Report No. P-2139-PAK (s) O Pakistan: Hill Farming Technical -. Development Project ONE Technical Annexes Public Disclosure Authorized

September, 1977 Agriculture and Rural Development Department Rural Development Division FOR OFFICIAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized

Public Disclosure Authorized Document of the World Bank

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. PAKISTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Currency Equivalent

US$ 1 FRs 9.8 PRs I US$ 0.10 PRs I million (m) = US$102,000

Weights and Measures

I acre (ac) 0.405 hectare (ha) I kanal 0.125 acre I mile (mi) 1.609 kilometers (km) I Loot (ft) 0.30h8 meters I inch (in) 2.5h0 centimeters I cubic foot (ft 3 ) = 0.0283 cubicmeter (m3 ) 1 pound (lb) 04.h5 kilograms (kg) I liter (I) 0.264 US gallons I maund 82.3 lbs = 37.4 kg

Abbreviations

AA - Agricultural Assistant (normally a graduate) AHD - Animal Husbandry Department of GOAK AI - Artificial Insemination AK - Azad AKIAS - Logging and Sawmill Corporation ARC - Pakistan Agricultural Research Council B.Sc - Bachelor of Science degree CIMMYT - International Maize and Wheat Improvement Center DAO - District Agricultural Officer DFO - Divisional Forest Officer DOA - Department of Agriculture of GOAK DP - Digestible protein FD - Forest Department of GOAK GOAK - Government of Azad Kashmir GOP - Government of Pakistan HYV - High Yielding Varieties M.Sc - Master of Science degree NWFP - North West Frontier Province PDC - Project Development Committee PFI - Pakistan Forest Institute POP - Package of Agronomic Practices PWD - Public Works Department of GOAK PWP - Peoples Works Program WAPDA - W4ater and Power Development Authority WFP - World Food Program

Fiscal Year - GOP and GOAK

July I to June 30 FOR OFFICIAL USE ONLY

PAKISTAN: Supplement to Hill Farming Technical Development Project

Technical Annexes containing Working Papers for project implementation

September, 1977

AgricuJture and Rural Development Department Rural Development Division

The data and other material contained in the technical annexes have been compiled to give direction to project activities and provide a basis for 0cv'el oping detailed work programs for the various sub-components. Except as specifically provided for in the legal documents for the project, the details of project actions which are described in the annexes are not definitive and it is expected that changes in design and scope will occur as the project develops.

Th documnt has a restricted distributin and may be used by rtelplns only in the pwdformn 0f theit o15cial duties. Its contents nay not othefwis be diclsed withut Word Dak sutbolmko.

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

TABIE OF CONTENTS

Page Introduction 1

Project Activities : 2

Technical Development 2 Pi]ot Programs 2 Training 3 Land Use Planning 3 Follow-Up Project Preparation 4

Management 4 Costs 4

Financing 6

Benefits 6

Tables

1. Location and Physical Features of Areas of Project Activities 2. Summary of Main Activities 3. Details of Physical Requirements and Costs 4. Summary of Project Costs by Cost Uategory Technical Annexes

1. Agricultural Sector Background 2. Experimental/Demonstration Farms and Cooperative Maize Program 3. Pilot Apple Scheme 4. Vegetable Seed Production and Pilot Vegetable Scheme 5. Agricultural Support Services 6. Agricultural Training 7. Forestry Sector Background 8. Experimental Trials and Pilot Fuelwood Plantations 9. Livestock Sector Background 10. Fodder Utilization, Breed Improvement and Livestock Training 13. Iand Use and Devel opment Planning 12. Project Management and Follow-Up Project Preparation

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Introduction

1. The Governments of Pakistan (GOP) and Azad Kashmir (GOAK) are requesting a credit for a technical assistance project for the development of the agricultural sector in Azad Kashmir. This project would be the first stage of a program for the systematic development of the various sub-sectors.

2. Largely because of its physical characteristics, Azad Kashmir has lagged behind in the research and development efforts which have gone into developing higher productivity technical packages for farmers in Pakistan. The extremely difficult terrain of the State requires special adaptation of improved techniques to meet the uniquely severe local conditions. Establishment of technically sound and economically viable techniques is a necessary first step before undertaking substantial investments to achieve increased production and higher farmer income.

3. Nothwithstanding the extreme difficulty of the terrain, it is confidently expected that within a relatively short period, the transfer of new technologies being developed in the North West Frontier Province (NWFP) under controlled field testing conditions, can result in substantial production increases in the main cereal crop which is maims. Similar production increases can also be expected in other major crops, including fodder, following intro- ductory trials and field testing. In addition, the climate is suitable for specialization in fruit and vegetable production for which a small nucleus base exists. However, these potentials for increasing production must be fitted into a land use pattern which safeguards the catchments and conserves the soil since the severity of the topography constitutes the first and over-riding constraint in introducing improved technologies.

4. In the livestock sub-sector, development of techniques for fodder production and improved utilization is a first priority, to be followed by the introduction of a suitable dual-purpose cattle breed which would provide the farmer with both his milk and draft requirements. The important activity of poultry improvement is currently being undertaken by a UNDP assisted project.

5. An urgent problem throughout the State is the shortage of woodfuel. This has led to the devastation of large parts of the former forest lands and will require a systematic program of reforestation to be undertaken, in which local people are fully associated. Project Activities

6. The project would be for a three-year period and include the following activities:

(i) Technical Development

(a) Establishment of 4 permanent Experimental/ Demonstration Farms, each of about 6 acres and representative of different geographical/ ecological zones, which would initially be used for maize, fodder crops and pulse crops improvement. The farms would be established in the , Danna, Mang Bajri and Abbaspur areas; (see Technical Annex 2).

(b) Extension of the ongoing ARC/CIMMYT co-operative maize program in the 4 areas described in (a);

(c) Upgrading of 3 Apple Nurseries at Chamyati, Bagh and Chattar Kalas; (see Technical Annex 3).

(d) Upgrading of the Vegetable Seeds Farm at Chattar Kalas; (see Technical Annex 4).

(e) Establishing trials for fast growing tree species, particularly addressed to the fuelwood problem, to cover nursery work, establishment method and genetic improvement; (see Technical Annex 8)

(f) Development of improved techniques of fodder harvesting, storage and utilization; and

(g) Assessment of crossbred cattle types to identify a suitable dual-purpose animal combining milk production with draft capabilities; (see Technical Annex 10),

(ii) Pilot Programs

(a) Pilot Apple Scheme, directed to the smaller farmer, which would include the setting up of a headquar- ters organization; developing a field extension service with effective disease control in the areas of , North and Danna; instituting a credit scheme for farmers' inputs; and a market survey on which to base an expanded apple program,with supporting work in storage, packaging and marketing arrangements; (see Technical Annex 3). - 3 -

(b) Pilot Vegetable Seeds scheme, including the construction of a Seeds Processing Plant at the Chattar Kalas farm and a nucleus extension service in the Bagh, Hajira and Hattian areas for the promotion of farmer out-growers of vegetable seeds and development of vegetable production for local use and sale; (See Technical Annex 4).

(c) Pilot Fuelwood Plantations amounting to 3000 acres in Batika, Kotli, Hajira and Bagh areas. In the first year these would be established in the Declared Forests and expanded in subsequent years in Shamlat and private lands. The production of additional tree seedlings for sle to private farmexs would also be included; (SeeTechnical Annex d). (iii) Training (See Technical Annex 6)

(a) In-service short courses with the ongoing ARC/ CIMMYT program;

(b) 2-year certificate courses in general agriculture at Lyallpur and Peshawar;

(c) 3-year (condensed) graduate courses in agriculture, under special arrangements with Lyallpur and Peshawar;

(d) 5-year graduate courses in agriculture at Lyallpur, Peshawar and Tandojam;

(e) 4-year graduate courses in animal husbandry at Lyallpur;

tf) 6-month short courses in livestock at LyalIpur;

(g) 6-month courses for apple technicians at Muzzaffarabad; and

(h) 6-month special courses in machine maintenance (seeds plant) and seeds processing.

(iv) Land Use Planning (See Technical Annex 11)

(a) Aerial photography of the State and the production of base maps; and

(b) setting up a Land Use and Development Planning Unit under the project manager. (v) Follow-Up Project Preparation (See Technical Annex 12)

(a) Preparation of a follow-up project based on the techniques developed, farmer responses achieved under the pilot schemes and land capability assesed by the land use and development unit; and

(b) Assembly of data and execution of studies needed for developing follow-up project(s).

7. The locations selected for the main activities are summarized in Table 1. Technical annexes 1 to 12 contain sector background information, detailed descriptions of the various activities, terms of reference for the various studies and job descriptions for the senior staff posts. The main activities are summarized in Table 2.

Management

8. The project would be under the management of a project director of secretary rank, who would be responsible to the Chief Secretary GOAK, through a project development committee composed of the Chief Secretary as Chairman, the Development Commissioner, Secretary for Finance and Project Manager. A new post for the project manager would be created of Secretary for Agriculture, Animal Husbandry and Special Project, which would fit into the present organization of government. The project manager would be assisted by a land use specialist, who would co-ordinate with line departments in the production of sub-watershed development plans which would form the basis for preparing follow-up project(s). Provision is also included for an agricultural specialist, who would be seconded to the department of Agriculture with special responsibility for technical development activities.

Costs

9. Project costs are derived in the detailed cost tables in Table 3 and are summarized below. Total costs are expected to be PRs. h4 million (US$4.5 million), including physical and p.rice contingencies. - 5-

Summary of Project Costs (PRs million) Years

1 2 3 Totals AGRICULTURE Experimental/Demonstration Farms 1.283 1.606 .645 3.534 Cooperative Maize Program (ARC) .304 .262 .276 .842 Pi-lot Apple Scheme 2.016 2.777 2.404 7.197 Vegetable Seed Production and Pilot Vegetable Scheme 2.424 0.743 0.678 3.845 Training .792 1.192 1.408 3.392 Support Services .724 .067 .067 .858 Totals 7.543 6.647 5.478 19.668

FORESTRY

Pilot Fuelwood/Pole Plantation .744 1.202 1.309 3.255 Research .317 .157 .161 .635 Training and Consultancies .065 .005 .065 .135 Totals 1.126 1.364 1.535 4.025

LIVESTOCK

Fodder Utilization Trials .326 .123 .119 .568 Dual-purpose Breed Improvement .606 .259 .150 1.015 Training .051 .081 .112 .244 Totals .983 .463 .381 1.827

PROJECT MANAGEMENT AND PROJECT PREPARATICN Totals 5.791 2.827 2.827 11.445 TOTAL BASELINE COST 15.443 11.301 10.221 36.965 Physical Contingencies .550 .300 .297 1.147 Sub-Totals Price Contingencies 1.049 1.813 2.675 5.537

TOTAL PROJECT COST 17.042 13.414 13.193 43.649 US$ (million) Local (63%) 2.8z Foreign (37%) 1.64 Total 4.46

1/ Based on July, 1977 prices. 2/ See Table 4, page 2 for detailed calculation. 3/ See Table 4, page 3 for detailed calculation. -6-

Financing

10. Financing of the project would be by 34% GOP contribution and 66% IDA credit. ProJect funds would be channelled from GOP to GoAK who would make a budgetary a]]ocation to the project manager who would maintain separate accounts for the project. GOP and GOAK would undertake to provide 2-months estimated future project expenditures in a fund for project use.

Benefits of the Project

11. The project would provide a sound basis for proceeding with the rational development of the agricultural sector within the overriding constraint of sustainable land use practices. The experimental trials in food and fodder crops would result in the development of techniques to enable substantial increases in crop production to be achieved which could be applied to a significant part of the 500,000 acres of tilled area of the State.

