Pakistan : PAK: RURAL FINANCIAL INCLUSION AND DAIRY GROWTH FACILITY
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.
Project Details
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Project Officer
Hartel, Rainer
Private Sector Operations Department
Request for information -
Approval Date
29 October 2013 -
Country/Economy
Pakistan -
Modality
| Project Name | PAK: RURAL FINANCIAL INCLUSION AND DAIRY GROWTH FACILITY | ||||
| Project Number | 46923-014 | ||||
| Borrower / Company | HABIB BANK LIMITED |
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| Country / Economy | Pakistan |
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| Location | Punjab | ||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Agriculture, natural resources and rural development / Agricultural production |
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| Gender | |||||
| Responsible ADB Department | Private Sector Operations Department | ||||
| Responsible ADB Division | Private Sector Financial Institutions Division | ||||
| Responsible ADB Officer | Hartel, Rainer | ||||
| Project Sponsor(s) | |||||
| Description | 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. |
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| 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. | ||||
| 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. |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | Will be carried out by the client. |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | 20 Aug 2012 |
| Credit Committee Meeting | 02 Sep 2013 |
| Approval | 29 Oct 2013 |
| PDS Creation Date | 23 Sep 2013 |
| Last PDS Update | 30 Sep 2014 |
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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| Title | Document Type | Document Date |
|---|---|---|
| Rural Financial Inclusion and Dairy Growth Facility | Initial Poverty and Social Analysis | Feb 2014 |
| Rural Financial Inclusion and Dairy Growth Facility | Reports and Recommendations of the President | Oct 2013 |
| Rural Financial Inclusion and Dairy Growth Facility: Project Data Sheet (Urdu Translation) | Translated PDS | Sep 2013 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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