Duration: October 2017 - December 2022
Budget: € 9.8 million
Location: KP, Newly Merged districts of KP and Balochistan
Implementing Partners: The World Bank Group, Government of Pakistan, Governments of KP and Balochistan, Government's of Australia, Denmark, EU, Finland, Germany, Italy, Sweden, Switzerland, Norway, Netherlands, Turkey, UK, and the USA.
The World-Bank administered Multi-Donor Trust Fund (MDTF) was created in 2010 to mobilise and invest resources needed to cope with the reconstruction in the aftermath of the 2009 crisis in Pakistan. The Fund has been supporting a wide range of crucial projects to restore social and productive infrastructure, improve livelihoods, combat poverty, address governance issues and build citizen state trust in KP, FATA (now newly merged districts) and Balochistan.
To build citizens’ trust in the government through improved governance, jobs, and service delivery.
How do we address the challenge?
Over the course of the past 10 years, MDTF has led to real change at both the grassroots and policy levels. Projects under the three programme pillars – Policy Reform and Governance, Growth and Job Creation and Service Delivery – have been supporting good governance, citizen engagement and economic growth.
Under policy reform and governance, the MDTF helps core government departments to deliver better and more efficient services and make them more transparent and accountable to citizens.
Under growth and job creation, the MDTF provides grants to SMEs and also prepares youth for a digital economy so more people have better jobs.
Under service delivery, the MDTF projects support basic services through Citizen Facilitation Centres (CFC) in the newly merged districts of erstwhile FATA. The CFCs bring together NADRA Registration and Financial Service Platform, the National Bank of Pakistan, and the Department of Health to deliver a comprehensive register of birth, marriage, divorce, and death certificates; financial services like ATM machines, mobile topups, and utility bill payments; and health services such as immunisation.
Support to policy
The MDTF is implemented in close collaboration with the Government of Pakistan. The Advisory Committee and Steering Committees steer the strategic direction of the MDTF. These are co-chaired by the Government of KP and the Economic Affairs Division of the Pakistan Ministry of Economic Affairs respectively. This arrangement ensures the MDTF aligns with priorities of the Government.
What can we learn from this project?
Operating in areas of fragility can be very challenging. The MDTF offers lessons for similar programmes. These include need for flexibility in approach as situations on the ground can shift and impact implementation. Additionally, projects must be developed in close collaboration with the Government counterparts. It was important to include the Government counterparts as part of strategic dialogue through chairing of the Advisory and Steering Committees. This has ensured buy-in of key stakeholders and helped move projects forward.
EU in Pakistan
The European Union (EU) funds projects and programmes around the world in order to help addressing global and local challenges. The reduction of poverty and the respect of fundamental rights and freedoms are key objectives in this context.
In Pakistan, the EU is committed to a stable, democratic and pluralistic country that respects human rights and benefits from its full economic potential by
supporting sustainable and inclusive development for all its citizens. The EU provides Pakistan with about €100 million annually in grants for development and cooperation. Among other issues, the EU supports Pakistan in its efforts to tackle poverty, increase education, promote good governance, human rights, rule of law and ensure sustainable management of natural resources. EU-funded projects are covering all of Pakistan with a special focus on Sindh and Balochistan.
The collaboration between the European Union and Pakistan is grounded in the Strategic Engagement Plan (SEP) signed in 2019. Areas of cooperation under the
SEP include peace and security, democracy, rule of law, human rights, and migration but also sectors such as energy, climate change and science and technology.
The EU is one of Pakistan’s largest trading partners. The EU supports Pakistan’s integration into the world economy and its sustainable economic development,
namely by granting it preferential access to the European single market under the GSP+ system since 2014. Under this scheme almost 80% of Pakistan’s exports
enter the EU duty and quota free. In 2018, Pakistani exports to the EU were worth €6.9 billion.
In order to enjoy the trade preferences under GSP+, Pakistan needs to demonstrate progress on the implementation of 27 international conventions on human rights, good governance, labour rights and environmental protection.
Delegation of the European Union to Pakistan,
House 9, Street 88, G-6/3, Islamabad
Phone: +92 51 227 1828, Fax: +92 51 282 2604
To report any irregularities contact us on DELEGATION-PAKISTAN-IRREGULARITIES@eeas.europa.eu