12. The pilot program in apples and vegetables will lay the base for an expansion of these crops which have a relatively high farmer-income generation potential. By addressing the cattle feed and breed improvement problems, a sound basis will be established for follow-up projects to improve the livestock sector. Development of both an improved technology in forestry and a system of user participation in establishing sustained fuelwood supplies, will provide the basis for the future large-scale reforestation program which must be undertaken to prevent further degradation of the State's forests, soils and water resources. PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

location and Rursica] Features of Areas of Proiect Activities

i/ Elevation Est. Annual Occurrence of Frost/Snow Map Index (000 ft.) Rain.fall (in) Valley Bottom Ridges

ZxDerimentaln2eMonstration Farms Kotli G/14, K/3, G15, G/10 1,500-3,000 50 -I- -I- Danna F/12 2,000-6,000 55 +/- +/+ Iang Bajri G/9, F/12, 0/13 2,500-6,000 55 +/- +/+ Abbaspur 0/13, G/4, 3,000-6,000 60 ++/+ ++/++

Apple Nurseries and Development Areas Chamyati Nursery F/12 (A3) 4,500 55 n.a. n.a. Dhirkot area F/12 4,ooo-6,ooo 60 ++/++ ++/++ Bagh Nursery G/13 (Al) 3,500 55 +/+ N. Rawalakot area G/9 4,000-6,000 60 +/+ ++/++ Chattar Kalas Nursery F/B (C]) 2,000 40 - Danna area F/12 4,000-6,0oo 60 +/+ ++/++

VeRetable Seed Production as Chattar Kalas (Farm and Processing) F/8 (Ci) 2,000 40 Bagh G/13 3,000-5,000 55 +/+ ++/++ Hattian F/12 (C1) 3,000-5,000 70 +/+ ++/++ Hajira G/13 (B3) 3,000- ? 60 +/+ ++/++ Forest Research Center Batika (main center) F/ll (Al) 2,500-5,000 55 +/+ +/+

Forest Pilot Fuelwood Blocks lCotli G/14) HaJira G/13 ) See above Bagh G/l3) Batika F/li )

Fodder Utilization Trials and Breed Iarovenent Ohari Dopatta 2/ Fh2 (B1) 2,500 55

I/ Naps Series No.43 of Land Capability prepared for WPD by Huntings Technical Services, UK, 1959-60 at sca] e of 3:63000 listed in order of area coverage. Codes in brackets, e.g., (A3),denote square on map sheet. 31 + denotes incidence - denotes absence 2/ Preliminary initial area selection; this and other areas to be finalized. Table 2

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Summary of Main Activities

Project Years

Technical 1 2 3 Total Annex No.

Establishment of Eperimental Farms 2 2 4 2

Naize Variety/Fertilizer Trials 110 130 140 380 2 Maize one-acre Multiplication Plots 5O 240 320 610 2

Apple Nursery Upgrading 2 1 3 3

Pilot Apple Scheme Development (acres) 150 300 450 900 3 Seeds Farm Development--Vegetables 1 1 4 Vegetable Seeds Processing Plant 1 1 4

Vegetable Extension Areas 3 3 4 Fodder Utilization Trials ----- continuing----- 10

Breed Improvement Activities -----continuing---- 10

Experimental Pbrestry Plantations (acres) 30 30 60 8 Pilot Puelwood Plantations (acres) 500 1250 1250 3000 8 Agricultural Training, 6-month, 2-year, 3-year, 5-year courses --- continuing----- 6 Animtal Husbandry Training, 6-month and 4-year courses ----- continuing----- 10

Aerial Photography Executed in Year One 11 Land-Use Planning ----- continuing----- 11

Project Preparation -----continuing--- 12 P A K I S T A N HILL FARMlNG TECHNICAL DEVELOPMENT PROJECT

Details of Physical Requirements and Costs (PRs'000)

Requirements (Years) Unit Costs Costs (Years) Activity and Items Units l 2 3 1 2 3 Total

EXPYXIaM TAL/DDI)NSTRATION FARMS 2 2 Twnd Acquisition at 6 aeres/far2 aeres 24 8,000 to 20,000/acre - - -

C talJCost,: 2 Aooeaodation Hostel for 6 staff/hostsl3 1,500 ft 2 2 100/ft 2 300 300 600 offcee Block and Store 800 ft 2 2 2 80/ft2 128 128 256 Water Supply to Main Buildings 2 2 10,000/unit 20 20 40 Levelling and Terracing acres 12 12 400/acre 5 5 10 Fening acres 12 12 3,000/acre 36 36 72 lccess Roads, approx. 1 mile/farm miles 2 2 30,000/mile 60 60 120 Connecting Tracks, approx. 2 miles/farm miles 4 4 20,000/mile 80 80 16 Jeep, SWB and Trailer no. 2 2 100,000/unit 200 200 400 Motor Cycle, 100 cc4,10 cc no. 4 4 8,000/unit 32 32 64 Wquipment and Tools2i sets 2 2 30,000/set 60 60 120 Office Furniture and Equipment Y sets 2 2 20,000/set 40 40 80 Sub-total 961 961 1,922 Qe rating Costs: Farm Inputs of seed, fertilizer, oxen hire, insecticides, casual labor units 2 4 4 26,000/unit 52 104 104 260 Staff Salaries:4 Asst. Agronomist i/c Station Gd 17 no. 2 4 4 23,730/year 47 95 95 237 Agric. Assistant (Fodder) Gd 16 no. 2 4 4 19,000/year 38 76 76 190 Crop Overseer, Maize Gd 9 no. 2 4 4 12,020/year 24 48 48 120 Crop Overseer, Pulses Od 9 no. 2 4 4 12,02U6/year 24 48 48 120 Crop Overseer, Fodder Gd 9 no. 2 4 4 12,020/year 24 43 48 120 Junior Clerk Gd 5 no. 2 4 4 5,930/year 12 24 24 60 Baildars (= semi-skilled man) Gd 1 no. 2 4 4 4,620/year 9 18 18 45 Chodkidar Gd 1 no. 2 4 4 4,620/year 9 18 18 45 Jeep running at 8,000 miles/year 000 ndl" 16 32 32 2/mile 32 64 64 160 Motor Cycle running 12,000 miles/year 000 miles 48 96 96 0.35/mile 17 34 34 85 Office Expenses and Buildings Mntce.y units 2 4 4 17,000/unit . 68 68 17Q Sub-total 645 645 1,

Total, Capital + Onerating 1.283 1 606 645 3.23

/ To be acquired by OCAY at Danna, Kotli, Bhanguin, Abbaspur. Each farm would comprise approx. 3 acres at main center with 2 additional areas of apprwC, 1.5 acres to represent higher/lower eco-sones; estimated distance (by road) between areas = 1 mile with ale ation variations or 500' to 1,000'. / Detailed plans being prepared by GOAK. Hostel accomnodetion provided initially since staff families are expected to reside in towns for schooling and amenities. See schedule 2 for details. P A I I 8 T A N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Detals of PWsical Recuiromnts and Costs (PRO000)

Requiremnts (Yearn) Unit Costs Costs (learn) Units 1 2 3 (PRs) 1 2 3 Total

MAIZE RlURCBH P10(Ut E=3&N (Ac/aC 2T)

Motor Cycles 100/110 cc No. 8 8,000/mit 614 64 Field Equipment Sets 8 1,000/et 8 8 Sub-Totala 72 72 Oerting Coatas 5 x 8 V_a¢re vriety trials No. 440 10 40 55/trial 2 2 2 6 5 x 8 1/8-acre fertiliser trials n 40 40 40 100/" 4 4 4 12 1/10-acre Diamond trials 32 48 614 50/" 2 2 3 7 1-acre farmer multiplioation n 50 240 320 160/acre 8 38 51 97

Staff Selariess gric. Assistants Gd. 16 * 8 8 8 19,000/year 152 152 152 456 Field " U 5 51 16 24 32 - - - Motor Cycle runming costs at 12,009,miles/year 000 miles 96 96 96 0.35/mile 34 34 34 102 Travel and mubmistaeno, ARC aff Y das 30 30 30 320/day 10 10 10 30 n n nt CDIICUT 30 30 30 n n 10 10 10 30 "U s&I etc." n 30 30 30 n n 10 10 10 30 Sub-Totals 232 262 276 770

Total Capital + Opaqting 304 262 276 842

5/ ating staff in post who win be secnded for this duty. j Based an 100 Aile/day at P42/slle plus 1P120/day for living costs - PR320/day. All thre organizations have indicated their strong support for the extenion of the program to Azad Kashmir. USAD are speci cally addressing develo e t of dry-land

ReQuireasats (lrm) unit Costs Costs (Years) Units 1 2 3 PRO 1 2 3 Total PILOT APPIZ SCHDI3 1 ' tlpgading llsting Rureeri.sW ChaVat i Chatter Bagb Kalas Nursey Prtduction, based on 120 plans/aew plus 25% for caled plants 000's 68 90 112 Aple orchards to be planted acres 150 450 Capital Costs: NU5417 n' 1pg0adi 2 HBadquarters Office, 2 90 97 187 uaffraabd , f 700 100/It 70 Store ti 70 12/L n 600 80/n 1h8 Hostel 48 n i./VW " 3,000 100/" 300 Fied Offie/Store, Hort. Asat. (500 rtz) 300 2 " (2) 1,000 (2)1000 (2)1000 80/" 80 Of~" 11 0 Field sat. (300 80 80 20 ft )1/ai - (20)6000(206000 "It - 480 480 Office iquipmant/ Headq%uarter 960 Sets I 33,000/set 33 " " Field 33 " 2 22 22 1,500/1" 3 Jeepe, SIB for Headquartere 33 33 69 staf NO. 2 92,.000/unit 184 " " Field Hort. Asats. 184 a 2 2 2 n" 184 184 184 552 Ihtor Cycls, 100 cc Field Ansta, n 10 10 10 Bmb-Totals 8,000/ " 80 80 80 21ho 1,072 Operatina Costss 954 857 2,883 nsmo7r Production Costav 000' 113 158 202 0.5/transplant Staff Salaries: 57 79 101 237 Project Coordlnator (Apple) Gd. 18 No. 1 1 1 I 32,750/year 33 33 33 99 Aswistat (Planlng & Vlonitqrinf) n 17 1 1 1 23,730/" 24 24 24 72 Assistant Acounts Offtceir " n 1 1 1 19,230/ " 19 19 Accountant f11 19 57 n 1 1 1 9,760/" 9 9 9 27 Clerks n 5 3 3 3 5,930/ 18 18 18 Drivers n3 54 2 2 2 8,760/ 17 17 17 51 Cbokidars and Peons " 1 " 2 2 2 4,620/ 9 9 9 27 Horticultural Aeet. (Field) n 16 " 2 4 6 19,000/ 38 76 114 228 Apple Technicis " 5 " 20 40 60 9,530/ ' 190 Horticultaral Asst. (nursry) 381 572 1,143 n 16 n 2 3 3 14,500/ " 2 Headquarters Jeep at 20.000 29 44 44 117 iles/year 000 le. 140 40 40 2/mile 80 80 Hort. Asst. Jee at 10,000 mles/year 80 240 " " 20 140 60 " a 40 80 120 2I40 Field n N/Cs " 12,000 " " n n 120 240 360 0.35/ n 42 84 126 252 Office tenees and Building aintnece2( 3838 Sub-Total. 38 643 99 114 z,2 Conaltanies ,IW Eru - a elist (lX) Ha months 1 1 60,000/a.A. 60 " Ha~~~~'~~eeimliut 60 120 " ~~~~~~~1" 2 1 a 60 120 60 2140 * p " (F) " 3 3 2 5,250/ 16 16 10 142 TreeNursery n (1x) n n 1 1 60,000/" 60 60 120 nf "n if P) " n 2 2 2 5,250/" 11 10 11 32 arading, Packing, Storage Specialist ) n n Consltancy 1 75,ooo/" - - 75 75 Air Travel (samud Burope) Return Fare 3 3 2 12,500/r.f. n Lnca 38 38 25 101 Months 8 9 6 7,000/month 56 63 42 Sub-Totals 161 Subrkt oiSvl&Ua for Pidtatn Studrli'a 301 347 223 591 4 15/ 465 Ik65 Total Capital + Operating + Consaultancies 2,016 2,777 2,404 7,197 L/ See Technical Annex 3 for detailed desaription of Apple Development Program. -I/ land to be acquired by GOAK; approx.1/8-acre/ §/ aG land operated by Department of Agriculture. dite. 2/ Uee detail, in Schedule 3. LQ/ Site available 'twixt SoUs ILb and Entomolog lab. 1/ Store conatructed in year following _1,epemible for intretatian ad e"atw identif- tiou of wen t _ . cation/enrolment of 60-famer group. 1Draftterms of ref neeas being pepared by DID for approval by MX . ]I/This study would cover all Pakistan, including Asad Kasbair -- see Technical Annex 3, Appendix 2 for TOR and detailed cost estimates. PA K I S T A N

