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Economic Growth & Agriculture

Harvesting the Hope
Harvesting Hopes
USAID Pakistan

USAID works with the Government of Pakistan and development partners to Boost Private Sector Development, Enhance Agricultural Productivity, and Improve the Business-Enabling Environment.

USAID is stimulating private sector investment to increase sales, income, and jobs; promoting a vibrant and profitable agricultural sector through market linkages, technology, and irrigation; fostering a conducive business enabling environment for sustainable economic development; and facilitating trade across borders to increase regional connectivity.

HIGHLIGHT

USAID has leveraged over $312 million in private sector investment to support the agriculture and small and medium enterprise economy of Pakistan, including the development of agriculture and food processing technologies (seeds, equipment, grain silos, livestock breeds), renewable energy solutions, pharmaceuticals, and education.

OUR IMPACT

  • Since 2011, more than 1 million rural households have benefited from USAID assistance to improve agricultural practices and support economic growth.

  • Since 2010, over 528,000 acres have benefited from improved irrigation.

  • Since 2011, more than 43,000 new jobs can be attributed to USAID’s programs.

  • Since 2010, Pakistani businesses have achieved an over $200 million increase in sales and an approximately $92 million increase in exports as a direct result of USAID assistance. USAID leveraged over $312 million in private sector investment to achieve these gains in partnership with Pakistani businesses.

  • To date, more than 313,000 farmers have applied improved technologies and farming management practices with USAID support.

BOOSTING PRIVATE SECTOR DEVELOPMENT

USAID is helping businesses to expand by increasing access to new technologies and improving the management practices of high-value sectors such as dairy, textiles, and agribusiness. USAID builds business-to-business links to open markets, improves business operations, and encourages regional trade. USAID assistance is fostering entrepreneurship and job creation by working with small and medium enterprises (SMEs) to improve business practices, build networks/linkages, inform policy reforms to improve the business enabling environment, and increase access to capital. Financing remains a challenge for young entrepreneurs. USAID is partnering with banks to encourage financing to SMEs, which has helped banks expand their lending to SMEs by more than $40 million to date. USAID has also launched four partnerships with private banks in Pakistan to expand access to credit for small and medium-sized businesses.

ENHANCING  AGRICULTURE  PRODUCTIVITY    

Pakistan’s agriculture sector employs more than 40 percent of the nation’s workforce and is a key driver of the country’s economic growth. USAID has worked with Pakistan to boost productivity by developing new crop varieties and improving management practices. To increase farmer and agribusiness incomes, USAID is helping small and medium-sized agricultural businesses to access financing and to improve quality of fresh produce, meat, and processed foods, which link producers and agribusinesses to more lucrative markets.

IMPROVING THE BUSINESS-ENABLING ENVIRONMENT

USAID supports economic policy reforms that make doing business easier. USAID has assisted the Government of Pakistan to enact an amendment to the Seed Law in 2015, which now enables domestic and international private seed companies to enter the Pakistani market. This legislation is expected to stimulate competition and foreign investment. USAID helped to design a new regulatory scheme for the licensing and operations of a warehouse receipts system for selected agricultural commodities. This will enable farmers to collateralize their harvest to access financing, while also improving post-harvest storage. USAID also helped the Punjab Government to formulate a new agricultural policy which focuses resources on increased agricultural productivity and profitability, improved food quality standards, and analysis of agricultural subsidies.

USAID is providing assistance to the Government of Pakistan to modernize trade systems and adopt global trade norms including the rationalization of duties, the streamlining of processes, and the implementation of international trade agreements/conventions. By taking these steps, the Government of Pakistan will improve access and reduce compliance costs for businesses seeking to conduct trade. USAID is working with the Government of Pakistan to establish a National Single Window and e-Payment system for customs and cargo clearance, which will streamline Pakistan’s trade and customs procedures by creating a one stop shop for companies seeking to do business and reduce the time and cost of trade. USAID also assists federal and provincial policymakers in revising investment and small and medium enterprise policy frameworks. Updating these frameworks will drive increased investment and empower entrepreneurs to start new businesses.

Last updated: July 26, 2018

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