Pakistan and Italy here on Friday signed an agreement to grant soft term loan of Euro 40 million for poverty reduction through rural development activities in Balochistan, Khyber-Pakhtunkhwa and Federally Administered Tribal Areas, as part of Tokyo pledges.
Agreement to this effect was inked by Italian Ambassador to Pakistan, Vincenzo Prati on behalf of Italian Government, while on behalf of the Government of the Islamic Republic of Pakistan, Sibtain Fazal Halim, Secretary Economic Affairs Division (EAD) signed the agreement.
The major objectives of the loan are: establishment of an effective and sustainable socio-productive infrastructure system and safety net mechanism, improvement of access to micro-finance for the poorest in order to increase their capacity in developing income generating and productive activities. The programme focuses on poverty reduction, income generation and safety net mechanism in the rural areas of Balochistan, KP and bordering Afghanistan.
The major output of the agreement would be social network and community institutions strengthening, empowerment of the communities developed, social safety net established and developed, social and productive infrastructures created and becoming functional, availability of social services especially in the sectors of health and education, increased capacity of interaction with central government institutions and other development organisations and markets.