ADB urges disruption-free food supply chain
The Asian Development Bank (ADB) on Friday urged the federal and provincial governments in Pakistan to review movement restrictions under the exemption policy to minimise disruption to the food supply chain.
This action is important to prepare for the emergence of a new Covid-19 variant or another pandemic, according to an ADB report on the continuing impacts of the pandemic on farm households in Pakistan.
ADB says the pandemic and disruption of movement have negatively affected the marketing of vegetables, fruits, and milk in both Punjab and Sindh, and it is likely that farmers are still wary of market disruptions, as they experienced in 2020 and 2021.
The report says the national and provincial governments need to ensure market access for farmers in order to encourage them to produce high-value agricultural products.
The government allowed exemptions for food systems during the lockdown and movement restrictions caused by the coronavirus disease pandemic. However, disruptions in food supply chains persisted in 2020 and 2021 as well.
In 2021, some farmers in Sindh province became wary of growing high-value crops for fear of prolonged market disruptions. This calls for support from the government in terms of ensuring that farmers have market access for their production of highvalue agricultural products.
A large percentage of farmers in both Punjab and Sindh reported disruptions in the purchase of farm inputs and an increase in the corresponding prices. Similarly, many farmers reported difficulties in obtaining machinery or its spare parts and labour to prepare the land for the next sowing. Even though conditions have improved in both provinces, Sindh continues to face challenges.
In 2021, the percentage of farmers producing high-value products in Sindh decreased. The percentage of producers dropped from 26 per cent to 14pc for tomatoes, from 31pc to 27pc for vegetables other than tomatoes and fruits, and from 33pc to 27pc for milk. In Punjab, the situation is more stable. The percentages for these crops remained at the same level, the report says. In 2020, 94pc of Sindh farmers who grew tomatoes reported difficulty selling their crop or being unable to sell it at all.
Amid the government efforts to secure external flows to support balance of payments amid falling foreign exchange reserves and currency depreciation, the Asian Development Bank (ADB) on Thursday hinted at releasing additional funds of up to $2 billion to Pakistan before December this year.
The assurance came at a meeting of Minister of State for Finance Dr Aisha Ghous Pasha and the ADB's Country Director in Islamabad Yong Ye and their respective teams. The meeting discussed "additional funding avenues for Pakistan including ADB's programme loans and countercyclical support facility (CSF)" - a relatively new mechanism to help finance oil imports amid unprecedented global prices.