Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 23 Sep 2013
PDS Updated as of 27 Sep 2013

Borrower/Equity Investment Name RFI & DAIRY GROWTH FACILITY
Country Pakistan
Project/Program Number 46923-014
Status Approved
Geographical Location Punjab
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Not yet classified
/ For Classification
Thematic Classification Not yet classified
Gender Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7393Partial Credit Guarantee
(Documents under Negotiations)
TOTAL USD 35,000

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation


A partial credit guarantee (PCG) facility of up to $35,000,000 (or PKR equivalent) in support of investment loans made to small dairy farmers. PCGs may be issued by ADB within four years after the Board approval. PCGs may cover loans with a tenor of up to 5 years. The first PCG for up to $3 million (or PKR equivalent) will partially guarantee a portfolio of loans to be made by a local bank to dairy farmers.1

Objectives and Scope

The proposed facility will contribute to (i) improving small dairy farmers supply of high value added dairy products, (ii) scaling up viable banking services for small dairy farmers, and (iii) improving dairy farmers access to investment capital.

Project Rationale and Linkage to Country/Regional Strategy

The Facility supports the development objectives of the government, which include finance for development. The country partnership strategy (CPS) for Pakistan (2009-2013) emphasizes the need for reforms, including measures to improve productivity in agriculture and promoting the private sector. CPS consultations with stakeholders highlight the importance of the private and financial sector, and the need for improving financial inclusion, especially in rural areas. More commercial financial services will capture essential qualitative growth opportunities in neglected regions, and encourage sound risk management. Recent IMF and World Bank reports highlight the farmers inadequate access to finance. Capital support via the partnership of banks and agribusiness present a good opportunity for ADB s private sector operations. The Facility would be the first private sector transaction in Pakistan s agriculture sector. The Facility is consistent with ADB s financial sector operational plan and the 2007 report of the Working Group on Rural Poverty, which underscores the importance of rural finance and promotes financial inclusion of underserved poor households, and farmers.

Outputs and Implementation Progress

Description of Project Outputs
The outputs include (i) sustained access of dairy farmers to affordable finance; (ii) establishment of good quality farmer selection, loan origination, recovery, and monitoring practices by PCBs and PDCs; and (iii) improved farm management practices.
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices


Concept Clearance 20 Aug 2012
Management Review Meeting 20 Sep 2013
Approval 29 Oct 2013
Last Review Mission – to 23 Aug 2013


Approval No. Approval Signing Effectivity Closing
Original Revised Actual

Contacts and Update Details

Responsible ADB Officer Rainer Hartel (
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Private Sector Financial Institutions Division
Executing Agencies


Project Website
List of Project Documents