HILL FARNING TECHNICAL DEVELOPMENT PROJECT

Details of Project Physicil Requirements and Costs (PRs.OOO)

Reca 4rements (YearS) Unit Costs coMa (Years)

PILOT PIIDTS3~~ V3~~~l3LE SCHD4E Units I VEG3>BIJ SM SCHRED _ 2 _ 3 PRS - 2 3 Total Upgrading Chattar Ka]as seed farm and instsf lation o ' seeds p]lant. ! Capital: I Renovation of 3 miles irri Zation channel miles 3 135,000/mile 410 410 Improvement in level3in7 and feeder channels over 20 acres. acres 20 2,000/acre 40 Farm Equipment: 4o 45 hp. tractor I 1 78 Two-Furrow reversible 78 plow I 25 i5 Disc Harrows 1 4 Cultivator 4 4 Grader-I eve]l er 4 Seed drill (vegetable 24 seed) 1 20 Ridger 20 ]3 3 Veg. seed Thrasher 50 Motor Sprayer 50 1 Tractor Trailer 12 Small Tools 12 10 Spare Parts inventory 10 2 .0% of capital costs) 35 Seed P1ant Equipment: - Clipper (seed harvester) 1 27 27 Cleaner and Grader 1 65 ! 65 Indented Cylinder (Processine) 1 35 35 Gravity Separator 1 34 Scales 3 sets 3 2,000/set 6 6 Seed Treater (Drum) I ° Hleat Sea]ing, Machine (packaging) C1 1 7 7 Bins, Racks, Small 1. Tools 10 Seed 20 Germinator 1 3 Moisture Tester 3 f 3 Seed Dryer 3 1 13 13 Seed Extractor (Tomatoes, Peppers) 1 35 Air Conditioner 13 18 1 117 17 16/ Detailed suzr*y and cost estimates ty qu.aJftled eng.neer oeln', ooDainea DYyti,- ; Based on reqidrements specified 8 in Pakistan Seeds Project (Report 7 1a PAK). To be vetted and finally approved by consultants from this project. I To be installed in existing store for storage of certain seeds. P A K I S T A N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Pro.ect PhXsicaIl Reouirements and Costs (Wa.OOO)

Requirements (Years) Unit Costs Costa (Year ) Units _ 2 3 Ps. 1 2 3 Total

Glenerator set, !ib No.2 77 !;1i na 1 38 38 Wiring and Switch gear 26 26 Tools set 10 10 Process Hall and Store 2,OOOft. 1 80/ft. 160 160 Tomato Shed 600 " 1 40 N 24 24 Implement Shed 400 " 40 " 16 16 Outside Drying Area 2,000 n 1 14 n 28 28 Bngineering and Desin an above at 8% 18 l8 Office Block 600 n 1 100 " 60 3-Ton Truck No. 1 200,000/unit 200 260 Jeep SIB n 1 l' 92,500/'" 92 92 Office Furniture and 3tuimnt Sub-Totals 1,726 1,72 Ooerating Costs: ! - Stafft Pau sand PlantManager Gdk 17 ] 1 1 23,730/year 12 24 24 60 Farm Superintendent " 16 1 1I 14,500/" 7 14 15 36 Process 16 | 1 14,500/" 7 14 15 36 Maintenance Mechanic a 16 1 2 1 14,500/" 7 14 15 36 Records Officer/Accomtant, ' 11 2 1 1 9,760/" 5 10 10 25 Head Clerk a 20 1 1 1 9,070/" 5 9 9 23 Clerk-Typist " 5 ! 1 1 1 5,930/" 3 6. 6 15 Field men n 5 4 4 4 5,930/" 12 24 24 60 Fam Bail ders n I 8 8 8 4,620/" 18 37 37 92 n Casual labor md. 458 4,500 4,500 13/md 29 59 59 147 Drivers n 3 1 3 3 3 8,760/year 13 26 26 65 ;t U Plant Operators n1 4 4 4 4,620/" 9 18 18 45 'd Plant Casual labor md. 1,800 1,800 1,800 13/md 12 23 23 58 Chow Kidars, Peona, Cleamrs n 1 4 4 4 4,620/year 9 18 18 45 Fam inputs of fertilizer, spra3s, seed, etc. 350Jacre 4 7 7 ]8 Tractor running costs hours 1 ,000 1,000 1,000 20/hour 20 20 20 50 Generator running costs 5Kw 2,000 2,000 2,000 7/ n 7 14 24 35 Generator n n"25Kw _ 2,000 114/" 1,000 7 14 24 35

LLY 51 of full-year operating costs in Year 2. P A K I S-T A N HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Project -Phzsical Requirements and Costs (PRs.O0O)

Req rents (Years) Unit CoSts Co ts (Year ) Units 2 PRs. I 2 3 Total

Packaging Material s - - Maintenance of Plant, 10% of capita costs @ 37 37 93 Vehicle running, 3-Ton Truck 000 miles 10 10 l0 2/mile 10 20 20 50 of t Jeep n n 10 20 20 1.0 20 20 50 Office Expenses and Building Maintenance 8 g 38 IAintenace of Main Channel I 2 50 Sub-Total s 26 479 -481 1,180 Consul tancies / 1. Design of plant and equipment; prepare specification and tender documents; assist with bid evaluation mm. I 65,000/mm. 65 65 2. Supervise equipment installation 2II n 65 65 3. Running-in plant and initial training I n 65 65 4. Seed Fanm plaTning; market outlets I assassment; detailed budgeting I :50000 n 50 | 50 5. In-servim training and procurement a 58,000 58 58 Air Tmvel ./ -_ Local Travel and Subsistence months 4 1 9,000/month 36 1 9 45 Sub-Totals 281 67 348

Capital Costs 3K I| Motor Cycles, lOOcc/IlOec No. 3 8,000/unit 24 24 Sprayers and Tools sets 6 1 2, 000/set 12 6 18 Sub-Totalsa 3 O2erating Costs 1 5 57 Aset. Agricultural3Officer(Vegetables) Gd.16 No. 3 3 3 19,OOO/year 57 7 517 171 Field Assistants n n 5 6 9 9 9,530/ 57 86 86 229 Fieldmen " I n 6 9 9 4,620/ 28 41 41 110 Motor Cycle Running C 10,000 miles/year 000 miles 30 30 30 0.35/mile l] IIl 33 Experimental Supplies I Thols maintenance 2 2 2 6 Sub-Totalsa 197 | 1 Ttals for Co_po t. _tabLe _-43 b7b 38- 20 t is proposed to use the same consultants who are associated with the Palkistan Seeds Project. Air Fares Would be absorbed by that pro,ject. 2j2/ Existing offices/stores are available and adequate for this initial phase. M/ Provided fm Chatta . 2 er seedas ras andrertiizrs proided to famers either on cash or credit. G are advising crdit arrangemena, revato g`d&ror i nw no coe ne prlen pteveor PAKISTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT DFTAILS OF PHYSICAL RFUgIRD(DTS AND COSTS (PRs.OO()

Requirements (Years) Unit Costs Cbsts (Tears) Units 1 2 3 PRs. 1 2 3 TOTAL A'LltULAUhL burVKr 9IkTtVlUc Soil Testing and Foliage Aalysis?a Capital Costa: Laboratory 7 iuipment 24/ set 1 500 500 Jeep, SWB no. 1 92,000/unit 92 92 Sub-total 59 _ 55r Operating Costs: Jeep running costs, 10,000 miles/years 000 miles 10 10 10 2/mile 20 20 20 60 Laboratory stores 10 10 10 30 Tools Maintenance 1 1 1 3 Sub-totals 31 31 31 93 Meteorological Rain Gauges: Demonstration Farms no. 12 Field Assistants, Maise no. 12 Main Laboratory no. 1 Apple Technicians no. 60 General Field Assistants no. 75 Additional Sites no. 60 Sub-totals 20 50/unit 12 12 Thermometers: at same posts as rain g&Auges no. 230 4O/unit 9 9 Barometers: at main stations no. 20 1,000/unit 20 20 Altimeters: for field use no. 5 800/unit 4 4 25/ Sub-totals Wntomology - 45 15 Entomologist (Grade 18) 1 1 1 32,700/year 32 32 32 96 Ancilliary Equipnent 20 20 Sub-totals 52 32 32 Publicity 116 Printing of information pamphlets for field staff and lead farmers no. 7,000 7,000 7,000 500/1,000o 4 12 Total Capital and Operating 724 b7 67 858 23/ Annual Sampling: 1,000 full samples plus 1,500 partial samples/year, excluding field kit (indicative) sampLea. Soll cneXIlS and 2 assistants are in post and available for this work. 24/ See Schedule 4 i / Laboratory facilities exist and laboratory running costs are provided in normal budget. PA_K I ST AI! HILL FARMING TECHNICAL DEVESLPtNT PROJECT

Details of Ph_ysicLl Hequirements ed Costs (PRs'OOO)

Activity uid Item Units Requirepeuts (years) Unit Costs Costs (Years) ______1 2 3 1 2 3 Total AGRICULTURAL 2IN Malze Rtesearchi Wor ers=. trainees 8 8 8 2,500 20 20 20 60 Apple Technicians Course/ man-months 120 120 120 400 48 48 Apple 48 l144 Technicians Repeater Course7/ man-months - 60 120 400 - 24 48 72 2-year Certificate CourseL/ student/year 30 60 90 7,930 238 476 476 1,120 3-year Graduate Courseg2 student/year 30 40) 50 10,190 306 400 510 1,224 5-year Graduate Courses2 student/,ear 10 20 30 10,190 102 204 306 612 Special 6-month Fruit Coursely trainees 2 2 - 6,000 12 12 - 24 Special 6-month Mechanics CourseL/ trainees 1 - - 6,000 6 - - Vegetable Seed Processing 6 Course2.Y trainees 1 _ 60,000 60 - - 60

Total 792 1,192 1,408 3,392

2§/ ARC/CIM Cooperative Maize Program Special Course: 70-days in-service txtining at Firsabate (NL,TFP). / Conducted as part of in-service training at Agricultural Training School. 6 months initial course; 3 months repeater course each subsequent year. 2/ 15 students/year each at Lyallpur and Peshawar Universities. / For ?SC pre-medical candidates, offered special remedial training before entering 3Sc (Agriculture) Course at Lyallpur University. I/ For matriculation candidstes (5 per year each at Lyallpur and Peshawar Universities), entering the 2-year FSC (Agriculture) Courses prior to the BSc (Agriculture) Courses.

