PUNJAB ENABLING ENVIRONMENT PROJECT (PEEP)pdf.usaid.gov/pdf_docs/PA00MJSK.pdf · PUNJAB ENABLING ENVIRONMENT PROJECT (PEEP) ANNUAL ... PEEP Punjab Enabling Environment Project

PUNJAB ENABLING ENVIRONMENT PROJECT (PEEP)

ANNUAL REPORT April 1, 2015 – March 31, 2016

This document was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc.

Year 2 Annual Report – PEEP Page | 1

PUNJAB ENABLING ENVIRONMENT PROJECT (PEEP)

ANNUAL REPORT April 1, 2015 – March 31, 2016 Contract Number: AID-391-C-14-00002

COVER PHOTO: PEEP’s engagement in the dairy, livestock, and horticulture sectors of Punjab The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government


CONTENTS ACRONYMS ...................................................................................................................................................... 3

A. EXECUTIVE SUMMARY ............................................................................................................................ 4

B. OVERVIEW OF THE PROJECT ................................................................................................................... 8

PROJECT BACKGROUND ..................................................................................................................................... 8 PROGRAM DESCRIPTION .................................................................................................................................... 9 PROGRAM APPROACH ..................................................................................................................................... 10

C. KEY ACHIEVEMENTS (APRIL 2015 TO MARCH 2016) .............................................................................. 12

PEEP PARTNERSHIPS ........................................................................................................................................ 13 COMPONENT 1: PRIVATE SECTOR LED ADVOCACY FOR POLICY REFORMS ...................................................... 13

Core Advocacy Group, Roundtable, and issue panel Meetings .................................................................. 14 SEMINAR ON OLIVE VALLEY DEVELOPMENT IN POTOHAR REGION OF PUNJAB ................................................ 25 VIRTUAL GOVERNANCE SYSTEM FOR LIVESTOCK AND DAIRY DEVELOPMENT DEPARTMENT (L&DDD) ........ 26 REFORM IMPLEMENTATION .............................................................................................................................. 27 COMPONENT 2: SUPPORT INSTITUTIONAL CAPACITY BUILDING ..................................................................... 28 PARTNERSHIP WITH DEPARTMENT OF AGRICULTURE (DOA), GOPB ................................................................ 28 WAREHOUSE RECEIPT SYSTEM (WRS) FOR DEPARTMENT OF AGRICULTURE, GOPB ....................................... 29 CENTER FOR APPLIED POLICY RESEARCH IN LIVESTOCK (CAPRIL) ................................................................ 29 PUNJAB HALAL DEVELOPMENT AGENCY (PHDA) ........................................................................................... 30

Capacity Building of Policy advocacy institutions through Grants and Technical Assistance ..................... 31 Capacity Need Assessment of Organizations through Grants under Contract ........................................... 33

COMPONENT 3: MOBILIZE MAJOR PRIVATE SECTOR INVESTMENT ................................................................. 34 Transaction Advisory Services (TAS) program ............................................................................................. 34 Matching Grants Program ........................................................................................................................... 37 Cross cutting ................................................................................................................................................ 41

ANNEX – A: PERFORMANCE MANAGEMENT .................................................................................................. 44

ANNUAL PROJECT INDICATORS UPDATE .......................................................................................................... 44 INDICATORS-WISE PROGRESS .......................................................................................................................... 45 OUTPUT INDICATORS ........................................................................................................................................ 45 YEAR 2 WORK PLAN STATUS ............................................................................................................................. 46 DEVIATIONS IN YEAR 2 WORK PLAN ................................................................................................................. 49

ANNEX – B: LIST OF SUCCESS STORIES ............................................................................................................ 52

SUPPORTING LIVESTOCK BREEDING REFORMS .............................................................................................. 53

SETTING TARGETS FOR AGRICULTURAL GROWTH .......................................................................................... 54

DEVELOPING HALAL COMPLIANT MEAT INDUSTRY IN PUNJAB ...................................................................... 55

PROMOTING LIVESTOCK POLICY RESEARCH ................................................................................................... 56

D. BUDGET EXECUTION ............................................................................................................................. 57

FINANCIAL REPORT AND YEAR 2-5 ESTIMATED COSTS ................................................................................... 57

E. ADMINISTRATION AND PROJECT MANAGEMENT ................................................................................. 58


ACRONYMS ADB Asian Development Bank APS Annual Program Statement BEE Business Enabling Environment BZU Bahauddin Zakariya University CAG Core advocacy groups CAPRIL Center for Applied Policy Research in Livestock COP Chief of Party COR Contracting Officer’s Representative DOA Department of Agriculture DPP Department of Plant Protection FMD Foot and Mouth Disease GoPb Government of Punjab HBPRC Horticulture Business and Policy Research Centre HICD Human & Institutional Capacity Development L&DDD Livestock and Dairy Development Department M&E Monitoring & Evaluation MoU Memorandum of Understanding PADFA Pakistan Agriculture and Dairy Farmers Association PAMCO Punjab Agriculture Meat Company PBIT Punjab Board of Investment & Trade PCCDC Pakistan Cold Chain Development Company PEEP Punjab Enabling Environment Project PHDA Punjab Halal Development Agency PLB Punjab Livestock Breeding PNAC Pakistan National Accreditation Council PPP Public-Private Partnerships PSU Policy and Strategy Unit RFA Request for Application RFP Request for proposal SCBS Sahiwal Cattle Breeders Society SLCCI Sahiwal Chamber of Commerce and Industry SPS Sanitary and Phytosanitary SPU Semen production unit TAS Transaction Advisory Services USAID United States Agency for International Development UVAS University of Veterinary and Animal Sciences WRS Warehouse Receipt System


A. EXECUTIVE SUMMARY

The three components of PEEP worked hand in hand to drive the mandated agenda for a successful year. PEEP continued its efforts with the Government of Punjab (GoPb) during Year 2 to sensitize towards the need for creating a business enabling environment (BEE) in the livestock, dairy, and horticulture subsectors through policy and legal reforms and enhanced institutional capacities to support businesses which will result in private sector investments leading to job creation. This report discusses the achievements made during Year 2, and talks about the challenges faced during the past year and opportunities for the future. In Component 1, PEEP adopted a multi-pronged strategy throughout Year 2 for accelerated policy and legal reforms. PEEP’s advocacy efforts endured for each of the reforms prioritized on the basis of extensive consultation with private sector stakeholders and key policy makers and implementers in the public sector. It was done through one-on-one meetings, panel discussions with experts, and round table meetings, leading to structured discussions and deliberations through the Core Advocacy Groups (CAGs). Roundtables and issue specific panel meetings continued to channel private sector inputs for framing issues, while the CAGs continued to provide direction for PEEP’s advocacy efforts with GoPb. Through PEEP meetings with key government functionaries, the public decision making spheres have been provided with the inputs which have been strategic, relevant, and based on evidence. The advocacy efforts were supplemented with technical assistance to GoPb and its allied agencies. The GoPb, Livestock and Dairy Development Department (L&DDD), realizing the need for a coherent policy document for the sector, initiated consultation with relevant stakeholders, sector experts, academia, and development partners to formulate livestock policy papers for the province. PEEP’s contributions have been significant at each stage of developing policy documents. Consequently, the first livestock policy for the province was approved by the Chief Minister of Punjab. CAG meetings organized by PEEP with the livestock and dairy sector resulted in the revision of the Punjab Animal Slaughter Control Act 1963, making it responsive to the present day requirements of local and export meat markets. PEEP also assisted L&DDD to incorporate suggested reforms in the draft Punjab Quality Meat and Slaughter Regulation Act 2013, wherein provisions for improving meat quality and regulating slaughter house operations were included. PEEP’s advocacy and inputs culminated in a bill entitled “The Punjab Animals Slaughter Control (Amendment) Bill 2016” is to be presented to the Punjab Assembly for enactment. PEEP’s advocacy efforts have also resulted in making the legal reforms responsive for creating a conducive environment for the improvement of the quality of meat and to regulate the slaughtering operations. PEEP, with the help of dairy CAG, pursued reform of the Pasteurized Milk Act as a high priority during Year 2. Center for Applied Policy Research in Livestock (CAPRIL), which was established with the technical and financial support from PEEP at the UVAS, is conducting a research on the supply of loose milk to Lahore in collaboration with the Punjab Food Authority. Upon its completion, the recommendations of the study will be utilized for the drafting of a milk pasteurization law. PEEP facilitated the semen production units (SPU) in performing their roles and responsibilities as per the provision of Punjab Livestock Breeding (PLB) Act 2014 inclusive of their registration with Livestock Breeding Services Authority and rationalization of the germ plasm being propagated prior


to the enactment. In order to conserve the indigenous breeds of livestock, PEEP facilitated through CAG and issue panel meetings the replacement of cross-breed donor bulls with pure breed bulls. In response to the RFA for financial assistance to registered SPUs the grant for provision of necessary equipment which would enable the grantee SPUs to improve its operation compliant to the PBL Act 2014 is being processed for award. Maintenance of herd book for data recording of cattle is the legal requirement for herd keeping. PEEP facilitation pioneered the development and preparation of herd book in Punjab which is first of its kind in the province. PEEP facilitated the preparation of herd book in an issue panel meeting wherein a wide array of the stakeholders participated. Through the maintenance of herd book, the pedigree, performance and unique identity data of cattle is being maintained by the Sahiwal Cattle Breeders Society (SCBS) and Buffalo Breeders Association Punjab. Following a meeting held at UVAS, PEEP has been entrusted by all major stakeholders to provide assistance in carrying out detailed economic and financial analysis under a technical study for the commercial production of a livestock Foot and Mouth Disease (FMD) vaccine. The study would support commercial production of FMD vaccine which in turn would enable the stakeholders in implementation of the strategic shift from curative to preventive regime of disease control. It was a follow-up activity on PEEP’s efforts to provide TAS to a private sector company last year for establishment of commercial production facility for FMD vaccine in Punjab. The Horticulture CAGs continued to provide direction for PEEP’s advocacy efforts with the GoPb. The Roundtable on Sanitary and Phytosanitary (SPS) regime helped frame issues and recommend private sector inputs to support the way forward. PEEP facilitated a roundtable meeting to deliberate on obstructions faced in production and export of quality citrus to high-end markets. This initiative resulted in convincing the Extension Directorate of the DOA, Punjab Agriculture Research Board, Citrus Research Station, and Department of Plant Protection (DPP) to pursue joint efforts to control incidence of disease at orchards and adopt SOPs for SPS compliance for export-bound consignments, especially to EU markets. This has contributed to an increase in 30% in export of mangoes to the EU during last year. Keeping in view the economic importance of olive sector for the growth and development of the Potohar region, GoPb has launched a 5-years project (2015-20) to transform the region into an Olive Valley. PEEP through its PSU team assisted in preparing PC-1 of the olive valley development project in early 2015 which was subsequently approved by GoPb. PEEP also facilitated GoPb in launching of PC-1 of olive valley project through organizing a seminar which was attended by all relevant public and private sector stakeholders. The seminar helped in highlighting needs and issues pertaining to the sector development, and to devise a comprehensive strategy in this regard. As per recommendations of the stakeholders in the seminar and PEEP’s olive sector development strategy, PEEP will constitute an olive development group and will facilitate its meetings in third year of PEEP. The group will deliberate upon the challenges faced in sector development and will recommend solutions to be considered by GoPb and other development partners. PEEP will assist through capacity development and grants for various initiatives to support investment in the olive sector. PEEP plans to establish partnerships with Pir Mehr Ali Shah Arid Agriculture University, Rawalpindi and Barani Agriculture Research Institute (BARI) Chakwal to support these institutions for olive sector development in the region. PEEP’s advocacy efforts for the horticulture sector reforms were supported by horticulture sector reform champions and stakeholders, advocated for reforms in the wholesale markets on one hand and joined forces with major donor agencies such as the World Bank and the Asian Development Bank


