World Bank okays $200m for Punjab’s agri sector
The World Bank has approved a $200 million loan to overhaul Punjab’s agriculture sector
ISLAMABAD: The World Bank has approved a $200 million loan to overhaul Punjab’s agriculture sector.
According to a WB’s announcement made here Saturday, the World Bank’s Board of Executive Directors approved $200 million in financing to support Pakistan in transforming the agricultural sector by adopting climate-smart technologies to improve water-use efficiency, build resilience to extreme weather events and increase incomes of small farmers.
The agricultural sector in Punjab is central to Pakistan’s economy and food security as it accounts for 73 percent of the country’s total food production. The Punjab Resilient and Inclusive Agriculture Transformation Project (PRIAT) will increase agricultural productivity through efficient and equitable access to water for small farms. It will support farmers at the community and household levels to adopt climate-smart farming practices and technologies that improve crop yields and conserve water resources in Punjab.
“In recent years Pakistan’s agriculture sector has suffered from losses in crop yields and livestock, damage to irrigation infrastructure and food shortages due to climate change, particularly severe droughts in the Punjab province,” said Najy Benhassine, World Bank Country Director for Pakistan.
“This project aligns with the Punjab Agriculture Policy 2018, which promotes massive expansion of water conservation efforts, enhancing sustainability and resilience in the wake of climate change and private sector participation to help boost the productivity of the sector.”
PRIAT will support farmers implement innovative, climate-smart technologies to help the Punjab government achieve economies of scale to transform the agricultural sector. The project will engage the private sector in sourcing appropriate technologies and providing training tailored for water user associations and individual households to improve water conservation practices and agriculture productivity. “The agriculture sector has a huge opportunity to both build climate resilience and improve economic conditions by generating access to domestic and international markets,” said Guo Li, Task Team leader for the project.
“PRIAT will help accelerate the government’s efforts to transform the agri-food system through market-oriented production activities that add value, increase competitiveness and generate higher incomes for farmers.”
The project will benefit about 190,000 small, family-owned farms and 1.4 million acres of irrigated land in rural communities in the province. It will also provide training to small- and medium-sized farm owners on water conservation and more sustainable, climate-resilient agricultural practices, including for women. About 74 percent of women in the province rely on agriculture as a source of livelihood.
According to the World Bank’s project document, the expansion of off-farm economic opportunities and the increase in migration and associated remittances allowed over 47 million Pakistanis to escape poverty between 2001 and 2018. Nonetheless, challenges for inclusive growth remain systematically related to spatial disparities and deficits in human capital endowment and access to services and opportunities.
Human capital outcomes are poor and stagnant, with high levels of stunting at 38 percent and learning poverty at 75 percent. Growth of per capita gross domestic product (GDP) has also been low, averaging only around 1.8 percent annually.
