Cost of Punjab Agri Project Increases by Over Rs. 15 Billion Due to Rupee’s Fall

The cost of the World Bank (WB) funded Punjab Resilient & Inclusive Agriculture Transformation (PRIAT) project has escalated by 27 percent from Rs. 58.815 billion to Rs. 74.757 billion mainly due to the depreciation of the Pakistani rupee (PKR).

The Executive Committee of the National Economic Council (ECNEC) has approved Punjab Resilient & Inclusive Agriculture Transformation (PRIAT) project at a total cost of Rs. 74,757.60 million, which is 27 percent higher than the previously estimated cost, according to official documents seen by ProPakistani.

The cost of the project will be shared by the World Bank, the Government of Punjab, and farmers at a ratio of 61 percent, 15 percent, and 24 percent, respectively. World Bank will provide a loan of Rs. 45,863.15 million (US$ 200 million). The government of Punjab’s share is Rs. 11,465.89 million and the farmers’ share is Rs. 17,428.15 million. The project gestation period of five-years (2022-2027),.

Earlier in March 2022, the Central Development Working Party(CDWP) had cleared the concept clearance documents of the project at a total cost of $402 million, however, now the project has been approved at the cost of $326 million.

Originally, the project cost was computed at $1 at 179, which has now been upward revised to $1 at Rs. 229, the documents reveal.

The project will be implemented throughout Punjab in 5-Years. It comprises 4 major components which include:

1. Community-driven Improvement of Water Conveyance and Application;
2. Promotion of Climate Smart High-Value Production, Regenerative Agriculture, Crop Diversification, Agriculture Value Addition, and Inclusive Access to Markets;
3. Project Management, Monitoring, and Learning; and
4. Contingent Emergency Response Component.