(ADB) to pursue a joint advocacy strategy with GoPb. Although, PEEP stance on reforms as conceived in the PEEP position paper was fully endorsed by the World Bank and ADB, and agreed in principle by the incumbent Secretary of DoA, the government could not muster support to introduce reforms through the Punjab Agriculture Produce Marketing Act. Pursuing a modified approach, PEEP worked with the DoA to support reform initiatives on several fronts, including establishment of model bazars in Punjab to demonstrate a business model for efficient wholesale markets in the province. In Component 2, to support institutional capacity building of public and private sector organizations to sustain enabling environment reforms, three research centers were established. Two were at public sector namely CAPRIL at UVAS and HBPRC at BZU and one at private sector, Research and Development Unit at Sahiwal Chamber of Commerce and Industry. PEEP PSU assisted in preparing PC-1 for developing Potohar region into an olive valley with public financial and technical support. A MoU was signed between PEEP and the DoA and a Policy and Strategy Unit (PSU) was established at DoA which provided technical inputs in developing the Punjab Agriculture Sector Plan 2015-16 and assisted in aligning the DoA’s strategic thrust with the Punjab Agriculture Growth Strategy. The PEEP experts at PSU provided intellectual inputs to support developing a commodity exchange and warehouse receipt system (WRS) in the province. PEEP hired an international expert to assess viability of WRS in Punjab and recommended a road map for implementation to GoPb. The consultant’s recommendations are currently under consideration. PEEP technical assistance to the department culminated in a Rs. 2.2 billion project for transforming much criticized public sector extension services into a diagnostic based, IT enabled service for enhancing agriculture productivity and consequently growth in the agriculture sector of the province. GoPb has requested PEEP to continue the support DoA till it is self-sustainable. PEEP support will continue till end of year 3 and PSU will provide assistance in developing agriculture policy for the DoA. PEEP remained engaged with the Punjab Halal Development Agency (PHDA) to promote new investment in the halal meat industry and open doors for new business opportunities leading to broad-based economic growth. The series of trainings with the PHDA are progressing well and according to timelines. PEEP provided technical assistance and facilitated the assessment and audit process to help PHDA comply with Pakistan National Accreditation Council’s (PNAC) pre-award accreditation requirements. This facilitation resulted in award of the Certificate of Accreditation to PHDA to work as the first-ever public sector Halal certification body in Punjab. In component 3 to mobilize private sector investments, based on the lessons learned during the previous year of implementation, PEEP has made some adjustments and necessary changes in its approach and focus during Year 2. The Transaction Advisory Service (TAS) program, considered critical to spur investment in the targeted sub-sectors, was successfully established with Chemonics and KPMG Taseer Hadi & Co, entered into an Indefinite Quantity Subcontract (IQS). Subsequently, PEEP approached microfinance institutions and helped them develop their profiles to increase financial inclusion of the farming community in PEEP selected subsectors. The first Task Order (TO) for NRSP Microfinance Bank Ltd was issued during the reporting year to support its product profile in livestock fattening sector. PEEP has successfully identified and strengthened its partnerships with relevant public sector organizations through signing MoUs with the Punjab Board of Investment & Trade (PBIT) and Punjab Agriculture and Meat Company (PAMCO) during the year 2. During Year 2, seven grants were awarded and are under implementation to support institutional capacity building to sustain enabling environment reforms.


PEEP complied with the environmental requirements and reviewed the project activities in light of the approved Initial Environmental Examination (IEE). PEEP developed the Environmental Documentation Forms (EDF), Environmental Review Report (ERR) and Environmental Mitigation and Monitoring Plan (EMMP) for PHDA, CAPRIL and PCCDC and submitted to USAID for approval. PEEP’s Year 2 was marked with prominent successes in spearheading its mandated agenda along with the important lessons learned which were instrumental in modifying and adjusting its approach and strategy of implementation which in turn is depicted in the Annual Work Plan for Year 3.


B. OVERVIEW OF THE PROJECT

PROJECT BACKGROUND

In Punjab, agriculture is a major contributor to the provincial economy, accounting for over 21 percent of gross domestic product, providing employment for 44 percent of the workforce, and being a major source of livelihood for the poor. Agriculture is a force multiplier in the economy. It amplifies its direct contribution to economic growth by creating a market for input and service suppliers, and supplying raw materials to industry. About 80 percent of the country’s foreign exchange originates from agriculture, and Punjab contributes over 60 percent of this.

Punjab's economy has quadrupled during last four decades. Its share of Pakistan's gross domestic product was 54.7 percent in 2000 and 59 percent as of 2010. Punjab has the largest integrated gravity flow irrigation system in the world, high potential in value addition, and strong potential for corporate sector participation in agricultural development. These can act as drivers for growth in agriculture. In addition, the agriculture surplus generated in Punjab is critical for food security of the national population.

Horticulture and livestock represent huge opportunities for growth, income generation and employment in Punjab. The vast majority of small and landless farmers rely on horticulture and livestock as their primary source of income. Punjab accounts for more than 95 percent of national citrus production and 66 percent of mango production. Livestock farmers account for approximately 63 percent of national milk production and own 65 percent, 49 percent, 37 percent and 24 percent of the country’s buffalos, cattle, goats and sheep respectively. However, one of the challenges limiting the agriculture sector realizing its full potential is the lack of a business environment conducive to growth.

The prevailing business environment in Punjab does not promote private sector growth or investment in the dairy, livestock, and horticulture sectors. Moreover, a decline in public investment in agricultural research has led to an outdated research infrastructure and the slow development and dissemination of modern technologies.

With the passage of the 18th Amendment in the Constitution, the Federal Ministry of Agriculture has been dissolved and the provinces have become autonomous in setting policies, development priorities, and budgets. A friendly business environment provides support to businesses through policy and regulatory reforms, improved infrastructure, and strengthened institutions. Therefore, there is a need to ensure that administration and enforcement of government policy, national and local institutional arrangements and other factors are optimized for maximizing economic benefits and to provide a level playing field for growth and development.

Investment in agriculture in Punjab ensures high return, can generate employment in rural areas thus curtailing rural-urban migration, and can be the most effective way to reduce rural poverty. Thus, a conducive business enabling environment (BEE) supports investment in businesses, and contributes to economic growth. Capitalizing on this premise, USAID has launched the Punjab Enabling Environment Project (PEEP), which is a $14.98 million, five-year effort to assist the Government of Punjab in improving the business environment for the horticulture, livestock, and dairy subsectors. PEEP’s interventions are designed to improve the business environment by supporting policy and regulatory reforms through private sector-led advocacy. These reforms are expected to spur new


investments leading to new employment opportunities, particularly for women, in the targeted sub-sectors.

PROGRAM DESCRIPTION

The PEEP Contract No. AID-391-C-14-0002 was awarded to Chemonics International on March 14, 2014. Chemonics partners with J.E. Austin Associates, Semiotics Consultants, and Development Executives to implement the project.

Through PEEP, USAID aims to work in partnership with the Government of Punjab, private sector entrepreneurs, business service agencies, public sector and civil society organizations, and academia to create an environment that is more conducive to the growth of the horticulture, livestock, and dairy subsectors in Punjab.

PEEP through its innovative and focused interventions is helping to create internationally competitive policy environment for horticulture, livestock and dairy subsectors, providing the private sector with the security required for investments in agriculture aimed at improving the quality and quantity of produce in the domestic market. PEEP will contribute towards USAID/Pakistan’s “DO 2: Improved Economic Status of Focus Population.”

Major objective of the program is to spur private sector investment through Business Enabling Environment (BEE) reforms and institutional capacity building of related stakeholders.

The expected results of PEEP’s are to leverage $180 million and help create 15,000 direct and indirect jobs through various interventions in livestock, dairy and horticulture sectors.

In order to achieve the above mentioned objective, PEEP developed following three project components:


C. KEY ACHIEVEMENTS (April 2015 to March 2016)

PEEP successfully completed year two with coordinated efforts to achieve its mandate by involving private and public sectors, academia and business support entities. Key achievements along with the interventions are given below:

Components Interventions Key Achievements

Accelerate private sector-led advocacy for policy and regulatory reforms

- Core Advocacy Groups (CAGs)

- Seminars - Roundtable Meetings - Issue Panel Meetings - Memorandum of Understanding (MoUs)

Policy & Strategy Unit (PSU) established at Agriculture Department, Government of Punjab (GoPb

Agriculture Sector Plan 2015 developed through technical assistance to Agriculture Department, GoPb which envisions to: • Mobilize private sector investments of $735 million by 2020 • Delivery of extension services to 5.2 million farmers in Punjab by

2020 Olive Sector Development PC-1 (funds worth $18.50 million

approved by GoPb) Extension Service 2.0 Project (funds worth $44 million approved

by GoPb) Development of Sahiwal Cattle Breed’s Herd Book completed in

partnership with Sahiwal Cattle Breeders Society Private Livestock Semen Production Units (SPUs) registered

through project’s advocacy efforts National Livestock Vision 2025 developed for Ministry of

Planning, Development and Reforms through University of Veterinary and Animal Sciences

Advocacy for Sanitary and Phytosanitary (SPS) Compliance with Department of Plant Protection

Study on assessment of Loose Milk Supply to Lahore for Milk Pasteurization Reforms underway through Center for Applied Policy Research in Livestock (CAPRIL)

PEEP facilitated the formulation of Punjab Livestock Policy

Support institutional capacity building of public and private sector organizations to sustain enabling environment reforms

- Technical Assistance - Grants

Development of Android Based Mobile Application in partnership with Pakistan Agriculture & Dairy Farmers Association (PADFA) for disease control & improvement of farm practices in dairy animals

Cold Chain Development through standard setting initiatives and mapping of facilities underway in partnership with Pakistan Cold Chain Development Company (PCCDC)

Center for Applied Policy Research in Livestock (CAPRIL) established at University of Veterinary and Animal Sciences

Horticulture Business and Policy Research Center (HBPRC) established at Bahauddin Zakariya University, Multan

Research and Development Unit established at Sahiwal Chamber of Commerce and Industry

PHDA’s accreditation by Pakistan National Accreditation Council (PNAC) as Halal Certification Body

Trainings to promote Halal slaughtering practices in 12 districts of Punjab: 243 master trainers, Shariah scholars and abattoir workers trained

Mobilize private sector investments

- Transaction Advisory Services (TAS)

- Matching Grants

Task Order (TO) issued under Transaction Advisory Services (TAS) for NRSP Microfinance Bank Ltd.

MOU with Punjab Board of Investment and Trade (PBIT), Government of Punjab

Second Issue of PEEP Bulletin, ‘I-Agri’ Published


PEEP Partnerships During two years of implementing program activities, lessons learned was to increase partnerships as much as possible. PEEP realized the dire need of these partnerships to achieve the desired results. Hence the strategy evolved and adopted was to enhance partnerships with various key stakeholders. PEEP developed these partnerships through MoUs and the strategy worked very well as there was binding and ownership on part of both the parties. PEEP’s partnership-based approach is given in the diagram below:

Detailed description of the program activities conducted by three components of PEEP in year two is given in the following sections:

COMPONENT 1: PRIVATE SECTOR LED ADVOCACY FOR POLICY REFORMS As committed in Work Plan for Year two, PEEP continued its efforts to accelerate private sector-led advocacy for policy, regulatory and institutional reforms through the private sector and their early adoption, approval and implementation. PEEP strategized its advocacy efforts to secure buy-in from the Government of Punjab (GoPb) officials and key stakeholders to incorporate livestock, dairy and horticulture advocacy into provincial policies for creation of adequate resource allocation. In order to achieve the desired advocacy goals both a top-down and bottom-up approach was implemented with regards to stakeholder engagement. The top-down approach primarily targeted GoPb departments of Agriculture and Livestock and Dairy Development and other public sector institutions like PBIT and PAMCO to promote private-sector led dialogue for policy reforms. PEEP worked towards the bottom-up approach by engaging critical elements of civil encompassing a wide range of non-governmental stakeholders with diverse interests and perspectives including academia, farmers, representatives of the sector associations, service providers and other relevant stakeholders including the meat exporters.


Following are details of the PEEP’s efforts rolled-out during year two through different means including CAGs, Round Tables and Issue Panel meetings held to achieve the objective of accelerating private sector-led advocacy for policy reforms: CORE ADVOCACY GROUP, ROUNDTABLE, AND ISSUE PANEL MEETINGS PEEP has constituted three Core Advocacy Groups (CAGs) in the livestock, dairy and horticulture subsectors to provide facilitation in advocacy for promoting policy reforms to create a business enabling environment that is conducive to private sector investment. Members of the CAGs include representatives from government, academia, sector associations, producers, processors, exporters, service providers and public support agencies. CAGs have been instrumental in identifying the respective sector issues with common consensus. PEEP played pivotal role in finding the appropriate members with strong professional background, bringing them at one table, compiling the recommendations and sharing with the relevant quarters in the government for modifying the concerned policies for effective functioning of the sector. The CAGs and their subsequent Task Teams comprising of CAG members held seven meetings during the second year of the project implementation. Similarly, during the year two of its implementation, PEEP continued to hold issue-specific advocacy roundtables and issue panel meetings in an effort to expedite the advocacy process. These sessions aimed to identify policy goals, and objectives for prioritizing private sector issues and reform needs. The secondary reason for holding these issue-specific meetings was to back the CAG findings and push forward the advocacy agenda. LIVESTOCK AND DAIRY SECTOR

In order to accelerate private sector-led advocacy for policy and regulatory reforms, PEEP organized following CAGs, Roundtable and Issue Panel Meetings during year two: Cattle Market Reforms and Punjab Quality Meat and Slaughter Regulatory Act 2013 A meeting of Livestock CAG was held on June 9, 2015 to review the laws pertaining to the regularization of the livestock sub sector and identify potential reform agenda items to spur investment in the sector. The objective of the meeting was to update the Core Advocacy Group (CAG) members on the progress made on the implementation of the Cattle Market Reforms and Punjab Quality Meat and Slaughter Regulatory Act 2013. The Cattle Market Reforms Act is being implemented through the Divisional Cattle Market Management Companies, while the Punjab Quality Meat and Slaughter Regulation


