Technical Assistance Report

Project Number: 38430

December 2005

Technical Assistance
Islamic Republic of Pakistan: National Agriculture
Sector Strategy

The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.
 CURRENCY EQUIVALENTS
(as of 1 December 2005)

Currency Unit – Pakistan rupee/s (PRe/PRs)

PRe1.00 = $0.0167
$1.00 = PRs59.72

ABBREVIATIONS
ADB – Asian Development Bank
ASPL – Agriculture Sector Program Loan
CSP – country strategy and program
MINFAL – Ministry of Food, Agriculture and Livestock
NGO – nongovernment organization
PSDP – public sector development program
SARD – South Asia Department
TA – technical assistance

TECHNICAL ASSISTANCE CLASSIFICATION

Targeting Classification – General intervention
Sector – Agriculture and natural resources
Subsector – Agriculture sector development
Theme – Sustainable economic growth
Subtheme – Promoting economic efficiency and enabling markets

NOTES
(i) The fiscal year (FY) of the Government ends on 30 June.
(ii) In this report, “$” refers to US dollars.

Vice President L. Jin, Operations Group 1

Director General K. Senga, South Asia Department (SARD)
Director F.C. Roche, Agriculture, Environment and Natural Resources Division,
SARD

Team leader A. Tayyab, Project Economist, SARD

 I. INTRODUCTION

1. The Government has requested an advisory technical assistance (TA) grant from the
Asian Development Bank (ADB) to support the development of its medium-term national
agricultural strategy, as reflected in the Country Strategy and Program Update 2005–2006. The
TA1 proposal is based on a fact-finding mission from 1 to 17 October 2005 which held extensive
consultations with representatives of Ministry of Food, Agriculture and Livestock (MINFAL);
Pakistan Agricultural Research Council; Planning Commission; World Bank; provincial
departments of Planning and Development, Agriculture, Livestock, and Irrigation; and other
stakeholders.
2. The Fact-Finding Mission is of the view that the proposed national agricultural strategy
study is worthwhile if it can focus sharply on the issues, constraints, and priorities involved in
making the agriculture sector (i) grow at a sustainable rate to meet future food security and
export requirements; (ii) efficient, competitive, and profitable; (iii) diversify from low-value to
high-value products; (iv) generate employment; and (v) help reduce rural poverty. There is
broad agreement among stakeholders that the study should use existing data and information
from national and provincial government documents, such as the Medium-Term Development
Framework, federal and provincial Agriculture and Water Resource Policies and Strategies, and
other relevant publications from donor agencies. The study should be based on an extensive
consultative process involving all stakeholders, including provincial and federal governments,
farmers, traders, processors, nongovernment organizations (NGOs), autonomous and private
academic and research institutions, and donor agencies. It should take into account regional
differences between and within provinces in terms of resources, constraints, requirements, and
priorities. Finally, the study should focus more on the “how to do” rather than “what to do”
aspects of the prioritized needs of provinces and the federation. The design and monitoring
framework is in Appendix 1.

II. ISSUES

3. The agriculture sector is a dominant source of growth and development of Pakistan’s

economy. It contributes nearly a quarter of the gross domestic product and over half of export
earnings, employs nearly 45% of the labor force, and provides income to nearly two thirds of the
rural population. In addition to the main food commodities, agriculture provides raw material to
agro-based industries and generates foreign exchange through export of raw and finished
goods. In the last 20 years, the average annual growth rate of agricultural output is estimated at
about 4%, with a lower rate (3%) in the last 5 years. In the last decade, the agriculture sector
has experienced a fall in the growth rate and high level of instability due to a number of factors,
including inclement weather, pest attacks, water shortage, structural imbalances, and
institutional constraints. There is also evidence that the growth process in agriculture has had
little effect on rural poverty and may have increased income inequality between rural
households and regions. Nonfarm activities have become a substantial source of income for
agricultural households, especially those with little land of quality or no land.
4. Institutional and policy reforms initiated under the ADB-assisted Agriculture Sector
Program Loan II (ASPL)2 have facilitated a meaningful engagement by the Government with the
ongoing process, focused on market liberalization and strengthening of support services for the
agriculture sector in Pakistan. With active support from MINFAL, federal and provincial
governments have continued to make gradual progress in pursuing reform measures to (i)

