A total of 100 'Aik Hunar Aik Nagar' (Ahan) projects would be implemented in two years, ie, by the end of 2008. The 'Ahan', a rural enterprises modernisation project, was initiated by the Small and Medium Enterprises Development Authority (Smeda) following a review of the project by the Prime Minister in October 2006.
Official sources told Business Recorder that 'Ahan' cell in Smeda has approached the Japanese External Trade Organisation (Jetro), Unido and Aid to Artisans for possible links, and partnerships. About 100 product samples have been sent to Japan through Jetro for exploring potential in the Japanese market and assistance in product development according to demand in Japanese market. A Jetro team had visited 'Ahan'project in February this year, with a Japanese expert, for an on the ground study.
It was decided that in addition to the study phase, as envisaged by the Government of Pakistan's agreement with Asian Development Bank (ADB), the 'Ahan' project should immediately enter implementation phase and 100 pilot projects should be implemented in the next two years.
So far, four pilot projects relating to silverware, bead work and embroidery, handloom khaddar/silk products, and textile (rilli) have been initiated, while pilot projects in process include: training in embroidery, khaddar (shawla), and textile (crochet). Further, a large number of other projects are being examined.
According to the latest update, project staff hiring has been completed, adequate office staff setup with all necessary facilities has been available to the project, and procurement of required machinery and equipment and vehicles has been completed.
Project outreach support has been established in collaboration with Smeda regional offices in four provincial headquarters and regional business centres across the country, and 'Ahan' regional co-ordinators for each province have been recruited.
Detailed discussions were held with Asian Development Bank during its inception mission visit from November 28 to December 3 last year. Also, consultancy requirements, selection procedures, and detailed financing plan was finalised as part of the project administration memorandum, and required changes were proposed in Aide-Memoire, which has been endorsed by the Ministry of Industries, Production and Special Initiatives (MoIP & SI) and Economic Affairs Division (EAD), Ministry of Finance.
Preliminary meetings have been held with all provincial governments to develop common understanding of project scope and objectives and on board all concerned government departments for project facilitation.
District Co-ordination Officers (DCOs) of all districts across the country have been requested to identify potential products from their respective districts under supervision of district governments and all necessary forms along with project scope and objectives have been communicated as well.
For arranging networks of trainers, designers, marketers, and quality specialists, who could assist in it to develop rural enterprise options on a broader scale, 'Ahan' cell has advertised for CVs and is setting up a database, as well as discussing with successful entrepreneurs for recommendations.
'Ahan'cell has established institutional alliances with key academic institutions in design and arts in Punjab and Sindh and same arrangements are underway for NWFP and Balochistan, and MOUs are under consideration.
The 'Ahan' was started in July 2006. At the time of submission of work plan and cash plan at the start of financial year, it was mentioned that the cost sharing issues were yet to be clarified with ADB, which may require revision of the work plans. An ADB inception mission visited 'Ahan' from November 27, 2006 to December 3, 2006 to discuss the developments and resulted in the following outcome:
-- Two-pronged strategy will be followed, whereby the consultancy work as envisaged in the loan agreement and field activity of implementation of 100 pilot projects through additional funding, as directed by the Prime Minister, would go side by side. In order to complement and harmonise both activities necessary changes in the scope and implementation of the project shall be made.
-- The consultants, to be provided under the loan agreement, will now be split up in two segments. The first segment will provide support to immediate field requirements of the project, and the second segment will primarily work as per original scope of the project.
-- In order to implement government's desire to execute 100 pilot projects in the next two years under Phase-I, the project staff is required to remain on board up to the end of December 2008. For this purpose, the ADB would supplement Government of Pakistan's share by providing more funds through readjustment in the allocations under various heads of the loan agreement. However, this increase has been proposed by the ADB with the understanding that the Government of Pakistan would provide additional funds for the pilot projects as approved by the Prime Minister.
-- The ADB Mission agreed to seek approval for changes in the disbursement percentages for national consultants from 81 percent to 100 percent and for recurrent costs from 21 percent to 40 percent.
-- The mission reviewed the implementation schedule of the project in view of the ground realities as described in part 'D' of the Aide-Memoire. Revised implementation schedule has been proposed to synchronise with new design of Phase-I of the project. This will be incorporated in revised Project Administration Manual (PAM).
MoIP & SI and EAD have confirmed the contents of Aide-Memoire and the Prime Minister has also approved immediate release of Rs 100 million for pilot projects. PC-I is being reviewed for consideration of the government, sources added.
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