Act 2013 has been amended and a bill for amendments in the Punjab Animal Slaughter Control Act 1963 has been sent to the Punjab assembly for approval. Meat Sector Potential and Export Facilitation Livestock CAG task team meeting was held on March 24, 2016 to discuss the production potential of the meat sector and measures required to facilitate meat export. The participants included feedlot fattening farmers, slaughter-house managers, exporters, and representatives from the feedlot farmers’ associations and academia. The meeting discussions focused on the availability of quality animals for meat production, disease-free environment for rearing meat animals, disease incidence and the prevalence of Foot and Mouth Disease (FMD) along with the condition of meat processing facilities. In order to optimally utilize the existing production potential of the meat sector, the Task Team recommended that the government and relevant stakeholders should support livestock feedlot fattening farmers through soft loans for purchasing and feeding the feedlot farm animals to enhance productivity. It was recommended that financial institutions should develop credit facilities to establish chilling and freezing units for meat export and local market consumption. Silage Production: Issues and the Way Forward A task team meeting was held on March 30, 2016 to discuss the silage production potential, issues faced by stakeholders in silage production and propagation, and way forward to employ the global best practices to mitigate fodder scarcity in Punjab. The participants of the meeting included the farmers, silage producers, milk processors, members of breeders’ associations and academia. The following challenges were discussed in order to suggest a policy guideline to overcome the fodder scarcity hampering productivity in the livestock sector:

1. Fulfilling the feeding requirements of livestock population comprising of around 176 million animals is an uphill task

2. Sustainable livestock development should be considered a pre-requisite for the wellbeing of households associated with the herds

3. Dependency on cropped fodder and crop residues results from limited plantation of fodder trees and the underdeveloped state of grazing lands


4. The nutritive value of the crop residues remain low due to urea treatment

The Task Team after thorough discussion recommended that awareness about silage related issues should be raised among relevant stakeholders, especially farmers, by employing modern means of communication to popularize silage making as a reliable tool for fodder conservation. Technology transfer should be facilitated by importing machinery and developing local production potential for local mechanization solutions. Fodder seed availability of improved varieties of fodder crops should be ensured by engaging public and private sector institutions. The role of local communities associated with silage preparation and feeding should be examined and improved through local support organizations. Milk Pasteurization Law Dairy CAG meeting to discuss the draft Milk Pasteurization Law was held on August 31, 2015 wherein the farmers, representatives of the breeders associations, milk processors, traders and the service providers participated. It was recommended that PEEP may facilitate a study on the assessment of the loose milk supply at Lahore city in order to estimate the status of quality and quantity of milk supplied in Lahore to provide a basis for the milk pasteurization law. Punjab Livestock Breeding Act, 2014 Dairy CAG meeting was held on February 25, 2016 to deliberate on the role and mandate of Livestock Breeders Associations including Sahiwal Cattle Breeders Society, Buffalo Breeders Association, and Pakistan Agriculture and Dairy Farmers Association in the implementation of the Punjab Livestock Breeding Act, 2014. The group also discussed PEEP’s engagement with the sector associations and the Government of Punjab. The meeting was attended by 20 CAG members representing academia, dairy farmers and processors, service providers, and business associations. The discussion focused on the following issues pertaining to the role of the three associations in the implementation of the Act, and the registration of new associations as per Section 15 of the Punjab Livestock Breeding Act, 2014.

1. Mandatory requirements to be followed by the associations as per the provisions of the PLB Act. 2. Role of the associations in improving the genetic potential of livestock in Punjab.


Weekly Report – September 23, 2015

USAID Supports Policy Dialogue and Investment Mobilization for Reviving Livestock Breeding Semen Production Units (SPUs) in Punjab: With the Punjab Livestock Breeding Act 2014 approved by the Government of Punjab (GoPb), the private SPUs are required to seek registration with the authority and upgrade their facilities to the laid down standards and protocols. In an attempt to respond to these challenges, PEEP has rolled-out a unique assistance strategy based on policy dialogue between GoPb and the private sector, complemented by matching grants for investments in collection, storage, processing and transportation of quality semen for provision of better livestock artificial insemination and breeding services. Project’s dual efforts based on advocacy and investment mobilization will support GoPb in its endeavors of repositioning as an enabler by improving breeding services for productivity enhancement and modernization of SPUs. Overall, the supply and demand gap in the livestock breeding sector will be bridged from the current 6.4 million annual semen doses produced against the growing demand of 45 million doses in a year.

3. Capacity building of the associations. 4. Facilitation to the associations for the implementations of the PLB Act.

In light of the Punjab Livestock Breeding Act 2014, the current status of the associations was assessed against the pre-conditions mentioned in the act. It was discussed that the associations lack the capacity of carrying out checks for recording of pedigree and performance of cattle. The task team after thorough deliberations recommended that a technical review of the herd book formulation and its regular maintenance by Sahiwal Cattle Breeders Society under the project’s grant be conducted. It was also recommended that the template of the herd book be validated by conducting a workshop to seek stakeholder inputs. Thereafter the herd book be regularly updated with data inputs on the pedigree and performance of cattle as required under the provisions of the Punjab Livestock Breeding Act 2014. Performance Improvement of the Private Sector Livestock Semen Production Units (SPUs)

An issue panel meeting on private sector SPUs was held at the PEEP office on August 26, 2015. The meeting was convened to explore the possibility of helping and/or facilitating the private SPUs in complying with the new standards recently implemented by Punjab Livestock Breeding Authority (PLBA) established under the Punjab Livestock Breeding Act, 2014. The standards set by the PLBA were discussed in relation to the current state of SPU facilities and it was determined that different levels of compliance for SPUs will be defined and a phase-wise enforcement of the standards will be enacted to assist private SPUs in meeting the SOPs. It was also recommended that advocacy efforts will be accelerated to revise the SOPs by taking into account the perspectives of all relevant stakeholders. The participants from the private sector exhibited a strong willingness to establish a private SPU association to safeguard their collective

interests and support sector development.


Resultantly, the SOPs applicable on SPUs were implemented and the undesired germplasm carrying donor bulls were culled and removed from the herd. The outcome of the whole process had been that the true to breed cattle and buffalo, candidate and donor bulls are being maintained. It is ensured that certified semen is being propagated for productivity enhancement and significantly private sector is spearheading the development initiative. Finalization of the Content and Implementation Strategy of Livestock Herd Book Another issue panel meeting was held on March 31, 2016 to discuss the maintenance of livestock herd-book. The meeting was headed by Vice Chancellor of University of Veterinary and Animal Sciences (UVAS). Representatives of Breeders’ Associations, research and academic institutions, as well as farmers and traders participated in the discussion. It was decided that as per PLB Act, the following activities related to breed improvement for maintenance of herd book will be undertaken by the breeders’ association:

1. Animal registration as per selection criteria of the breed along with the unique traceable number with sire and dam data entry

2. Performance recording for identification of elite dams, and the income and expenditure on herd and individual cattle/buffalo basis

3. Data recording for test mating for the genetic evaluation program of the cattle as bull mother for future donor bulls based on the hereditability of significant economic traits

The stakeholders recommended that the breeders’ associations in general, and the Sahiwal Cattle Breeders Society (SCBS) in particular, should immediately start data entry into the livestock herd book’s approved template. It was also noted that a wide range of stakeholders should be contacted for


the maintenance of the herd book at all farms, including commercial, semi-commercial, and subsistence farms, in order to speed up the implementation of the PLB Act 2014.

As a result of the concerted facilitation by PEEP, the Herd Book was developed for pedigree and performance data recording of cattle and buffalo through breeders associations as was required under the Punjab Livestock Breeding Act 2014. HORTICULTURE SECTOR The CAG of horticulture sector held two meetings during the second year of the project. The CAGs meetings resulted into making synthesis of the reforms being discussed. As a shift in strategy, PEEP team held meetings with donors like ADB and the World Bank to strengthen CAG’s efforts towards approval and enactment of reforms. PEEP also facilitated the donor meetings with Secretary, DOA. Unluckily, even the sizeable funding offered from ADB and World Bank to develop a pilot project of a modern agricultural market in Rawalpindi, the Govt. of Punjab could not be sensitized for this initiative so the advocacy efforts pertaining to need of agricultural produce markets reforms and their implementation remained unproductive. Punjab Agricultural Produce Marketing (Development & Modernization) Act The fourth CAG meeting for horticulture sub-sector was held at USAID PEEP office, Lahore on June 10, 2015 represented by diverse group of stakeholders including academia, fruit and vegetables farmers, business associations and service providers. CAG for horticulture reviewed the progress achieved in reference to the Punjab Agricultural Produce Marketing (Development and Modernization) Act. The participants highlighted the need to develop and promote standardized and graded fruit and vegetable products so as to spur new investments across agro based value chains. In this connection, it was agreed in the fourth meeting of the CAG that PEEP should facilitate development of demand based product standards for important horticulture product line in Punjab to promote sale of standard quality graded products. Efforts should be put in place for the establishment of reformed supply chain enabling a conducive business environment for the value chain participants, particularly growers in the Punjab province. The members in that meeting urged PEEP to devise strategy for the adoption of best practices in the wholesale marketing regime with a policy implementation support package to enable private sector investments to establish modern wholesale markets along with allied infrastructure and systems. It was desired to expand PEEP facilitated CAG advocacy efforts for wholesale market reforms implementation beyond enactment of the proposed Punjab Agricultural Produce Marketing (Development and Modernization) Act. The participants of the meeting highlighted the need for PEEP’s to support for wholesale markets development with technical assistance to fill the knowledge


gaps that will be supportive for implementation of an efficient wholesale agricultural marketing regime in the province. Punjab Agriculture Sector Plan 2015 The fifth meeting of Horticulture Core Advocacy Group was held on December 8, 2015. The Deputy Secretary Planning, Govt. of Punjab, Team Leader, Policy and Strategy Unit (PSU) Agriculture Department, and Senior Instructor, Soil Fertility Research Institute GoPb attended the meeting along with other CAG members. The objective of the meeting was to apprise CAG members on advocacy efforts undertaken since the last CAG meeting and to explain to the members about the collaboration between PEEP and the Agriculture Department, GoPb under which a PSU has been established to provide technical assistance to the department for its development projects and initiatives. Following the presentation on the project-supported Punjab Agriculture Sector Plan 2015, a detailed discussion was held to address further elements in the document as well as to improve or revise certain aspects of Agriculture Sector Plan. This was followed by a presentation on the success story of establishing an Electronic Trading platform for fruit and vegetables in collaboration with partners including Pakistan Mercantile Exchange, Agility, SGS Pakistan Pct. Ltd. (Société Générale de Surveillance), Habib Bank Limited, Pakistan Tobacco Company (PTC), and National Foods. Through this presentation, the importance of various market players and the significance of market linkages were highlighted. The members were of the view that the role of private sector should be enhanced and synergies and linkages needed to be developed to foster market efficiencies. It was resolved that PEEP should facilitate a sub-group meeting of the CAG to develop suggestions for the Secretary of the Agriculture Department, GoPb to ensure maximum benefit from the implementation of the Punjab Agriculture Sector Plan 2015 through greater participation of the private sector. A task team facilitated by PEEP was requested by the members to meet with the Secretary Agriculture, GoPb and his department to discuss reforms areas discussed in the CAG, that is, the Punjab Agricultural Produce Marketing (Development and Modernization) Act for its approval and enactment. Regarding PEEP’s assistance in Olives, it was recommended for PEEP to convene and facilitate a working group for the olive valley development project under the Punjab Agriculture Sector Plan 2015. The following roundtables and issue panel meeting were held during the reporting period:


Impediments to Kinnow Export and the Way Forward PEEP organized a roundtable meeting for horticulture sector on ‘Impediments to Kinnow Exports and the Way Forward’ on April 2, 2015 in collaboration with University College of Agriculture, University of Sargodha. The event was attended by 42 participants including Deputy Director DPP, Chief Executive Punjab Agriculture Research Board (PARB), Executive District Officer Directorate of Agriculture Extension Sargodha, and Principal University College of Sargodha as well as Kinnow growers and processors from the region. The discussion focused on the evolving challenges, emerging opportunities, and regulations pertaining to the export of Kinnow, with an emphasis on diseases such as citrus canker and citrus scab. The stakeholders highlighted the need for timely and effective precautionary measures to curtail the intensity of these diseases. In addition, implementation of regulations pertaining to export of citrus and emerging global export trends was stressed upon. It was recommended that the effective role of the government was crucial in order to enhance the productivity and export of citrus. The participants of the meeting urged PEEP to start advocacy for re-establishing Farmers’ Field Schools- a project by GoPb which previously played an excellent role in the capacity development of farmers. The participants agreed to develop a citrus club represented by farmers, traders, processors, packers, and exporters to work for development of the sector. The local quality standards also referred as PakGAP need to be developed and strictly implemented in the orchards to produce quality fruits. The registration and certification of nurseries was acknowledged as a basic requirement and needed to be

addressed to establish healthy orchards in the future. The participants concluded the discussion by suggesting that the stakeholders should meet at regular intervals to mutually discuss, and resolve sector/industry issues.

