Press release number: IFAD 15/04

Rome, 9 March 2004 – A new project in the Azad Jammu and Kashmir region of Pakistan will build economic opportunities in rural communities by improving access to markets and providing reliable savings services and microcredit services.

Although rich in natural resources, this region located in the foothills of the Himalayas has low agricultural productivity and is affected by land degradation. High unemployment and the difficulty of growing crops causes many men to migrate to urban centres, leaving women alone to care for their families. The project is designed to reduce male migration by supporting the creation of income-generating activities.

The USD 30.7 million community development programme will be largely financed by a USD 21.8 million loan from the International Fund for Agricultural development (IFAD) to the Islamic Republic of Pakistan. The loan agreement was signed today at IFAD headquarters by IFAD President Lennart Båge and Mr Mirza Qamar Beg, Ambassador of the Islamic Republic of Pakistan to Italy.

“Mountain areas are among the harshest environments on earth,” said Mr Båge. “Steep slopes and fragile soils often limit agricultural potential and productivity. As in other mountain areas, environmental protection will be a priority in the project.”

About one third of the people of Azad Jammu and Kashmir will benefit from the programme, many of them women.

“Major investments for the village will be made only if women participate in setting priorities and determining the project goals,” says Youssef Attig, IFAD’s programme manager for Pakistan.

With this project, IFAD will have financed 19 projects in Pakistan, totalling USD 203 million.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Since 1978, IFAD has financed 653 projects in 115 countries and territories for a total commitment of USD 8.1 billion. Through these projects, about 250 million rural people have been supported in their efforts to overcome poverty.