ADB approves $86.41m loan for irrigation and agriculture in Pakistan

The Asian Development Bank (ADB) is to be provide an $86.41m loan to the Swabi and Nowshehra districts in Khyber Pakhtunkhwa, Pakistan, for the purchase of new irrigation systems to enhance regional agriculture production and improve water management.

Agriculture is reported to be an important sector in Khyber Pakhtunkhwa, and the poverty level is estimated at 29%, which is 7% higher than the national average.

The industry also adds nearly 18% to the province’s overall gross domestic product, while engaging more than 37% of people in the sector’s activities.

ADB Central and West Asia Department senior water resource specialist Ryutaro Takaku said: “Majority of the farm lands in the project area currently depends on rainfall for water supply, which is unpredictable and inconsistent.

“The Pehur High Level Canal extension project will develop a new irrigated area in the two districts and help them transition from rain-fed to irrigated agriculture.”

The loan approved by ADB will be used towards enhancing agriculture production in more than 8,700ha of farms, increasing water availability through irrigation, improving water-use efficiency, and helping the province to secure food security goals until 2020.

It will also help poverty reduction and economic growth for approximately 75,000 citizens through generated jobs and income. The total cost of the project is $96.60m, where the Pakistani Government will be contributing $10.2m.

The estimated completion date is in December 2022.

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Image: ADB approves $86.41m loan to strengthen agriculture sector in Pakistan. Photo: courtesy of Asian Development Bank.