?/ In-service training to be arranged in Pakistan. 7 Arrangements to be made for Plant Superintendant for in-service course in Europe or UK (6 months). PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of PhYSicia Re*uireents and Costs (Re.O000)

Units Requirenents (Years) Unit Coats Costs (Years) Total 1 2 3 MRe. 1 2 3 FORSSTRY =UPRIMENTAL TIiLLS AND PILT? PLLNTLTIONS 1bcoerlventa ProEr stabliabent Trials acres - 20 20 Gmentic Trials " - ]0 10 Nursery Production at 800/acre (including 10% cul11ng) tranap]ants 21.000 24o.00 24,0CO Capital Costs: Extensimx of 8zlsting Batilma Nursery 2 acres Levelling and Terracing 2 2,000/acre 4 4 Fencing n 2 3,500" 7 7 Water Supply U 8 t2 12 12 Office/Store/Residence 600 ft. 1 80/ft. 48 48 Hand Tools and Sprayers 1s 4 Jeep and Trailer, DFO Research I 100,000/Unit 100 100 Office Furniturs, Scales, Calculator, and Measuring Equipment 12 12 Sub Totals 187 187 Operating Costs Nursery seeds 3 3 3 9 Soil and Sand 2 2 2 6 Compost and Fertilisers 2 2 2 6 Pol ythene Tubes 2 2 2 6 Insecticides 1 I 1 3 Oxen hire 1 1 1 3 Tools maintenance 3 3 3 9 Nurserry m no. 1 1 1 4,620/year 5 5 5 15 Casual Labor for nursery work, land preparation, planting and tending man days 400 1,800 1,800 13/md 5 23 23 51 Plant Trsnsport - 4 8 Casual labor for weeding and cleaning n " 300 600 " " 4 8 12 Casual Labor for Firebreaks and Tracks " 60 60 -33 1 1 2 Staff:DFO Research (Fast Orowing Species)kd.i8 no. 1 1 I 32,750/year 33 33 33 99 Range Office (Research) n ]6 n 1 1 1 19,000/ 19 19 19 57 Forester nr 5 n 1 1 9,530/' 10 10 10 30 Driver n 3 n 1 l l 8,760/ " 9 9 9 27 Jeep Running Costs, 15,000 miles/year 000 miles 15 15 15 2/nile -0 30 30 90 Dffice Expenses and Buildings Htce. _ 5 5 5 S9b Toka2s Capita] + Operating T5 ti 43 P AK I S T A N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of PhYsical Roquirmants and Costs (PRs.000)

Units Requirements (Years) Unit Costs Costs (Years) Total 1 2 3 PRa. 1 2 3

Training and Consultace DFO (Fast Growing p months 1 1 1 l,OOO/month 1 1 3 Forest Rangers and Dy.Ragers 2&/ 5 5 5 800 n 4 4 4 12 Plantations Specialist/ eneticist n 1 1 60,000 n 60 60 120 65 135 Sub Totas 65 FFelwood/Pole Pilot Plantations Program: Bagh acres 150 375 375 Batika n 100 150 150 lRajra 150 375 375 Kotli n 100 350 350 Totals n 500O 1,2 1,250 Nursery production at BOO/acre Tratnsplants 400,000 1,000, 000 1,000,000 Plus sales to famrers 200.000 200.000 200,000 Totals 600AO0 1.200.000 1.200.000 CaDital Costa xtaision of 1.5 acres tyxisting nurseries at Bagh, Hajira, Kotli Levelling, irrigation channels, seed beds and patha acres 4.5 2,000/acre 9 9 Fmcing n 2 4.5 3,500/ "2 16 16 Nursery Store/Range Office 500 ft. 3 80/ft 120 120 Tbools aid EquipMent sets 3 3,OO/set 9 9 Office Furniture and Equipment sets 3 ] ,500/set 5 5 Motor Cycles 100 cc/'l cc no. 4 8,000/unit 32 32 Sub Totals 191 191

/ Research nursery and main trials at Batika Forest; some field trlals would be instituted in in years 2 or 3. The Batika nursery will also provide transplants for Batika pilot plantations. (See previous page) / Will provide technical supervision to pilot plantations and give in-service training at Batika nursery. Main office accommodation for DFO available and suitable at Musaffarabad Forest School. (See previous page) &/ In-service training at Rasama Forestry Project and P.7,1, Using similar consultants servicing the Hazara Forestry Project. 3V 8' x 8' spacing - 6 80/acre plus 20% beating up and culling. 39/ Batika nursery capital costs included in Experinental Program. P AK IS TA N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Pbysical Requirements and Costs (PRs.O0O)

Units Requirements (Years) Unit Costs Costs (Years) Total 1 2 3 PRs. 1 2 3

Operatinz Costs of Four Production Nurseries: Seeds and Planting Stock 2 4 4 10 Fertilizers tons 0.3 o.6 o.6 1,400/ton 1 1 1 3 Soil n 65 130 130 50/ " 3 7 7 17 Sand n 30 60 60 60 " 2 4 4 10 Compost/manure a 7 14 14 300" 2 4 4 10 Polythene Tubes (60% Production) 000 360 720 720 60o/,000 22 43 43 l08 Insecticides 2 4 4 10 Hire of Oxen, 20 - 40 days/year/nursery 80 160 160 35/day 3 6 6 15 Nurserymen 4 4 4 4,900/year 20 20 20 60 Tools Maintenance 2 4 4 10 Casual labor at 7 man days/I,000 man days 4,200 8,400 8,400 13/md 55 109 109 273 Plantation Establishment Costs: land Preparation at 20 pits/man day n n 17,000 42,500 42,500 n n 221 553 553 1,327 Fencing, using local materials on 50% of area at 10 md/acre n n 2,500 6,250 6,250 a n 33 81 81 195 Transport of planting stock by hired trucks at 12,000 plants/day/truck track days 30 75 300/day 9 23 23 55 Manual Transport of Seedlings at 300/md man days 1,133 2,800 2,800 13/md 15 36 36 87 Planting, 150 transplants/man day n n 2,266 5,660 5,660 n n 29 74 74 177 Replanting (Beating Up) 9 23 32 Weeding, Year 2, at 5md/acre n n 2,500 6,250 " n 33 81 114 Salaries: Forest Rangers Qd.16 no. 2 2 2 19,000/year 38 38 38 114 Deputy Rangers Gd. 6 n 2 2 2 10,140/ " 20 20 20 60 Foresters Gd. 5 3 3 3 9,530/! 29 29 29 87 Muhafis (Guards) at 1/50 acres 10 35 60 1,800 " 18 63 308 189 Motor Cycle Running Costs at 8,000 miles/year 000 miles 32 32 32 0.35/mile 1] 11 1] 33 Tools Maintenance and Replacement 10 20 20 50 Office Expenses and Buildings Maintenance unit 4 4 43 1,5oo/u1it 6 6 6 18 Sub Totals T 302b9 T6 n n Capital + Operating 744 1,202 1,309 325

Total Forestry Components 1,126 1,364 1,535 4,025 P A K I S T A N HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Physical Requirements and Costs (PRs.OOO)

Units Requirements (Years) Unit Costs Costs (Years) Total 1 2 3 PRs. 1 2 3

LIVESTOCK FODDER UTILIZATION TRIALS Capital Costs 2 Office, 40/ 260 sq. ft. unit 1 100/ft2 26 26 Laboratory, A) 2 5 sq. ft. unit 1 80/ft 18 18 Office Furniture 41/ set 1 4,100/set 4 4 Laboratory Fxiyiture set 1 6,000/set 6 6 Drying oven 41/ unit 1 24,000/unit 24 24 Other laboratory equipment - 1 2 2 Vehicles: Jeep SWB with trailer unit I 100,000/unit loo 100 Motor Cycle, 100 cc. unit 1 8,100/ " 8 8 Field Equipment: Tarpaulines unit 2 2 1,000/ " 2 2 4 Bunker-type si unit 1 1 2,000/" 2 2 4 Miscellaneous - set 1 14,000/set 14 14 Sub-Totals 206 4 210 Operation Costs Staff salaries - Livestock Officer, Gd.17 no. 1 1 1 23,730/year 24 24 24 72 Livestock Assistant Gd. 8 no. 2 2 2 11,440/ " 23 23 23 69 Junior Clerk Gd. 5 no. 1 1 1 5,930/ " 6 6 6 18 Driver Gd. 3 no. I 1 1 8,760/" 9 9 9 27 Peon Gd. 1 no. 1 1 1 4,620/ " 5 5 5 15 Casual Labor man days 150 150 150 13/day 2 2 2 * 6 Laboratory materk s unit 1 1 1 6,000/unit 6 6 6 18 Office expenses set 1 1 1 3,100/set 3 3 3 9 Field expenses Polythene bags unit 100 10 1 1 Urea bag 20 20 10 50 1 1 1 3 Molasses and mineral blocks 20 20 20 60 Vehicle operation Jeep 000 miles 8 8 8 2.0/mile 16 16 16 48 t b Motor Cycle 000 miles 10 10 10 0.35/mile 4 4 4 12 a Sub-Totals 120 119 119 358 X Totals, Capital + operating 326 123 119 568 M ' 40/ Office for Livestock Officer (Gd.17) @ 160 sq.ft. plus office for clerk @ 100 sq.ft. 41/ See Schedule 5. 42/ Approximately 12 cubic feet capacity. 43/ Glassware, chemicals, bags, twine, maintenance and sundry expenses (lump sum provision). P AK ISTAlN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of PhYsica) Requirements and Costs (PRs.000)

Units Requirements (Years) Unit Costs Costs (Years) 1 2 3 PRa. 2 2 3 Total

LIVESTOCK Breed rorement 121 15 634 CaDital CostsL z b498 108 138 135 381 ODerating Costs 150 1,015 Tot.)s, Capital and Operating 606 259

45/ Staff Ugaiziaw 61 92 18h B.Sc. (Anieal Husbandry) man year 3 6 9 10,190 31 Iyallpur University 4-year course, 20 60 Livestock Assistants man year 2.5 2.5 2.5 7,930 20 20 6-month course, Lyalipur University 221 Sub Totals 51 B1 112

1,827 Total for Livestock Component 983 463 381

)/ See Schedule 6 Unit costs per student per year for each type of course derived as follows Deiree Course Certificate Course "Capitation Fee" : teaching expenses 4,000 3,000 Registration and Tuition Fee 190 ]30 Hostel accommodation fee 3,600 2,1400 Living allowance 2,400 2,hoo

Total 10,190 7,930 SI c*- CD PAK I S TAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT Details of Physical Reirements and Costa (Ps '000)

Activity and Item Units Requirements (Years) Unit Coats Coats (Years) PWJF=KAU~~~- 1 2 3- ?s 1 2 P1DJBCT MAiI51XT 3 Total Canpital costs- 2 Project 1H, Office, 2,700 ft , inci, 2 51/ drawing/sapping office, 1,OOO ft2 no. 1 125/ft 338 338 PhotogreVz7, suwvey & map printing Oqu±p.nSU2 2,000 2,000 Office Equipaent7/ 68 68 Jeepa, SWB no. 2 82,500/unit 165 165 Jeepa, 1MB no. 1 125,000/unit 125 125 Sub-total 2,9-696 Staffsrector d 2 f/ 1 1 56,500/year 56 56 56 168 SaN_ wee P ancialiat m 1 1 1 500,000/year 500 500 5°° l,500 u4tuzral drcp Davalop.Spec. 1 1 1 500.000/rear 500 500 500500 h1o/3eenmiut I 18/19 1 1 1 39,000/year 39 39 39 117 rve yr Gd 17 1 1 1 23,730/year 2 4 24 72 Assistant Sur9yor Gd 16 2 2 2 19,000/year 38 38 38 114 Cartograher Gd 16 1 1 1 15,000/year 15 15 15 45 Assistant Cartogrer Gd 31 2 2 2 9,760/year 20 20 20 60 Aasistant Aooounts Offioor Gd 17 1 1 1 19,230/year 19 19 19 57 Prourasment & Costing M Gd 17 1 1 1 23,730/year 24 24 24 72 Accountant Gd 11 1 1 1 9,760/year 10 10 10 30 8ead Clerk Gd 11 1 1 1 9,760/year 10 10 10 30 Stanographer Gd 11 1 1 1 12,200/year 12 12 12 36 Clerk/Typist Gd 5 2 2 2 5,930/year 12 12 12 36 Drivers Gd 3 3 3 3 8,760/year 26 26 26 78 Choiddaru and Peons Gd 1 4 4 4 4,520/year 18 18 18 54 Jeep Running Coats at 15000miloe/year 000 Miles 145 145 45 2/mile 90 90 90 270 11pping Supplies ad Stationary 20 20 20 60 Heating and Lighting 10 10 10 30 TalephDnee, Postage and Cables 12 12 12 36 Offioe Ra t / 25 - - 25 motal sGapes for out-of-gtate travel 50 90 50 110 NAintanmee of Building. - 7 7 14 4aintocme of Uquipaent 10 10 10 30 Nisellaneoua Stores and Sundries 30 30 30 90 AUdit vPm 25 1,5 bob-total 1,U' ,4N Schedule to be mutually prepared with Survey of Pakistan Se deltals in Schedule 7. Includes resonsibility allowance. , Internationallo recruited posts - see Job descriptions in Technical Annexes 11 and 12. 5/ For Year 1, while pyoject HQ under construction. / Includes PRs. 25/ftz for land levelling and connections for water and sewerage and electricity. P A K I S T A N

