ISLAMABAD, May 20: The Asian Development Bank (ADB) has approved a loan of $31 million for agribusiness development project to help promote the development of a competitive and sustainable agribusiness sector. The Project will establish market-based approaches to agribusiness development and enhance technical and managerial capacity in the sub-sector. It will also dismantle barriers to entry for new enterprises and promote the expansion of existing ones into new markets.

An announcement of the ADB issued here on Friday said the total cost of the project is estimated at $49 million, to which the government will contribute $6.9 million, the agribusiness enterprises $10.4 million, private sector institutions $600,000, and beneficiaries $100,000.

The ADB’s loan comes from its concessional Asian Development Fund, carrying a 32-year term, including a grace period of eight years. Interest is set at 1 per cent per annum during the grace period and 1.5 per cent per annum, subsequently.

According to details, the proposed project would focus on horticulture and hortibusiness, though actions to improve the livestock and dairy institutional framework, and support for selected enterprises will be provided.