Poverty Alleviation Fund

Italy’s Official Development Assistance is increasingly important in Pakistan, and it focuses on supporting the rural world, with emphasis on the rural poor. An important contribution to Pakistan Poverty Alleviation Program (PPAF) was finalized and it is operational since early 2013. The total amount of Italy’s financial support amounts to 40 million Euros, through a soft-loan framework agreement, out of which 10 million Euros were released and made available for Program inception. The three year investment program “Poverty Reduction through Rural Development in Balochistan, KP & FATA” to be financed by the Government of Italy (GoI) through the Directorate General for Development Cooperation (DGCS) aims at contributing to poverty reduction in selected districts for the population of Balochistan, Khyber-Pakhtunkhwa and Federally Administered Tribal Area (FATA). These provinces bordering with Afghanistan are suffering from poverty, as well as from distress and have to be considered amongst the most vulnerable areas of the Country.
The Program is in line with the PRSP (Poverty Reduction Strategy Paper) elaborated by the Government of the Islamic Republic of Pakistan as the guiding document for poverty reduction. It will be based on the PPAF-III (Third Pakistan Poverty Alleviation Fund Project) financed by the World Bank, using the same methodology and contents as a parallel financing. This will ensure synergies, harmonization and coordination with PPAF World Bank Program (PPAF-III) and with other International Bilateral / Multilateral programs for effective use of resources that will be conducive to maximum benefits for the poor and vulnerable. The choice of PPAF as executing agency of Italy’s Development Cooperation undertakings was based on PPAF’s existing outreach and penetration capacity, developed over the past twelve years, and on the successful output results obtained. PPAF successfully provided investments in 121 out of 134 districts of the Country, including bordering areas, in coordination with a network of 124 Partner Organizations (POs), organizing the work of over 436,000 groups/communities, and assisting urban/rural people in development sectors. Within the framework of a holistic integrated approach, the program will empower local Communities, with a strong and dedicated gender inspiration and focus on women, support Community livelihoods, build productive infrastructure on small scale, favor access to education and basic healthcare primary services, and develop actions to promoting income-generating activities and rural micro-enterprise development, to bring about socio-economic transformation at the Union-Council level. Local heritage and traditions will be devoted special attention and specific toolkits for their preservation to contribute to supporting local economies and identitarian common values.   Further documentation can be found in the Download section.