1
The TA first appeared in ADB Business Opportunities (internet edition) on 1 April 2005.
2
ADB. 2001. Report and Recommendation of the President to the Board of Directors on Proposed Loans to the
Islamic Republic of Pakistan for the Agriculture Sector Program II. Manila.
2

promote efficient markets for major commodities, (ii) liberalize markets for fertilizer and seed,
(iii) strengthen agriculture research and extension services, (iv) improve the regulatory
framework for quality control of products and inputs, and (v) assist small farmers. Under ASPL,
some policy conditions have been met more quickly and completely than others because of
differences in requirements, administrative capacity of the implementing agencies, and political
sensitivity to some institutional reforms. The national consensus on a market-friendly regulatory
environment and expanded role of the private sector in wheat has been an impressive
achievement. In addition, provincial and federal governments have accepted the idea of making
agricultural research and extension services more effective through greater administrative and
financial autonomy. Following approval of the Devolution Plan, 2001, district-level governments
must allocate resources for extension services in the agriculture sector. Responsibility for
research, crop monitoring, regulation, taxation, etc. remains with the provincial government. In
their reorganization plans for agriculture extension services, supported by TA resources under
ASPL, provincial governments are also addressing issues related to divided responsibilities
between provincial and district governments.
5. The overall experience of agricultural growth to date has revealed its accomplishments
and challenges. The accomplishments are reflected by the diversification and specialization of
production, higher yield levels and farm incomes, and reduced food insecurity in certain regions
and provinces. However, the agriculture sector faces many serious challenges and constraints
for future growth: (i) rising demand for agricultural products with the growth of population and
income, (ii) expanding role of freer (competitive) markets in agricultural products, and (iii)
ongoing international negotiations under the World Trade Organization. Increased farm
productivity (achieved by judicious use of natural resources and other inputs) and diversification
of production from low-value to high-value products must be the key ingredients of a strategy to
make agriculture both productive and profitable. The agriculture sector’s capacity to maintain
sustainable growth to meet its challenges is constrained by several factors.
(i) Factor productivity and farm incomes. Low crop and livestock yields and
disparities in farm incomes by farm and region (within and between provinces).
(ii) Land and water rights. Incomplete and defective land records, land
concentration, insecure tenancy rights, land fragmentation, and poorly regulated
water distribution.
(iii) Management of natural resources. Land degradation (waterlogging and
salinity), scarcity and inefficient use of water, and excessive dependence on
chemicals (pesticides).
(iv) Farm technologies and practices. Inadequate and inefficient use of key inputs
for crop and livestock production, inefficient crop rotations, lack of skills for
productive and economical farm management practices, and low literacy levels.
(v) Agricultural finance and markets. Inadequate access to farm capital and
poorly regulated and distorted markets.
(vi) Infrastructure and support services. Low level of public investment, poor
quality, inadequate access, rent seeking, and lack of participation in decision
making.
(vii) Research and extension services. Public sector institutions lack coordination,
capacity, and incentives to generate, adapt, and disseminate new technologies
and information to promote competitive and diversified agriculture.
(viii) Government policies and role of private sector. Distortional policies that
inhibit private sector participation and investment, and market concentration.
 3

III. THE TECHNICAL ASSISTANCE

A. Impact and Outcome

6. The purpose of the TA is to prepare a medium-term national agricultural strategy that the
Government can use to (i) rationalize investments, and (ii) demonstrate how the proposed new
initiatives will help achieve sustainable agricultural growth with diversified production and exports,
expanded employment, reduced regional and income differences, and decreased rural poverty. The
strategy documents will be prepared—taking into account regional, provincial, and national
requirements—through a consultative process led by the provinces and facilitated by the federal
government. The TA will (i) review in detail recent developments in the agriculture sector at the
national and provincial levels; (ii) identify major issues, challenges, and constraints; (iii) indicate
niche production lines and enterprises in each region and province; (iv) recommend appropriate
measures and policies to benefit, in particular, small farmers (owners and tenants, and migrant
workers as appropriate), commercial farmers, landless agricultural workers, women, resource
conservation, and the environment; and (v) assess the roles of public and private sectors in
implementing the proposed strategy.
7. The proposed strategy should help identify triggers to support agricultural growth on a
sustainable basis—rising farm productivity and profitability—for ensuring food security,
enhancing household income, expanding rural employment, decreasing intra-provincial and
inter-provincial disparities, and reducing rural poverty. In sustaining the growth process, special
attention must be paid to resource management and conservation, and the expanded role of the
private sector. The strategy should aim at promoting science-based, innovative farm practices
that enhance the economic efficiency and export competitiveness of the agriculture sector with
emphasis on food security, value addition, and comparative advantage for resource allocation.
Public sector capacity to plan and facilitate agriculture development must be strengthened, with
particular emphasis on its regulatory functions, investment in infrastructure, and public-private
partnerships. At the same time, incentives and support for the private sector must be designed
and implemented to harness its competitive advantage for sustainable agricultural enterprises.
Following an extensive consultative process, the TA will produce a medium-term national
agricultural strategy document that includes, at the national and provincial levels, a full
discussion of proposed policies, resource requirements, key milestones, and institutional
processes required in the ensuing 10-year time horizon.

