Pakistan, IFAD Deepen $1.2bn Rural Development Partnership Focused on Food Security and Climate Resilience

Pakistan has advanced discussions with the International Fund for Agricultural Development on ongoing and future rural development initiatives, reinforcing a long-standing partnership aimed at food security, poverty reduction, climate resilience and innovative financing for smallholder communities. The engagement took place during the 49th Session of the Governing Council of IFAD in Rome, where Federal Minister for National Food Security and Research Rana Tanveer Hussain led the country’s delegation.

According to an official statement, Pakistan’s active portfolio with IFAD now exceeds $1.2 billion, covering projects across all provinces, including remote and underserved regions such as Gilgit-Baltistan, Balochistan and South Punjab. The scale of the engagement reflects a multi-layered rural development strategy that integrates productivity, social inclusion and climate adaptation measures.

In a bilateral meeting with IFAD President Alvaro Lario, the minister reviewed the implementation status of ongoing IFAD-funded projects and explored new areas of cooperation. The discussion also included Pakistan’s continued participation in IFAD replenishment cycles, which are critical for securing concessional financing for rural transformation programs. Minister Hussain extended a formal invitation to President Lario to undertake an official visit to Islamabad, signaling Islamabad’s intention to deepen institutional collaboration.

President Lario recalled the signing of the bilateral Home Country Agreement in July 2023 and the subsequent establishment of IFAD’s Home Country Office in Islamabad. He acknowledged Pakistan’s historic role as a founding member of IFAD and expressed interest in visiting the country to further strengthen cooperation. The meeting reviewed progress under Pakistan’s current country strategy, which prioritizes rural development, poverty alleviation, food security and climate resilience.

Minister Hussain highlighted that IFAD-supported projects are delivering tangible outcomes in hard-to-reach areas. These initiatives are designed to empower rural women through asset transfers and livelihood schemes, reinforce smallholder farming systems and promote climate-smart agriculture practices. The focus on resilience is particularly relevant as agricultural communities confront mounting climate variability and economic pressures.

During his visit, the minister also welcomed the forthcoming trip of IFAD Executive Vice President Donal Brown, expected in March. Brown recalled his previous engagements with Pakistani leadership and expressed his commitment to sustained coordination on future development initiatives. The continued exchange at senior levels reflects an effort to align financial resources with evolving rural needs.

At a high-level roundtable marking ten years of the International Day of Family Remittances, the minister underscored Pakistan’s position among leading remittance-receiving countries. He emphasized government measures to promote financial inclusion and channel remittance inflows into productive sectors such as agriculture and small and medium enterprises. Redirecting remittances into value-generating rural activities remains a policy focus, particularly for enhancing income stability in farming communities.

Speaking at a thematic session on investing in young entrepreneurs, Minister Hussain stressed the importance of connecting farmers to markets and fostering rural youth participation through value chain development and agribusiness support. Strengthening market linkages and encouraging entrepreneurship were highlighted as key levers for sustainable rural growth.

Pakistan’s partnership with IFAD dates back to 1978. Over the decades, the fund has financed 26 projects and programs in the country with a cumulative portfolio exceeding $2.3 billion, including government and co-financing contributions. Currently, four major projects are under implementation, targeting agricultural productivity, irrigation expansion in mountainous areas, improved market access and integrated programs to graduate vulnerable households out of poverty.

The visit also reaffirmed Pakistan’s engagement with Rome-based UN agencies, including IFAD, FAO and WFP, underscoring the government’s commitment to inclusive rural growth, strengthened food systems and resilience against climate and economic challenges.

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