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PEEP’s advocacy efforts help boost policy dialogue for increased mango exports to the European Union (EU) markets: The Department of Plant Protection (DPP) has reported exports of 6,081 tons of Pakistani mangoes to the EU between September 2014 and 2015, swelling up by approximately 30 percent as compared to last year. This increase is attributed to timely dissemination of information about export regulations, compliance with Sanitary and Phytosanitary (SPS) standards and fruit processing protocols for EU countries. USAID Punjab Enabling Environment Project’s advocacy efforts played a significant role in averting an impending ban realizing into an exceptional increase in exports to the EU markets. Prior to the start of mango season for 2015, PEEP organized a roundtable meeting in Multan on ‘SPS Challenges in Mango Export and Way Forward.’ The roundtable meeting not only provided an opportunity for stakeholders’ engagement but also served as a forum to strategize mango export plan for 2015 compliant with export protocols to the EU.

Sanitary & Phytosanitary Challenges in Mango Export and Way Forward PEEP organized a roundtable meeting for horticulture sector on ‘Sanitary and Phytosanitary Challenges in Mango Export and Way Forward’ in collaboration with Multan Chamber of Commerce and Industry on May 11, 2015. The Federal Minister for National Food Security and Research GoP, Chairman Standing Committee on Agriculture- Punjab Assembly, Director General DOA, Operations Manager DPP as well as key private sector stakeholders attended the meeting. The discussion focused on the evolving challenges and regulations pertaining to the export of Pakistani mangoes to European Union (EU). The Sanitary and Phytosanitary (SPS) compliance requirements were debated and information about government regulations and policies with an aim to help increase exports of mangoes from Pakistan to the EU markets was shared with the participants. It was noted that lack of timely dissemination of notifications and information was acting as a major business hindrance for both farmers and exporters. The upgradation of packaging facilities to maintain quality standards and traceability mechanisms were also debated. Moreover, it was highlighted that

the effective role of the DPP and Agriculture Extension Department to promote research was essential to enhance the productivity of mango produce and its export. The Federal Minister expressed that GoP will support the stakeholders in creating a suitable business environment to safeguard investments. He emphasized that small scale farmers should be benefited in terms of prices in case of increase in exports. The minister acknowledged Chief Minister’s initiative of Fruit Fly Project. He informed that several international airlines will start flights directly from Multan International Airport in August which will in turn, ease the export process. He also informed the participants that the government was working on hot water

Year 2 Annual Report – PEEP

treatment facilities and 29 such facilities will be made available by the start of the season. He endorsed that in order to become a part of international trade system, all the relevant stakeholders

including the government need to evolve a WTO-SPS compliant production and export system. The participants demanded that DPP should work on providing some leverage to farmers who are interested in getting their mango orchards registered. The department should work on widening and improving its information sharing mechanism so that farmers can reap the benefits of complying with regulations. It was suggested that National Plant Protection Organization should work more on explaining the necessity, compliance, and implementation of SPS regime to stakeholders as compliance with SPS regulations was only possible if the farmers and all other stakeholders understood the essence of these regulations and the relevant government entities coordinated according to their respective roles and responsibilities. Establishing a consortium, comprising of National Plant Protection Organization, DPP, Punjab Agriculture Extension Department, and research departments/academia to work for information sharing and decision making was seen as an effective option. The stakeholders urged PEEP to facilitate the process of developing the consortium and making it functional. The stakeholders also demanded that a warehouse and a cold storage facility at recently upgraded Multan International Airport need to be expedited to ensure timely start of commercial cargo flights/freight services. Lastly, the participants were of the view that private sector, government, and donor agencies need to work in collaboration for setting up commercial large scale Vapor Heat/Hot Water treatment plants so that the regulatory requirements can be met and business activities can be eased.

Comprehensive Understanding and Compliance of Sanitary and Phytosanitary (SPS) Requirements Followed by Roundtable meeting held last year on SPS, an issue panel meeting on SPS requirements was held at the PEEP office on January 29, 2016. The meeting was attended by 17 participants


including representatives from the Department of Plant Protection (DPP). The agenda of the meeting was to further deliberate on SPS compliance for mango and citrus by working on the recommendations put forward in previously held roundtable meetings in Multan and Sargodha to enhance exports to high end markets, particularly the European Union (EU). The Deputy Director DPP delivered a presentation on DPP’s role, functioning, and the steps it had taken to put in place an effective SPS regime for mango, citrus, and other produce exported to the EU. The participants while agreeing with DPP expressed the need for collective efforts to effectively mitigate the risks related to pests and diseases in the orchards and reiterated the need for consultation between the DPP and relevant stakeholders.

The participants recommended that DPP should develop the SOPs for 2016 and send them to all relevant stakeholders for their review and inputs while PEEP will play its facilitative role in developing the new SOPs. It was also suggested that PEEP should hold a meeting with Secretary Punjab Agriculture Department to sensitize him on SPS compliance challenge related to citrus, mango and potatoes in the province for taking the necessary steps. It was highlighted that efforts needed to be made through Punjab Agriculture Department to register and certify fruit plant nurseries to supply disease free plants. Methyl Eugenol based traps have proved to be an effective control strategy for fruit fly in the past therefore, it was recommended that GoPb should ensure the availability of quality Methyl Eugenol and other chemicals at competitive prices by allowing private sector to import these chemicals.

Warehouse Receipt System Assessment PEEP organized a roundtable meeting of public and private sector stakeholders to share the findings of PEEP’s international consultant’s comparative assessment on Warehouse Receipt System (WRS) in Punjab on October 13, 2015. The Additional Secretary Planning DOA, and Chief of Planning and Evaluation DOA along with 44 other participants attended the meeting. The consultant highlighted that the establishment of the proposed system backed by a proper legal framework will be extremely beneficial for the farmers in Punjab. This kind of farmer’s support initiative would allow the farmers to sell their produce at better prices by using an electronic trading platform. The receipt against the produce will help the farmer get finance from financial institutions for timely purchase of inputs for succeeding crops. A huge investment was also reported to be linked with WRS as the province would need more than 300 warehouses; each one with an estimated storage capacity of 50,000 metric tons of grains i.e. wheat, rice and maize. It was


stressed that initially the proposed model should be tested on a small scale pilot project with a capacity of 10,000 to 20,000 tons. The success story or lessons learnt will help the system to improve and populate it. A campaign to create awareness among the farmers and traders across the Punjab to sell their grains through a commodity exchange system needs to be initiated to fully implement this system at provincial level.

Seminar on Olive Valley Development in Potohar Region of Punjab

USAID PEEP organized a seminar on Olive Valley Development in Potohar Region in collaboration with the Agriculture Department, GoPb on November 4, 2015. The event was attended by USAID Provincial Director for Punjab, Secretary Agriculture Department GoPb, Director General Ayub Agriculture Research Institute, Director Barani Agriculture Research Institute, representatives from the Italian Embassy in Pakistan, the World Bank and AusAid. In addition, more than 90 participants representing public and private sector of olive value chain attended the seminar. The objective of the seminar was to disseminate information on the recent initiative of the GoPb to develop Punjab’s Potohar region into an ‘Olive Valley’ for encouraging investments in the olive sector and initiating deliberations among the stakeholders to develop the olive sector.


The untapped potential of the sector was highlighted while the stakeholders shared their success stories and prevalent business opportunities. The representatives from other development agencies expressed interest in working with GoPb by providing technical assistance for the development and

transformation of the sector at large. The seminar provided a constructive forum to understand the complexities involved in taking the olive sector development initiative to the next stage. The stakeholders highlighted various challenges in the production and marketing of olives and related products. They further urged to facilitate regular interactions among the key stakeholders including development partners and public sector institutions by constituting a working group. The group will identity needs and workout solutions pertaining to issues in olive sector development in the country. TORs for the proposed working group have been developed by PEEP. The first meeting of the working group will be called in May 2016.

The participants suggested to constitute a small task team to facilitate resource mobilization, coordination, and facilitation for effective provision of vocational trainings to the farmers. The market linkages should be strengthened for upgradation of olive value chain, especially to tap into international markets. Farmers and other stakeholders need international market exposure, facilitated by USAID and other donor agencies. The small farmers’ support was urged through technical assistance at all stages of production and value addition. The stakeholders demanded for the establishment of olive processing and value addition facilities near production areas to reduce post-harvest losses and encourage employment generation in Potohar region of Punjab.

Virtual Governance System for Livestock and Dairy Development Department (L&DDD)

During the year, the project team held multiple meetings with L&DDD for the under consideration in-kind grant for completing the development of the Virtual Governance System. A concept note was developed in May 2015 and the STTA was utilized to evaluate the system’s existing modules. The consultant submitted an assessment report in September 2015 which included findings and recommendations on the software, technical feasibility of the proposed additional modules, and the volume of work required. This


report was reviewed with a view to feed into further processing of the project’s proposed grant to L&DDD. An internal meeting was conducted in March 2016 and it was agreed that the previous concept note was developed taking into consideration the immediate requirements of L&DDD and considerable time has lapsed since. The project team will revise the concept paper to accommodate any developments after discussing evolved priorities of the department for the in-kind grant under consideration during year 3.

Reform Implementation

According to the work plan prepared in Year 2, engagement with GoPb on policy reforms continued through horticulture CAG meetings. PEEP coordinated with public and private sector stakeholders in Punjab to push advocacy for approval and enactment of Punjab Agricultural Produce Marketing (Development & Modernization) Act. PEEP strategized to collaborate with donor agencies such as ADB and the World Bank for joint efforts to sensitize on need of reforms in agricultural produce marketing. A model modern market to be established in Rawat area of Rawalpindi was also proposed to GoPb. The amount offered by ADB and the World Bank for this project could not convince GoPb to start the pilot project. PEEP will assist a meeting of task team of Horticulture CAG with the new Secretary Agriculture Department to update him on the efforts undertaken in previous years and the need of reforms in marketing of agricultural produce. PEEP will devise its advocacy approach subject to the outcomes of the proposed meeting to be worked upon in year 3 of the project. Memorandum of Understanding to Promote Policy Reforms with Punjab Agriculture and Meat Company (PAMCO) On March 18, 2016, representatives from PEEP and PAMCO signed a memorandum of understanding (MoU) to explore opportunities for growth in Punjab’s agriculture, dairy, and meat sectors. Through this memorandum, USAID and PAMCO will bring together stakeholders from public and private sectors to support policy dialogues aimed at generating joint advocacy efforts that will ultimately lead to growth in all three sectors.

PAMCO is a public sector support agency owned by the Government of Punjab with a mandate to develop and promote production, processing, and marketing of horticulture and meat products, in compliance with international quality standards through public-private channels. The collective efforts and combination of resources from PAMCO and PEEP will help accelerate the policy reform process, thereby capitalizing on investment and export opportunities in the targeted sectors.



The Provincial Development Working Party (PDWP), a clearing house for GoPb’s development projects, has approved the Punjab Agriculture Sector Plan 2015 and funds (PKR 6250 million) for implementation of two subsequent projects under the same sector plan, namely, ‘Developing Potohar into an Olive Valley’ and ‘Extension Service-2.0 Farmer Facilitation through Modernized Agriculture Extension.’ The Punjab Agriculture Sector Plan 2015 has been drafted by the technical experts engaged by USAID’s Punjab Enabling Environment Project (PEEP) under the Policy and Strategy Unit (PSU) setup at the Department of Agriculture (DOA), GoPb through PEEP’s support. Project’s experts are providing technical assistance and research-based analysis to roll-out DOA’s policy reform agenda and strengthen its institutional base.

COMPONENT 2: SUPPORT INSTITUTIONAL CAPACITY BUILDING In order to sustain the policy reforms and advocacy efforts beyond the life of the project, systemic improvements and institutional developments within public and private sector organizations are imperative. In this regard, PEEP is working with a broad range of stakeholders including the GoPb, private sector associations, civil society organizations, universities, chambers of commerce and industries, and private and public policy centers. The project has formally partnered with the following organizations/institutions for strengthening their institutional base and improving their functional capacity:

Partnership with Department of Agriculture (DOA), GoPb

PEEP signed an MOU with Department of Agriculture (DOA), GoPb to set up a “Policy and Strategy Unit (PSU)” to strengthen its policy and strategy formulation function. Under this partnership, PEEP is providing technical and consultative assistance to DOA through the PSU. The project-supported team consisting of five consultants based in PSU has supported the department in the following major activities and projects during year 2: • Supported the refinement of Olive

Plantation project and finalization of its PC-I • Developed SOPs for digitization

and geographic information system (GIS) farm mapping

• Developed SOPs for Diagnostic Labs to operationalize them.

• Finalized PC-I for Extension 2.0 project and devised the project implementation strategy

• Developed the project proposal and implementation plan for a provincial based commodity exchange system

• Developed the project proposal and implementation plan for comprehensive farmers’ information portal

• Assisted in developing and finalizing the Punjab Agriculture Sector Plan 2015 • Reviewed the regulatory regime pertaining to the improvement of farm productivity through

quality control of farming inputs


• Prepared the proposal for the establishment of the commodity exchange system in Punjab on pilot basis

• Reviewed and refined the concept paper for farmers’ information portal • Reviewed the following documents:

o Annual Development Plan (ADP) utilization o Punjab Growth Strategy and Sector Plan Calibration o Amended Seed Act 2014 o Draft Plant Breeders Act 2015 o Initial Concept Note on Farm Advisory Services

Warehouse Receipt System (WRS) for Department of Agriculture, GoPb

The DOA, GoPb requested PEEP to provide technical assistance for developing a proposed model of ‘Warehouse Receipt System’ in Punjab. To address this request, PEEP hired an international consultant, John Kennedy who developed a comprehensive report which highlighted that the establishment of the proposed system backed by an appropriate legal framework would allow the farmers to sell their produce at better prices by using an electronically monitored platform. The department is keen to take the proposed model to development and implementation stage through project’s continuous support.