B. Methodology and Key Activities

8. The TA is expected to help build consensus on a national and provincial agricultural strategy
framework based on analysis of the following issues.
(i) Sources of supply and demand for agricultural products and the roles of subsectors
in agriculture.
(ii) Major constraints of institutions, infrastructure, and policies likely to affect the growth
process in the provinces and their diverse regions.
(iii) Specific supporting measures, such as laws and regulations, infrastructure, research
and extension services, investment priorities, and public-private partnerships.
(iv) Policy, institutional, and administrative roles of federal, provincial, and local
governments necessary to achieve the objectives.
The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members,
9. Board
The of Directors, Management,
methodological or an
framework for staff, and may bestrategy
agricultural preliminary in nature.
should take into account the
transitional state of agriculture in Pakistan with focus on two interrelated areas. The first
comprises traditional commodity agriculture (such as grains, cotton, and sugarcane), which
4

plays a significant role in the household economy of most farmers. The second reflects the
transition from traditional commodity agriculture to high-value enterprises like horticulture,
floriculture, livestock, and food processing, which require a good understanding of the best way
to target and manage this process, and integrate small farmers into sustainable value chains
linked with viable private sector players.
10. The TA team members, in consultation with stakeholders, will be expected to carry out
in-depth analysis of key areas to guide the formulation of agricultural strategy. An important
issue is to consider measures to enhance opportunities for diversification on a competitive,
equitable, and sustainable basis. Landownership (land records and tenurial arrangements) and
direct taxation issues have a strong impact on efficiency and equity in agriculture. In addition, it
may be necessary to assess the impact of government taxes and subsidies on the performance
of the agriculture sector and trade, establish growth and region diversified poverty links, and
analyze financial allocations of the federal and provincial governments in the agriculture sector,
especially in relation to other sectors. This analysis should help establish priorities for
government policies and institutional reforms at provincial and federal levels.
11. The strategy development approach will take into account and build on lessons learned
from investments in Pakistan’s agriculture sector, including programs assisted by ADB and other
international financial institutions, especially the World Bank.3 The analysis will be guided by
ADB’s ongoing initiatives (ASPL and Agribusiness Development Project4). The two-part approach
suggested earlier would complement these ongoing projects and activities while taking into
account the linkages between traditional agriculture, high-value agriculture, and agribusiness.
12. The approach for addressing key issues and constraints will be identified through
comprehensive consultations with provincial governments and other key stakeholders. The
consultative process will be carefully structured as there are marked inter-provincial and intra-
provincial differences in resources, institutions, and capacity. During consultations in the
provinces, efforts will be made to associate the local (district) governments because of their new
administrative and fiscal responsibilities after devolution. In addition, active collaboration will be
ensured with related government departments (Irrigation, Livestock, Food, Forestry); public
sector financial and nonfinancial institutions; academic institutions; research organizations; and
private sector organizations of farmers, traders, and processors.

C. Cost and Financing

13. The TA is estimated to cost $440,000 equivalent. ADB will provide $350,000 equivalent on a
grant basis from ADB’s TA funding program. The federal and provincial governments are expected
to provide in-kind contribution worth $90,000 for office accommodation, counterpart staff, and
logistic support. Details of the cost estimates and financing plan are in Appendix 2.

D. Implementation Arrangements
14. MINFAL will be the Executing Agency for the TA. Implementation will begin at TA approval
and following concurrence of the Government, will last 9 months, with expected completion by
31 December 2006. MINFAL will establish a steering committee for policy guidance with
representation from the federal and provincial governments including the Ministry of Finance,
Planning Commission, and Ministry of Water and Power; NGOs; private sector; and farmers.5 The
3
World Bank is currently undertaking a study on Rural Growth and Poverty Reduction. This study is expected to be
completed by September 2006.
4
ADB. 2005. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the
Islamic Republic of Pakistan for the Agribusiness Development Project. Manila.
5
ADB staff at headquarters and the Pakistan Resident Mission are expected to play a key role in facilitating these
meetings and ensuring coordination with other stakeholders and donors in the agriculture sector.
 5

