Pakistan: Providing Opportunities for Poor People

Third Pakistan Poverty Alleviation Fund

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• World Bank provides $250 million to improve rural livelihoods

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• Pakistan Poverty Alleviation Fund has provided $646 million since its inception in 2000
• Agriculture remains an important pathway out of poverty in rural Pakistan
• However, 45% of the rural poor rely on non-farm activities

June 4, 2009 —The Third Pakistan Poverty Alleviation Fund (PPAF-III) project will provide $250 million to support the Government of Pakistan’s efforts to tackle poverty and provide livelihood opportunities to poor people, especially in rural areas.

Agriculture remains an important pathway out of poverty in rural Pakistan. However, 45% of the rural poor also rely on non-farm activities as important sources of income. A well developed and dynamic rural non-farming sector is therefore essential to generate employment, ensure income diversification, and ultimately reduce poverty.

Achieving this requires substantial improvements in rural service delivery, which in turn requires large investments in small-scale infrastructure and easier access to credit. The global financial crisis has also had an impact on Pakistan’s micro-finance sector where there is now less available capital.

PPAF, an apex organization formed in 1999, was established to empower poor people, especially women and marginalized groups, and help increase their incomes. Through partnerships with civil society organizations it has a strong presence across the country, and is now active in 119 out of Pakistan’s 134 districts.

The Bank has supported the PPAF with $646 million since 2000. During this time, the program has facilitated the formation of 80,000 community organisations and provided 1.9 million micro-credit loans, 16,000 community infrastructure schemes, and training support for 232,000 people in enterprise development skills.

PPAF-III will build on these achievements and continue empowering poor people by:

1. Effective education expenditures with an emphasis on fiscal sustainability
2. Education sector management
3. Access to quality schooling particularly for girls and rural children
4. Creating benchmarks for teacher recruitment and professional development and for student achievement