The World Bank is considering lending $300 million towards a national drainage programme. This will comprise loans of $250 million from the bank and $50 million in concessionary credits from the bank's private sector arm, the International Development Association (IDA). A feasibility study is being carried out by the local National Engineering Services - Pakistan (Nespak) and the UK's Mott MacDonald.

The five-year programme aims to prevent the loss of agricultural land due to poor drainage, improve the management of public expenditure in this sector and strengthen key institutions. The final project proposal is to be submitted to the bank's board in 1996. Co-financing may be provided by Japan's Overseas Economic Co-operation Fund (OECF).

A similar scheme for an irrigation programme is at an earlier stage of development. Funding of $70 million from the World Bank and $100 million from the IDA has been proposed towards improving efficiency in the national irrigation system and in public expenditure.