steering committee will facilitate the establishment of provincial working groups with representation
from relevant provincial and district level institutions, farming community, NGOs, and private sector.
The provincial working groups will (i) coordinate the analysis of major issues and constraints on a
regional and provincial basis, and (ii) consolidate the provincial strategy paper with inputs from the
TA consultants. The provincial working groups will meet at least three times during the
implementation period. At the provincial level, coordination will be provided by the relevant Planning
and Development Department as the chair of the existing provincial coordination committee. The
provincial Department of Agriculture will act as the secretariat for the provincial working group to
provide required counterpart staff and assistance to the TA consultants.
15. The study will be conducted by a team of seven consultants: one international (team leader)
and six domestic consultants. The team will be led by an agriculture economist with a strong
background in agricultural policies, institutions, and administration; and extensive experience at the
national and international level. The other members of the team will prepare thematic papers and
assist the provincial working groups in consolidating the provincial strategy document in the
following disciplines: (i) field crops, (ii) horticulture and floriculture, (iii) livestock and poultry, (iv) on-
farm water management, (v) institutions and policy, and (vi) devolution and information
management. Outline terms of reference for consultants are in Appendix 3.
16. ADB will recruit the international consultant on an individual basis in accordance with its
Guidelines on the Use of Consultants. The domestic consultants will be selected through a firm in
accordance with arrangements satisfactory to ADB for the selection and engagement of domestic
consultants following the quality and cost based selection method. The simplified technical proposal
procedure will be used to select the consulting firm. The TA requires 4 person-months of
international and 18 person-months of domestic consulting services.
17. The consultative process will include two to four meetings and workshops with
stakeholders in each province and one or two meetings and workshops at the national level.
The inception report to be prepared within 1 month of TA commencement will include a scoping
paper with an inventory of existing data and information, key knowledge gaps requiring intensive
analysis, and a detailed work plan. In order to help integrate the ADB work on agricultural sector
strategy with World Bank work on rural growth and poverty reduction, a joint workshop will be
organized after completion of the first round of provincial consultations under the TA. The draft
final report, to be prepared within 9 months, will consist of one chapter each for the four
provinces outlining the strategy for the respective province and its regions, and a final chapter
containing an integrated national report incorporating feedback received during provincial and
federal workshops. A suggested outline of the final report to be prepared on completion of the
TA is in Appendix 4.
18. During the implementation period, the team leader will use the 4 person-months in blocks of
approximately 4 weeks for each input to fulfill the obligations. The team leader will assign
responsibilities and provide necessary guidance to sector specialists, coordinate and organize all
work, and prepare and submit the required reports in accordance with the agreed work plan to
be approved at TA inception.

IV. THE PRESIDENT’S DECISION

19. The President, acting under the authority delegated by the Board, has approved the
provision of technical assistance not exceeding the equivalent of $350,000 on a grant basis to
The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
the Government of Pakistan for the National Agriculture Sector Strategy, and hereby reports this
members, Board of Directors, Management, or staff, and may be preliminary in nature.
action to the Board.
6 Appendix 1
DESIGN AND MONITORING FRAMEWORK
Design Summary Performance Targets
Impact
Sustainable agricultural
growth facilitating
enhanced farm incomes,
diversification of
agricultural production,
and reduced regional
and income differences
Outcome
1. Regional, provincial, (i) Increased allocation
and national
agricultural growth
strategies
2. Investment priorities
for regions,
provinces, and
country
3. Improved crop and
livestock production (ii) Increased productivity
system
4. Improved
infrastructure and
support services for
agriculture
(iii) Improved efficiency
Data Sources/ Assumptions
Reporting Mechanisms and Risks
Assumptions
Enhanced food Federal and provincial • Agricultural growth
security—increase in government planning strategies reflect
value addition of documents national and provincial
agricultural products: conditions and needs
outputs of grains, ADB, World Bank, and • Investment priorities
oils, and livestock to other donor reports and allocation of
rise at rates higher resources are
than population Periodic economic survey consistent with
growth—food by the Government strategies
consumption of the • Farmers, stockholders,
poor rises by 10% private sector, and
and value addition in other stakeholders
agricultural products respond to investment
rises by 30–40% in programs
the next 10 years.
Assumptions
Federal and provincial • Resources will be
of funds for national PSDP available to support
and provincial investment programs
agricultural growth— ADB’s CSP and capacity
PSDP allocation to development for human
agriculture sector Economic Survey and resources
should rise by at least Agricultural Statistics of • Improvements will be
50% in the next Pakistan made in the regulatory
10 years. framework and policies
and necessary
and competitiveness institutional reforms will
of crops and be undertaken
livestock—crop and
livestock yield levels Risks
should rise by 3–5% • Lack of government
annually to catch up commitment to support
with the average of investment priorities
developing countries and required changes
in Asia in policies
• Lack of resources for
and effectiveness of enhanced investment
infrastructure and
support services for
regional, provincial,
and agricultural
growth—growth in
investment in farm-to-
market roads, water
supply, and market
networks, which
should be reflected by
diversification in farm
production and
enhanced farm profits
 Appendix 1 7

