Background/Objectives

This Memorandum of Understanding is made between the Government of the Islamic Republic of Pakistan through the Ministry of food, Agriculture and Livestock "the Ministry" and the Competitiveness Support Fund "CSF", established as a joint initiative of the Ministry of Finance, the Government of the Islamic Republic of Pakistan and the United States Agency for International Development "USAID" also {hereinafter referred to collectively as "Parties and individually as the "Party"} to reposition the Pakistan's economy on a more global competitive footing", 

WHEREAS, The Ministry of Food Agriculture and Livestock (The Ministry) has a continuing duty to foster the agricultural development of Pakistan including exports and has initiated a number of programs and projects to improve the overall economic performance of the sector, especially a National Agribusiness Strategy and a National Horticultural Policy, which include developments under the various donor-funded projects such as the Agribusiness Development and Diversification Project (ADDP), with a special focus on horticulture (fruits and vegetables and flowers) including fisheries and livestock areas as well as biotech or "GM" crops, rural market infrastructure (cool chains and storage andcontrolled atmosphere environments), edible oils sector (olive, soybean, canola, sunflower, palm oil) a~ell as activities for staple and industrial crops,

WHEREAS, the Ministry has initiated a program to provide animal and plant inspection services to the producers and exporters of agricultural products, is engaged in restructuring and improving the National Animal and Plant Health Inspection Services (NAPH1S), and has made the issue of sanitary and Phyto-sanitary standards central to its work, especially for exports;

WHEREAS, the Ministry has established a Chair of the Implementation Committee of the Ministerial Task Force for Finance and ·Competitiveness in Horticulture, and the Ministry also chairs the Sub-Committee for Production, Processing and Marketing of Horticultural Products under the Task Force; 

WHEREAS, the Ministry oversees the export of fish and seafood products through the Marine Fisheries Department and had developed a program, in association with international donors including the European Union and UN 100, to improve and rehabilitate the Karachi Fish Harbour and to analyze the entire export marketing chain for fisheries in Pakistan; 

WHEREAS, the Ministry under the auspices of the Agribusiness Development and Diversification Project has established a Livestock and Dairy development Board, which has spearheaded a series of major investments in corporate livestock farming. 

WHEREAS, the Ministry has established an Agri-business Support Fund under the Agribusiness Development and diversification Project;

WHEREAS, the CSF has been established to support Pakistan's goal to emerge as a more competitive econoll,y, by providing input into policy decision, working to improve regulatory and administrative frameworks and working to enhance public-private partnerships within the country, and the CSF has undertaken to provide technical assistance and co-financing for initiatives related to entrepreneurship and to bolster the private sector and research institutes, universities and business incubators that contribute to a knowledgedriven economy;

WHEREAS, the CSF has a number of windows for funding policy relevant analysis on innovation and competitive ness, providing matching grants for knowledge-based economic development, promoting business-academia partnerships, and engendering business incubator programs to promote innovation-driven sustainable economic growth in Pakistan;

WHEREAS, the CSF has identified the manufacturing and agriculture sectors along with the integrated workforce as the drivers of the sustained economic growth in Pakistan which remain as challenging areas to be focused on.

WHEREAS, the CSF has undertaken a number of agricultural sector specific studies and prepared various Action Plans, including a major study entitled the "Competitive Advantage of Food Processing in Pakistan: Focus on Quality and Standards", a series of background papers and studies covering fisheries (especially for Karachi Fish Harbour) and livestock (meat), and the CSF has also identified agricultural and horticultural projects for funding under its Matching Grants window;

WHEREAS, the CSF has set up and prepared supporting documentation, studies, action plans and repolis for the Ministerial Task Force on Finance and Competitiveness in Horticulture Chaired by the Minister of Finance;

ACTION PLAN

NOW, THEREFORE, as many of the fundamental objectives and programs of the Ministry and the CSF have significant commonalities, both agree to work together for the national; development of Pakistan's agricultural and food economy on the following terms:

• Facilitate the work of the Task Force for Finance and Competitiveness in Horticulture under the guidance of the Implementation Committee and the four designated Sub-committees for Production, Processing and Marketing, Infrastructure, Finance and Quality/Standards.
• Provide Technical Assistance to the Marine Fisheries department and other authorities responsible for and related to national fishery including the Karachi Fish Harbour, Gwadar, and Pasni Harbour and the coastline of Balochistan.
• Work with the Agribusiness Development and Diversification Project to assist in the development and finalization of a National Horticulture Policy, and will cooperate and assist the Project with its Mid-term Review and the continuation of its work in all areas including horticulture, livestock and agribusiness finance under the umbrella of the Agribusiness Support Fund.
• Assist the Ministry, other agencies of the Government of Pakistan and international donors and the private sector to facilitate the implementation of the National Trade Corridor Project as it applies to rural market infrastructure, with a special focus on cool chains and storage.
• Facilitate the Livestock and Dairy Development Board in developing its strategy for increasing corporate investment into milk and meat production as well as in associated industries, fodder and animal services.
• Work with the National Animal and Plant Health Inspection Services to advise on its management and operational structure.
• Undertake a series of sector-specific Action Plans focused on areas including biotechnology (Biotech or GM crops), staple and industrial crops (including wheat, rice and maize), edible oils (including olive trees, sunflower, canola), along with coordinating its planned work on alternative energy sources, including bio-fuels.
• The CSF will continue to assist the Pakistan Agricultural Research Council as required.
• This Memorandum of Understanding will enter into force from the date of signatures and shall remain valid for a period of three years and may be extended for further period by mutual written consent of the Parties
• All disputes concerning the interpretation of this Memorandum of Undel'standing will be settled solely by negotiations between the Parties and will not be referred to any national or international tribunal or third party for settlement.
• This Memorandum of Understanding may be amended or modified at any time through mutual written consent of the Parties. The Party wishing to amend the MoU must give the other Party a written notice of not less than three months.
• WOI'king on specific projects on behalf of CSF, may be terminated at any time througll mutual written agreement between the Parties. The Party wishing to terminate/having terminated work on a specific project must give the other Party VIti itten notice of not less than three months.
• This Memorandum of Understanding may be terminated at any time by either Party by giving a written notice of three months to the other party of its intention to terminate it.
• "In Witness whereof, the undersigned representatives, duly authorized by the Ministry of Food, Agriculture and Livestock and the Competitiveness Support Fund have signed this Memorandum of Understanding.