The Asian Development Bank is working Pakistan to diversify and develop the agribusiness sector in order to improve the lives of small-scale farmers. The project is working with groups of citrus growers, processors, and exporters in Sargodha district to develop agribusiness opportunities, and has established screen houses to nurture plants in a disease and insect free environment.
|Project Name||Agribusiness Development|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade
Finance - Infrastructure finance and investment funds
|Gender Equity and Mainstreaming||No gender elements|
|Description||The goal of the Project is to support economic growth and employment generation through agribusiness develoment. The Project purpose is to develop a competitive and sustainable agribusiness sector. Project activities will be focused in particular on improving agribusiness enterprise access to Business Development Services (BDS), strengthening BDS providers to enhance skills throughout the agribusiness sector, expanding access to agribusiness finance, and developing institutional capacity. The Project comprises: (i) agribusiness support service provision, (ii) agribusiness finance development, (iii) agribusiness capacity building, (iv) agribusiness policy and enabling environment development, and (v) project management support.|
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||Growth in the agribusiness sector is improved|
|Description of Outcome||
More competitive and
sustainable agribusiness sector
|Progress Toward Outcome||Shall be assessed during PCR|
|Description of Project Outputs||
Agribusiness support service provision enhanced
Improved access to market, and delivery of agri-business financing
Enhanced public and private sector capacity to provide services to agribusiness producers and entrepreneurs
Improved agribusiness policy and enabling environment
Effective project management support provided
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The agribusiness sector has been expanding slowly as a result of lack of access to credit from the formal financial sector and slow to negligible adoption of requisite policy changes necessary for the sector to thrive. For example, adoption of international certification standards is behind schedule. Rule of law is weak. The expected partial credit guarantee necessary to encourage domestic financial institutions to expand lending to the agribusiness sector has not materialized, and will only do so with positive engagement from Government. Training programs were implemented with delays.
Based on data provided by the Agribusiness Support Fund, over 1189 farmer enterprise groups have been formed, business development service support has been provided to 241 existing agribusiness enterprises and 65 start-up enterprises, eight research and extension programs, and 16 private sector-agriculture extension projects. Despite these numbers, the Project is unlikely to attain the expected impact nor fully achieve the target outcomes.
PMU management capacity remained weak. In February 2009, the State Bank of Pakistan Agribusiness Finance Capacity Building program suffered a setback when consultants withdrew as a result of security issues. Progress with implementation of the DALPMG Export Certification component also suffered as consultants were not willing to come to Pakistan, again because of security coniderations. The DALPMG Private Market Information service has not materialized as per the project concept. Strengthening of FSCRD progressed well. The PHDEC trainer of trainer program was also implemented, but with delays. The Livestock and Dairy Development Board is established and fully functional.
Overall, project achievement has been mixed. As of 31 March 2011, 100% of the project period elapsed. The overall implementation progress was estimated at 52%. The project completion report will be prepared in the fourth quarter of 2011.
Summary of Environmental and Social Aspects
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants by ADB and its Borrowers and other arrangements satisfactory to ADB for engaging domestic consultants. A total of 221 person-months of international and 128 person-months of domestic consulting inputs will be financed under the Project. Consulting services will be engaged in two packages. Under the first package there will be three contracts. One contract will be issued for agribusiness support fund promotion, and project management and studies. Consultants will be selected by MINFAL A second contract will be issued for agribusiness capacity building, and agribusiness policy and regulatory framework development. Consultants will be selected by PMU. A third contract will be used for agribusiness finance awareness building and monitoring. Consultants will be selected by SBP. Each contract will engage an international firm in association with domestic firms. The second consultant package will be to establish and operate an agribusiness lending function within selected PFIs. There will be three to five separate performance-based contracts, one for each PFI. A high degree of flexibility will be written into each consulting contract to allow implementing agencies to recruit consultants according to needs determined as project implementation proceeds. The ASF general manager will be recruited directly by ASF's board.|
|Procurement||Goods and related services financed by ADB will be procured following ADB's Guidelines for Procurement. Supply contracts for equipment or materials are not expected to exceed $500,000, but should such a contract be required it will be awarded on the basis of international competitive bidding. Those costing less than $500,000 will be awarded on the basis of local competitive bidding. Direct purchase will be used for small or off-the-shelf items valued at least than $100,000. The PMU will procure the equipment and vehicles.|
|Responsible ADB Officer||Walton, Donneth A|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Pakistan Resident Mission|
Agribusiness Support Fund
79-E, Al-Rehman Chambers,1st Floor,
Fazal-ul-Haq Rd,Blue Area,Islamabad PAK Livestock and Dairy Development Board
76 W, 1st Floor, Umar Plaza, Jinnah Ave.
Islamabad, Pakistan Ministry of Food, Agriculture and Livestock
Mr. Amjad Nazir
Islamabad, Pakistan Pakistan Horticulture Development and Export Board
30 N, Model Town, Extension,
Lahore, Pakistan State Bank Of Pakistan
I. I. Chundrigar Road
|Concept Clearance||08 Mar 2005|
|Fact Finding||23 Nov 2004 to 02 Dec 2004|
|MRM||11 Jan 2005|
|Approval||19 May 2005|
|Last Review Mission||-|
|PDS Creation Date||15 Dec 2006|
|Last PDS Update||22 Jun 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|19 May 2005||14 Jun 2005||09 Jan 2006||31 Mar 2011||-||30 Sep 2011|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||49.00||Cumulative Contract Awards|
|ADB||31.00||19 May 2005||12.70||0.00||98%|
|Cofinancing||0.00||19 May 2005||12.99||0.00||100%|
|Status of Covenants|
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Using Solar Power to Dry Fruit for Farmers in Northern PakistanUsing the power of the sun to dry fruit has resulted in a dramatic increase in the value of apricots for growers in Gilgit-Baltistan region, boosting the incomes of poor families and inspiring a new generation of agribusiness entrepreneurs.
Exporting Pakistan's 'Kinnow' FruitAn agribusiness support initiative has enabled fruit growers to get international quality certification, providing access to lucrative new markets and boosting incomes for farmers.