Design Summary Performance Targets Data Sources/ Assumptions

Reporting Mechanisms and Risks
Outputs Assumptions
1. Support programs Efficient organization of ADB review missions • Adequate design and
for provincial and research and extension work plan for the study
national agricultural system—progressive Internal monitoring by • Cooperation in
growth increase in the share of MINFAL and provincial collection of data and
2. Investment private sector to over governments information
programs for 50% in crop and livestock • Cooperation and
enterprises and extension services and Workshops ownership by provinces
products in production of certified to support review and
provinces and their seed and quality feed for User satisfaction surveys analysis of the current
regions livestock and poultry conditions
3. Capacity • Government
development 50% increase in public coordination among
program for human and private investment in agencies and between
and technical traditional and new the provincial and
resources agricultural enterprises federal level for
4. Institutional and processing in 5 years effective investment
framework and over the baseline in 2006 program
recommended • Full participation by all
improvements in Web-based platforms stakeholders in
policies and reforms established with consultative process
5. Information basis for information on national
agricultural and provincial initiatives Risks
innovations, in the agriculture sector, • Full ownership by
publications, and investment portfolio, stakeholders is not
expertise lessons learned realized
established • Coordination between
Number of users in each government agencies is
district and provinces ineffective
• Consultative process is
weak or incomplete
Activities with Milestones Inputs
1.1 Recruitment of consultants by 31 March 2006 ADB: $350,000
1.2 Inception report (outline, design, work plan) by 30 April 2006 Government: $90,000
1.3 Provincial consultations, workshops, and thematic papers by 31 July 2006
1.4 Interim report (national consultations, consolidation of thematic outputs, and
strategic framework) by 31 October 2006
1.5 Draft of final report (for submission to MINFAL, provincial governments, and
ADB) by 30 November 2006
1.6 Final report by 31 December 2006
ADB = Asian Development Bank, CSP = Country Strategy and Program, MINFAL = Ministry of Food, Agriculture and
Livestock, PSDP = public sector development program.

The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.
 8 Appendix 2

COST ESTIMATES AND FINANCING PLAN

($'000)

Total
Item Cost
A. Asian Development Bank Financinga
1. Consultants
a. Remuneration and Per Diem
i. International Consultants 95.0
ii. Domestic Consultants 135.0
b. International and Local Travel 45.0
2. Vehicles and Running Costsb 25.0
3. Workshops 20.0
4. Office Expenses 20.0
5. Contingencies 10.0
Subtotal (A) 350.0

B. Government Financing
1. Office Accommodation 30.0
2. Remuneration and Per Diem 30.0
of Counterpart Staff
3. Office Supplies and Assistance 10.0
4 Workshop Facilitation 20.0
Subtotal (B) 90.0
Total 440.0
a
Financed by the Asian Development Bank’s technical assistance funding program.
b
Vehicles will be rented over the technical assistance implementation period.
Source: Asian Development Bank estimates.
 Appendix 3 9

OUTLINE TERMS OF REFERENCE FOR CONSULTANTS

1. Team Leader/Agriculture Economist (international, 4 person-months). The specialist

will be responsible for the review of all documentation completed under Agriculture Sector
Program Loan (ASPL), the Asian Development Bank (ADB)-assisted Agribusiness Development
Project, and the World Bank-assisted study on Rural Growth and Poverty Reduction. Main
responsibilities will include the following.
(i) Act as team leader.
(ii) Serve as the primary liaison between the Ministry of Food, Agriculture and
Livestock (MINFAL); ADB; provincial and federal agencies; other stakeholders;
and technical assistance (TA) team members.
(iii) Coordinate activities under the TA component.
(iv) Prepare the outline and detailed work plan for the provincial and national studies.
(v) Develop, coordinate, and review data collection and analytical methodologies
used by specialists in their components.
(vi) Design and direct provincial and national workshops and ensure the participation
of all stakeholders, especially underrepresented groups.
(vii) Manage and supervise the work of domestic consultants in support of the TA.
(viii) Consolidate findings and synthesize provincial studies under an umbrella
national study.
(ix) Lead discussions at regional, provincial, and national levels and make
recommendations for changes in institutions and policies required to facilitate
effective implementation of the proposed strategies at the provincial and national
levels.
(x) Prepare the inception report, consolidate the thematic papers, and finalize the
interim and final reports for submission to MINFAL/provincial governments and
ADB.

