ADB to help create 20-year 'special fund' for Pakistan
Sunday, 15 July 2007
ISLAMABAD, July 14 (APP): The Asian Development Bank (ADB) has decided to help create a 20-year 'special fund' for Pakistan aimed at extending a long-term source of funds for capacity building initiatives of various stakeholders including government organisations, regulatory authorities, retailers and potential clients.
The fund would be created in the State Bank of Pakistan (SBP) which would have the possession, management and control of the fund, its undertakings, properties and assets, Khaleej Times reported.
The ADB has agreed to initially extend $20 million for the Fund but an equal amount of funds in a local currency would also be made available by the government as part of the counterpart funding.
The fund would be established as an endowment fund, whereby the income generated from it would be used for supporting the activities on a grant basis, and the initial $20 million equivalent capital contribution would remain in place for the life of the fund.
The fund would establish its own rules, subject to ADB concurrence, specifying among other things, the selection criteria for the capacity building initiatives and literacy programmes it would support, including general percentage allocations to be applied among the different categories of activities, the investment strategy for the fund, and accounting and auditing procedures.
It is expected that the initial capital of the fund and the unutilised income generated from the fund would be invested by SBP in approved government securities.
The fund would be administered and managed by a 'governing body' consisting of five voting members and one observer.
The governing body would be comprised of an SBP nominee, CEO of Pakistan Poverty Alleviation Fund (PPAF), CEO of the Pakistan Micro finance Network, Pakistan Banking Association (PBA) nominee, a representative from the education sector to be nominated by the other four voting members and an ADB observer with non-voting status.
The governing body's responsibilities would include, selection of the capacity building initiatives and literacy programmes to be financed by the Fund.
The central bank would prepare the Fund rules, including provisions on fund management, accounting and auditing procedures, investment policy, grant selection criteria and a minimum percentage of funds available for literacy.
The secretariat of the fund would be located at SBP headquarters. In order to promote transparency and greater accountability, the Fund would have a dedicated public website, hosted by SBP, which would list application criteria for accessing grants from the fund for literacy and capacity building programmes, and provide the necessary forms and instructions for application and the contact information for queries and the submission of applications.
The governing body would be responsible for publishing on a quarterly basis on the SBP public website, the listing of recipients of funds and detailed information on the capacity building and training activities that are funded by the fund.
The fund would be created in the State Bank of Pakistan (SBP) which would have the possession, management and control of the fund, its undertakings, properties and assets, Khaleej Times reported.
The ADB has agreed to initially extend $20 million for the Fund but an equal amount of funds in a local currency would also be made available by the government as part of the counterpart funding.
The fund would be established as an endowment fund, whereby the income generated from it would be used for supporting the activities on a grant basis, and the initial $20 million equivalent capital contribution would remain in place for the life of the fund.
The fund would establish its own rules, subject to ADB concurrence, specifying among other things, the selection criteria for the capacity building initiatives and literacy programmes it would support, including general percentage allocations to be applied among the different categories of activities, the investment strategy for the fund, and accounting and auditing procedures.
It is expected that the initial capital of the fund and the unutilised income generated from the fund would be invested by SBP in approved government securities.
The fund would be administered and managed by a 'governing body' consisting of five voting members and one observer.
The governing body would be comprised of an SBP nominee, CEO of Pakistan Poverty Alleviation Fund (PPAF), CEO of the Pakistan Micro finance Network, Pakistan Banking Association (PBA) nominee, a representative from the education sector to be nominated by the other four voting members and an ADB observer with non-voting status.
The governing body's responsibilities would include, selection of the capacity building initiatives and literacy programmes to be financed by the Fund.
The central bank would prepare the Fund rules, including provisions on fund management, accounting and auditing procedures, investment policy, grant selection criteria and a minimum percentage of funds available for literacy.
The secretariat of the fund would be located at SBP headquarters. In order to promote transparency and greater accountability, the Fund would have a dedicated public website, hosted by SBP, which would list application criteria for accessing grants from the fund for literacy and capacity building programmes, and provide the necessary forms and instructions for application and the contact information for queries and the submission of applications.
The governing body would be responsible for publishing on a quarterly basis on the SBP public website, the listing of recipients of funds and detailed information on the capacity building and training activities that are funded by the fund.