Center for Applied Policy Research in Livestock (CAPRIL)

In Pakistan, several research institutes and think tanks are working on various social and economic issues related to policy matters but none of these bodies specifically focus on policy challenges in dairy and livestock sectors. To address this, PEEP established the Center for Applied Policy Research in Livestock (CAPRIL) at UVAS with the aim to promote applied policy research and help formulate informed policies, in-line with the emerging trends in the social, economic, trade, food safety and technology spheres.


Weekly Report – January 11, 2016

Currently, global Halal trade volume stands at USD 1.3 trillion, out of which Pakistan’s share is only 0.5 percent. With PNAC accreditation, PHDA is fully equipped to issue Halal slaughtering licenses to slaughter-men, butchers and management teams at slaughterhouses, to promote Islamic and Shariah-compliant methods of Halal slaughtering in light of the Government of Punjab’s newly approved by-laws. PHDA-led certification of processing and slaughtering units in Punjab as Halal producers will help boost Halal exports leading to an increase in Pakistan’s share in international Halal trade. This milestone is a significant step towards creating a business enabling environment for increased investments and a thriving Halal industry in Pakistan.

completing its documentation in order to acquire the status of a licensed Halal certification body. As a result of this, PHDA got accredited by PNAC on December 14, 2015. In order to enable public sector slaughter-houses to get licensed from PHDA, PEEP is supporting PHDA in conducting twelve training events to train 500 slaughter-house workers, sharia scholars, and abattoir managers in 12 districts of Punjab. Under this assistance package, PEEP provided funding for the training program as well as arranged the resource person for conducting the trainings on Halal and hygiene slaughtering practices. Till the end of 2nd year, PHDA has conducted seven trainings in various districts of Punjab on halal slaughtering practices to build the capacity of the stakeholders to comply with Halal slaughtering standards, and in turn, get licensed from PHDA. The rest of the trainings will be completed during the next year. These trainings will provide slaughter men and butchers with authentic, Islamic practices on halal and hygiene principles, build their capacity to acquire halal slaughtering licenses from PHDA, and help discourage unlawful and unhygienic slaughtering of animals, thereby ensuring the availability of halal meat for consumers. It will also allow the local investors and exporters to benefit from GoP’s recent budget provision which has granted income tax exemption for four years to investors getting registered as certified halal meat producers before December 31, 2016.

PEEP’s efforts for the institutional development of PHDA proved to be major milestone during the reporting period. PEEP not only supported the human capacity development by arranging trainings for PHDA’s staff but also alleviated it to a licensing authority. The government has a vision to convert PHDA from an agency to an authority. In this regard, the federal government has passed the law which will also be adopted by the Punjab government. PEEP will continue to work with PHDA for its development from an agency into an authority. CAPACITY BUILDING OF POLICY ADVOCACY INSTITUTIONS THROUGH GRANTS AND TECHNICAL ASSISTANCE Under this activity, PEEP partnered with chambers of commerce and industries, universities, and associations. To initiate the grant process, RFAs were developed and advertised.


In December 2015, PEEP advertised the following four RFAs for grants under component two: • Capacity development support to industry associations (RFA-001) • Capacity development support to private sector policy research institutes (RFA-002) • Capacity development support to research and academic institutes for market growth analysis

(RFA-003) • Capacity development support to standard setting and implementing agencies (RFA-004) PEEP received 30 applications from different organizations in response to the above mentioned RFAs. By the end of March 2015, the grants’ selection committees reviewed the applications in detail and shortlisted applicants for the negotiation and clarifying questions phase. The grants were finalized and the procurement of equipment through the in-kind contribution was completed for the following five organizations:

i) Horticulture Business and Policy Research Center (HPBRC) at Bahauddin Zakariya University (BZU), Multan

In response to advertised RFA 003, the grant application from BZU, Multan was approved by USAID on July 24, 2015 for establishing HBPRC. Consequently, the grant agreement was signed on November 02, 2015. In the 3rd year, PEEP-supported HBPRC will undertake business and policy research to provide evidence-based policy inputs to policy makers and advocacy institutions in the horticulture sector. The center will also develop a forum with representation from all sector stakeholders to initiate advocacy on current and emerging business and policy related challenges in the horticulture sector. Since HBPRC at BZU is a new setup starting from scratch, therefore, the center needs technical assistance from inception stage to subsequent backstopping for effective functioning. For this purpose, a consulting firm was hired. The firm will develop SOPs for the center. It will also develop a list of books and journals for the center’s resource repository and provide training to the faculty and management of the center. As both the centers i.e. CAPRIL and HBPRC require similar kind of technical support, therefore, the same firm, Zeus Consultants, was shortlisted and awarded the contract to provide services for strengthening the functional capacity of both the research centers. To initiate the consulting process, the consulting firm’s team held detailed discussion sessions with the management of both centers. The firm has started its activities with the designing of the first training program for CAPRIL and HBPRC.

ii) Sahiwal Chamber of Commerce and Industry (SLCCI)

PEEP signed the grant agreement with the Sahiwal Chamber of Commerce and Industry (SLCCI) in October 2015 to establish a Research and Development unit at the chamber’s office in Sahiwal to undertake business and policy research to help disseminate research based information to its members to support constructive decision making for investment mobilization and businesses growth.

The implementation of grant for SLCCI was initiated with the hiring of two researchers. On its part, the SLCCI team developed and submitted the first deliverable specified under the grant.


iii) Sahiwal Cattle Breeders Society (SCBS)

The grant agreement with SCBS was signed on February 01, 2016. The SCBS initiated the implementation of its grant by acquiring the format of the herd-book from PEEP. The association also hired the computer operator and the rental car as part of its grant activities.

iv) Pakistan Agriculture and Dairy Farmers Association (PADFA)

PEEP signed the grant agreement with Pakistan Agriculture and Dairy Farmers Association (PADFA) on December 11, 2015. Under this grant, PADFA will develop an android-based mobile application for improvement of farm practices and disease control in dairy animals with the aim to empower farmers to keep their animals healthy and disease free. It will also help farmers identify the disease symptoms for prevention and timely treatment. In order to collect data for the development of the app, a livestock expert was hired by PADFA who has started the fieldwork. PEEP also finalized the RFP to hire an IT firm for developing the android phone-based application.

v) Pakistan Cold Chain Development Company (PCCDC)

The PCCDC grant was approved and signed on 12th February 2016.The objective of this grant is to reduce the post-harvest losses of horticulture and meat produce in Punjab by increasing their shelf life. This will be achieved through mapping of current cold storage facilities along with their type, storage capacity, product specialty, GPS location, services, etc. This information will not only help farmers to utilize the storage facilities but will also facilitate PCCDC to initiate its capacity building programs for farmers and operators. All the equipment, as part of the in-kind component to the grant, was handed over to the PCCDC by PEEP. Meetings were held with the members of the association and they were guided on starting their work on the first deliverable. CAPACITY NEED ASSESSMENT OF ORGANIZATIONS THROUGH GRANTS UNDER CONTRACT Capacity need assessment of all partner organizations receiving grants from USAID PEEP is part of the work plan to assess their current capacity and in turn, to design performance improvement packages. After completion of the grant period, another assessment will be carried out to gauge the improvement in institutional capacity and human resources as a result of the support provided by PEEP. The capacity assessments of the following partner organizations is underway:

1. Center for Applied Policy and Research in Livestock (CAPRIL), UVAS 2. Horticulture Business and Policy Research Centre (HBPRC), BZU, Multan


3. Pakistan Cold Chain Development Company (PCCDC) 4. Pakistan Agriculture and Dairy Farmers Association (PADFA) 5. Punjab Halal Development Agency (PHDA) 6. Sahiwal Chamber of Commerce and Industry (SLCCI)

COMPONENT 3: MOBILIZE MAJOR PRIVATE SECTOR INVESTMENT In order to translate benefits of policy and regulatory reforms and institutional capacity building into an enabling business environment that helps spur private sector investments; a set of targeted investment promotion and mobilization activities are vital. PEEP has reinvigorated its approach from providing TAS to private sector companies for the development of bankable feasibilities and business plans to work in partnership with financial institutions to develop their product portfolios leading towards financial inclusion of rural economies. PEEP specifically identified microfinance banks and helped them through TAS for developing their portfolios respectively to leverage investments in PEEP selected subsectors. The diagram below explains the new approach PEEP has adopted to mobilize and leverage maximum investments in the selected subsectors working in tandem with financial and microfinance institutions for public and private sectors.

During second year of its implementation, PEEP continued to work on the following activities under component 3 for mobilizing private sector investments: TRANSACTION ADVISORY SERVICES (TAS) PROGRAM

A TAS is a series of financial, technical, commercial, and legal advisory service which leads to a bankable project for potential investors. TAS support remained available for local private sector investors as well as for international companies through PEEP.

An Indefinite Quantity Subcontract was issued during year two to engage a TAS provider for the project’s TAS Program. Subsequently, a subcontract was signed between the project and KPMG on August 03, 2015 for three years till August 02, 2018. A public notice inviting expression of interest


(EOI) for the TAS program facilitation was advertised. . PEEP received applications from different companies but none of EOI’s submitted by the private companies could be materialized. ILS, Fauji Fresh and Freeze and Field Fresh after their initial meetings with KPMG could not provide the requested technical details and information. It implied that the strategy adopted by the project was based on supply side approach whereas, private sector could not fulfill its part of the requirements.

While awaiting information from the private sector companies, PEEP revised its strategy and approached financial and microfinance institutions with a view to provide support in preparing their product portfolios to mobilize investments in respective subsectors. PEEP has also planned a TAS promotional strategy by holding orientation sessions at relevant Chambers of Commerce and Industries and business forums. Moreover, in collaboration with Punjab Board of Investment & Trade (PBIT) and Punjab Agriculture & Meat Company (PAMCO), PEEP intends to identify and provide TAS facilitation to support investment opportunities emerging in Public-Private Partnerships (PPP) mode. Meanwhile, in collaboration with GoPb, UVAS, and private sector, PEEP has been entrusted to facilitate and spearhead a nationwide technical study to establish demand and feasibility of commercial production of FMD vaccine in Pakistan. TOR’s have been developed for international consultant firm to undertake the study. The subject study is expected to start in May 2016. During year two, following private sector companies submitted expressions of interest in availing TAS facilitation:

Ittehad Life Sciences (ILS) TAS Program’s first EOI was received from ILS. The scope of work and deliverables requested by ILS were shared with KPMG, and a meeting between KPMG, ILS and PEEP was held on August 31, 2015 at PEEP Office to evaluate deliverables and to finalize details for Task Order. The EOI received from ILS included the infrastructure and architectural blueprints, supply chain network design and marketing and public-private partnership (PPP) framework for the establishment of first of its kind in Pakistan, Foot and Mouth Disease Livestock Vaccine manufacturing facility for around 20 million doses per annum. The proposed project was estimated to be set-up at a cost of $50 million. KPMG, however made it clear that since it was a highly technical and first of its kind project proposed in the country, the technical design requirement of the facility was beyond their scope of contract with Chemonics. PEEP held further meetings during following weeks and requested ILS to resubmit the EOI draft under this new scenario. ILS resubmitted EOI while splitting it into three portions:

1. Technical study: To be facilitated by PEEP through an STTA with international consultant 2. Technical design and supply chain and human resources: To be undertaken by ILS 3. TAS (for PPP framework, sales/marketing and distribution and detailed financial feasibility of

the project): To be facilitated through KPMG. Under the above arrangement, a scope of work for an international consultant to undertake the technical study for the proposed project was developed and advertised but no international consultant expressed interest. Fauji Fresh n Freeze (FFF)

