Press Release No. IFAD/05/01

Rome, 22 January 2001 – A USD 21.86 million project the ‘Southern Federally Administered Tribal Areas Development Project’ in the Islamic Republic of Pakistan, will receive a USD 17.15 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund’s Headquarters by H.E. Mr. Athar Mahmood, Minister, Charge d’Affaires, a.i., of the Embassy of the Islamic Republic of Pakistan and Fawzi Hamad Al-Sultan, President of the Fund.

The Federally Administered Tribal Areas (FATA) comprises a strip of mountainous uplands that adjoin the Afghan mountain chain, along the Pakistani-Afghan border. The project will concentrate its activities in the three districts of Kurram, North Waziristan and South Waziristan. The social organization of each district is completely tribal and extends into the adjacent Afghan provinces of Paktika Paktia and Ningrehar.

The project area is one of the poorest in Pakistan in terms of resource endowments, physical and social infrastructure and human resource development. The harsh topography is sparsely populated and the marginal land is mostly used for subsistence agriculture. Due to the climatic conditions and its remoteness, Federally Administered Tribal Areas (FATA) have benefited only marginally from development activities and donor support.

The overall project approach is to enhance farm productivity, household incomes and the social and economic development of vulnerable groups in the local population. In particular, it aims to a) boost agricultural production and the income of the population through irrigation, improved animal health, vaccinations etc; b) improve status of women by targeting them for culturally-acceptable income-generating activities and increase employment opportunities for rural people; c) improve the living conditions of the rural population and reduce the burden on women through investment in drinking-water supply and basic infrastructure.

About 65 550 extended households (1.17 million beneficiaries) will be targeted by this project. The project has been formulated taking into account the very positive experience of IFAD-supported projects in the country. A rapid rural appraisal and a number of participatory workshops have been undertaken to ensure that beneficiary needs have been identified and prioritized. The project will operate through the jirgay (assemblies of tribal elders) and community and women’s organizations to select priority infrastructure and development activities.

To date, the International Fund for Agricultural Development has financed 17 projects in the Islamic Republic of Pakistan, for a total loan amount of USD 298.5 million.

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IFAD is a specialised agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 578 projects in 114 countries, allocating almost US$ 7 billion in the form of loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty.

IFAD makes the greater part of its resources available to low-income countries on very favourable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.