September 15, 2007	Saturday	Ramazan 2, 1428

RAWALPINDI, Sept 14: International Fund for Agricultural Development (IFAD) has approved a loan of $35 million for a programme, giving poor rural people in Pakistan greater access to financial services by promoting the micro-finance sector.

The executive board of IFAD, which ended its two-day session at its headquarters in Rome on September 12, approved the loan for Pakistan. With increased access to credit under the programme, the rural inhabitants will be able to invest more in their business, resulting in higher production from farm and non- farm enterprises, improved livelihoods in rural households and greater economic growth.

Official sources said the programme would work with three groups: small farmers, livestock owners, traders and micro- entrepreneurs, women and households headed by women and vulnerable rural households living below poverty line.

About 160,000 households will benefit from increased access to financial services, they said.

Poverty is widespread in Pakistan, and is predominantly a rural phenomenon. Nearly two thirds of the population lives in rural areas. Most rural poor people depend on agriculture for their livelihood. Many have inadequate access to basic services such as safe drinking water, primary health care, education and other social services.

IFAD’s strategy in Pakistan focuses on poor communities in rural areas, especially herders, landless people and smallholders. Increasingly, programmes and projects target the most disadvantaged regions, particularly tribal areas and semi- arid, mountainous and environmentally-sensitive areas.

An important aspect of IFAD’s work in Pakistan has been the development of rain-fed agriculture, previously neglected in favour of the irrigated sector.

Despite improvements in economic conditions after recent reforms, there are still broad discrepancies in social standing between men and women. Illiteracy is high among women and girls.

In rural areas 22 per cent of the girls above 10 have completed primary schooling, compared to 47 per cent of boys. Women own fewer assets, have limited economic options and less access to social services. Yet many play a major role in the household economy and in providing care for their families.

Their burden of labour increases significantly when poor agricultural productivity forces men to migrate to find work.

IFAD’s main objective is to reduce rural poverty by boosting productivity and raising incomes. It supports efforts to introduce technological improvements in livestock, agriculture, irrigation and mechanisation.

IFAD-funded programmes and projects help make credit and markets more accessible, and help communities organise groups to manage finances and disseminate training and knowledge.

Specific concerns of IFAD’s current strategy in Pakistan are: empowerment of women, agricultural and rural development, food security and diversification of production decentralisation and access to natural resources.

To overcome poverty, the rural poor must be empowered to lead their own development. Community members are encouraged to decide on their own development priorities and fully participate in designing projects by identifying their needs and assuming ownership of project activities.

The empowerment of women, who are among the country’s most disadvantaged people, continues to be a priority in IFAD’s work in Pakistan. In many rural communities there is still considerable cultural resistance to the participation of women in project activities and rural organisations.

In Pakistan IFAD invests in programmes and projects that work closely with local communities to convince them of the relevance of women empowerment and the benefits it brings.

The establishment of women groups within community organisations offering training and advice is an important element of each project.

By improving services such as water supply and by introducing income-generating activities, projects improve women’s living conditions and those of their families.

Since 1978 IFAD has supported 21 projects in Pakistan with loans for a total of $387.6 million.

The total estimated cost of the projects is $2,036.4 million. The projects have directly benefited approximately 1.6 million households in rural Pakistan, working to improve the livelihood and productivity of rural poor people. They reach the most disadvantaged communities across the country and address a range of development issues, from community management of resources to introduction of credit systems and development of irrigation and agriculture.