The World Bank’s Board of Executive Directors on Saturday approved $200 million in financing for Pakistan's agricultural sector.

The funding will be used to support transforming the country’s agricultural sector by adopting climate-smart technologies to improve water-use efficiency, build resilience to extreme weather events and increase the incomes of small farmers, said the World Bank in a statement.

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“The agricultural sector in Punjab is central to Pakistan’s economy and food security as it accounts for 73% of the country’s total food production,” said the lender.

The World Bank added that the Punjab Resilient and Inclusive Agriculture Transformation Project (PRIAT) will increase agricultural productivity through efficient and equitable access to water for small farms. The programme will support farmers at the community and household levels to adopt climate-smart farming practices and technologies, said World Bank which will improve crop yields and conserve water resources in Punjab.

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“In recent years Pakistan’s agriculture sector has suffered from losses in crop yields and livestock, damage to irrigation infrastructure, and food shortages due to climate change, particularly severe droughts in the Punjab province,” said Najy Benhassine, World Bank Country Director for Pakistan.

“This project aligns with the Punjab Agriculture Policy 2018, which promotes massive expansion of water conservation efforts, enhancing sustainability and resilience in the wake of climate change, and private sector participation to help boost the productivity of the sector.”

PRIAT will support farmers implement innovative, climate-smart technologies to help the Punjab government achieve economies of scale to transform the agricultural sector. The project will engage the private sector in sourcing appropriate technologies and providing training tailored for water user associations and individual households to improve water conservation practices and agriculture productivity.

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“The agriculture sector has a huge opportunity to both build climate resilience and improves economic conditions by generating access to domestic and international markets,” said Guo Li, Task Team Leader for the project. “PRIAT will help accelerate the government’s efforts to transform the agri-food system through market-oriented production activities that add value, increase competitiveness and generate higher incomes for farmers.”

World Bank informed that the project will benefit about 190,000 small, family-owned farms and 1.4 million acres of irrigated land in rural communities in the province. “It will also provide training to small- and medium-sized farm owners on water conservation and more sustainable, climate-resilient agricultural practices, including for women,” it said.