36

The second EOI for the TAS facilitation was received from Fauji Fresh n Freeze, a company of the Fauji Group, to facilitate detailed marketing, financial, supply chain and human resources plans for enhancing its existing mango processing facilities in Sahiwal. The Board of Directors of FFF decided to withhold its decision about investments in the proposed pulp plant. Since, the technical inputs are still not available, PEEP has decided to stop further processing of the EOI. Field Fresh (Pvt.) Ltd. The third EOI for the TAS Program was received from Field Fresh Pvt Ltd for the provision of a detailed business plan including marketing, financial, human resources and supply chain for establishment of an ‘Integrated Fresh Fruits and Vegetable Processing and Vacuum Packaging Facility’ in Punjab. A meeting between Field Fresh Pvt Ltd and KPMG was held on November 05, 2015 to further clarify the request. KPMG requested Field Fresh to provide technical details of the technology providers and cost estimates of the required technology before going ahead with the preparation of the requested business plan. The information is still awaited from Field Fresh. The company has committed to provide the information by the second week of January 2016. Since, the technical inputs are still not available, PEEP has decided to stop further processing of the EOI. Al-Rafique Enterprises, Sargodha Fourth EOI for the TAS Program was received from Al-Rafique Enterprises – a Sargodha based partnership firm engaged in fruit and vegetables processing, cold storage, and exports. The company has requested a comprehensive business plan to establish a renewable corrugated carton packaging facility in Punjab for fruit and vegetables export. This plan is expected to result in better packaging to enhance the export of fruit and vegetables. It is estimated that the facility will be established with an initial cost of $ 4 million and will generate 50 direct and around 350 indirect jobs. USAID, however has advised to follow a cost share model, under which private sector companies interested in TAS Program would share portion of the KPMG invoice value. PEEP will take the process further provided that the private investors are willing to share costs. NRSP Microfinance Bank Ltd., Bahawalpur NRSP Microfinance Bank has submitted EOI for the TAS program. Under its EOI for the project’s TAS Program, NRSP Microfinance Bank intends to increase its portfolio in feedlot farming to around $ 1 million by directly supporting farmers in the purchase of animals, fattening them for 4 to 5 months on nutritious feed to gain a targeted weight of around 850 grams per day, and selling them through the bank’s network. The bank intends to scale up its current microfinance lending to individual farmers from Rs. 150,000 to Rs. 500,000 on the basis of a business plan requested through TAS. Within five years’ time the total leveraging from this activity would cross $ 10 million. This project is expected to increase incomes for approximately 200 direct beneficiaries and 800 indirect beneficiaries in the value chain of


Weekly Report – February 22, 2016

With the bank’s well-established presence in more than 25 districts of South Punjab, the project’s TAS package targets the livestock belt of the province and intends to mobilize start-up investments worth USD $1 million (PKR 100 million approximately) directly by the bank in terms of small loans for livestock enterprises with equal matching leveraging by the private sector value chain partners. As per Bank’s experience in the microfinance sector growth in South Punjab agriculture sector, this investment will surpass more than US $ 10 million (PKR 1000 million) figure in next four years. The socio-economic impact of the activity will be many folds for farmer communities, especially to the women directly involved in the livestock sector. This investment will lead to direct income-generation opportunities for around 200 small farmers and indirect opportunities for approximately 800 value chain participants including cattle vendors, feed sellers, veterinary doctors, and meat processers.

the proposed project, while offering employment opportunities for women. With the bank’s well-established presence in South Punjab’s districts, the proposed project is rightly targeted towards the livestock belt of the country. NRSP Bank and KPMG met to build understanding on the deliverables and w the expected outcome of the TAS facilitation. After successful negotiations with KPMG on level of effort, the draft task order and supporting documents were developed and subsequently the first Task Order (TO) under the TAS program was signed between Chemonics and KPMG on February 12, 2016. As a result of the TAS facilitation, NRSP Microfinance Bank will scale up its agriculture lending program to small farmers in rural areas of Punjab for purchase of meat-producing animals. The small farmers will raise the animals for around 120 days, before selling it to large scale fattening farms. A specific portion of the proposed lending program is allocated for rural women involved directly in the livestock rearing activities at the micro-level. KPMG has started working on the sub-task order and the final report will be completed and delivered by end April, 2016. MATCHING GRANTS PROGRAM In order to expand investment base and to catalyze new investments in the PEEP targeted sub-sectors and to demonstrate technical, economical and commercial feasibility of business models/projects, PEEP is supporting investments in new ventures or expanding existing ones. In this context, PEEP has established a matching grants program worth US $250,000., which supports entrepreneurs/businesses who otherwise shy away from such opportunities due to perceived high risk or challenges pertaining to non-enabling policy or regulatory regimes. For women entrepreneurs these risks are many folds higher in the local context. Therefore, special emphasis is laid on encouraging women entrepreneurs to be benefited from the program. PEEP matching grants Program aims to:

• Mobilize investments in livestock, dairy and horticulture sub-sectors; • Strengthen the capacity and competitiveness of private sector enterprises in the target sub-

sectors/products lines; • Support new investments arising from policy and regulatory reforms for an enabling

environment; • Support efficiency and productivity enhancement in the targeted sub-sectors, lowering risk


associated with adoption of new techniques and innovations; Specifically, to:

• Establish technical and commercial feasibility of new projects • Demonstrate success of business models emerging as a result of reforms initiated for an

enabling business environment. The business opportunities arising from issues addressed by public policy, regulatory reforms and improved service delivery may be considered

• Demonstrate success of improved practices, technologies resulting in more profit for a part of value chain

RFA 005 – Matching Grants Program to Mobilize Investments: During year two, PEEP developed and issued its first RFA offering a range of customized matching grants across the targeted sub-sectors, including input suppliers, farmers/farmer cooperatives/producers’ associations, processors, transporters/logistic service providers including cool-chain facilities/consulting service providers/technology providers business development service providers including extension service providers, wholesale market operators, retailers, and exporters under the following categories:

a) Matching grants to mobilize investments for production enhancement; b) Matching grants to mobilize investments to processing/value addition businesses; c) Matching grants to mobilize investments to enhance business development/enabling services

commercially; d) Matching grants to mobilize investments to product, process innovations or market

development by supporting research and development; e) Matching grants to mobilize investment for integrated business models/diversification;

23 companies applied for various categories of the grants, however after rigorous selection process none of the proposed projects could fulfill PEEP’s mandate and therefore no grants were awarded. The RFA for matching grant was deliberated at length with USAID. After several cycles of discussions it was decided to shift the focus of the matching grants from an open multi-sectored call to sector specific approach, where separate RFAs will be issued for each area/topic. RFA 5.2 – Semen Production Units (SPUs) The first sector specific matching grant RFA was developed on SPUs and was advertised nationwide. Meanwhile, meetings with potential applicants were held to explain the requirements of the RFA and the application procedure. Three applications were received from the following companies: 1. Al-Haiwan Sires 2. K n R Semen 3. Pak Genetics Pak Genetics could not fulfill the minimum requirements of the RFA and was therefore dropped, while Al-Haiwan Sires and K n R were selected for further processing and clarifying questions were sent to both companies. During follow up meeting it was noticed that KnR was still under the process of getting provisional registration from Punjab Livestock Breeding Authority, GoPb and therefore, its application was put on hold until its registration from the authorities.


A series of meetings were held with Al-Haiwan Sires for clarification on their application. The application is still under process and critical information from the company is still awaited. RFA 5.3 Milk Pasteurizing Units Similarly, the second sector specific matching grant RFA was developed on milk pasteurizing units, which was advertised on November 11, 2015 with deadline to receive applications by December 10, 2015. Only one company Azhar & Co. applied for the grant. The Selection Committee was formed on January 29, 2016 and the application was evaluated accordingly in February 2016. The clarifications regarding registration status and cost sharing capacity are being awaited from the applicant. The applicant has agreed to submit the responses during April 2016. RFA 5.4 Meat Abattoir and RFA 5.5 Livestock Feed Mill The RFAs for Meat Abattoir and Livestock Feed Mill were developed and sent for USAID concurrence. In the meantime, however, U.S.-Pakistan Agriculture Market Development (AMD) project issued an RFA for the meat value chain, covering both the meat and feed mills under a matching grant program similar to PEEP’s RFA. In order to avoid duplication of efforts by two USAID projects, the COR instructed to withdraw both the RFAs. Annual Program Statement (APS) in the Olive Sector In response to the Government of Punjab’s initiative in the olive sector, PEEP has prepared a comprehensive strategy to support the government departments/institutes in business planning and private sector in implementation of the plan. Under the matching grants component, PEEP has planned to support multiple investment opportunities in the Olive valley in the Potohar region of Punjab. APS has been agreed as suitable means of soliciting applications as it allows more flexibility in terms of identified areas and evaluation strategies.

First draft of APS has been prepared during March 2016, which will be finalized and shared with USAID for review and approval in April 2016 followed by start of its implementation during rest of the year three. Request for Proposal (RFP) for Technical Study on Livestock Foot and Mouth Disease (FMD) Vaccine Production in Pakistan A meeting on FMD vaccine manufacturing was held at UVAS on February 24, 2016, which was attended by USAID representatives, Secretary L&DDD, VC UVAS, Food and Agriculture Organization (FAO) representatives, and PEEP team. A number of private sector companies interested in the FMD vaccine manufacturing also participated in the meeting. It was discussed that the prevalence of FMD is impeding the growth of the livestock sector in Pakistan and is the key issue hampering meat exports and other livestock related products. It is also one of the


main obstacles in improving the productivity of the dairy sector. The GoPb has made commendable efforts to control the disease. However, the objective cannot be achieved without the active participation of the public sector institutions, private sector organizations, academia, and the farmers. PEEP has been entrusted by GoPb to provide assistance in carrying out a detailed economic and financial analysis of the FMD vaccine sector through an international consultant/consulting firm. This kind of technical assistance will enable the public sector to devise a strategy for controlling the disease while facilitating private sector investment decisions according to the demand trends. Subsequently, a request for proposal (RFP) has been developed and reviewed by stakeholders. It is anticipated that this will be advertised during second week of April 2016. Once the study is completed, it will provide an excellent opportunity for TAS facilitation to Public-Private Partnership ventures in FMD vaccine production and will compliment PEEP’s previous work undertaken in reply to EOI submitted by Ittehad Life Sciences, but at a much larger scale. MOU Signed between PEEP and Punjab Board of Investment and Trade (PBIT) On February 22, 2016, the Chief of Party USAID PEEP and CEO, PBIT signed a memorandum of understanding (MoU) while Provincial Director of USAID Punjab, Contracting Officer’s Representative USAID PEEP, and other USAID representatives also attended the ceremony. PBIT, established in 2009, is the GoPb’s premier agency for facilitating and supporting trade and investment in Punjab. It is incorporated under Section 42 of the Companies Ordinance 1984 and fully owned and controlled by the GoPb. Through this partnership, PEEP and PBIT will collaborate to promote Punjab as the preferred investment destination for local and foreign companies by underlining avenues for potential investments in agriculture and allied sectors. In this regard, discussions are underway to map out a road map for activities to be undertaken. Proposed MoU with NRSP Microfinance Bank Ltd. The draft of proposed memorandum of understanding to formularize institutional relations between PEEP and NRSP Bank was developed during March. The proposed memo will institutionalize PEEP’s assistance to NRSP Bank beyond TAS, into developing the fattening animals value chain with the help of PEEP identified partners from both public and private sector. PEEP aims to facilitate NRSP Bank’s meeting with Livestock & Dairy Development department to strengthen government’s initiatives for financial inclusion of livestock sector in South Punjab. PEEP will also link NRSP Bank to its networking partners for not only introducing best farm practices, nutritious feed/fodder preparation but also backward and forward linkages for purchase and sales of fattened animals. The memorandum of understanding is expected to be signed in April, 2016.


Proposed MoU with APNA Microfinance Bank Ltd. During year two, to formularize institutional relations between PEEP and APNA Bank, a memorandum of understanding was proposed between the two organizations. The draft memorandum of understanding was developed for this purpose. PEEP and APNA Bank intend to cooperate in supporting PEEP’s investment leveraging efforts through provision of micro-lending to the Government of Punjab, and private sector opportunities arising in the PEEP selected sub-sectors. The cooperation will be implemented by joining PEEP and APNA Bank’s resources to stimulate business enabling environment in the province, which in-turn would provide larger platform for targeted interventions for investments in livestock, dairy and agriculture subsectors. With a network of more than 100 branches APNA Bank has covered all the major business centers of the country especially the agriculture centers of Punjab. Cognizant to the potential of markets, State Bank of Pakistan has already assigned high priority to the sectors such as; i) agricultural credit ii) microfinance iii) SME finance, and iv) housing finance. PEEP and APNA Bank’s collaboration will ensure improved access to financial services for underserved farmers, including the rural women. The collaboration will directly contribute to USAID’s Economic Growth & Agriculture (EGA) development objective of ‘Improved Economic Status of Focus Populations and Sectors’. CROSS CUTTING During year two, following is the progress in cross cutting sections of PEEP: Environmental Compliance • The project received the approved Initial Environmental Examination (IEE) from USAID. The

purpose of this IEE in accordance with 22 CFR 216, is to provide a review of the reasonable foreseeable effects on the environment as well as recommend threshold decisions for the project based on the present design and components of the project.

• The implementation of project activities were reviewed by ensuring the compliance with 22 CFR 216 requirements and Pakistani environmental laws and regulations and catering to all activities under the program interventions on livestock, dairy and horticulture sub-sectors.

• Environmental baseline survey were conducted to the grantees to fill in the environmental checklist, collect physical & biological data and record photographic evidences for the development of Environment documents.

