B & B

ISLAMABAD: The World Bank and Pakistan on Tuesday signed a grant agreement of $9 million for the competitive industries projects in the conflict-hit areas of Khyber Pakhtunkhwa.

The grant will be financed through the Multi Donor Trust Fund (MDTF) – which is supervised by the World Bank.

The signatories of the agreement included Secretary Economic Affair Division Nargis Sethi, Secretary Industry (on behalf of KP government) Sajid Khan Jadoon and Country Director World Bank Rachid Benmessaoud.

Following the successful launch and implementation of MDTF’s economic revitalisation in KP and FATA project, the provincial government requested MDTF’s support towards strengthening critical value chains of the province in two high potential sectors: dimension stones (especially marble) and food processing industry.

The crises of 2009 and 2010 affected adversely major infrastructure, impacting the sectors’ competitiveness and direct and indirect livelihoods associated with these sectors.

So, the financing will help improve the competitiveness of marble and food processing sectors in KP by providing shared infrastructure and relevant skills along the marble sector value chain.

(Value chain refers to the processing of raw materials to add value and the sale of these processed goods in the market).

The project will also address knowledge and coordination gaps along the food processing sector.

For the marble sector, this will be achieved through the establishment of a machinery pool, common facility and training center for marble quarries in Risalpur Marble City, according to the details.

Linkages with both domestic and international markets for KP’s marble products will also be facilitated, ensuring that gains from all interventions along the value chain are maximised. A total of 25 marble mines will be targeted for an enhanced productivity and 750 direct and indirect jobs will be created through skills training.

For the food processing sector, the project will provide support for the development of the food processing cluster through value chain prioritisation, analysis, feasibility studies and a cluster development program. Implementation agencies will be strengthened to ensure that project objectives are met.

“We, along with our development partners, are committed to the development of KP. This project will help in the creation and restoration of jobs and the provision of livelihoods for some of the poorest communities,” said Nargis Sethi.

Rachid Benmessaoud said, “The marble and food processing sectors have been two of the worst affected economic sectors in the province during 2009 and 2010 crises. The sectors have huge potential to generate revenue and create jobs. This project will enhance productivity and employment in these sectors, thereby contributing to the provincial economy.” —Mehtab Haider