The Agricultural sector in Pakistan is still the most important sector of the economy, contributing 23 percent to GDP and accounting for 42 percent of the total employed labor force in 2003-04. Livestock accounts for 49 percent of the contribution from agriculture, equivalent to 11.4 percent of Pakistan’s GDP.

The search is underway for measures to enhance productivity, increase proportion of value added products and strengthen links between the public and private sectors. Special attention is being given to livestock, the largest component of the agriculture sector, and especially to dairy where the potential for value added products is considered to be especially promising and where the annual growth for milk (1990-2000, 8.0 percent) exceeded population growth

The IFAD-financed Community Development Programme (CDP) is a seven-year project that will provide support to 4000 community groups in rural areas of AJK. The CDP uses participatory approaches and promotes the involvement of women and the poor. CDP activities include savings and credit schemes, the development of social and economic infrastructure, and strengthening natural resources management.

Within the framework of the CDP, FAO will provide the Government of Pakistan with a range of services over a three-year period. These services include the provision of training, technical assistance and the procurement of certain types of equipment. The services provided by FAO are aimed at capacity building; the Government of Pakistan will retain responsibility for the actual management of the CDP.

These services have been planned under four components:

•  Strengthening the capacity of community organizations to identify  development opportunities and access relevant services

• Strengthening the capacity of Government agencies to provide demand-driven services that are relevant to the needs of community organizations

• Strengthening stakeholder collaboration at District Level

• Improving the capacity of the Programme Management Unit (PMU) and District Project Offices (DPOs) to manage the IFAD-funded Community Development Programme

Community Organizations, NGOs and Line Departments will be able to submit proposals that will be appraised and funded under the UTF. The UTF Agreement also includes some pre-determined inputs aimed at strengthening management information systems, the production of extension materials, and the provision of advice aimed at enhancing benefits for women. Experiential learning activities will be carried out in all seven Districts of AJK to promote collaboration between Government and NGO service provider