2. Field Crops Specialist (domestic, 3 person-months). The specialist will review all
documentation prepared under ASPL and the Agribusiness Development Project for preparing
the thematic paper. The specialist will examine conditions in the field crops sector, specifically
but not exclusively wheat, rice, sugarcane, and cotton. In coordination with the team leader, the
specialist will use a combination of primary and secondary data and qualitative and quantitative
techniques to assess the following.
(i) Review and assess the current state of the field crop production system—
particularly wheat, sugar, and cotton—but also with a focus on important minor
crops in different regions of each province.
(ii) Identify resource, infrastructure, and institutional constraints.
(iii) Highlight the gaps in farm practices and suggest ways to fill these gaps.
(iv) Analyze the components of the supply of agricultural products, with particular
emphasis on the determinants of agricultural productivity, an assessment of farm
practices, and breakdown of the factors behind the variability in productivity by
farm and region.
(v) Analyze changes in the demand for agricultural commodities, highlighting any
shifts in consumer demands towards high-value commodities.
(vi) Identify major constraints of institutions, infrastructure, and policies likely to affect
the growth process, particularly in terms of return to agricultural research and
extension activities.
10 Appendix 3

(vii) Examine key environmental resource management issues that require further
remedial actions to improve farm productivity, in consideration of the ecological
aspects, and given the differences of irrigated agriculture.
(viii) Provide an assessment of the constraints to private sector participation in
marketing and distribution activities, such as storage and finance.
(ix) Examine the role of producer organizations in marketing traditional agriculture
and identify success stories that are replicable.
(x) Analyze specific supporting measures, such as laws and regulations,
infrastructure, research and extension services, investment priorities, and public-
private partnerships.
(xi) Identify the policy, institutional, and administrative roles of the federal, provincial,
and local governments necessary to achieve the objectives.
(xii) Suggest initiatives, investment, and support services.
(xiii) Participate in provincial and national workshops.
(xiv) Assist in the preparation of provincial and national reports.
(xv) Coordinate with other specialists.
(xvi) Assist provincial and federal governments and the team leader in preparing a
thematic paper that articulates how the proposed initiatives, investments, and
support services will help achieve the stated objectives of sustainable growth in
field crops at the regional, provincial, and national level.

3. Horticulture and Floriculture Specialist (domestic, 3 person-months). The specialist

will examine work carried out to prepare the Agribusiness Development Project, for preparing
the thematic paper. In close consultation with the Pakistan Horticulture Development and Export
Board, and through a review of the deliberations of the Task Force on Horticulture, the specialist
will use a combination of primary and secondary data and qualitative and quantitative
techniques to do the following.
(i) Review and assess the current state of horticulture and floriculture production in
different regions of each province.
(ii) Analyze the prospects for agricultural diversification, identifying potential areas of
competitive advantage at a regional level, for smallholders in particular.
(iii) Map the supply chains for key high-value commodities that identify major supply
chain actors, the distributional benefits of access to supply chains by
smallholders, resource gaps, and constraints.
(iv) Highlight the gaps in farm practices and suggest ways to fill these gaps.
(v) Examine key environmental resource management issues that require further
remedial actions to enhance horticulture production and profitability, in
consideration of the diverse ecological aspects as relevant to the
regions/provinces.
(vi) Analyze specific supporting measures, such as laws and regulations,
infrastructure, research and extension services, food safety and quality
standards, investment priorities, and public-private partnerships to stimulate high-
value international markets. Successful cases where measures have been
adopted, including those under the Agribusiness Development Project, will be
identified and explored further.
(vii) Identify the policy, institutional, and administrative roles of the federal, provincial,
and local governments necessary to achieve the objectives.
(viii) Suggest new initiatives for investment and support services, especially for small
farmers (owners and tenants).
(ix) Participate in provincial and national workshops.
 Appendix 3 11

(x) Assist in the preparation of provincial and national reports.

