Punjab agri market project: ADB wing says technical assistance less than effective

ISLAMABAD: The Independent Evaluation Department (IED) of the Asian Development Bank (ADB) rated the technical assistance ‘Pakistan: Preparing the Punjab Agriculture Markets Development Project’ as less than effective and less than successful.

The IED in its technical assistance completion report stated that the objective of the technical assistance (TA) was to help prepare a project to finance the establishment of a modern, holistic wholesale agriculture market in Punjab, Pakistan. It aimed to enhance the readiness of the ensuing loan through the following envisaged outputs: (i) project investment feasibility study, and (ii) master plan for the development of agricultural markets in Punjab.

The government of Pakistan requested the Asian Development Bank (ADB) to support the Punjab Agriculture Markets Development Project.

The original TA amount was increased from USD800,000 to USD2,000,000 after two minor modifications. However, ADB approved additional financing of USD700,000 on 6 December 2021 and USD500,000 on 3 August 2022 to finance additional studies and surveys. The TA used 99.4% of the funds, with a disbursed amount of USD1,987,863.84. Despite multiple extensions, additional financing, and substantial fund usage, the majority of activities were not completed, and the preparation of an ensuing project was not realized. Based on the foregoing, this validation assesses the TA less than efficient.

Pakistan’s growth outlook has improved: Asian Development Bank

The report noted that more diligent fact-finding during the preparation of the TA might have avoided significant deficiencies found during due diligence activities, particularly with respect to legacy issues on social safeguards and land acquisition. Subsequent TA change memos did not adequately assess risk from social safeguard issues or substantially change activities in order to achieve planned outcomes. According to the TA completion report (TCR), changes in government priorities and unresolved legacy issues led to the termination of the TA, and no loan ensued. Given these shortcomings, this validation assesses the TA as less than relevant.

Although due diligence and feasibility studies were initiated, they were not completed. Some components of the master plan were completed but lacked details. Based on the foregoing, the TA outputs were only partly delivered, and the TA did not achieve its planned outcome, as the project supported by the TA did not ensue. This validation assesses the TA as less than effective.

The TA was less than effective as issues and challenges resulted in the termination of activities, and no loan ensued.

Copyright Business Recorder, 2025