Political interference blamed for stymieing G-B’s development project

An undue political interference has been blamed for one of Gilgit-Baltistan’s most successful development projects – Economic Transformation Initiative or (ETI-GB) - forcing sponsors to wind up operations in the region.

The ETI G-B was a seven-year development programme of the G-B government, co-funded by IFAD with a total cost of Rs12 billion to boost regional economic activity through agriculture value-chain development.

The project, however, started hitting snags towards the fag end of Hafeezur Rehman's government when it weakened and bureaucracy became stronger. The bureaucracy and the incumbent PTI government allegedly attempted to replace the top management which ultimately put breaks on the project.

In a latest development on Tuesday, country director IFAD Pakistan, Hubert Boirard has written a letter to ministry of economic affairs Islamabad, recommending a ‘winding up action plan’ for ETI-GB.

“I would recommend economic affairs division to liaise with the ETI-GB lead agency in order to prepare the ETI-GB winding up action plan,” he writes to the Mian Asad Hayaud Din, secretary ministry of economic affairs.

He further wrote that on November 9, 2020, the G-B government formally expressed its interest to extend the activities of ETI-GB. “IFAD supported this potential no cost extension, subject to: (i) the ETI-GB agribusiness development component 2 is fully operational and that the 162 cooperatives already contractually engaged with ETI-GB, do not miss the 2022 agricultural campaign and (ii) the farmers benefitting from the 42,000 acres of new land developed under the ETI-GB will receive an official land titling as per agreement mentioned in both the IFAD/GoP Financing agreement and the ETI-GB PC1.

“As of today and six months before the ETI-GB completion date, both conditions are not satisfied,” he remarked, adding, moreover, the risk of losing the 2022 agricultural campaign for the 60,000 households supported through the 162 cooperatives is extremely high (end of March 2022).

Former chief minister Hafeezur Rehman told The Express Tribune that the incumbent government was bent on ruining this project to discredit his government. “Realising the grave situation, I had written a letter to President IFAD Mr Gilbert F Houngbo drawing his attention to the situation but unfortunately nothing happened.”

Sources privy to the development said a former secretary planning initially created hardships for the ETI management in hiring staff and other matters.

“Besides three regional coordinator posts, 18 other posts have been lying vacant for the past two years as the planning department is least interested in it,” said the insider.

Also read: G-B to kick-start construction of water channels to boost agriculture sector

In addition, he said the appointment of chief engineer and DPC has not been made for the past one year. The sources said under Dr Ahsanullah Mir as regional chief, the regional team executed the project for over five years during which 49,000 acres (of 50,000 target) of barren land was provided with channel water from glacial melt. “The important thing is that cost incurred on that project was less than 25% of estimated cost of 2014 estimates.”

Likewise in 3 years, some 20,000 acres of barren land received channel water through the construction of 50 irrigation channels while the rest is in the final stages of construction.

Similarly, against the target of 400 kilometres road, 480km roads were under construction at a rate of 2014 construction rates.

“Another milestone was that first time in history of G-B, 230 Agricultural Cooperatives were formed and registered covering about 50,000 households,” he said, adding not to mention resolution of chronic technical, financial and operational bottlenecks through a team approach. In the first four years, the ETI-GB disbursed more than $40 million with an efficiency of 30% and an operation cost of less than 10%.

Minister planning and development G-B Fatehullah Khan speaking to The Express Tribune said he wasn’t aware of the letter but added “The G-B government had almost fulfilled IFAD’s demands on various sectors. “We will look into the letter in detail to chalk out our strategy.”