CNFA | Improving Livelihoods and Enterprise Development Project

Project Name and Duration: Improving Livelihoods and Enterprise Development Project, August 2006 - August 2009

Funding Source and Amount: USAID; $28 million

Location: Pakistan

Summary: The Improving Livelihoods and Enterprise Development Project (I-LED) is a three-year initiative to assist those communities affected by the October 8, 2005 earthquake. Ultimately, I-LED aims to increase the incomes of those most seriously affected by the earthquake, living in the Siran and Kaghan Valleys located in the North West Frontier Province (NWFP) and Bagh District located in Azad Jammu Kashmire (AJK), by linking them to markets with economic growth potential.

I-LED training materials

The I-LED strategy, which will be implemented in collaboration with Relief International (RI), is aimed at facilitating the successful transition from relief and reconstruction to broad based economic growth and increased employment in agriculture based affected regions through a collaborative community-based mix of

technical assistance;

voucher and cash for work initiatives; and

targeted matching enterprise grants.

The net result of I-LED will be the establishmentof a solid base for economic development through restored livelihoods and expanding employment and enterprise opportunities, in conjunction with USAID's committment to the people of the affected regions of "building back better."

Activities

Reconstruction of Existing Livelihoods
Value-Chain Development
Local Economic Development

Hydro-powered flour mill in Siran Valley

Tourism Industry's Effect on the Kaghan Valley's Economy and Agriculture

Kaghan Valley, Pakistan - Kaghan
Valley is a beautiful and popular tourist destination in the North West Frontier Province of Pakistan. The valley is characterized by evergreen pine forests, lush alpine meadows, crystal clear lakes and cool mountain streams. Kunhar River, the main feature of the valley, is famous for its trout. Prior to the earthquake of October 2005, there were more than 200 hotels in the Kaghan Valley. Approximately 175,000 Pakistani tourists visited the area during the 2005 summer holiday season. The total pre-earthquake direct economic impact of tourism in Kaghan valley is estimated to be USD 18.8 million per year. In 2006, less than 5% of pre-earthquake tourist income was garnered in the region, due to the negative public perception that Kaghan is no longer a safe vacation destination. The total economic impact of tourism in 2006 was less than USD $1 million -- a decline of $17.8 million USD.

The CNFA Improving Livelihoods and Enterprise Development (I-LED) program is helping to rebuild the tourism industry in the Kaghan Valley through 50 enterprise development and training grant projects. These projects include the development of physical infrastructure, such as energy and waste management; tourism promotion; micro-grants for small entrepreneurs; repair of damaged hotels; and training for hotel management. Many of these projects were started in 2007, such as the hotel management training program, which provides unemployed youth affected by the earthquake with valuable job skills in the tourism industry.

Yasir Khushhal from Dheerkot, Bagh District, Azad Jammu Kashmire (AJK) is one of 200 trainees in the CNFA/I-LED Hotel Management Training Program in Bagh. Training is conducted in collaboration with the Pakistan Institute of Tourism & Hotel Management (PITHM). Yasir participated in the four week “front office” course and graduated with distinction. After completion of the course he used his new skills to successfully apply for a job as a Front Desk Officer at a reputable hotel in Islamabad. While discussing the training with CNFA I-LED staff, he said “Thank you CNFA I-LED - for making me more confident and providing this opportunity.” He further added, “I-LED Hotel Management training has built my capacity. What I have learned in the training is quite useful, and because of it I can do my work accurately and professionally.” Now he is able to support his family and to pursue a career in the hotel industry.

CNFA I-LED Value Chain and Livelihood Component activities aim to improve agricultural production in Kaghan Valley. These projects support the development of the tourism industry by providing affordable fresh produce used in tourist restaurants and hotels. The development of the tourism industry creates a demand and a market for agricultural value-chains in the area. Currently many of the hotels and restaurants are getting their fresh produce processed in other regions of the country, resulting in higher costs due to the increased transportation required. Building local agricultural value chains and fostering linkages with the tourism industry will create higher demand and therefore prices for the farmers’ products, as well as increased supply and lower costs for the hotels and restaurants to procure fresh produce.

Along with continuing projects begun in 2007, I-LED plans to begin analyzing the feasibility of micro-hydropower plants to supply a steady source of electricity to the hotels in the valley in 2008. Later in the year, a waste management system will be established in several of the districts in the valley. Also, I-LED will be implementing new promotional campaigns for the Kaghan Valley, including the promotion of “Adventure Tourism” as a new tourism product.

126 shepherds of small ruminants were trained under I-LED program.

Islamabad/ Pakistan -A special field training session was held for shepherds of small ruminants (sheep and goats) at Borawai-Kaghan Valley by CNFA I-LED program funded by USAID, in technical coordination with Livestock Research Station (LRS) Jabba, Manshera. The purpose of conducting this training session was to catalyze the local economic development process in the earthquake affected region of Pakistan. Experts from different government departments and CNFA- Improving Livelihood and Enterprise Development (I-LED) Program were present in the training session. Technical experts shared their expertise for the improvement of the sector. Dr. Ghufranullah- Station Director Livestock Research Station (LRS) Jabba-Manshera, Dr. Ibrar LRS Jabba, Dr. Fatehullah National Coordinator Animal Sciences NARC Islamabad, Mr. Muhammad Shabir Livestock Dairy Development Department Mansehra, Ms. Saadiya Aswad Manager Local Economic Development /CNFA Islamabad, Ms. Shahida Maheen Training Manager CNFA, Dr. Parvaiz Livestock Specialist and Imtiaz Ali NGOs Sector Coordination Specialist CNFA Mansehra were among prominent participants.

For more information, please contact:
Paul Sippola, Pakistan Program Officer: psippola@cnfa.org