(xi) Coordinate with other specialists as necessary.
(xii) Assist provincial and federal governments and the team leader in preparing a
thematic paper which would articulate how the proposed initiatives, investments,
and support services will help achieve the stated objectives of sustainable
horticulture growth at the regional, provincial, and national level.

4. Livestock and Poultry Specialist (domestic, 3 person-months). The specialist will

review work carried out under the Agribusiness Development Project and consult with the
Livestock and Dairy Development Board, in preparing the thematic paper. In addition, the
specialist will be required to review work carried out under the Agribusiness Development
Project on the agribusiness oriented livestock interventions, including any studies on the
livestock subsector. Other specific responsibilities will include the following.
(i) Review and assess the current state of livestock and poultry production in
different regions of each province.
(ii) Identify potential areas of competitive advantage at a regional level, for
smallholders in particular.
(iii) Map the supply chains for key high-value commodities that identify major supply
chain actors, the distributional benefits of access to supply chains by
smallholders, resource gaps, and constraints.
(iv) Highlight the gaps in livestock and poultry husbandry practices, including
breeding, feeding, and health care; and suggest ways to fill these gaps with
particular emphasis on strategies to cope with emerging issues such as avian flu.
(v) Examine key environmental resource management issues that require further
remedial actions to enhance livestock and poultry production and profitability, as
relevant to the regions/provinces.
(vi) Analyze specific supporting measures, such as laws and regulations,
infrastructure, research and extension services, food safety and quality
standards, investment priorities, and public-private partnerships to stimulate high-
value agriculture and meet food quality and safety standards in national and
international markets. Successful cases where measures have been adopted will
be identified and explored further.
(vii) Identify the policy, institutional, and administrative roles of the federal, provincial,
and local governments necessary to achieve the objectives.
(viii) Suggest new initiatives for investment and support services, especially for small
stockholders.
(ix) Participate in provincial and national workshops.
(x) Assist in the preparation of provincial and national reports.
(xi) Coordinate with other specialists.
(xii) Assist provincial and federal governments and the team leader in preparing a
thematic paper which articulates how the proposed initiatives, investments, and
support services will help achieve the stated objectives of sustainable livestock
growth at the regional, provincial, and national level.

5. On-Farm Water Management Specialist (domestic, 3 person-months). For preparing

the thematic paper, the specialist will do the following.
(i) Review and assess the current state of on-farm irrigation practices in different
regions of each province.
(ii) Identify the resource, infrastructure, and institutional constraints.
12 Appendix 3

(iii) Highlight the gaps in irrigation practices and suggest ways to fill these gaps.
(iv) Examine public sector support services (on-farm water management research
and extension).
(v) Review major public and private investments in irrigation practices
(vi) Examine key environmental resource management issues that require further
remedial actions to enhance on-farm water management and efficiency in use of
water resources, in consideration of the diverse ecological aspects as relevant to
the regions/provinces.
(vii) Suggest new initiatives for investment and support services, especially for small
farmers.
(viii) Participate in provincial and national workshops.
(ix) Assist in the preparation of provincial and national reports.
(x) Coordinate with other specialists.
(xi) Assist provincial and federal governments and the team leader in preparing a
thematic paper which would articulate how the proposed initiatives, investments,
and support services will help achieve the stated objectives of sustainable on-
farm water management at the regional, provincial, and national level.

6. Institutions and Financial Specialist (domestic, 3 person-months). For preparing the

thematic paper, the specialist will do the following.
(i) Prepare a comprehensive update on analytical work undertaken to date on
issues in land tenure, subsidies, and pricing of agricultural products.
(ii) Identify key policy and institutional constraints in land markets and taxation that
support or impede diversification of agriculture at the regional, provincial, and
national level.
(iii) Examine organizational, innovation, and entrepreneurial activities in the public
and private sector (including leasing of land to landless farmers, land purchase
scheme, including assistance to poorest households) and identify best practices
through case studies that have the potential for replication in other regions.
(iv) Identify public and private sector support services and institutional innovations
that can facilitate development of efficient land markets over time.
(v) Review taxation issues in agriculture and suggest measures to reduce incentives
for holding land for speculative purposes; analyze land stamp duties and other
fees to reduce land transaction costs required to facilitate land market
transactions.
(vi) Document at the regional, provincial and national level improvements in land
administration, including computerization of land records, to reduce fraudulent
dealings, increasing willingness of banks to lend on basis of titles, and thereby
encouraging secure land transactions.
(vii) Review and assess the state of financial markets for agricultural producers in
different regions of each province.
(viii) Identify legal, institutional, and resource constraints for access to credit,
especially for small farmers, stockholders, and agribusinesses.
(ix) Assist provincial and federal governments and the team leader in preparing a
thematic paper which articulates how the proposed initiatives, institutional
innovations in land markets, rationalization of taxes and subsidies, and enhanced
access to rural finance and improved financial management capacity of
institutions, will help improve agricultural diversification, increase trade, and
create employment opportunities for resource poor households at the regional,
provincial, and national level.
 Appendix 3 13

