Staff Report

ISLAMABAD: As part of its initiative to support industrial development through innovative methods, the Competitiveness Support Fund (CSF) is poised to expand its matching grants operations with new projects, including a Mango Pack House in Multan.

CSF is a joint initiative of the Ministry of Finance and the United States Agency for International Development (USAID), established to reposition Pakistan’s economy on a more global footing.

The purpose of CSF’s Matching Grant is to provide co-financing for a project that is innovative and increases efficiency through lower costs, increase output or quality and generates jobs.

By doing so, a grassroots level enhancement is made possible through close collaboration between local clusters (at district level), academic institutions, and government agencies, thereby employing CSF’s triple helix approach.

The Mango Pack House, a collaborative effort of the CSF and the Progressive Mango Growers’ Group was to be developed for processing and packing of fresh mangoes (EurepGAP certified) for export to Europe and the United States.

Pakistan produces over 1.6 million tonnes of mangoes annually. Despite this, there is currently no proper facility for washing, de-sapping, grading, and removal of field heat of mangoes. According to the prescribed plan, a blast chiller/cold storage facility will be established at the site where mangoes will be treated to improve their quality and shelf life before being shipped out.

The planned Mango Pack House will also be used for processing of citrus and fresh vegetables other than mangoes in the off-season. This facility will be the first of its kind in Pakistan and will greatly help boost exports.

Currently, countrywide there are 10 projects in operation. CSF’s Matching Grants projects are the Common Laboratory for Drug Formulation in Nowshera, the Common Facility Centre for Cutlery Polishing and Finishing in Wazirabad, the Value Addition in Milk Supply Chain in Balochistan, which is based in Quetta, Pishin and Kuchlak; Gems Processing Centre in Chitral, Common Facility Centre for Marble Processing in Mohmand Agency, Solar Kilns for Leading Clusters of Furniture Sector in Islamabad, Karachi, Chinoit, Gujrat and Lahore; Medicinal Berries and Fruit Processing Unit in Ghizer, Northern Areas; Automotive Simulation Design Training and Service Centre, Lahore; Meat Farm and Abattoir in Pattoki and a Mango Pack House in Multan.

It is estimated that over 11,000 jobs will be generated through these projects of which more than 600 are for men and about 5000 for women. CSF’s investment in these projects is $1,051,259, which will bring in a perceived new investment of $10,470,000. The Nowshera Laboratory for Drug Formulation provides services to pharmaceutical units for drug testing and quality control in compliance with Current Good Manufacturing Practices (CGMP).

The facility is equipped to evaluate physical, chemical, biological, and microbiological and trace metals in multi-vitamins and mineral drugs preparation.

The objective of the Wazirabad Common Facility Centre for Cutlery Polishing and Finishing is to establish a modern tableware grinding and polishing unit to increase efficiencies in finishing processes, increase sales to major retailers and to introduce its own brand within the local market. CSF’s leading partner in this project is the Pak Cutlery Consortium, which is a coalition of six tableware manufacturers in the cutlery industry.

Similarly, the Value Addition in Milk Supply Chain in Balochistan is designed to empower farmers by providing market access and support for the establishment of a high quality milk supply chain. The Dairy Strategic Working Group (SWOG) in Balochistan proposed the project to link under-privileged producers, mainly women, from rural areas, of Kuchlak and Pishin.

The project objective is to create an integrated cooperative structure that ensures farmer control through the value chain of milk procurement, processing and marketing. It progressively links producers with consumers, thereby maximizing farmer profit and productivity. It is one of the better solutions for rural poverty alleviation.

USAID’s support for CSF is part of the $2.8 billion aid that the US Government has provided to Pakistan since 2002 to improve economic growth, education, health, and governance and to reconstruct the earthquake-affected areas.