ISLAMABAD, Jan 26: The International Fund for Agricultural Development (IFAD) started this month a new three-year country programme for Pakistan under which it will provide soft loans worth $65 million for two projects focusing livestock development, access to marketing for small agricultural producers, and improving rural food security.

The projects will be located in Punjab and Khyber-Pakhtunkhwa.

In Punjab, the project will be located in four north-western districts having components of livestock and dairy development and market integration for rural men and women.

It is expected that IFAD will provide $35 million for the project in Punjab. IFAD is currently finalising the project with the provincial government.

According to IFAD, participation in markets for agricultural goods, services and wage labour is essential for the livelihood of rural poor people who should be supported in becoming competitive market actors.

Market integration remains a problem for poor rural women and men in many regions of the world.

IFAD Country Programme Manager Matteo Marchisio told Dawn here on Saturday that discussions were at an advanced stage for the project in Khyber-Pakhtunkhwa, and will be finalised over the next few months.

The project will be in line with the strategic framework of IFAD to improve rural food security and nutrition, and enabling rural community to overcome poverty.

Mr Marchisio, who is currently visiting Pakistan to work out details of the pipelined projects, said that the new projects will be presented to the IFAD Executive Board for approval in September this year.

Pakistan and IFAD will sign the Gwadar-Lasbela Livelihoods Support project in Rome on Jan 31.

The IFAD executive board had approved the project in May 2011 but signing could not take place due to delays on the part of the Balochistan government.

The project will seek to increase the incomes and enhance the livelihood of poor rural and fishers’ households in Gwadar and Lasbela by improving physical infrastructure and marketing facilities in the two districts, enhancing access of communities to capital, strengthening community and village organisations, and building capacity among the regulatory and support organisations.

The project will benefit about 20,000 resource poor rural households in 26 union councils of Gwadar and Lasbela districts.

IFAD provides loans to Pakistan on a term of 40 years, including a grace period of 10 years.

Since the start of its operations in Pakistan in 1978, IFAD approved 22 loans for a total of $422.5 million, which represent 14 per cent of IFAD’s regional lending.This makes Pakistan IFAD’s fifth-largest borrower in the Asia and Pacific region after China, India, Bangladesh and Indonesia.

The total cost of IFAD’s programme in Pakistan amounts to $1.7 billion. Fifteen projects have been completed and seven are ongoing.