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AGRICULTURE SECTOR PROGRAM LOAN –II
Government of
Pakistan
signed a loan agreement with the Asian Development Bank in April, 2002 to finance
Agriculture Sector Program-II. Implementing agency for this program is MINFAL at
Federal level in Coordination with Ministry of Commerce, Economic Affairs Division
and Planning Commission. At Provincial level
following departments are part of implementation:
§
Finance Department.
§
Planning & Development Department.
§
Agriculture Department.
§
Livestock &Dairy Development
Department.
§
Forest
, Fisheries, Wildlife & Tourism
Department.
§
Food Department
The program’s primary objective is to
increase the agricultural
productivity and profitability through the following specific
reform measures:
Ø
Promoting efficient markets for the major commodities, including wheat, cotton,
rice and sugarcane, in order to promote market-based incentives for small farmers;
Ø
Liberalizing markets for fertilizers and seeds;
Ø
Strengthening support services for small farmers extension, training and research;
Ø
Enacting regulations to improve quality control of farm inputs; and
Ø
Rationalizing increased autonomy and financial self reliance of research institution
Total amount of loan is US$ 350.00 million
including US$ 2.00 million as Technical Assistance. The loan has been released in
three tranches as under;
·
First Tranche
US$ 125.00 million (Released in September, 2002)
·
Second Tranche
US$ 100.00 million (Released in August, 2006)
·
Third Tranche
US$ 123.00 million (Released in June, 2007)
The umbrella PC-1 for the project “Agriculture
Sector Development Loan” was approved by ECNEC in its meeting held on
07-12-2004
at a total cost of Rs. 10.266 billion. Share of Punjab reflected in the umbrella
PC-1 is Rs. 4.270 billion. Year wise releases made to
Punjab
under ASPL-II so far are as under:
(i)
2003-04
Rs. 154.860 million
(ii)
2004-05
Rs. 743.328 million
(iii)
2005-06
Rs. 1445.360 million
(iv)
2006-07
Rs. 1347.08 million
(v)
2007-08
Rs. 434.847 million
Total
Rs. 4125.48 million
23 projects of
Punjab
had been cleared by Federal Programme Steering Committee of ASPL-II. Out of which,
5 projects at the cost of Rs.967.825 million have been completed on 30th
June 2007, 13 projects at a cost of Rs. 2151.058 million (share of ASPL-II) are
ongoing. PC-Is of the two projects having tentative cost of Rs. 1134.577 million
are yet to be approved by competent authority. The financial utilization under ASPL-II
projects up-to end May, 2008 is Rs. 2324.81 million. Total committed amount for
20 projects is 4253.500 out of Rs. 4.27 billion (share of
Punjab
). Out of 18 projects 7 are of Agriculture Department, 7 of Livestock Department,
3 of Forest Department and 1 is of Food Department. Two projects of Agriculture
Department are in the approval process.
Program’s outcomes can be categorized
as:
v
Improved Efficiency of Commodity Markets
v
Remove Market Restrictions
v
Phased Out Commodity Price Supports and Subsidies
v
Improve Public Management of Strategic Reserves of Wheat
v
Accelerated Divestiture and Restructuring of State-owned Enterprises
v
Strengthened Support Services
v
Accelerated Provision of Agricultural Support Services
v
Accelerate the Strengthening and Coordination of Agricultural Support Services
v
Quality Control and Regulation Measures
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