HILL !ARMING TECHNICAL DEVELOPMENT PROJECT

Details of PhySical Requirements and Costs (PRs'OOO)

Activity and Item Unite Requirements (Years) Unit Costa Costs (Years) ______1 2 ~~~~~~~~~3(PRa) 1 2 3 Total

Pro.Ject PreDaration: 52/ Project Special Fund for Studies, Consultancies and other costs of preparation of follow-up projects 1,250 1,250 2,500

Aerial Photography and Production of Base MaPS 53/ 1,500 1,500

Sub-total 3,500 1,250 1,250 4,000

Total Capital + Operating + Project Preparation 5,791 2,827 2,827 11,445

52/ See Technical Annex 12 for details of studies, consultancies and project preparatipn activities. 53/ GOAK and Survey of Pakistan have set up provisional arrangement for aerial photography at their meeting of November 18, 1976. PAKISTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECr Schedule of project salary scales based on GOAK Pay scales for Gazetted and non-gazetted Officers (P. Ra. per vear)

Salary Total Annual Salary Scale Basic Monthly Monthly Yearly House cration Daily Project Scale Average Pay Rent Medical 2/ eea 3/ Allowance- Disturbanc i With 15 (aver- 10%. of Allowancee- Allowance 3- Aloac Ditrac/ Daily Days age ) B.sic at 15 Bai 1/ day/monthAloacAllowance- Allowance Daily Salary -Aloac 1 250 340 295 3,540 354 100 99 Z,lbt 531/year 4,bL4 b,/t4 2. 260 365 313 3,756 375 100 105 2,160 563 " 4,899 7,059 3. 270 390 330 3,960 396 100 110 3,600 594 " 5,160 8,760 4. 280 415 348 4,176 418 100 116 3,600 526 " 5,336 9,035 5. 290 470 380 4,560 456 100 134 3,600 684 " 5,934 9,534 6. 315 525 420 5,040 504 100 140 3,600 756 6,540 10,140 7. 335 575 455 5,460 546 100 152 3,600 819 7,077 10,677 8. 370 640 505 6,060 606 100 169 3,600 909 7,844 11,444 9. 390 700 545 6,540 654 100 182 3,600 981 8,457 12,024 10. 410 760 585 7,020 702 100 195 3,600 1,053 9,070 12,670 11. 430 830 630 7,560 756 100 210 3,600 1,134 9,760 13,360 12. 460 900 680 8,160 816 100 228 3,600 1,200 10,504 14,104 13. 490 950 720 8,640 864 100 240 4,500 1,200 11,044 15,544 14. 520 1,010 765 9,180 918 100 255 4,500 1,200 11,653 16,153 15. 550 1,100 825 9,900 990 100 275 4,500 1,200 12,465 16,865 16. 625 1,325 975 11,700 1,170 100 325 4,500 1,200 14,495 18,995 17. 900 1,750 1,325 15,900 1,590 100 442 4,500 1,200 19,232 23,732 18. 1,350 2,150 1,750 20,700 2,070 100 584 8,100 1,200 24,654 32,754

19. 2,250 2,750 2,500 30,000 3,000 100 834 9,900 1,200 33,134 45,034 20. 2,600 3,225 2,913 34,956 3,496 100 971 9,900 1,200 40,723 50,523

1/ Based on 107, of Basic Salary; paid to all staff not provided with government accommodation. In addition to Daily Allowances, staff are reimbursed the actual cost of hotels (up to x 2 daily allowance) and travel by public transport. Salary scales used in project cost calculations assume an average of 15 days Daily Allowance for all posts involving duty travel; this amount would include incidental costs for hotel accosmmodation and public transport. 2/ Reimbursement of cost of Medical bills, estimated at PRs. 100/year. 3/ One month's pay every three years up to maximum of PRs. 1000. 4/ Payable when staff spend in excess of 6 hours/day more than 8 miles from duty office; normally 10 to 20 days/month for field staff on following basis Salary Scale (basic) Daily Allowance (PRs) 1 - 2 12 3 - 12 20 13 - 17 25 > 18 45 : 19 - 20 55 C 5/ Allowance based on 15% of Basic Salary for all Field Staff, subject to maximum of PRs 100/month. Schdiaile 2 PAKISTA,N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT pXerimental/Deonstrat±on Fars

EOuiVmit and O2eatinA Costs 8 Frm (PRs) EoUiiDe_t. Tools and Furniture: Noisture testing equipment 2,500 S&ales 1,500 Knapsack sprayer 500 Low volume sprayer 2,000 Maise sheller 6,000 Hand tools, wheel barrows, Sieves, etc. 5,500 Ox plows, ridgers 10,000 Sundry farm equipment 2,000 Sub-Total 30,000 Typevriter 39000 Calculator 1,000 Tables 1,000 Chairs 500 Cabinets 3,000 Cupboards 3,000 Files, shelves 4,00 Sundry office equipmt 14,500 Sub-Total 20,000

Annual ODerating Cost ver Farm: abor for tillage 11,000 Secds, local 250 Foreign seeds 500 Compost/manure 2,500 Fertilizers 2,000 BAulock todder 4,000 Insecticides 2,500 Bullock hire 600 Nisellaneous 2.650 Sub-Total 26,000 Annual Office Expenses and Building Maintenance: Stationery and field books 5,000 Lighting and heating 2,000 Sundry 1,000 Maintenance of buildings 9,000 Sub-Total 17,0M0 Table 3 Schedule 3 PASTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Pilot Apple Scheme surna= Unn'Din, Orrin&alnan and Aexansa SW Nursery Production Costs (Pis) Nursery UVaDSnu: Chatter Kalas Chalyati Banh Total Office/Store 300 ft 2 0 PER 80 24,000 24i,0o0 dxiating 48,ooo HottAsst. Home 400 ft 2 @ PtR 10oo 4o,ooo Existing Eidsting 40,000 Water supply improvement channel reservoir, header tasks and pipe replace- ment 10,000 10,000 10,000 30,000 Reterracizg 10,000 10,000 10,000 309000 Fencing 5,000 5,000 5,000 15,000 Sprayers 5,000 5,000 5,000 15,000 Tools and implements 3,000 3,000 3O000 9,000 Total 97,000 57,000 33,000 18,700 Office Equipuent - Headquarters

Desks, tables, chairs 10,000 Cupboards 2s000 Cabinet 2,000 2 Typewriters, lnglish, Urdu 12,000 Calculators 2,000 Telphone installation 2,000 Desk duplicator 2,000 Sundry 1,000 Total 3T3I= Annual Office Expenses Stationery and postage 5,000 Lighting and heating 2,000 Telephone 1,000 Maintenance of buildings 30,000 Total

Nurser Production Costs 1980 1981 1982 Planting targets (acres) 15) 300 Nursery Transplants at 120/acre + 25% culling ('ooos) 22.5 45 68 90 112 2-year old stock 45 68 90 1-year old stock 68 90 112

Total stock for coating 113 158 202 Cost per year per seedling: FR. 0.50 TAWL 3 Schedule h

P A K I S T A I HILL FARMING TECHNICAL DEVELOPMENT PROJECT A. AYEicultural Support Services

List of additional equipment required for the Soil Testing Laboratory

Item PRas 00 1. Atomic absorption spectrophotometer for the determination of micro-nutrients from soil and plants 250 2. Flamophotometer for the determination of Calcium, Magnesium, Sodium and Potassium, complete with all accessories 35

3. 1'ettler Balance (top loading analytical) 25

4. Colorimeter (REL) for the determination of Phosphorus 4

5. Spectrophotometer (Beckman, Gallan-Kamp) for the estimation of metal ions in soil 30 6. Drying Oven for soil and plant samples 8

7. pH meter (Beckman, Gallen-Kamp or Pye-Unicam) 10

8. Macro-Kjeldhal apparatus with digestion and distillation assembly and with 6 automatic heaters and switches, for the estimation of Nitrogen from soils 10

9. Muffle furnace 20

10. 12 Plutonium Crucibles 20

11. 40 field kits for apple technicians for rapid soil tests of soil physio-chemical properties 20

12. Weily mill for grinding leaves and plant tissues 20

13. Centrifuge machine for the shaking of bottles and tubes 18

14. Lab. Chemicals (supplies) 20

15. 20 Soil Augers at PRs 50 each 10 Total: 5

B. Forestry Experimental Trials

Tools,EquLment and Office Furniture

Desk, chairs and cabinets 3 Calculator 1 Typewriters 5 Weighing Scales, l4easuring Rods and Tapes 2 Sundry 1 Total: 12 Hand tools and smrayers 4 TABLE 3 Schedule 5

P A K I S T A N

Fodder Utilization Trials

Details of Furniture, Equipment and Office Expenses Item ~~Unt~tCost N.Total Cost Item fi PRs) No. (PRs)

Cffice Furniture Wooden chairs 100 4 400 Office desk, iron 800 1 800 Office tables, wooden 500 2 1,000 Office chair 200 1 200 Filing cabinet, iron 500 1 500 Cupboard, wooden 200 1 200 Miscellaneous - - 1.000

Total 4.100

Laboratory Furniture Benches 500 2 1,000 Tables 500 2 1,000 Shelving - - 2,000 Sink and fittings 2,000 1 2.000

Total 6.ooo

Other Laboratory Equipment Grinder 500 1 500 Balance 1,000 1 1,000 Calculator 300 1 300

Total 1.800

Miscellaneous Field Equiument Silo pits 500 2 1,000 Pitchforks 20 3 60 Shovels 20 3 60 Wooden feeding troughs 100 20 2,000 Spring balances (assorted) 3,000 Molasses sprayer 1,000 1 1,000 Ear tags 4 200 800 Tagging .claps 150 2 300 Fodder Choppers 2,000 2 4,000 Miscellaneous 1,780 Total 14,oo0 Annual Office Expenses PRa per Year Heating 320 Stationery 1,200 Postage 50 Maintenance 1,030 Other, incl. sweeper 500

Total 3,100 P A K I S T A N HILL FARMING TECHNICAL DEVELOPMENT PROJECT Livestock: Indicative Costs of Breed Improvement Suboomponent

Requirements by year Unit Cost Costs by year (PRotOOO) Breed Improvement Units 1 2 3 (PRO) 1 2 3 Total

Capital Costs Office, 260 sq.ft unit 1 100 per sqft 26 26 Office furniture set 41,100 4 4 Jeep, SWB no. 1 92,500 92 92 Containers for semen and liquid N2 storage and transportation unit 4 4 6,000 24 24 48 Field liquid N2 containers unit 20 20 2,000 40 40 80 Field insemination equipment sets 20 20 100 2 2 4 Imported semen straws 500 1,000 1,000 15 8 15 15 38 Animal stalls sets 10 10 4I,000 40 40 80 Miscellaneous equipment - 10,000 10 10 Animal housing animals 6 2,000 12 12 Imported bulls unit 6 40,000 240 24Q0 Sub-total 498k 121 15 634

Operation Costs Staff salaries: Livestock Production Officer Gd no. 1 1 1 23,730 24 24 24 72 Livestock Assistant Gd 8 no. 2 2 2 11,440 23 23 23 69 Junior Clerk Gd 5 no. 1 1 1 5,930 6 6 6 18 Driver Gd 3 no. 1 1 1 8,760 9 9 9 27 Peon Gd 1 no. 1 1 1 4,620 5 5 5 15 Office expenses set 1 1 1 3,100 3 3 3 9 Liquid Nitrogen field set 10 20 20 1,000/set/yr. 10 20 20 50 Bull maintenance bull 6 6 6 800/year 5 5 5 15 Training of village inseminators man-months 30 30 100 3 3 6 Vehicle operation '000 miles 10 20 20 2/mile 20 40 40 100 108 138 135 381 Total, Capital and Operating 606 259 150 1,015

En o>f. Table 3 Schedule 7

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

PROJECT MANAGEMENT

Office Furniture and Equipment

PRs '000

Desks, Tables, Ch'irs, Cabinets, Cupboxrds 25

2 Typewriters 12

Calculrtors 3

Furnishings 10

Telephone Installntions:

3 in main office 2 in residence of specialists

5 PRs 2,500 13

Sundry 5

Total 68 PAXISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Summary of Prolect Costs by Type of Exoenditure (113$I 000)

Baseline Physicas Price Totsl Less Duties Net F.E. Costs Costs Contingencies Sub-Total Contingencies Project and Project % of Amount Costs _ Taxe Costs Net qsts _ A. Capita) Costs a-b BuidJding, land levelling, access tracks 455 23 478 58 536 536 l0 53 c-f Vehicles, equipment, livestock 690 21 711 55 766 53 713 90 642 B. Operating Costs a-b Salaries and Wages 955 - 955 172 1,127 1,127 - - C-e Office Supplies, stores and vehicle operating 399 16 415 63 478 h8 430 50 215 C. Other Items a. Consulting services 186 - 186 27 213 213 96 204 b. Expatriate salaries 306 - 306 50 356 356 l00 356 c. Training courses 373 - 373 68 441 441 10 44 d. Aerial photography I 53 31 184 13 197 197 1 88 e. Follow-up project preparation 255 26 281 59 340 340 10 34

Totals 3,772 117 3,889 565 4,454 101 4,353 1,636

1/ Part of this component may be undertaken by foreign consultants. PAKISTAN HILL FARMIN

llsxperimental/ Maize Pilot Pilot Agricultural Agricultural Forestry Fodder and Project Base- Deonstration Progru Apple Vegetable Support Training Trials and Livestock Management Line Physica] Contingencies Figures rom I / Farms Scheme Scheme Services PI antations Improvemnent Totals % Amount Technical Annex (2) (2) (3) (4) (5) (6) (8) (20) (;2)

A. CaDita3 Coats a. Buildings 87.3 165.1 32.2 17.1 8.4 34.6 343.7 5 17 b. Iand levelling, access tracks and irrigation 4].o 19.1 45.9 4.9 110.9 5 6 c. Vehicles 47.3 6.5 99.7 32.2 9.4 13.5 20.4 29.6 258.6 0 0 d. Office equipment, tools and technical equipment 20.4 0.8 10.4 2.4 57.7 3.1 29.0 6.9 130.7 5 6 e. Other equipment 68.6 2014. 272.9 5 14 f. Livestock and semen 28.4 28.4 5 1

B. OPeratinz Costs a. Salaries and allowances 95.6 46.5 191.3 106.9 9.8 67.7 41.0 114.3 673.1 0 0 b. Wages 10.5 10.2 20.9 239,3 o.6 281.5 0 0 c. Office suppl ies and buildings maintenance 1 7.3 11.6 9.0 3.4 2.8 27.6 70.7 0 0 d. Other supplies 16.0 22.4 14.0 26.0 4.6 29.1 15.0 9.2 126.3 5 6 e. Vehicle operating and transport costs 25.0 19.6 74.6 13.6 6.1 19.0 Jo.3 27.6 201.8 5 10

C. Other Ites a. Consultancy services 138.4 35.5 12.2 186.1 0 0 b. Expatriate salaries 306.1 306.1 0 0 c. Training courses 346.2 1.5 25.5 373.2 0 0 d. Aerial Photography 3 3 i53.1 20 31 e. Follow-up project 253. 253.1 20 31 preparation 255.1 255.1 10 26

360.4 85.8 734.4 392.2 87 6 346.2 410.8 186.4 1,168,2 3,772.0 117

i/Source: See Technical Annexes. PASTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT 1/ Price Contingency Ca]culation&- (US$ '00)

Anticipated Percentage Outlay Annual Costs, (including Physical Contingencies) by years by years 1 2 3 1 2 3 Totals

A. Capital Costs

53 30 17 191 108 62 361 a. Buildings 117 b. Land levelling, access tracks and irrigation 66 34 - 77 40 - Sub-Totals 268 148 62 478 Price contingency factor 2/ .07 .16 .26 58 Price contingency amount 19 23 16 2582 c. Vehicles 69 20 1 I7W 137 d. Office Equipment, tools and technica] equipment 80 17 3 110 23 4 286 e. Other equipment 100 - - 286 - - 30 f. Livestock and semen 86 7 7 26 2 2 Sub-Totals 600 77 34 71i Price contingency factor 2/ .06 .14 .22 ]1 55 Price contingency amount 36§ 8

B. Operating Costs 269 673 a. Salaries and allowances 25 35 4o 168 236 282 b. Wages 17 40 43 48 113 121 Sub-Totals 216 349 -- 390 79 .26 Price contingency factor 2/ .07 .16 101 172 Price contingency amount 15 5 and building maintenance 26 37 37 TW .,.t 'V50 c. Office supplies 132 d. Other supplies 22 37 4] 29 49 51 83 212 e. Vehicle operating and transport costs 26 35 39 55 74 414 Sub-Totals ro02 149 163 .22 Price contingency factor 2/ .06 .14 21 36 63 Price contingency amount 6

C. Other Items 91 30 186 a. Consulting services 35 49 16 65 102 102 306 b. Expatriate Salaries 33 33 33 102 131 157 373 c. Training courses 23 35 42 85 184 - - 184 d. Aerial photography 100 - - - 50 50 - 140 141 281 e. Fol]ov-up rroject preparaticn 430 1,330 Suh-Tottl s 436 464 Price contingency facto- 2/ .07 .16 .26 74 112 217 Price continTencv amount 3-1 273 565 Total Price Congingencies 107 185

]/ Based on July, 1977 costs with anticipated start of project in October, 1977. Civil works and salaries; 9Z (77-79) and 87 (80); equipment and machines: 7.5% (77-79) and 77 (80)

TECHNICAL ANNEI 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

AGRICULTURE SECTOR

INDEX

A. Sector Background

Topography, Climate and Soils 1-2 Farm Size and Farm Land Use 2-3 Terracing and Soil Conservation 3-5 Production 5-6 Vegetables and Fruit 6 Food Supplies 6-7 Pricing and Marketing 7-8 Potentials for Increased Productivity on Arable Lands: Grains 8-9 Fruits 9 Vegetables 9 Potatoes 9-10 Fodder Crops 10

B. Department of Agriculture Headquarters Staff 10-11 Extension Service 11 Pest Investigation Laboratory 12 Soil Testing Laboratory 12 Promotion of Potnto Cultivation 12 Development of Horticulture 12 Promotion of Vegetables 13 Agricultural Training Institute 13 Summary 13-14

C. Suggested Agicultural Strategy and Proposed Action Programs

Strategy 14 Proposed Action Programs 14 Planning for Implementation 15

TECHNICAL ANNEX 1 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

1/ AGRICULTURE SECTOFC

A. Sector Background

Topogrephy, Climate and Soils

1. Azad Kashmir is a mountainous state of 2.9 million acres, with a population of 1.7 million, 90% of which rely on rural occupations. Altitudes range from approximately 1,000 ft in a relatively small and flatter portion of the southern district to mountain peaks at well over 10,000 ft. The state is characterized by a series of narrow valleys in the 2,000-3,000 ft range which feed into the swift flowing Neelum and Jelum Rivers, which converge in the northern area at the capital of Muzaffarabad and which feed the Mangla Dam in the south. From the narrow valley bottoms the terrain slopes variably but generally sharply upwards to the 5,000 ft level from where altitude increases in a broken manner vary- ing from small upward rolling plateaus to sharp rises in the form of mountain peaks. The great majority of agricultural activity takes place in the 2,000-5,000 ft altitude range, above which the land is devoted to forestry and summer grazing - see the chapters on Forestry and Livestock.

2. Within a broad typology, climatic conditions particulnrly temperature are sensitive to altitudes; the valley bottoms enjoy mild sub-tropical winter temperatures rising to 100°F (plus) during the summer monsoons; at the 5,000 ft level short duration winter snows and frosts are common with sub-tropical summer conditions; above 5,000 ft heavier and lasting winter snows may be expected with alpine summer conditions. The mountainous nature of the country inevitably gives rise to highly localized rainfall patterns and density and localized temperature ranges. The only firm data available is from the four meteorological stations at Muzaffarabad, Gari Dopatti, Kotli and Pulandari, all of which have been established for data collection for the Mangla Dam and are located in valley bottoms. The stations record daily data on barometric pressure, temperature, wind direction and velocity, cloud cover and visibility, and take three hourly precipitation readings between 8 am and 5 pm each day. However, data passed to the Azad Kashmir Department of Agriculture merely record monthly rainfall figures and monthly min/max temperatures. The available information is attached at Appendix I, but other than for broad indicative purposes, the data is of little value to agriculture (note the wide disparities between the records from Muzaffarabad and Gari Dopatti which are only 14 miles apart). Despite lack of data, a subjective assessment indicates that there is sufficien t rainfall with a reasonable spread in most areas to make improved

1/ A comprehensive assessment of the sector is contained in the Mangla Wtershed Management Study, Hunting Technical Services, 1961. Whilst dated, this report provides valuable background data. TECHNICAL ANNEX 1 Page 2

farming systems possible following relatively short periods of experimentation and meteorological data collection in micro-zones.

3. There are a wide variety of geological formations but apart from the flatter areas of the in the south which is characterized by rather heavy sandy loams and small pockets of alluvial soils in valley bottoms, almost all cultivation is carried out on bench terraces cut into the hillside which have accumulated deposits of heavy clays. No systematic soil sampling has been attempted for soil types or properties.

Farm Size and Farm Land Use

4. Of the total 2.9 million acres, a major portion falls under the tehsil-l administrative recording system; the balance (and minor parts of the tehsil areas) falls under the authority of the forestry department. An analysis of the 1972 records (Appendix 2, Table 1) shows a gross area under tehsil administration of 1.9 million acres of which 706,000 acres are in registered farm lands involving 206,000 farms (the individual farm holding is often non-contiguous), giving an average farm holding size of 3.4 acres. Uncultivated land accounted for 1.4 million acres including communal hillside pasture and woodlots, townships and residential areas, and a large amount of vasteland, riverbeds, etc., plus 208,000 acres registered but not cultivated registered farm land. Hence of the total area only about 17% is cultivated and the cultivated area per farmer is only 2.4 acres on average. About 90% of the farmers are registered as having an area below 5 acres under cultivation; about 50% have less than 1 acre and only 2.6% more than 10 acres. However, the available data probably understates the area under cultivation in the smpller holdings and overstates it on the larger holdings. In respect of total farm land (including uncultivated farm lands), the largest holdings - 10 acres and more - accounted for roughly 6% of the farms and 30% of the registered farm land.

5. The use of both arable and grazing lands is subject to very primitive technology. Cultivation is by hand hoe or primitive wooden ploughs drawn by undernourished work oxen; current planting methods in the rather heavy soils result in hard surface pans which limits moisture retention. These practices, together with the lack of proven quality seeds and limited fertilizer recom- mendations (almost exclusively urea) result in extremely low yields - see para 14. The current low grain production base has the adverse effect of causing farmers to rely heavily on livestock numbers to increase farm income by fully exploiting the free grazing of alpine summer pastures. This has led to overstocking which has largely destroyed much of these natural pastures causing soil erosion and a further deterioration in the fodder base and in livestock quAlity.

1/ A tehsil is a revenue collection area which also maintains cadastral maps and land ownership and usage records. These records are brought up-to-date every four years, the last occasion being in 1972 when there were ten tehsils. TECHNICAL ANNEX 1 Page 3

6. The terrain and soil types limit the potential for even small- scale supplementary irrigation operations. However, agricultural staff displays a heavy bias towards irrigation resulting fram their academic training received in the environment of the irrigatable areas of Pakistan. This predisposition towards small-scale irrigation needs to be taken into account in assessing the technical and economic merits of possible small-scale schemes.

