The United States funds economic growth projects to increase incomes and create jobs.
The goal of USAID’s Economic Growth and Agriculture (EGA) program is to improve the economic status of focus populations in order to promote prosperity throughout Pakistan. The activities aim to stimulate growth and productivity in Pakistan’s economy, including its agricultural sector, thereby creating new jobs and raising incomes. Strengthening Pakistan’s economy through investment and private sector growth is the foundation of our shared vision for Pakistan-U.S. economic cooperation. Private sector growth will, over time, enable Pakistan and the United States to move toward a broader and deeper economic relationship based on “trade not just aid.”
HARNESSING PRIVATE SECTOR-LED ECONOMIC GROWTH
USAID’s economic growth programs are working in several areas to promote private sector growth. As local business surveys indicate that lack of credit is one of the biggest constraints to economic growth, new USAID programs are working with local banks to provide up to $92 million in credit, which will be multiplied to $410 million in additional lending through financial leveraging. Other programs are working with small and medium enterprises to expand their sales and market linkages to tap into better-paying markets. USAID also is collaborating with the U.S. Department of Commerce and the Government of Pakistan to attract investment and expand trade opportunities. To support the Government of Pakistan with its interaction with the International Monetary Fund, USAID is providing technical assistance to help with its debt management. As a cross-cutting issue, USAID is helping Pakistani women to increase their incomes and expand their businesses, which are often run from home. With USAID support, Pakistani organizations are creating new jobs, helping women sell their products more profitably, and training women to upgrade their skills.
CREATING A VIBRANT AGRICULTURAL SECTOR
In Pakistan the agricultural sector employs 44 percent of the national labor force and provides 21 percent of Pakistan’s Gross Domestic Product. Helping Pakistani farmers improve the quality of their agricultural products while increasing productivity is a critical priority. USAID programs are providing support to Pakistani agricultural sector from “farm to fork.” For example, USAID programs are collaborating with the U.S. Department of Agriculture to support R&D in the agricultural sciences to develop cutting edge seed technologies and management practices to support Pakistan’s rapidly growing population. U.S. assistance is also increasing employment and incomes for more than one million rural families with investments in irrigation infrastructure to serve farmers in previously underserved regions. Other activities are strengthening agricultural value chains by connecting small farmers to major agribusinesses and boosting agricultural productivity by introducing modern farming technologies, services, and practices. Other programs are helping to modernize commercial agribusinesses and strengthening institutional capacity to foster evidence-based policy decisions in the agricultural sector.
Last updated: June 09, 2015