7. Devolution Specialist/Workshop Facilitation (domestic, 3 person-months). The

starting point in developing a national agriculture sector strategy for Pakistan is to recognize that
the key decisions in agriculture-related issues are normally made, or expected to be made, at
provincial level. The federal Government plays a supportive role, especially in areas of national
importance or that the provinces individually cannot afford, or deal with, or constitutionally fall
outside their responsibility. The Devolution Plan, 2001, has decentralized the decision-making
powers of provincial governments in certain areas in which district governments can play a more
effective role. In the context of agriculture, the district government has been assigned the
responsibility of providing financial resources to—and some of the administrative responsibilities
for—agriculture extension services. However, overall technical supervision of these services
and a major part of the administrative responsibility remain with the provincial government. The
TA resources of ASPL have been used to help the four provincial governments reorganize their
agriculture research and extension services, including effective coordination between district
and provincial governments with respect to agriculture extension services. Provincial
governments are also developing action plans, to be partly financed by ASPL, which are
expected to be implemented in the next 2–3 years. The study team for the National Agricultural
Strategy will incorporate these developments and their likely effects on agricultural growth in
Pakistan. In addition, the specialist, in consultation with the team leader and other team
members, will do the following.
(i) Review ongoing work carried out by ADB (under the Decentralization Support
Program1 and ASPL), analyze the implications of devolution on agriculture in the
four provinces, and highlight institutional constraints and opportunities.
(ii) Review the reorganization plans prepared under ASPL and analyze how the
provincial governments are addressing issues involved in the divided
responsibilities between the provincial and district governments, in consultation
with provincial and district governments.
(iii) Facilitate workshops at the regional, provincial, and federal level and consolidate
deliberations which could clarify the status and adequacy of delivery of services
in the agriculture sector, and processes and mechanisms utilized in the planning
and implementation of medium-term initiatives in the agriculture sector.
(iv) Recommend measures to enhance coordination among the district, provincial,
and federal government levels in the consolidation of inputs required for
preparation of the provincial and national agricultural strategies.
(v) Assess information needs and technology requirements at provincial and district
level, and recommend outsourcing modalities for establishing web-based
information platforms.
(vi) Assist provincial and federal governments and the team leader in preparing a
thematic paper which articulates how the proposed initiatives under the TA would
help clarify the roles and responsibilities of the district and provincial
governments in the delivery of agriculture support services, and recommend
steps required to augment institutional coordination processes for facilitating the
consolidation and implementation of the provincial and national agricultural
strategies.

1
ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the
Islamic Republic of Pakistan for the Decentralization Support Program. Manila.
14 Appendix 4

SUGGESTED OUTLINE OF THE FINAL REPORT

Contents

1. Introduction
1.1 Background
1.2 Purpose and Scope
1.3 Organization of the Report

2. Country Setting
2.1 Geographical Setting
2.2 Social Setting
2.3 Economic Setting
2.4 State of Agriculture Sector: Inventory of Existing Data and Information
2.5 Issues for the future of Agriculture Sector

3. Outline of the Proposed Strategy

3.1 Introduction: Vision and Needs
3.2 Key Elements of the Strategy: what is to be done and how?

4. Components of Provincial and National Strategies

4.1 Priority Areas for Development: Goals and Objectives
4.2 Strategies to Achieve Identified Goals
4.3 Strategy Implementation
Investment Priorities
Resource Requirements (Cost Estimates)
Policy Environment and Requirements
Support Services
Monitoring and Evaluation

5. Conclusions and Recommendations

5.1 Provincial and Regional
5.2 National

Appendix A: Thematic Papers/Federal and Provincial Perspectives

A.1 Introduction
A.2 Field Crops Subsector
A.3 Horticulture and Floriculture Subsector
A.4 Livestock and Poultry Subsector
A.5 On-Farm Water Management
A.6 Reorganization of Institutions and Policies
A.7 Devolution and Its Impact on Agriculture Support Services
A.8 Environmental Impact
A.9 Knowledge Management