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                                               April 22, 1991
The Secretary to the Government of Pakistan
Economic Affairs Division
Islamabad, Pakistan
     Re:  Credit No. 1936/Loan No. 2973 PAK
          (National Oilseed Development Project)
          Amendments to the Development Credit Agreement
Dear Sir:
          We refer to the Development Credit Agreement (National
Oilseed Development Project) between the Islamic Republic of Pakistan
(the Borrower) and the International Development Association (the
Association), the Loan Agreement between the Borrower and the
International Bank for Reconstruction and Development (the Bank), and the
Project Agreement among the Association, the Bank and the Provinces of
Punjab, Sind, North West Frontier and Baluchistan (the Provinces), all
dated July 21, 1988.  We also refer to our letter dated February 8, 1991,
as confirmed by yourselves, whereby agreement was reached between us on
certain amendments to the Development Credit Agreement to reflect certain
modified arrangements for the participation of the Nationalized
Commercial Banks (NCBs) in the Project without the intervention of the
Pakistan Banking Council (PBC) as the apex agency.
          We note that, contrary to expectations, the changes in PBC's
operations, which were occurring at the time of said agreement and which
gave rise to the need for such modified arrangements, have not in any way
adversely affected PBC's ability to function as the apex agency under the
Project.  We propose, therefore, that PBC continue to function as such
apex agency, and that, to that end, the amendments of February 8, 1989 be
hereby reversed so that the Development Credit Agreement would apply as
if it had never been so amended.
          Please indicate your agreement to the foregoing by signing
and dating the enclosed copy of this letter and returning it to us.
                           Very truly yours,
                 INTERNATIONAL DEVELOPMENT ASSOCIATION
                        INTERNATIONAL BANK FOR
                    RECONSTRUCTION AND DEVELOPMENT
                           Michael H. Wiehen
                               Director
                         Country Department I
              Europe, Middle East and North Africa Region
CONFIRMED:
ISLAMIC REPUBLIC OF PAKISTAN
By   /s/ M. Hamid Hasan
     Authorized Representative
Date:June 3, 1991