Pakistan - Telecommunications Regulation and Privatization Support Project

The ratings for the Telecommunications Regulation and Privatization Support Project for Pakistan were as follows: the outcome was satisfactory, the sustainability was likely, the institutional development impact was modest, and the Bank and borrower performance were both satisfactory. The lessons learned indicate that flexibility of the Bank to grant a selective project extension, including a new component, even though the project had already been extended twice, allowed the Government of Pakistan (GOP) to develop and issue the new deregulation policy. Continuous dialogue with the GOP during the project was crucial for the timely implementation of sector reform agenda. The sector reform agenda is implemented better by a ministry responsible for a limited sector portfolio. In Pakistan, the GOP's decision to transfer responsibility of the telecommunications sector to the Ministry of IT and Telecommunications (MOITT) provided the impetus for GOP's announcement of a progressive sector policy. Appointment of dedicated Project Manager is necessary to ensure smooth implementation of the project. Appointment of key staff of the two regulatory entities should have been a condition of project processing to ensure smooth start-up of the project. The establishment of new regulatory entities requires considerable time and resources; the project design should have been be less ambitious. Given that this project was focused on regulatory reform in the telecommunications sector, adequate legal and economic due diligence are essential to ensure appropriate project design. For procurement of complex systems like National Frequency Management and Monitoring System (NFMMS), the procurement process should start only after spectrum policy has been announced and human resources plan is available. A training program for capacity building in new institutions should be designed and agreed to at the beginning of the project, as it is crucial for institution development. For the assessment of the project's impact, it is essential to create performance indicators that are relevant, measurable and easily available, and establish a monitoring unit designed to collect and analyze the data required to monitor the development of the project. Telecommunications Sector Reform: As per international experience, the introduction of a CPP regime and prepaid calling cards contributed to substantial growth in the mobile market. Maintaining monopoly on leased lines and fixed market, blocks growth in liberalized market segments.