[{"bbox": [96, 152, 1135, 206], "category": "Text", "text": "The Action will contribute to the Government's recovery efforts in the agricultural sector further to the disaster caused by the floods, based on the recommendations of the Post-Disaster Needs Assessment (PDNA)."}, {"bbox": [96, 217, 1135, 352], "category": "Text", "text": "Finally, the Action contributes to the implementation of the EU - Pakistan Strategic Engagement Plan (SEP) by targeting enhanced cooperation in agriculture to promote decent and productive employment for all, in particular for youth and women, as part of a broad based partnership for peace, development and prosperity. It is also aligned with the EU Indo-Pacific Strategy, as part of the efforts to engage with Indo-Pacific partners to build more resilient and sustainable global value chains in relation with sustainable and inclusive prosperity and green transition."}, {"bbox": [85, 391, 324, 424], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [247, 457, 397, 485], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 503, 1135, 849], "category": "Text", "text": "Despite important developments in recent years, Pakistan, with a rapidly growing population of 217 million (2019, WB) and a per capita income of USD 1,285 (2019, WB), faces a range of serious interlinked challenges. Nearly 39% (2018, UNDP) of Pakistanis live in multidimensional poverty, with the highest rates of poverty in the provinces of Khyber Pakhtunkhwa and Balochistan. Pakistan is placed fifth on the list of countries most vulnerable to climate change, according to the Global Climate Risk Index 2020. Pakistan is a major country of origin, transit and destination of refugees and migrants, and the situation in Afghanistan continues to impact Pakistan's socio-economic development. Women's situation remains a challenge with the country ranked 151 out of 153 on the Global Gender Gap Index (GGGI) 2020. Amidst the COVID-19 pandemic, Pakistan experienced a GDP contraction of 0,5% during 2020. In 2021, growth is estimated to have rebounded to 3.9% and is projected to reach 4% in 2022 (2021, IMF). The increasing youth bulge provides the country with a potential demographic dividend while at the same time representing a challenge in terms of service provision and employment. The labour force participation rate has remained almost stagnant since 2007 and four million Pakistani youth attain working age every year. To absorb this the country needs to create 4.5 million new jobs over the next five years."}, {"bbox": [96, 859, 1135, 1154], "category": "Text", "text": "In the Khyber Pakhtunkhwa province multidimensional poverty is 49% against the national average of 39%, and Rural poverty is nearly 58%. The economy is dominated by the services sector, which contributes about 67% to provincial GDP followed by manufacturing (17%), and agriculture (14%). Agriculture accounts for 32% of labour force and provides direct and indirect livelihood to 80% of the rural population. Small farmers constitute 95 % of the total farms and mostly undertake subsistence farming and follow mixed farming system consisting of agriculture and livestock and supplementary income through off and non-farm labour. Rural poverty in the province is correlated with lack of productive assets, limited access to markets and services, insufficient private sector participation, limited farm, off farm and non-farm employment, limited avenues for the women and youth in rural areas for market-responsive skills development for jobs, and increasing vulnerability to climate induced disasters such as the severe floods caused by the 2022 monsoon season which seriously impacted the agricultural production."}, {"bbox": [96, 1163, 1135, 1245], "category": "Text", "text": "However, because of its unique agro-climatic conditions, KP has significant growth potential for the development of agribusiness around high value crops and livestock. The current youth bulge can be gainfully employed through skills developments to meet the demands of a modernised and rejuvenated agriculture sector."}, {"bbox": [96, 1256, 1135, 1469], "category": "Text", "text": "This is why the Government of Pakistan and the Government of KP have requested the United Nations International Fund for Agricultural Development (IFAD) and the EU to support them in designing and implementing a provincial programme covering all districts to trigger a sustainable rural economic transformation by developing the province's economic agribusiness potential. This Action targets sustainable, natural resource-based, green job creation by tapping into the potential of private sector in sustainable agriculture value chains, and will result in increased sustainable income and decent jobs for the most vulnerable populations. Thanks to the EU contribution, the overall KP-RET project will be extended to ensure impact on the most vulnerable communities in rural areas, including communities hosting refugees and refugees alike."}, {"bbox": [96, 1480, 1135, 1588], "category": "Text", "text": "IFAD is providing USD 84 million for this project, to be added to the estimated contributions of USD 29 million by the GoKP and USD 45 million from the project's beneficiaries, which together will cover most of the investments planned for rural infrastructure, renewable energy and irrigation. IFAD's contribution is a sovereign loan to the Islamic Republic of Pakistan approved by IFAD's board on 30 December 2021. The total amount is to"}, {"bbox": [1038, 1680, 1144, 1706], "category": "Page-footer", "text": "Page 5 of 24"}]