Terracing and Soil Conservation (Cultivation areas)

7. Almost all cultivation is carried out in conjunction with some type of bench terracing. The terraces have been constructed with the purpose of collecting arable soils, producing a reasonable degree of level land for cultivation and in a few cases for mini-supplementary irrigation purposes. The terraces are not designed or constructed as a part of soil conservation practices. Even on very steep slopes (greatly exceeding 100%) where farmers have constructed walls up to 8 ft high to obtain bench terraces of as little as 2-4 ft wide, the motivation is oriented towards maintaining the crop root structure during heavy rains rather than to preserve the soil itself. Such terraces continually collect new soils generated by soft rock weathering higher up the slope. A typical bench terrace will be 4-20 yards wide and from 18-70 yards long; the surface of the terrace will have a fall from back to front of between 1-5% and lesser slopes along its length which, however, might be in several directions (in many cases the high points are at both ends). The construction method results in rapid rainfall run-off channeled to one or two central points of the terrace wall (or earth bank) causing concentrated volume flows onto the lower terrace. This causes a cambinztion of erosion runnels, (corrected annually), and temporary flash flodding which compacts the rather heavy soil types.

8. From the individual farmer perspective, the runnel soil erosion itself appears relatively unimportant (although the runnels cause minor crop damage), because of the relatively fast generation of new soils which reach his cultivated area. Few farmers appreciate the detrimental effect on their crops of soil packing; this arises from a general preoccupation with getting water onto land (irrigation) and holding surface water. Techniques for preventing flooding of heavy soils, but retaining soil moisture, have not been conceptu- alized or demonstrated. Whilst the method in current use helps to collect soils and would prevent sheet erosion (i.e., whole portions of land being transported by water which is prevalent in some parts of Pakistan but not in Azad Kashmir), it does little, if anything, to prevent the prevalent and considerable insidious type of silt erosion, i.e. in the mission's view, will have little effect in reducing siltation to the Mangla Dam. TECHNICAL ANNEX 1 Page 4

9. Whilst erosion in the cultivated areas is considerable, even more erosion is occurring on the grossly overstocked pasture lAnds. Heavy grazing reduces plant size and weakens root structure and soil is subsequently carried off during heavy rains Where these grazing areas lie above the cultivated areas, silt-bearing run-off enters the bench terraces (see above), some of the silt rempining as new deposits but most flushing into the rivers below. In other areas, flush water from bare pasture lands concentrates according to the terrain,in turn creating high volume run-off strips resulting in gully erosion. Present anti-erosion techniques for this type of erosion concentrate on the construction of check dams in the gullies. These are sound as palliative measures, but do not prevent the basic cause.

10. In addition to check dams some emphasis is being given to tree planting for erosion control measures. However, most of the planting is concentrated along gully banks and, in the absence of overall control, the trees tend to be progressively undermined. Tree-covered belts across the hillside to arrest excessive surface water flows are extremely rare and even where woodlots are being attempted there is little attempt to maintain a strong undergrowth. Thus at present they serve a function, in soil conservation terms, only insofar as the canopy holds rainwater and checks the force of impact on the ground surface, but prevents little surface soil movement.

11. In summary, the soil structure under natural conditions is not highly erodible and the rainfall density though occasionally fairly heavy, is not excessive in relation to the soil. Nevertheless, considerable erosicn occurs. The problem is largely man-made through a combination of unsuitable land cultivation practices, unsuitable grazing practices and minimal knowledge of suitable physical soil conservation techniques and coefficients. Improve- ment in soil conservation practices is essential both for maintaining farm production in the long-term and for the broader objective of minimizing the siltation rate of the Mangla reservoir. Three main measures will need to be tackled simultaneously:

- first, and foremost, the need for rational grazing management (see Technical Annex 9 - Livestock Sector) and fuelwood supplies (Technical Annex 7 - Forestry Sector);

- secondly, simple improved cultivation and crop planting techniques (see Technical Annex 2 - agricultural experi- mental/demonstration farms); and

- thirdly, improved physical measures which involve traverse run-off channels into constructed vertical (but stepped) waterways and to a lesser extent, improved bench terrace design (all of which require adequate data to arrive at the most econamic technical coefficients). TECHNICAL ANNEX 1 Page 5

12. These activities can only be meaningfully structured in the context of sub-watershed development plans prepared by Azad Kashmir staff in collaboration with local fprmers - see Technical Annex 11. The federal agency, Water and Power Development Authority (WAPDA) has been operating a Watershed Man'gement Project in parts of Azad Kashmir for five years, with the primary objective of reducing siltation of the Mangla reservoir. Results so far have indicated only limited success - see Appen ix 3

13. The constraints in parts of Azad Kashmir to implementation fall into two parts; firstly, the lack of technical expertise and experience within Azad Kashmir for this sort of planning; secondly, there are important social constraints which have to be overcome because the combined activities involve considerable changes in present land use patterns. The technical problems can be overcome by the injection of expertise (meteorological data collection is however a prerequisite) and local minor experimentation. The social problem is far more difficult and its resolution would involve a strong political commitment to the generation of local (village/sub-watershed area) planning and consultative groups who will require considerable indoctrination in the concept of overall land use planning for the benefit of all, and supporting technical and social motivation advice to act cooperatively.

Production 14. The estimated state-wide cropping index is 1.18, giving a total cropped acreage of 585,000 frcm the 500,000 acres under cultivation. Production and yield estimates for the years 1970/71 to 1974/75 are contained in Appendix 2 Table 2 and are summarized below for the year 1973/74.

Summary of Total Crop Production and Average Yields - 1973/74

Maize 350,000 acres @ 260 kg/acre = 91,000 metric tons Wheat 150,000 " 250 "1 = 38,000 " " Millet 41 ,000 " " 370 " " = 15,000 " t Paddy 25,000 " " 490 " 12,000 " " Fruit 6,000 " " 9 Vegetables/Pulses 13,0 " It " ?

Total grain production 156,000 metric tons Source: Department of Agriculture.

15. Although the foregoing represents a reasonable estimate of acreages and yields, the overall farming system is complicated by the number of livestock relying on crop residues and "inadvertent" fodder crops. Although full irrigation is negligible and only single crop farming is assured, many farmers attempt to double crop. For example, many maize growers (season May-October) attempt to TECHNICAL ANNEX 1 Page 6

grow a winter wheat crop which in a favorable season they will grain but in most years harvest as will be used as a green fodder crop. When this of ?rcatch-as-catch-can" activity type is taken into account, the cropping intensity rises from 118% to nearer 150O. Vegetables and Fruit 16. The promotion of vegetables and fruit production and with a few notable is in its infancy exceptions these items do not make a significant contribution to the locally produced food base. A subjective assessment v-egetables and fruit stalls in of local markets indicates that over 80% of the produce being sold is being imported from out tics of State. There are no statis- on vegetable production and those for fruit productimn are highly suspect. Fruit is stated to be in the region of 50,000 the mauds (1,870 metric tons), principal fruits being apricots, loquats, lesser guava, amounts of peach, plum, walnut and almonds, and recently introduced apples. 17. According to the 1972 census, 17,800 farmers apple trees reported growing 194,832 (an average olf eleven trees per reporting farmer). has 21,200 farmers reporting The same census the growing of 58,500 apricot trees. The data indicates 65,805 apple trees and 16,741 apricot trees in the 3agh tebsil, i.e., a ratio of approxim&tely 4 apple to 1 apricot overstate tree. The statistics probably the number of apple trees; the area under less than 600 apples is likely to be acres. A wide range of varieties are grown the older varieties including many of introduced frci the United Kingdcmn, such Granny S3nith, Worcester as Jonathan, PermRin, Williams, etc., as well as Kashmir Amri, Kashmiri Red, Red Astrachan and others. In more recent years there has been a shift to Golden Delicious and various Delicious Red Delicious, sports - Starking Delicious, etc. Sane of the more enterprising growers bave older low yielding varieties lopped the and successfully grafted (albeit in a rough and ready fashion) the newer varieties onto old trunks. cross pollination Most apple varieties need for the heavy setting crops; however, little attention paid to this aspect and where is good pollination occurs it is likely to be a matter of luck rather then design. No data average exists which accurately reflect yields. The Department of Agriculture guess per tree (on the average to be 40 lbs a ccmposite full orchard basis this would be under 2 tons equivalent to a little per acre). For the majority of apple trees this on the high side; however, guess is probably very high yields can be and are attained Technical Annex 3). (see Food Supplies

18. The Government uses a grain requirement of 145 kg for planning food supplies per caput. With current population at 1.75 ment for million, the grain require- food is about 250,000 metric tons. Thus, after there is a current deducting production deficit approaching 100,000 tons in Azad Kashmir grain production. This deficit is made up by federally supplied subsidized grains TECHNICAL ANNEX 1 Page 7 of 65,ooo tons (1975) and World Food Programme grains of approx. 6,000 tons, leaving further supplies from private trade flows to provide 26,000 tons (i.e., about 10% of the theoretical requirement). In practice, subjective assessments suggest that the in-situ population is overstated by some 7-10%, and that actual per caput consumption of grains by the resident population is some 10-15% less than the theoretical requirement figure used. On the other hand, some grain is fed to animals. On balance, the production deficit is probably about 50,000 tons, leaving a positive balance after inclusion of subsidized food supplies that is either stocked or fed to animals of about 20,000 tons.

Pricing and Marketing

19. Because of the heavy reliance on imported basic food grains, the federally established subsidized selling price is reflected in the price of the small amount of local production subject to internal transfer. The retail price of federally supplied grains, through a chain of registered retailers, is currently set at a little under PRs 1,070 per ton (the current CIF Karachi price is approx. PRs 2,400/ton for wheat and PRs 1,650/ton for maize); thus, transactions in local grains are approximately PRs 40 per maund 1/ equal to PRs 1,088/ton. Such transactions are extremely limited and tend-to occur only when the logistics of imported supplies are faulty.

20. The price of vegetable products is to a large extent dependent on the seasonal supply of imported items from out of State sold in the local markets/townships. In general terms, prices appear to be very high, the local trader placing up to 100% mark-up on an ex-farm value; for example, PRs 20 per maund for radish, spinach, cucurbits; PRs 40 per maund for tomatoes and PRs 100 per maund for peas.

21. Seasonal soft fruits such as plums and apricots are subject to glut and scarcity situations and as these fruits do not travel well, reliable price indicators could not be established.

22. The currently limited apple production (guesstimated at below 1,000 tons) is largely locally consumed at an internal transfer price of between PRs 80-150 per maund. The price received by the farmer is largely governed by his geographical location And his early cash needs. Out of state apple sales to the cities of Pakistan are through a series of intermediaries There are two principle methods of sale by the farmer; firstly, and most common, are sales via farmer delivery to a prearranged site on a good "bus route" road, at which point the farmer receives PRs 80 per maund for October/November deliveries with 50% premium for late deliveries in February/March and even higher prices for premium quality varieties; the second sales method (mainly in ) is for the farmer to sell the standing crop on the tree some two months prior to harvest. This practice involves some complex traditional features and the exact price received by farmers is difficult to compute, but it appears to be approximately PRs 40 per maund of the estimated crop yield with the purchaser carrying the risk of subsequent crop losses. The gross mark- up between farm-gate prices and final retail prices in the cities appears sub-

1/ 1 maund = 82.3 lbs. TECHNICAL ANNEX 1 Page 8 stantial (and unnecessary) to the farmers. However, at approximately 100% this mark-up is not out of line with the producer-to-consumer differentials in other parts of the world. Thus, at current production levels it seems doubtful if intervention in the marketing system would or could have any significant impact either to benefit the farmer or in lowering retail prices. However, any increased apple production program would necessitate altered and programmed marketing arrangements as new production came on-stream. The absorption capacity of Pakistan for apples needs to be studied in-depth. A very preliminary assessment based on extrapolation of the situation in India indicates that the additional absorption capAcity may be in the order of 80,000 tons (see Technical Annex 3).