• The Environmental Documentation forms (EDF), Environmental Review Report (ERR) and Environmental Mitigation and Monitoring Plan (EMMP) for the following grantees were developed and submitted to USAID for approval. o Punjab Halal Development Authority, Lahore o Center for Applied Policy Research in Livestock (CAPRIL), UVAS, Lahore o Pakistan Cold Chain Development Company, Lahore

Monitoring and Evaluation PEEP attended USAID’s Economic Growth and Agriculture Monitoring & Evaluation Working Group meetings and M&E Coordination meetings held during the year 2. These meetings focused on various challenges, issues and topics related to M&E procedures such as challenges and opportunities associated with PakInfo, briefing on Economic Growth and Agriculture result framework, overview


of Outcome Mapping as a technique to track behavioral change due to USG assisted training, Data Quality Assessment (DQA) process, tools and resources, methods and practices on qualitative data collection and reporting and Performance Indicator Reference Sheets (PIRS) concepts, tools and resources. During year two, M&E section developed 12 Monthly Alert Reports, four Quarterly Progress Reports, an Annual Progress Report for year one along with the Annual Work Plan for year three. M&E section also shared regularly to USAID the Weekly Reports as well as monthly update on work plan.



INDICATORS-WISE PROGRESS Output Indicators Progress on output indicators is given below:

20

7

29

8

05

101520253035

Project Targets Yr 2 Target Yr 2 Achieved Yr 3 Target

Number of USG-assisted organizations that participate in legislative proceedings and/or

engage in advocacy at all levels

120

30 31 30

020406080

100120140


Number of USG assisted meetings with government officials regarding proposed changes

in legal/ institutional framework

80

20 22 20

0

20

40

60

80

100


No. of events for public/stakeholders consultation to enhance sector governance or facilitate private sector engagement in policy

making as a result of USG assistance


YEAR 2 WORK PLAN STATUS

S.# Activity # Deliverable # Target

Date Status Way forward

Component 1: Accelerate Advocacy

1. 1.1 The Punjab Livestock Breeding Law to be moved from stage 4 to 5

1 31-Dec-15 Completed PEEP will now assist in implementation of the act.

2.

1.2.1 Punjab Quality Meat and Slaughter Regulation Act 1 29-Feb-15

Completed if bill passed

The bill regarding the amendments in The Punjab Animal Slaughter Control Act 1963 has been referred to the Punjab assembly for enactment whereas most of the provisions of the Punjab Quality Meat and Slaughter Regulation Act have been considered.

1.2.2 Punjab Pasteurized Milk Act 2014 1 29-Feb-15 On Going

The study titled “Assessment of loose milk supply in Lahore” is being completed through CAPRIL for finalizing the draft of the milk pasteurization law.

3. 1.3

Punjab Agricultural Produce Marketing (Development & Modernization) Act

1 29-Feb-15 On hold

PEEP will facilitate a meeting of Horticulture CAG task team with Secretary Agriculture Department during the1st quarter of year 3 to decide whether to continue the advocacy for the proposed act or not.

4. 1.5 Annual Reforms Implementation Progress Report

1 31-Dec-15 In process

PEEP’s BEE team will submit the report entailing the implementation status of the annual reforms by May 30, 2016.

5. 5.1 MoU with Department of Livestock & Dairy Development

1 30-Apr-15 In process

In light of the shift in the departmental priorities, the signing of MOU is in process of implementation.

Component 2: Support Institutional Capacity Building

6. 1.1 Establishing policy & strategic planning unit and formulation of

1 April-15 Completed Future engagements in this area will depend on the department’s




department's strategic plan

implementation of the plan.

7. 1.2

Policy support intervention, design & development for DOA in priority areas (e.g. hydroponics, farm mechanization, use of solar energy for irrigation, quality assurance in agri inputs, etc.)

1 30-Nov Completed. Plan submitted

The Agriculture Department may ask the PSU to work further on this.

8. 2.1 Technical assistance for establishing the CAPRIL (by service provider)

1 Jun-15 Consulting firm hired

TA will be completed next year.

9. 2.2

Technical Assistance for capacity building of CAPRIL (for developing research agenda and conducting research studies)

4 Jun-15

The first study was initiated and topics were shortlisted for the rest of the studies

Three studies will be undertaken during the next year.

10. 2.4 In-kind grant to CAPRIL(by PEEP) 1 Dec-15

Furniture and equipment provided.

Books and journals will be provided next year.

11. 2.6 Technical Assistance to CAPRIL for development of Livestock Vision 2025

1 April-15 Plan submitted

Agriculture Department may contact CAPRIL for developing more plans in future as and when required.

12. 3.1

Technical Assistance to PHDA for developing SOPs / system to set and monitor standards of Halal Meat / traceability

1 Aug-15 Completed

Engagement with PHDA will continue through the trainings for implementing Halal slaughtering standards.

13. 3.2

Training workshops for PHDA’s management and staff on setting and monitoring Halal standards

2 Aug-15 Completed

Engagement with PHDA will continue through trainings for implementing Halal slaughtering standards.

14. 3.3

Training workshops for stakeholders of PHDA to implement the Halal slaughtering standards (capacity building of

12 Aug-15 7 Completed

Remaining 5 trainings will be completed in the next year




butchers/ slaughter men)

15. 4.1

Selection of Organizations, in response to second cycle of RFAs

1 May-15 Completed The applications will be processed for grant and TA agreements

16. 4.2

Conducting Capacity Assessment of the Selected Associations (7), Chamber of Commerce (1), University (1), and Policy Research Center (1)

1 Jun-15 Completed The applications will be processed for grant and TA agreements

17. 6.2 Grant disbursement to associations 3 Jul-15

In progress for 3 associations

Will be completed next year

18. 7.2 Grant disbursement to CCI 1 Aug-15 In progress

for 1 CCI Will be completed next year

19. 8.2 Grant disbursement to HBPRC 1 Jan-15

Furniture and equipment provided

Books and journals will be procured in the coming year.

Component 3: Mobilize Major Private Sector Investment

20. 1 Eight TAS completed with selected clients 8 March 31 In Process

• One Task Order Issued • Revised strategy to

work with PPP and institutional facilitation approach to issue TAS

21. 2 Award 5 Matching Grants to selected clients

5

March 31 In Process

• A changed approach has been proposed to consider grant requirements from a sector-specific perspective, as the conditions that favor or hamper investor attractiveness vary by sectors. Further efforts will be made to identify cost-sharing opportunities in non-traditional areas for example, to shift 0.6 million TAS funds to MG. These changes, whenever required,




will be administered according to the specific proposal requirements, with the approval of the Contracting Officer (CO).

• APS 004/2016 for Olive Sector has been developed and will be floated in April/May 2016

22. 3 Publish and distribute one bulletin 1 March 31 Completed

2nd Issue of PEEP Bulletin ‘I-Agri” published and distributed

23. 4

Investment seminar highlighting potential avenues for investments in targeted sectors

1 Dec 31 Completed

Seminar was held on November 04, 2015 to highlight investment opportunities in value chain of Olive sector

24. 5 Feasibility studies 3 Dec 31 Cancelled

Feasibility study on feedlot fattening was developed but activity was cancelled by USAID.

25. 6 Potential PPP activities 1 March 31 Completed

MOU With Punjab Board of Investment & Trade (PBIT), GoPb signed on February 22, 2016

DEVIATIONS IN YEAR 2 WORK PLAN The following table provides the details of the major work plan deviations during the year 2.

Activity No.

Activity Deviation Reason / Justification

Component 1: Accelerate Advocacy

1.2

Engagement with L&DDD for revising prioritized legislations /acts

Following acts are on hold: The Punjab Quality Meat and Slaughter Control Regulation Act, Cattle Market Act and Punjab Pasteurized Milk Act.

Punjab Quality Meat and Slaughter Regulations Act were not approved for further processing in light of the proposed amendment in the Punjab Animal Slaughter Control Act 1963. Hence, the activity objectives could not be achieved but will be achieved as soon as the bill is passed.

1.3 Engagement with ADB, World Bank, and GoPb

Engagement with ADB and the World Bank could not be

It was decided by former Secretary Agriculture Department Rashid Langriyal,


to accelerate advocacy for the approval of Punjab Agricultural Produce Marketing (Development & Modernization) Act

pursued as it was planned without the buy-in from GoPb towards new reforms implementation in agricultural produce marketing

in a meeting attended by ADB representatives and PEEP team that Punjab does not need any funding regarding model agricultural produce market development in Rawat, Rawalpindi. The secretary did not support the need of reforms in this regard. Due to this reason, PEEP could not engage ADB and the World Bank for advocacy for the approval of Punjab Agricultural Produce Marketing (Development & Modernization) Act.

4.1

Support GoPb to develop rules, regulations/by-laws, standards and SOPs as per requirement of the agriculture and livestock/dairy sectors

PEEP could not support / assist agriculture department in development of the rules, regulations /by-laws, standards and SoPs as the proposed act was not approved

The proposed Punjab Agricultural Produce Marketing (Development & Modernization) Act was not approved, hence, the activity could not be initiated.

5

Technical Assistance and In-kind grant to Punjab Livestock and Dairy Development Department for policy reform implementation.

The in-kind grant to the department could not mature due to shift in the priorities of department

Activity has been modified in the third year work plan due to shift in the priority of the department.

Component 2: Support Institutional Capacity Building

2.3 Technical Assistance to CAPRIL for international linkage

Delayed as the grant related work was not completed Carried forward to next year.

2.5

MoU between PEEP and University of Agriculture Faisalabad (UAF)

Approval from USAID not granted

UAF received USAID funding for establishing a Center for Applied Studies. The proposed partnership with PEEP would have meant a duplication of activities

5.1 Grant disbursement to one policy research center

Application withdrawn New organization will be selected next year

6.1 Technical assistance to seven associations for capacity enhancement

Work could not be initiated as the grant related work started late

Approval from USAID will be sought and TA will be provided next year

7.1 Technical Assistance to one chamber of commerce



8.1

Technical Assistance to one university to undertake market growth, sector assessment, policy work



Component 3: Mobilize Major Private Sector Investment

1

Transaction Advisory Services (TAS) Program - Eight TAS completed by March 31, 2016

Target of eight TAS issued was not achieved

Initially the Fixed Priced subcontract was decided to be used to TAS provider firm, however, during the course, it was decided to issue an IQC subcontract.


Subsequently, an agreement with KPMG Taseer Hadi and Co to act as TAS provider consultancy firm could only be signed by August 03, 2015. Subsequently, Call for EOI advertised and five companies submitted interests, however out of those, only one could materialize so far for which Task Order has been issued and work is in progress.

2

Matching Grants Program - Award of five matching grants by March 31, 2016

The target of 5 MG couldn’t be completed in time.

Following RFA’s issued: • RFA 5 Evaluated (Multi Sectors) • RFA 5.2 for SPUs issued, only one

company shortlisted, (in-process) • RFA 5.3 for Pasteurizing Units issued,

only one company applied and shortlisted (in process)

• RFA 5.4 for Meat Abattoir developed but not advertised to avoid duplication with AMD announced RFA

• RFA 5.5 for Feed mills developed but not advertised to avoid duplication with AMD announced RFA

An APS is planned for olive sector

APS has been agreed as suitable means of soliciting applications as it allows more flexibility in identified areas and evaluation strategies.

3 PEEP Bulletin - to be published in September, 2015

The contents were updated by focusing on the latest events in December 2015. The finalization of contents was followed by clearance processes, mock preparation, editing and final printing.

Bulletin printed in March 2016

6 MOU with PBIT for potential public private partnership activities

The MOU between PEEP and PBIT was planned to be signed in May 2015 but could not be finalized as PBIT’s top management was not in place. It was only after PBIT’s new CEO joined in December 2015, PEEP held meeting with her on December 17, 2015 and signed MOU in February 2016

MOU between PEEP and PBIT signed in February 2016


Annex – B: List of Success Stories

Success Story Title Component Project Year

Release Date Comments

Accelerating Advocacy for Better Livestock Policies Component 1 1 July 31,

2014 Included in the project’s first quarterly report

Supporting Advocacy to Enhance Meat Exports Component 1 1 Oct 31,

2014 Included in the project’s second quarterly report

Creating a Level Playing Field Component 1 1 Jan 31, 2015

Included in the project’s third quarterly report

Setting Vision for Growth Component 1 1 April 15, 20115

Included in the project’s fourth quarterly report

Supporting Livestock Breeding Reforms Component 1 2 June 5, 2015

Included in the project’s fifth quarterly report

Setting Targets for Agricultural Growth Component II 2 Oct 20, 2015

Included in the project’s sixth quarterly report

Developing Halal Compliant Meat Industry in Punjab Component II 2 December

31, 2015 Included in the project’s seventh quarterly report

Promoting Livestock Policy Research Component II 2 April 30, 2016

Included in the project’s eight quarterly report


“Legal enforcement of the standards and regulations of the Punjab Livestock Breeding Act 2014 will take its implementation to the next level. The standards include holistic input from the private sector and we look forward to continue working with all stakeholders for complete execution of the law in Punjab.”

