Project for Agriculture Commercialization and Trade (PACT) is one of the key projects implemented by the Government of Nepal (GoN), Ministry of Agricultural Development (MoAD) since 2009 with the assistance of the World Bank (WB) for expediting agricultural commercialization in Nepal.
Following the approval of the WB Board on 4th June 2009, grant agreement signing for this project was held on 6th August 2009 between the WB and the GoN and it became effective on 13 November 2009.
Originally, the project implementation was set for period of six years and covered 25 districts of the country. The first Mid Term Review carried out by the WB on July/August 2012 recommended Additional Financing together with the extension of the project period up to June 2018 . The additional financing approved on 23 February 2013, slightly changed the project objective by removing earlier restrictions of 25 districts for enabling it to reach throughout the country based on the potentialities of the selected value chains and the demand of the eligible value chain participants.
The Project Development Objective (PDO) of the PACT is to improve the competitiveness of project supported smallholder farmers and agribusinesses within selected commodity value chains.
The project intends to achieve the PDO by assisting agro-enterprises, commodity associations, cooperatives and registered farmer groups with integrating emerging and competitive commodity value chains. The PACT uses competitive matching grants as a core instrument to achieve this goal by co-financing beneficiaries’ innovative proposals. The project has also been helping to reduce existing obstacles to agriculture and food trade thereby increasing the ability of farmers and agribusiness to respond to Sanitary and Phyto-Sanitary (SPS) measures and food quality standards to meet domestic and international market requirements.