Press Release No. IFAD/22/01

ROME, 16 AUGUST - A USD 98.66 million project in the Islamic Republic of Pakistan - The 'North-West Frontier Province Barani Area Development Project' will receive a USD 14.45 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. Zafar A. Hilaly and Mr. Lennart Båge, President of the Fund.

The North-West Frontier Province has large areas of poor settlements where people largely depend on unreliable rainfed agriculture. Infrastructure is limited; service delivery outreach is weak; health and education indicators are poor and virtually no local organizations exist to mobilize villagers or work for better facilities. When this situation is combined with small and fragmented farms, and a shortage of inputs and credit facilities, the population is pushed further into poverty. In addition, in order to generate income increased migration has occurred, placing additional burden on the women who already carry the major share of agriculture work.

The NWFP Barani Area Development Project aims to reduce poverty in remote areas of the North-West Frontier Province, improve the status of women and improve agriculture and natural resource management practices. Better community infrastructure will improve rural livelihood opportunities and living standards.

The project will target about 67 000 households and particularly emphasize the role of women. Most of these households include small farmers, landless farm laborers, and sharecroppers. The project has been formulated taking into account the positive experience of the other IFAD supported projects in the country. Extensive community mobilization will help in the formation of women's organizations and village organizations. Technical and social services will be provided according to the needs of the people. The newly elected local government will be involved in the implementation of the project, this having a positive impact on good governance and also increase the beneficiary's ownership of project investments.

With this programme, IFAD will have financed eighteen projects in the Islamic Republic of Pakistan, for a total loan amount of about USD 313 million.

---

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 584 projects in 114 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.2 billion in 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.