[{"bbox": [247, 152, 502, 184], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [97, 200, 325, 227], "category": "Section-header", "text": "**Short problem analysis:**"}, {"bbox": [96, 238, 1134, 501], "category": "Text", "text": "Profitability, environmental sustainability, and employment generation in the agriculture sector in KP remain a challenge despite the significant potential for growth in high value crops (orchards, vegetables, floriculture) and in livestock and dairy. Major issues include high transaction costs, lack of economies of scale and high aggregation cost due to fragmented production base. Low productivity owing to low adoption of environmentally sustainable techniques together with limited access to finance hampers investment, linkages of small-holders with markets, and integration in food supply chains. Post-harvest losses are high in the absence of essential infrastructure, and complex quality standards regimes compound with weak compliance capacities among value chains stakeholders. As a consequence, private sector is underdeveloped and farmers' profitability is low and deter investment in improved technologies, irrigation systems, and best practices to respond to market demand while minimising environmental externalities."}, {"bbox": [96, 515, 1134, 676], "category": "Text", "text": "The fast-growing rural labour force in the province cannot be sufficiently absorbed in the stagnant agriculture sector. The key obstacle to increase the labour force participation rate and provide productive employment to the youth is the lack of appropriate skills relevant to job market needs. Women's participation in the work force is hindered due to cultural norms and mobility issues. The mismatch between labour demand and supply results from the low quality of the trainings provided by public and private institutions, which suffer from lack of focus on employability and soft skills, which at entry level are more important than technical skills."}, {"bbox": [96, 687, 1134, 848], "category": "Text", "text": "The agriculture sector in KP is also exposed to the impacts of climate change and environmental degradation linked to increasing demographic pressure. Pakistan is one of the most affected countries by climate change and variability, ranking 8th in the Long-Term Climate Index, and deforestation, reduced water availability, and extreme weather events put a strain on agricultural productivity. Agricultural and livestock value chains in the province need to be transformed to cope with declining productive resources and be more socially inclusive environmentally sustainable and economically profitable."}, {"bbox": [96, 858, 1134, 1073], "category": "Text", "text": "To address these challenges, the Action will support professional farmer organizations and promote public-private-producer partnerships through market oriented technical assistance, coaching, mentoring and capacity building. It will also strengthen farmers' capacity to assess climate risks, plan and identify climate adaptation measures to reduce the risks and impacts associated with changing climate conditions. Provincial government's support services will be reinforced to improve service delivery in agriculture extension and agriculture research and to foster policy reform in areas related to farmers organisations and agricultural development: Farmer Services Centre Act, Cooperatives Act, Seeds Act, nutrition and food security policy. Finally, institutions providing training for the agricultural sector will be supported to ensure better adaptation to labour market demands."}, {"bbox": [96, 1109, 1134, 1164], "category": "Section-header", "text": "**Identification of main stakeholders and corresponding institutional and/or organisational issues (mandates, potential roles, and capacities) to be covered by the action**"}, {"bbox": [96, 1175, 1134, 1493], "category": "Text", "text": "IFAD will be the implementing partner for this Action. Key stakeholders of the project are the Economic Affairs Division of the Ministry of Foreign Affairs as overall coordination agency at the federal level, the provincial government of Khyber Pakhtunkhwa as a co-financier and the provincial Planning and Development department as the executing agency for the project in charge to supervise and coordinate all the project activities in the field. The project will closely engage with communities and existing farmers' organisations and cooperatives to make them financially self-sustaining and viable. Main implementation partners will be public sector institutions - duty bearers (Departments of Agriculture, Livestock and Cooperatives, Environment, Local Government, and Industries and KP TEVTA), along with private sector service providers for agribusiness and skills development. Private companies, in particular MSMEs, already in the agribusiness sector and with financial capacity and demonstrated market share, will also be involved. Business-oriented farmers organisations will not only be the recipient of project resources but will also serve as an integral implementation mechanism and will be involved in the selection and validation of beneficiaries."}, {"bbox": [1038, 1680, 1144, 1705], "category": "Page-footer", "text": "Page 7 of 24"}]