TA and lending programme: ADB wing says highest level of divergence displayed

ISLAMABAD: The Independent Evaluation Department (IED) of the Asian Development Bank (ADB) said that Pakistan displayed the highest divergence between the technical assistance (TA) and lending programme.

The IED in its report, “ADB Technical Assistance Operations, 2014-2023” stated that large program loans in the industry and public sector management sectors (43 percent of the overall lending program) have been accompanied by a far more modest (25 percent) share of TA operations in these sectors.

By contrast, the agriculture and natural resources sector accounted for 21 percent of all TA, half of which was for project preparation, but this sector received only three percent of all lending. The lending and TA programmes in the energy sector were well balanced if the multi-tranche financing facility’s role in project preparation is considered.

Aurangzeb lauds ADB’s financial, technical aid

The report noted that the United Kingdom, which in the initial years co-financed large TA operations in India and Pakistan, switched to supporting multi-donor trust funds in a variety of sectors.

The ADB’s 2022 Client Perceptions Survey found that most clients “strongly agree” or “agree” that ADB TA is well aligned with their country’s development needs (84 percent) and effectively addresses their knowledge needs (79 percent). This was an improvement from the 2020 survey, when the percentages were 78 percent (for alignment with country’s development needs) and 73 percent (for effectively addressing knowledge needs).

However, evaluation missions to Indonesia, Mongolia, Pakistan, and Uzbekistan met developing member country (DMC) staff who expressed a need for stronger engagement in the design and implementation of TA projects and for more frequent updates on their status. This was consistent with the responses received from the surveyed ADB staff, which indicated staff would welcome a stronger government role in both TA identification and implementation.

Some DMCs also expressed interest in becoming involved in the TA procurement process. Related to this, stronger engagement at the DMC level means not only at the central government level but also with implementing agencies at the sectoral level.

Copyright Business Recorder, 2024