Rome (Italy) 19 - 20 February

Mr Chairman, Mr President, Honourable Governors, Distinguished Delegates, Ladies and Gentlemen,

It is a matter of immense pleasure for me to be here to address this 25th Session of the Governing Council of International Fund for Agricultural Development, the first of Mr Lennart Båge's tenure as President of IFAD. On behalf of the Government of Pakistan and my delegation, I convey our congratulations to you on election as Chairperson of this august body. We also extend our congratulation to the two Vice-Chairpersons elected. Compliments are also due to the outgoing Chairperson Ms Kristi Lintonen and the bureau, which so successfully managed the previous Governing Council Session to ensure the smooth change of Leadership. Allow me also to recognise Ms. Ulla-Maija Finskas of Finland who presided this morning in Ms Lintonen's place. I believe she has just handed over the presidentship of the WFP Executive Board after providing it excellent leadership over the past year.

Mr Chairman, we are already in the second year since the Millennium Assembly pronounced the Millennium Declaration to halve by the year 2015, the proportion of the World's poor whose income is less than a dollar a day. It is a humongous challenge with the clock ticking fast. The events of September 11 have not made our task any easier. They have added a fresh dimension of "urgency" in removing hunger poverty, disease and inequity. The emphasis on showing results in a time bound manner presents new challenges and opportunities for the world community. We know that though, primarily a national responsibility, the targets we have set for ourselves would surely not be met without meaningful global support. The Financing for Development Conference scheduled in March this year is, therefore, a key event, which would send appropriate signals indicating the global resolve in overcoming the challenges. We commend the initiative of the President, to include an interactive policy debate based on the theme "Financing Development - The Rural Dimension". We hope that the outcome of this dialogue will have bearing on mobilising resources particularly for investments in agriculture and rural development.

Mr Chairman, At the national level, Pakistan has prepared its Interim Poverty Reduction Strategy, which is embedded in Macro Economic Reform and sound Governance with grass root level empowerment. The strategic elements specifically focusing on rural sector include:

• improved access to land for poor farmers through distribution of available state lands;
  
• improved access to credit through micro credit institutions;
  
• increased availability of water for agriculture; and
  
• reduction in vulnerability to shocks through a set of social safety net initiatives.

We hope to be able to finalise our full Poverty Reduction Strategy by October this year which would include further refining of our rural development strategy.

Mr Chairman,

The "road map" to achieving the Millennium development goals and the "score keeping" presents new challenges and opportunities for the international development institutions. Their performance and relevance would also remain in focus.

In our quest for poverty alleviation, we have found in IFAD a valuable and daring partner. It has consistently targeted the poorest and most inaccessible areas of Pakistan focusing on the most marginalised sections with innovative strategies to create sustainable livelihoods. One such experiment has now been upscaled leveraging huge resources from the Asian Development Bank and the Government. We see IFAD playing a significant role in meeting the Millennium Development Goals. However, to remain relevant, it must be able to maintain a consistent and meaningful lending level. We, therefore, welcome the Resolution on setting up the Consultation on Sixth Replenishment of IFAD resources and hope that it is finalised within this year. In recognition of IFAD's performance Pakistan, despite its own economic problems increased its contribution to IFAD resources from a mere $ 300 thousand in the Third Replenishment to this present level of $ 2 million. We assure you that we would continue to bear our share.

Mr Chairman,

While on the subject of the lending level, we continue to express our concern that the Programme of Work proposed for 2002 is still below the $ 450 million mark in real terms. We appreciate the President's resolve to reach that level, resources permitting, but reiterate the importance of a stable lending level which can keep IFAD relevant in the development context at both global and local level.

We are pleased with the progress made by IFAD in its participation in the enhanced Heavily Indebted Poor Countries Debt Initiative. However, we reiterate that IFAD's participation in this programme continues to impact its lending level. Therefore, efforts should be made to raise resources for this initiative over and above those required for the lending programme. We appeal once again to the donors to find additional ways and means for financing IFAD's contribution to the enhanced level of the HIPC-DI.

Mr Chairman, Afghanistan has been plagued by strife, drought and abject poverty with consequences for its neighbouring countries. Pakistan alone has been shouldering the burden of three million refugees. The international community recognising the consequences of the past neglect has moved forward generously to remedy the situation. We see IFAD also playing an active role in that region. IFAD has recently prepared and approved a project in the hitherto neglected tribal areas of Pakistan adjoining Afghanistan. This provides IFAD a unique knowledge of the social structures and practices of the region. With this comparative advantage it is best placed to spearhead the rural development component. We hope that IFAD would size this opportunity to yet again demonstrate its ability as a knowledge organisation in the regional context.

Finally, Mr Chairman, the changed format of the Governing Council session, the New Strategic Framework 2002-2006 and the participatory consideration of the Regional Strategies all have the imprint of the fresh leadership of Mr Båge. We wish him success in making IFAD more relevant for the poor.

Thank you.