The World Bank has approved $300 million to modernize agriculture in Punjab, raise farmers' incomes, give consumers better quality and safer food at lower prices, create jobs in farms and agribusinesses, and improve the use of irrigation water. The resources provided by the World Bank will be part of a larger programme by the government of Punjab that aims to better harness the enormous potential for farming in the province, with its fertile soils and extensive irrigation system, says a press release issued here on Saturday.
It addresses the paradox that while Punjab's farmers earn too little, people pay high prices for low quality food. This situation is largely the result of farm policies that have hardly changed in the last 50 years. These include extensive subsidies that are inefficient and ineffective, and government spending that does not provide widespread benefits and results in wasteful water use.
"Agriculture in Punjab has great potential but requires a paradigm shift to unlock growth opportunities," said Illango Patchamuthu, World Bank Country Director for Pakistan. "The government of Punjab is determined to help farmers grow high-value crops and significantly increase their incomes. The programme is estimated to create 350,000 jobs and lift 1.7 million people from poverty. The Bank stands ready to support the government of Punjab in this exciting endeavor."
The World Bank-supported Strengthening Markets for Agriculture and Rural Transformation (SMART) project will support much-needed reforms for agriculture and livestock productivity, improve agriculture's resilience to climate change, and foster agribusiness in Punjab over the next five years. It will also reduce inequality and expand opportunities for women and youth.
The project will shift Rs 55 billion (about $520 million) a year that is currently spent on inefficient and ineffective subsidies towards 'SMART' input subsidies for small farmers, agricultural research and farmers' training, and support for high-value and climate-smart agriculture.-PR
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