Secretary Punjab Livestock and Dairy Development Department

Nasim Sadiq

Supporting Livestock Breeding Reforms

USAID helps accelerate advocacy for early implementation of the Punjab Livestock Breeding Act 2014 for increased investments and sustainable livestock and dairy breed improvement in Punjab

“The subsequent regulations under the Livestock Breeding Act should be business friendly to encourage private sector investments. Once the act is fully implemented, the genetic potential of the dairy breeds will gradually improve leading to increase in milk yields and incomes for farmers,” voiced Hassan Hotiana, dairy farmer and President Buffalo Breeders Association of Pakistan, during a stakeholder consultation meeting hosted by USAID’s Punjab Enabling Environment Project (PEEP). On May 22, 2014, the Punjab provincial assembly passed the Livestock Breeding Act 2014 with the aim of regulating the livestock breeding services to help protect indigenous animal breeds, improve their genetic potential and expand farmers’ access to breeding services. Upon passage of the act, all sector stakeholders, including Hassan Hotiana and colleagues, echoed on the need of quick, speedy implementation of the act with all regulations, standards and protocols developed and enforced within the stipulated time frame as outlined in the law. Realizing this challenge, USAID PEEP, kicked-off advocacy by organizing stakeholder roundtable meetings and formation of Dairy Core Advocacy Group (CAG) to help lift implementation process of the act and chalk out result-oriented way forward for its early adoption. USAID-supported advocacy efforts brought together multiple stakeholders from the Government of Punjab including the Punjab Livestock Secretary, private sector, academia, semen producers, and various breeder and farmer associations. All stakeholders stressed on the need of developing an effective regulatory framework that could help create a business enabling environment and spur private sector investments especially in artificial insemination services. All members of the USAID-supported Dairy CAG agreed on establishment of a six-member task team to liaise with the Government of Punjab’s Livestock Breeding Services Authority. USAID-supported task team and the breeding authority conducted series of strenuous joint reviews of the draft standards and procedures to include wholesome input on the steps involved in semen collection, preservation, and import; artificial insemination training and services; and data recording for animal performance including age and health of bulls. PEEP’s advocacy efforts reaped benefits on January 30, 2015, when the Punjab government finalized the document and announced this key milestone in the reform process by issuing official notification for full enforcement of the breeding standards and procedures, titled, “Standards and Procedures for Breeding Animals 2015.” “USAID-supported consultative process is a huge help in bridging the gap between the Government of Punjab, business owners, and investors. The regulations notified under the act will help streamline livestock breeding services in Punjab,” says Mohammad Farooq, owner of a semen production unit in Sahiwal, and member of the Dairy CAG and breeding act task team. “USAID has provided the private sector with a solid forum to raise voice,” he explains.

Through USAID-facilitated advocacy efforts, Government of Punjab’s current policy reform agenda for breed improvement is now on a running vehicle with the private sector at the driving seat, and the reform process is making rapid progress towards more advanced stages. USAID, through PEEP, will continue its efforts to support further consultations among livestock sector stakeholders and the Government of Punjab for fine-tuning of the regulations and procedures. PEEP also intends to build institutional capacity of livestock breeders associations in Punjab to help them extend support to the Government of Punjab for successful implementation of the regulations. This headway will help improve business environment, and encourage investments and creation of new employment opportunities particularly for women and youth.

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“The Punjab Agriculture Sector Plan 2015 is not merely a combination of already planned initiatives and projects but in fact, it redefines the whole institutional framework of the Department of Agriculture by transforming its operational, monitoring and implementing role through increased crop productivity, expansion of area under cultivation, improved and technologically advanced practices to ensure maximum returns for the farmers.”

Secretary Department of Agriculture Sheheryar Sultan

Setting Targets for Agricultural Growth

USAID supports Department of Agriculture, GoPb develop Punjab Agriculture Sector Plan 2015 to accelerate private sector-led growth, enhance crop productivity and introduce farmer-centric delivery services

The 18th Amendment of the Constitution of Pakistan allows provincial government departments including the Department of Agriculture (DOA), Government of Punjab, to independently develop and implement policies and sector development plans. DOA aspires to pursue sector plans and regulatory policies to develop the agricultural economy of Punjab by ensuring appropriate use of agricultural resources, promoting mechanized and improved farming techniques in line with international best practices, and encouraging new investment. In order to enhance the agricultural productivity through a structured approach based on detailed analytical assessment of sector’s growth potential, the DOA embarked on the process to develop a comprehensive Punjab Agriculture Sector Plan 2015 and requested USAID PEEP to support its endeavor to strengthen the department’s technical capacity to formulate and strategize the plan. In an effort to bridge this capacity deficit and infuse research-oriented approach for assisting the DOA in developing an effective agriculture sector plan, USAID’s Punjab Enabling Environment Project supported establishing a Policy and Strategy Unit (PSU) at DOA by providing technical input, expertise and resources. The strategy unit not only engaged technical experts to draft a comprehensive agriculture sector plan by undertaking extensive evidence-based research on the emerging sectoral issues evolving out of challenging socioeconomic trends but also ensured its effective implementation by involving agricultural experts and international consultants through regular review sessions. The consultative and technical support helped the department in developing the agriculture sector plan by evaluating the impact of the ongoing government projects and service delivery initiatives to prioritize allocation of GoPb funds and other resources in line with the sector vision for short to medium term.

The in-depth planning involved in finalizing the sector plan marked by a thorough rectification process resulted in the approval of the Punjab Agriculture Sector Plan 2015 and funds (PKR 6250 million) for implementation of two subsequent projects under the same sector plan, namely, ‘Developing Pothohar into an Olive Valley’ and ‘Extension Service-2.0 Farmer Facilitation through Modernized Agriculture Extension’ by the Provincial Development Working Party (PDWP); a clearing house for GoPb’s development projects.

The Punjab Agriculture Sector Plan 2015 sets targets for the sector growth for the next five years and aims to transform the sector into a diversified, sustainable and market-driven force through private sector-led growth, enhanced crop productivity and farmer-centric delivery services. This initiative feeds into the National Vision 2025 of Government of Pakistan and focuses on developing the agricultural potential of Punjab by contributing towards self-reliance, food security and promotion of high value crops. The agriculture sector plan will help improve the business enabling environment in Punjab and encourage private enterprises to make more investments leading to creation of new employment opportunities. The complete and timely implementation of the plan will help raise the growth rate of agriculture sector from existing 2.1 percent to 5 percent and mobilize private sector investments of PKR 75 billion ($750m) by the end of year 2020.

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“Punjab Halal Development Agency as the first ever public sector Halal Certification Body will play a significant role in the growth of Halal sector in Punjab by formalizing and regulating slaughter houses and abattoirs through Halal product certification. This milestone would not have been achieved without the support of USAID Punjab Enabling Environment Project.”

Chairman PHDA Justice Khalil-ur-Rehman Khan

Developing Halal Compliant Meat Industry in Punjab

USAID helps Punjab Halal Development Agency (PHDA) acquire certificate of accreditation to issue halal slaughtering licenses in Punjab for enhancing exports and mobilizing investments

Government of Pakistan (GoP) has recently granted income tax exemption for four years to investors acquiring registration as certified Halal meat producers before December, 2016. This tax incentive aims to mobilize investments in the Halal sector and seeks to increase Pakistan’s insignificant share in the international Halal trade, which currently stands at 0.5 percent of USD 1.3 trillion. As this initiative strives to promote and brand the local meat sector as Halal hub, the absence of public sector regulatory mechanisms for undertaking Halal licensing posed a serious challenge for materializing the economic benefits emerging out of it. In this regard, the Government of Punjab’s (GoPb) Punjab Halal Development Agency (PHDA) has been striving to develop the Halal industry in Punjab. The agency as a nascent entity, however, lacked the human and institutional capacity to implement the Halal standard setting procedures.

In an effort to support the government’s Halal sector development initiative, USAID Punjab Enabling Environment Project (PEEP) provided technical assistance and awarded grants to PHDA for addressing the capacity deficit, which involved equipping PHDA with the organizational ability to issue Halal slaughtering licenses through accreditation by an internationally recognized authority. To this end, USAID’s capacity building support to PHDA helped it comply with the pre-award accreditation requirements by Pakistan National Accreditation Council (PNAC), Ministry of Science and Technology, GoP, which is a national apex agency working to provide internationally recognized accreditation service to licensing bodies. As a result of the project’s continued backing throughout the assessment and audit process, PHDA was awarded the certificate of accreditation by PNAC on December 14, 2015 to work as the first ever public sector Halal certification body. With this accreditation, PHDA is fully equipped to issue Halal slaughtering licenses to abattoirs, slaughterhouses and meat processing facilities to operate as certified Halal producers, which are otherwise not legally allowed to function under the provincial by-laws.

USAID is following a dual approach to ensure timely implementation of the licensing process by supporting PHDA in conducting series of Halal slaughtering trainings in 12 districts of Punjab for at least 500 slaughtermen, butchers, and abattoirs workers with authentic knowledge on Halal and hygiene principles for building their capacity to acquire Halal slaughtering licenses from PHDA.

USAID PEEP’s parallel initiatives to develop the Halal sector in Punjab will contribute towards investment mobilization in the wake of the government’s tax exemption initiative and in turn, help boost Halal exports through compliance with international Halal standards. According to an estimation by PNAC, international Halal trade volume will jump to USD 2.54 trillion by 2019 and PHDA’s accreditation will play a key role in enhancing Pakistan’s contribution to the growing Halal trade volume. This intervention will also result in employment generation in the Halal industry as PHDA aims to issue 4000 licenses to Punjab-based slaughtermen and butchers by 2018.

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“The USAID-supported Center for Applied Policy Research in Livestock (CAPRIL) provides an excellent example of how Government of Punjab, private sector, and academia can work together to help leverage economic benefits for Punjab through demand-driven, and holistic research in line with industry needs and business trends.”

Vice Chancellor UVAS

Dr. Talat Naseer Pasha

Promoting Livestock Policy Research

USAID establishes Center for Applied Policy Research in Livestock (CAPRIL) for promoting evidence-based policy research to spur investments, growth and innovation in the livestock and dairy sectors of Punjab

Despite having a major share of 55.9 percent in the agricultural GDP of Pakistan, the livestock and dairy sectors have remained underinvested and neglected by current and potential investors due to non-availability of research data on emerging business trends and challenges. The absence of evidence-based policies and sector reforms have also resulted in the underdeveloped state of these two sectors, which remain dominated by traditional low-yielding practices and limited scale business setups. Disconnect between the academic and policy fronts materializes into government and private sector’s lack of capacity to capitalize on the development potential of the livestock and dairy sectors. In this regard, the Government of Punjab’s (GoPb) recent policy reform and sector plan initiatives have also suffered formulation and implementation setbacks due to the void between research-based policy input and informed policy making.

In an effort to support Government of Punjab’s policy reform agenda and encourage private sector’s substantial involvement in the dairy and livestock sectors, the USAID Punjab Enabling Environment Project (PEEP) established the ‘Center for Applied Policy Research in Livestock’ (CAPRIL) at the University of Veterinary and Animal Sciences (UVAS), Lahore. Since its establishment, the center has rolled out applied research and policy-based projects, which have been incorporated into national and provincial governments’ policy reform agenda. One such example is the ‘National Livestock Vision 2025’ for the Ministry of Planning, Development & Reforms, Government of Pakistan (GoP). With the aim to induce investments in innovative and advanced areas of livestock and dairy sectors, the center has initiated the first-ever advanced research study on the ‘Adaptability of the Holstein Friesian Cows in Punjab’ to assess the adaptability and growth parameters of the imported American cattle for breed and yeild improvement. Another such initiative, which will feed into GoPb’s milk pasteurization reforms is the study on ‘Loose Milk Supply to Lahore City.’ The study on loose milk supply will formalize into Punjab Pasteurized Milk Act whereas, the completion of the Holstein study will help investors capitalize on the existing investment in animal stock worth PKR 29.40 billion and help raise the annual investment from 1.2 billion to 2.2 billion.

These investment-oriented research initiatives under CAPRIL will not only help GoPb identify preferred areas of growth in the livestock and dairy sectors through informed policies, but will also allow the private sector to explore business opportunities and make better investment decisions.

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E. ADMINISTRATION AND PROJECT MANAGEMENT The PEEP’s project office is based in Lahore and solely focuses on activities in Punjab. Chemonics partners with J.E. Austin Associates, Semiotics Consultants, and Development Executives to implement the project. The organizational structure is led by the Chief of Party who has direct oversight over technical activities, including monitoring and evaluation. Project Director is based in Washington DC and is responsible to provide overall support to the field office team from the operational, financial and technical point of view. Key positions include BEE specialist, grants manager and M&E specialist. Other important positions are investment promotion specialist, finance manager and HICD specialist. During year 2, grants assistant was hired and this position was later changed into grants officer who was responsible to support grants manager in preparation of technical and financial reports. Another new position inducted during year 2 was communications associate who had the responsibility to support the communications specialist specifically on outreach, advocacy and other stakeholder communication efforts. Given increased focus on spurring investment in Year 3, PEEP proposed to recruit an investment promotion associate to assist with marketing the TAS and matching grants programs to the private sector. BEE associate position has been eliminated. An IT associate position is included who will be responsible to maintain IT services in the program.

Documents

PUNJAB ENABLING ENVIRONMENT PROJECT (PEEP)pdf.usaid.gov/pdf_docs/PA00MJSK.pdf · PUNJAB ENABLING ENVIRONMENT PROJECT (PEEP) ANNUAL ... PEEP Punjab Enabling Environment Project