damage Restoration 100.00 100.82

Cr. 2482-PAK 1993 Republic of Pakistan Batochistan Primary 106.00 105.81

Cr. 2512-PAK 1993 Republic of Pakistan North Pakistan Resource 28.80 28.25

Cr. 2542-PAK 1994 Republic of Pakistan Public Sector Adjust 100.00 52.05

in. 3846-PAK 1994 Republic of Pakistan Public Sector Adjust 150.00 76.96

Cr. 2558-PAK 1994 Republic of Pakistan Sindh Special Development 46.80 46.80

Total 4773.75 4046.42 /a 2814.53

of which has been repaid 1050.97 199.36

Total now outstanding 3722.78 3847.06

Amount sold 33.09of which has been repaid 33.09

Total undisbursed 2814.53

la IDA Credits beginning with the 6th Replenishment are denominated in SDRs. and are shownin US$ equivalents at the time of negotiatlons. Disbursed amounts are computed at theexchange rate applicable at the date of this statement

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Schedule DPage 3 of 3

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

(As of December 31, 1993)

Amount (Smillions)

Date Borrower Purpose Loan Equity Total

1968 Steel Corp. of Pakistan Iron & Steel 0.63 0.63

1959 Adamlee Industries Ltd. Textiles 0.7S 0.75

1961/85 Gharlbwal Cement Ltd. Cement 4.76 0.42 5.18

196354175I PICIC DFC 3.00 3.00

871891921s9658Ol121 Packages Limited Paper Products 17.00 t.24 18.24

87/881911965 Crescent Jute Textiles 1.83 0.11 1.94

1967 Pakistan Paper Corp. Paper 4.83 2.02 6.85

196S/89 Dawood Hercules Fertilizer 18.30 2.92 21.22

1979 Fauji Foundation Polypropylene Bags 1.78 1.78

1979 Attock Refinery Ltd. Ch3micals & Petrochemicals 7.50 0.86 8.36

1979 Milkpak Ltd. Food Processing 1.90 0.40 2.30

1979/82 Pakistan Oilfe;ds Ltd. Chemicals& Perochemicals 7.00 1.18 8.18

1980 Premier Board Particle Board 2.70 2.70

1961 Habib Arkady Ltd. Food & Food Processing 3.15 0.16 3.31

1982 Asbestos Cement Ind. Ltd. Cement & Construction Material 4.02 0.51 4.63

1983185 Pakistan Petroleum Ltd. Chemicals & Petrochemicals 25.30 1.56 26.86

1985 NDLC Leasing 5.49 0 37 5.86

198692 Mari Gas Company Ltd. Chemicals & Petrochemicals 44.48 44.48

1987189 Anglo-Sulsse Chemicals & Petrochemicals 6.80 6.80

1988 Fecto Cement Cement & Construction Material 18.58 18.58

1988 Millat Tractors Tractors 4.90 4.90

1989 Shams Textiles Textiles & FIbers 2.76 2.76

1989 Suraj Cotton Textiles & Fibers 2.76 2.76

1989 Hala Spinning Textile Spinning 3.26 0.66 3.92

1990 Pak. Suzuki Automotive 18.17 18.17

1990 Rupali Polyester Synthetic Textiles 22.38 2.00 24.38

19o0 FIIB Capital Markets 1.57 1.57

1990 Housing Finance Corp. Capital Markets 5.53 0.49 6.02

1991 Engro Chemicals Pak. Ltd. Chemicals & Petrochemicals 36.20 8.S0 44.70

1S91 PILCO Capital Markets 5.00 5.00

1991 Prudential Discount Guaran Capital Markets 0.40 0.40

1991 EIM. The Fund Capital Markets 0.78 0.78

1991 EIL Captal Markets 0.24 0.24

1992 J.S. Stock Brokerage Capital Markets 0.86 0.86

1992 Rupafil UmIted Synthetic Textiles 14.38 0.34 14.72

1993 Sarah Texiles Textiles 6.00 1.50 7.50

1993 Central Securities Depositor Capital Markets 0.25 0.25

1993 Muslim Commercial Bank Capital Markets 15.00 15.00

1993 Pakistan Services Limited Tourism 12.00 3.00 15.00

1994 Crescent Greenwood ltd. Textiles 16.10 3.10

1994 Fauji Cement Cement 24.00 5.00

Total Gross Commitments 358.44 50.24 360.48

Less Cancellations. Termination ExchangesAdjustments, Prepayments and SalesWriteoffs and Sales 267.83 33.24 252.87

Total Commitments now held by IFO 90.61 17.00 107.61==== 1==s2 ====0

Total Undisbursed 85.82 12.25 96.07

IBRD 2491;

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