COMPETITIVENESS SUPPORT FUND

Competitiveness Support Fund’s activities in FATA and partnership with FATA Secretariat

The Federal Government of Pakistan directed Civil Secretariat FATA to prepare a long-term development framework for FATA providing a road map for future development in an integrated and sustainable manner. The Civil Secretariat FATA in partnership with the World Conservation Union (IUCN) Pakistan has formulated the FATA SDP or Sustainable Development Programme. The plan formulation process was also supported by USAID, DFID, IMC and SMEDA.

What the SDP entails

The SDP provides the strategic framework for social, economic and ecological development in many sectors in the FATA region. It aims to narrow down the existing gap between development planning, strategic investments and people’s needs by practically addressing the existing social and economic disparities of the area in a specified time frame.

The core components of the plan are structured around specific sectors like education, health, water supply & sanitation, agriculture, livestock, forestry, fisheries, irrigation, water management and power, roads and bridges, industry, mines and mineral, trade and commerce, tourism and skill development. The issues that will be tackled range from broad structural concerns such as governance and institutional capacity to the more normative considerations of social cohesion and cultural identity. The plan outlines measures to improve services, upgrade infrastructure, promote the sustainable use of natural resources, and bolster activity in the trade, commerce and industrial sectors. It explores options to improve institutional and financial capacities, and to expand and diversify available economic opportunities. The plan is flexible and adaptable, allowing for a two-phased implementation schedule. Priority interventions are identified for the first phase, spanning a period of five years, followed by a second, four-year consolidation period. Monitoring and evaluation mechanisms outlined in the SDP are designed not only to gauge progress towards specified targets but also to provide the flexibility to address emerging needs.

It has been decided to initiate the formulation of detail sector plans for a 5 year time span.

Aims and Objectives

The aim of the detail level sector plans is to develop sector level projects/ programme and prioritize sectors.

To operationalize the sector specific strategic framework, as identified in the FATA SDP.
To carryout need assessment of the stakeholders pertaining to respective sectors at the secretariat, line directorates, field offices and community level.
To translate the sector specific strategic and priority interventions into implementable projects/schemes
To work out the tentative cost estimates for each scheme/project in light of the 5 year budget line of each sector
To prepare brief concept papers for individual projects.
To assist the departments in preparation of PC-Is for projects to be implemented in year 1.
To look at the environmental protection aspect issues of the various projects from the perspective of potential donors.
To prioritize the projects’ portfolio for incremental implementation under each sector.

Within the strategic framework of SDP detail sector plans will be prepared taking into account input from all relevant stakeholders. The selected sectors for detail plans are:

Education
Health
Water Supply and Sanitation & Rural Development
Agriculture and Livestock
Forest and Fisheries
Irrigation, Water Management and Power
Roads and Bridges
Institutional Strengthening

In addition to the above, the economic development sectors relating to industry, mining and minerals, trade and commerce, tourism and skill development have been transferred to the FATA Development Authority who are now developing the respective sector plans.

Methodology

For each sector identified above, a consultant will be hired for a period of six months. The consultants will work under a team leader who will be hired for nine months. The consultants will provide input in their area of expertise and will identify bankable projects areas and activities for interventions. CSF will participate in the hiring of consultants, release monthly funding for the consultants activities and provide technical input on the feedback reports received from the experts. In conjunction with the consultants, CSF will also use this opportunity to identify matching grants projects for economic development in the FATA region.

The role of CSF in collaboration with the FATA Secretariat

The SDP outlines measures to improve services, upgrade infrastructure, promote the sustainable use of natural resources, and bolster activity in the trade, commerce and industrial sectors. It explores options to improve institutional and financial capacities, and to expand and diversify available economic opportunities.

CSF’s mission and mandate are closely linked to the objectives of the SDP. CSF has been established to support Pakistan’s goal of a more competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and working to enhance public-private partnerships within the country. CSF also provides technical assistance and co-financing for initiatives related to entrepreneurship and the private sector with research institutes, universities. A business inclubator programme is in the process of being launched. All this is done with the objective of building awareness about competitiveness and promoting a knowledge-based economy for sustainable economic growth in Pakistan.

As many of the fundamental objectives and programmes of the civil secretariat FATA and the CSF have significant commonalities, both have agreed to work together for the sustainable development of FATA’s economy on the following terms:

The CSF will provide technical assistance to support initiatives for strategic and priority interventions based on the future requirements for economic development. The identified sectors include education, health, water supply and sanitation & rural development, agriculture and livestock, forest and fisheries, irrigation, water management and power, roads and bridges, institutional strengthening. CSF intends that during the implementation of this project, further avenues for donor investment for private sector growth will be made available via the Matching Grants window.

A monitoring and evaluation system will be jointly developed and implemented by the secretariat of FATA and CSF to ensure successful and timely completion of selected activities.

CSF and Board of Investment (BOI) interventions in the FATA region

In conjunction with the MoU being signed between CSF and BOI, a joint two pronged strategy will be employed in the FATA region. BOI will market the potential for investment in the region and CSF will highlight the competitive advantages.

Firstly, a joint workshop/ conference, “Cross-border Cooperation through Trade and Investment” will be held in FATA. Participants of the conference will include the stakeholders in the region, regional businessmen and potential and existing domestic and foreign investors.
An ‘Investment Guide’ for the FATA region will be prepared, detailing the information available for investment in the region, particularly highlighting the investment opportunities, cost of doing business and marketing prospects.

In the course of all the above activities, CSF will ensure that economic growth ensuing from these interventions occurs in a competitive manner.