estructuring plans for the energy sector and a number of other public sector enterprises, and raise the productivity of government expenditure. The government is also to move forward with the privatization of financial institutions, trade liberalization, and to make further progress in the development of the market-based foreign exchange and payments system. The main points of the agenda are as follows:Agriculture The government’s strategy in this area is to limit the role of the public sector, transfer management to the private sector, strengthen local capacity, and assist in natural resource management and environmental protection. The government’s control over imports of fertilizers and the remaining restrictions on imports and exports of agricultural commodities are to be reduced. The wheat subsidy is to be phased out as well, and the private sector will be gradually allowed to participate in the wheat market on terms similar to those of the public sector. The functioning of the agricultural credit market will be improved by gradually phasing out credit subsidies and directed credit and by developing more effective, market-based credit institutions.Social policies Pakistan’s Social Action Program (SAP) was launched in 1992 to expand and improve the country’s very weak social services in elementary education, primary health, population welfare, and rural water supply and sanitation. The second part of the SAP (now underway) emphasizes improvements in the quality of services, particularly education, and the maximization of the impact of expenditures. The SAP program will continue to be agreed upon on an annual basis by the government, the World Bank, and other participating donors. In 1998/99, the government is to ensure that total rupee expenditure (not including foreign project assistance) for basic social services will be at least PRs 56.5 billion, including at least PRs 5.5 billion on critical quality-enha...
