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  • Jan 23rd, 2010
  • Comments Off on Delay in disbursement of ODA loans due to donors’ conditionality: PCE
Pakistan Coalition for Education (PCE) has said that the donors attached conditionality of so called 'policy actions' caused delay in disbursements of loan to Pakistan. Mukhtar Ahmed Ali, PCE Member and researcher, said this while addressing the participants of a launching ceremony of dialogue on 'A policy scan of the official development assistance' organised by PCE here on Friday.

The PEC is a forum for initiating, sharing and exchanging dialogues on different issues pertaining to education. He further said that administrative paperwork, approvals and technical reasons resulted in delaying of disbursements in Overseas Development Assistance (ODA) loans.

He said that the share of grant in the ODA, especially for the education sector, should be at least 50 percent. "For least developed countries, facing serious challenges like internal violent conflicts, all ODA for education sector may be in the form of grants," he added.

The loans from ADB and the World Bank (WB) show that out of the total $6492 million committed during 2001-05, $4319 million were actually disbursed in the same period. The ratio of disbursement of non-project loans was 60 percent, 100 percent and 100 percent in the years 2001-02, 2002-03 and 2003-04 respectively, while it was 38 percent and 63 percent in the same years in relation to project loans. Pakistan is increasingly becoming a heavily indebt country and might not be able to sustain it in long run.

Speaking on the occasion renowned economists Qaisar Bangali said that there should not be cost assistance in education sector as it is bad microeconomics which causes inflation rather the best way to assist is the technical assistance in education projects. While identifying the four sectors which need immediate attention of the donors, he said that the best way for the donor was to directly involve them in projects rather providing funds.

"The major concerning issue is the shortage of teachers, as according to a recent study 2/3 of schools do not have a science teacher while the teachers of other subjects are often not specialised in their respective fields," he said.

He further said that the situation in private institutions was also not very satisfactory, as they have written the names of renowned professors in their brochures and prospectus but none of them actually associated with that particular institution.

"The institutions prepare their brochures to fulfil the criteria of Higher Education Commission and to attract students," he said. Bangali said that the second major factor was the absence of laboratories in schools and colleges. "90 percent of the schools don't have a laboratory and their science students appear in exams for practical after reading the theory only," he added.

He said that books and journals were also very expensive and most of the institutions could not afford them to facilitate their students. "The donors could provide these books and journals to the institutions and in this way they could contribute to education in a better way," he said. The last factor he identified was the provision of scholarships so that students could go abroad for higher studies and on their return they could play their role in development of the country.

Chairman Standing Committee on Education Abid Sher Ali said that the previous government wasted billions of rupees on the project 'Perha Likha Punjab'. "The schools, which have been constructed during the previous government, turned into guest houses, as billion of rupees were only spent on its advertisement," he said.

Speaking on the occasion, other educational experts said that the government must increase budgetary allocations for education from its own resources, despite ODA rise. They said that maximum transparency about ODA committed and disbursed as well as about allocations and expenditures from government's own kitty would help civil society, media and electorates in monitoring the trends and holding the relevant authorities accountable.

They urged the government to establish effective mechanisms for efficient implementation of ODA supported projects and programmes. Donors should provide technical assistance and financial support in the form of grants for establishing such mechanism.

They were of the view said that Benazir Income Support Programme (BISP) could be more fruitful if they have made it a condition to educate their children. "If it had been made mandatory for the beneficiaries of the programme to educate their children, this would not only help the people out financially in the longer run but also help in improving the literacy rate," they said.

Copyright Business Recorder, 2010


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