Eco Assistance

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    Three priority goals of Japans Country Assistance Program for Pakistan

    formulated in February 2005;(i) ensuring human security and human development

    (mainly in the area of education and health),

    (ii) development of a sound market economy(agricultural sector, diversification of industries, economic infrastructure),

    (iii) achievement of balanced regional socio-economic development

    (enhance economy in Karachi, development of Peshawar economic area, etc.).

    (Kohat tunnel,Northern part of the Indus Highway)

    Indus Highway ProjectsJapan extended Japanese ODA loans totaling

    67.0 billion yen to the Indus Highway

    Projects for the construction of the 92% of th

    total length of the highway (945km out of tota

    1,024km) which will connect northern and

    southern parts of the country.

    Kohat Tunnel ProjectsJapan also extended Japanese ODA loanstotaling 12.6 billion yen for constructing the

    1.9km long Kohat tunnel (the total length of30km, including access roads), a part of the

    Indus Highway, purposing to alleviate trafficcongestion in the steep Kohat pass.

    4. Japanese ODA Loan

    3. Focus Areas

    2. Goal and significance of Japans ODA

    1. Summary

    Japan has supported development of infrastructure in Pakistan through Japanese

    ODA loans in such areas as transport and energy. Among them, the Indus

    Highway Projects is especially a symbol of friendship between the two countrie

    Recently, in January 2011, new Japanese ODA loans of 19.7 billion yen were

    extended for the flood disaster of 2010. As a result, the accumulated total amounof Japanese ODA loans to Pakistan since 1961 adds up to about 971 billion yen.

    Ministry of Foreign Affairs

    of JapanMarch 2011

    Outline of Japans ODA to Pakistan

    Japanese ODA Loan Project in FY 2010

    (Total amount: 19.7 billion yen)

    Japan started ODA to Pakistan in 1954 by providing technical training in line with

    Colombo Plan, and the first Japanese ODA loan was extended in 1961. AfterPakistans nuclear test in May 1998, Japan took economic measures, suspendingnew Japanese ODA loans and grant aid. The economic measures were

    discontinued in October 2001. In April 2009, Japan co-hosted the Pakistan DonorsConference with the World Bank in Tokyo to support Pakistan addressing thecounter-terrorism and economic reform and pronounced assistance up to one

    billion US dollars in two years, premised on the continued steady implementationof the IMF program. In November 2009, Japan announced Japans new assistance

    package to Afghanistan and Pakistan with a view to swift implementation of the

    pledge of assistance up to one billion US dollars in two years. Concerning the most

    serious flood disaster in the history of Pakistan which occurred from late July 2010

    Japan has implemented emergency and reconstruction assistance.(Pop.:169.7millions, GNI/capita:$1,020, Economic Growth Rate:3.6% (2009, WB))

    To contribute to consolidating peace and stability not only in the region but also

    across Asia by assisting steady development of Pakistan, which is in the processtowards moderate and modern Islam and playing a crucial role as a front-line statein fight against terrorism.

    Khyber Pakhtunkhwa Emergency Rural Roads Rehabilitation Project(14.7 billion yen : US$ 174 millio

    This project aims for rehabilitating the rural roads and bridges damagedby the flood in Khyber Pakhtunkhwa.

    Emergency Import Support Loan (5 billion yen : US$ 59 million)This loan will be utilized to cover payment of essential items and

    subordinate services for flood disaster restration.

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    5. Grant Aid

    6. Technical Cooperation

    Japan implemented about 17.4 billion yen of the grant aid in 2009 and hasimplemented assistance in the water and sewerage and health sector as well as

    emergency assistance for the flood disaster in 2010. Since its beginning in 1970, theaccumulated total amount of grant aid to Pakistan adds up to 236.9 billion yen by FY2009.

    Projects in FY 2010 (Total: 17.40 billion yen)(1) The Project for the Improvement of Water Supply System in Abbottabad (about3.64 billion yen):

    This project aims to improve water supply system in Abbottabad, KhyberPakhtunkhwa.(2)The Project for the Eradication of Poliomyelitis(about 0.40 billion yen)

    This project aims to procure the Polio vaccine for immunization activities in theborder region of Pakistan and Afghanistan through UNICEF.(3) Emergency assistance of foods, goods health, water and sanitation for the flood

    disaster through FY 2010 supplementary budget through UN agencies (about 25.1

    billion yen)

    In FY 2009, Japan provided 1.9 billion yen for technical cooperation to Pakistanincluding development study. The cumulative amount of Japans technical cooperation

    is about 42.09 billion yen up to the end of FY 2009. By the end of FY 2009, 5,070trainees have been received by Japan, and 1,240 experts had been sent to Pakistan.Agreement on Technical Cooperation between Japan and PakistanIn April 2005, the Governments of Japan and Pakistan signed the Agreement on

    Technical Cooperation with the aim to promote smooth implementation of the bilateral

    technical cooperation.On-going Projects in FY 2010(1)The Project for Development of Center of Excellence for Technical

    Education(Dec 2008 - Dec 2013) which aims to improve capacity for providing

    technical education in Government College based on industrial needs.(2)Trade Policy Advisor(Dec 2009 - Dec 2011) which aims to advise and instructabout planning and implementation of the policy of export promotion.

    (3)Investment Climate Improvement Advisor(May 2010 - May 2012) which aims toadvise and instruct about planning and implementation of the policy of investmentcircumstance improvement.

    Ministry of Foreign Affairs

    of Japan

    Fiscal Year JapaneseODA Loan Grant Aid TechnicalCooperation

    2000 0 2,042 865

    2001 4,032 10,783 875

    2002 3,149 7,590 1,418

    2003 0 6,313 1,799

    2004 0 4,863 1,732

    2005 27,582 10,013 2,140

    2006 23,157 5,196 2,530

    2007 0 4,763 1,393

    2008 47,943 6,089 1,179

    2009 23,300 17,402 1,900

    Cumulative

    Amount951,300 236,931 42,087

    Japans ODA to Pakistan

    (Ref.) Japanese ODA Loan and Grant Aid are E/N based.Technical cooperation is JICA-disbursement based.

    million yen

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    Japans ODA Project Ministry of Foreign Affairsof Japan

    Investment Climate Improvement Advisor(Technical Cooperation)

    The Project for Development of Centerof Excellence for Technical Education

    (Technical Cooperation)

    The Project for the Eradication ofPoliomyelitis (Grant Aid)

    The Kohat Tunnel Construction Project(Japanese ODA Loan)

    National Transmission Linesand Grid Stations Strengthening Project

    (Japanese ODA Loan)

    Khyber Pakhtunkhwa EmergencyRural Roads Rehabilitation Project

    (Japanese ODA Loan)

    Trade Policy Advisor(Technical Cooperation)

    The Project for the Improvement ofWater Supply System in Abbottabad

    (Grant Aid)

    Humanitarian Assistance for flood disaster(FY 2010 supplementary budget)

    (Grant Aid)

    (Khyber Pakhtunkhwa, Sindh, Punjab, etc)