Potentials for Increased Productivity on Arable Lands

23. Grains. It is confidently expected that average per acre yields of grains, particuIarly maize, can be improved by 100% and possibly by a lot more. This assessment is based on:

(a) a sample count of maize stalks at each area visited allied to examination of cobs in store, indicates that in every area production by some farmers is between four and eight times that of the average quoted for the area. A visual assesment of land quality and charactertistics of the sample count, related to the surrounding areas, strongly indicates that these better yields were obtained on land very little, if any, above average quality;

(b) initial simple, but systematized, soil testing will indicate those soil deficiencies which require attention. To date, no soil testing has been done - not even for Ph values. At present very few farmers use fertilizer, nor can they be expected to do so in the absence of a rational recommendation system of type and application required;

(c) the primitive husbandry practices which lead to soil particle packina and loss of moisture could be improved by simple innovations such as ridge cultivation and planting on the ridge. These innovations would be rapidly adopted by farmers provided they were first proved and demonstrated in the local area;

(d) simple hybridization of local strains of maize would rapidly lead to locally suited higher yielding seed (some farmers report using this technique with success, in an ad hoc manner, but such successes have never been followed up, systemized or consolidated). Although TECHNICAL ANNEX 1 Page 9

some "improved" seed hns been imported frcm the rest of Pakistan and distributed it has been done without any rationale or any "proving" and without any fol ow- up to evaluate the temporary success of a particular variety in a particular area; and

(e) Pakistan has a history of m-ize production research dsting back to the mid-1950s The Ford Foundation and C=ffT 1/ have actively supported the research program, whTch has generated sufficient technical knowledge to form the basis of a National Maize Production Program. The program is being implemented by the provincial governments under the coordination of the Pakistan Agricultural Research Council. The 1976 plan envisages a 60% increase in production through the use of management responsive varieties on 90% of the acreage to be grown, and through the adoption of the reccmmended package of cultural practices on 50% of the area to be planted under maize. The plan does not, however, include any provision for research and extension efforts in Azad Kashmir.

24. Fruits. Whilst the area could probably grow soft fruits successfully, it is doubtful if any major production from such difficult terrain could be marketed without serious quality deterioration. However, as identified by earlier missions, the production of high quality apples which store well and travel well has already been proven. The limitations to potential apple production are largely organizational. However, any program for apple develop- ment will need to be based on realistic market assessment (see Technical Annex 3).

25. Vegetables (other than potatoes). Throughout Azad Kashmir there are a large number of small pockets well-suited for many types of vegetable production and most farm lands are suitable for growing certain vegetable types. A major limitation to vegetable production is the availability of seeds, even though certain areas are suitable for seed production. Thus a combined seed and vegetable promotion program has a large potential - initially for internal consumption in Azad Kashmir, but gradually expanding exports to other centers in Pakistan. This is discussed in Technical Annex 4.

26. Potatoes:

(a) Production as a vegetable - The rather heavy soil types suggest that potatoes will not yield competitively with other vegetable types for the local or other markets.

1/ International Center for Maize and kheat Research. TECIMICAL ANNEX 1 Page 10

(b) Production as seed for export fram Azad Kashmir - Theoretically, the altitudes and climatic conditions of Azad Kashmir should make it a suitable area for production of virus-free seed; however, it is doubtful if social and institutional features would allow the necessary tight ccntrol and inspection measures necessary for a viable virus-free seed industry.

27. Fodder Crops. Within the farming system there is considerable scope for rationalizing the present ad hoc wheat-cum-fodder production into more productive fodder systems. In addition there is also scope for the utilization of fallow lands (usually about 20% of cultivable area in one cropping season) for fodder production in a rotational cropping system. Thirdly, grasses on the cultivable "waste" lands could be substantially improved.

B. Department of Agriculture

Introduction

28. The Department has a small headquarters staff, a general extension service and a pest investigation laboratory. Recurrent costs of these services are met from normal Government budget. In addition, the headquarters staff controls and directs seven schemes financed from the development budget with a five year (1974-79) budgeted cost of PRs 11.7 million mainly directed towards improved horticulture and vegetables.

Headquarters Staff

2O. The principal officers and their job functions of the regular (non- development) headcugrter staff include:

(a) the Director (M.Sc.Agri);

(b) Deputy Director (B.Sc.Agri) - whose main function is the control, distribution and accounting for subsidized fertilizer;

(c) Plrnning Officer (B.Sc.Agri) - currently absent on overseas studies;

(d) Assistant Publicity Officer (B.Sc.Agri);

(e) Fruit Development Officer (B.Sc.Agri); and

(f) a limited number of support clerks. TECHNICAL ANNEX 1 Page 11

The hepdqunrters has limited office accommodation and is short of office eouipment. There are five vehicles all of which are old - and for which there is an extremely limited operating budget; this confines staff mainly to desk work. The extension service is divided into four geographical divisions and pest investigation, and all the development schemes tend to work independently of each other with the result that the Director of Agriculture has sixteen separate line officers reporting directly to him. With the present organization, the headquarters unit, intended primarily to head an extension service, has become seriously overburdened and conse- quently lacks effectiveness.

Extension Service

30. Each of the State's four districts - Muzaffarabad, , Kotli and Mirpur - are extension areas with an Agricultural Officer (DAO) in charge of each (one B.Sc.Agri and M.Sc.Extension Education; two B.Sc.Agri; and one matriculant). Each DAO has four or five assistants (AAs), one of whom may be assigned to plant protection duties. Their qualifications range from B.Sc.Agri (9), B.A. (2), matriculants (7). The AAs supervise 76 field assistants (FAs) (24 in Muzaffarabad, 25 in Poonch, 12 in Kotli and 13 in Mirpur). The extension service has one vehicle for each district and a very limited vehicle operating budget. AAs travel to supervise FAs on foot, or when available, by public transport (one operates his own motorcycle). Typically, AAs visit half their FAs eight to twelve times a year, and the balance at two to three months intervals; their offices contain a limited amount of text books (often outdated), a few record books and little else. They usuolly control the only store for the sale of pesticides to the whole of their areas.

31. Most FAs have some secondary school education and have undergone a few weeks classroom training. They are often required to find their own accom- modation, though some use the small fertilizer store for which they are respon- sible, as living quarters. Because they are responsible for the security and sales of fertilizer, most of their time is devoted to store-keeping even though sales are limited and the quantities sold very smell. There are virtually no proven technical packages suitable to the areas within which they operate. Each FA covers an average of 2,700 farms (many with split holdings), which are widely dispersed over difficult terrain. Consequently, they have little contact with farmers other than those within a very short distance of their base store.

32. In summary, the extension service is reasonably well-qualified academically at the supervisory levels, but carries out very little field supervision. Field work is largely confined to promoting fertilizer sales (currently very small). There are isolated cases of assisting with the use of pesticides associated with the development schemes - see para 36. TECHNICAL ANNEX 1 Page 12

Pest Investigation Laboratory

U.- The laboratory is in a converted senior staff house. It is -easonably well-equipped and has a small library. It is staffed by an -Lssistant Entomologist, a research assistant (both B.Sc.Agri - General) and a few uncualified lTboratory workers. However, partly because of lack of field samples (see para 30) and a qualified entomologist, the laboratory fncilities are only little used.

Soil Testing Laboratcry

34. This facility is funded under a development scheme (1974-77 costs of PRs3.7 million), which allows for the construction of a new building and a limited amount of equipment and the staffing by an Assistant Soil Chemist and two research assistants. At present, the building is in the process of construction and the equipment is in store. Same additional equipment will be needed to complete the laboratory facilities. The staff positions have been filled by well-qualified men (2 M.Sc. and 1 B.Sc.). However, their work is presently limited to supervising building construction and no soil analysis has yet been carried out.

Promotion of Potato Cultivation

35. The activities in this development scheme could not be examined by the mission because of the off-growing season. The staff administering this scheme includes three agricultural officers (all B.Sc. General Agri), one of whom is designated Potato Botanist. The botanist, however, is more specialized in maize, having had six months training in maize breeding. One vehicle only is available to the supervisory staff. A large proportion of the total costs of the scheme of PRs 2.93 million is for providing subsidized seed and fertilizer to farmers.

Development of Horticulture

36. The objective of this devrelopment scheme (1974-79 costs of PRs 4.05 million) is for fruit growing only. Other products are dealt with under vegetables - see p'ra 37. The scheme is headed by a horticulturist (B.Sc. Agri - General) bssed in Muzaffarabad, who has seven assistants (1 M.Sc. Horticulture; 3 B.Sc. Agri; and 3 matriculants), divided among the four districts and based on fruit tree nurseries 1/. One vehicle only, used by the horticulturist, is available to the supervisory staff. The intention is to Drovide subsidized young trees, technical advice and subsidized plant protection. Currently, the emphasis is on expanding the nurseries which produce loquat, guava, apricot, peach, plum, walnut, almonds and apple trees. Farmers collect trees from the nursery at PRs 0.5 per tree which is about 15% of production cost 'or less). Although some rationing is attempted, indications are that the better-off farmers obtain the trees. Only in isolated cases is technical follow-up and plant protection provided. This is because of lack of transport and lack of technical knowledge in the general extension service (see paras 30 and 31). Conceptually, the scheme has a sound base, but many aspects of implementation require much more thorough detailed planning and the staff's technical knowledge in this specialized field requires to be substantially expanded (see Technical Annex 3).

1/ Details in Appendix 4. TECHNICAL ANNEX 1 Page 13

Promotion of Vegetables

37. This development scheme (1974-79 costs of PRs 1.80 million) is designed to produce vegetable seed and promote the growing of vegetables. It is fundamentally sound in approach. The scheme is headed by an agronomist (B.Sc. Agri with overseas training in vegetable production -USA), who has five aericultural assistants (3 B.Sc.Agri Hons; and matriculants). Efforts have been msde to establish a small seed farm; field staff are given specific acreage targets within close vicinity of the specific Township/center to which they are assigned, based on the theoretical demand of the center. Whilst a usefu.l start has been made, the scheme has been embarked upon without adequate financial or logistical resources and without adequate technical backstopping in certain components.

Agricultural Training Institute

38. The development funds (PRs 1.83 million) for the scheme envisage the erection of the necessary buildings, the provision of staff and other facilities, to carry out university-type academic training plus short in- service staff courses and courses for farmers. Construction hes started on the building of two classrooms, offices, dormitory for 20 and a mess hall, which together with four staff houses (not yet under construction) would constitute the whole complex. One vehicle and a limited amount of teaching equipment is provided for in the costs, plus the salary costs of four instructors and a few minor employees. It is doubtful if the funds allocated will in fact be sufficient for these limited facilities. Cursory examination of simple timetable/staff availability/classroom space ratios make it clear that the ambitious sets of syllabi and curricula for advanced academic training cannot be met. As with other schemes, staff have been posted to the new positions before any facilities are available; although some minor blackbooard-type classes are being held in an old guest house. The staff have impressive academic cualifications. However, they lack experience in teaching and in practical aspects of the subject mptter proposed, especially as they relate to the special conditions of Azad Kashmir. The staff in-situ include the Principal (M.Sc. Horticulture, USA; D.Sc. Horticulture, France), a Senior Instructor (B.Sc.Agri Hons, and M.Sc. Horticulture) and two junior instructors both B.Sc. Hons Agri.

Summary

39. The organization of the Department has evolved in an ad hoc manner which is not conducive to effective planning, control or coordination. Activities have been undertaken with good intentions, but without the imple- mentation implications being fully thought through. The majority of super- visory level staff have good academic qualifications (but not necessarily relevant to local conditions); junior field staff are less well-qualified, have little valuable knowledge to extend to farmers and generally act as storekeepers. It is considered that the major contributing factor to this state of affairs is the uncertain manner in which the department is allocated resources. There is considerable uncertainty as the amount of the annuel TECHNICAL ANNEX 1 Page 14 financial allocations and these are often released only after the start of the finnncial year. This is not conducive to any type of long-term planning and results in decisions being made in the context of short-term emergency situations which does not permit the systematic development of longer-term programs properly conceived and supported by staff, mpterials and services.

C. Suggested Agicultural Strategy and Proposed Action Programs

Strategy

40. A revised strategy for the agricultural sector (coordinated with the livestock and forestry sector) has been discussed and agreed with the Govern- ment of Azad Kashmir. The strategy would ultimately make Azad Kashmir self- sufficient in basic food requirements and, in addition, provide surpluses of horticultural products for supplying markets outside Azad Kashmir. It involves (a) focussing currently available manpower on those activities where a reasonable baseline of locally proven technology exists, and on simple experimentation/proving of technologies (known in general terms but locally unproven) for other activities; (b) implementing a comprehensive soil testing, entomological and meteorological data collection base; and (c) implementing a manpower training program to promote these measures.

41. The implementation of the strategy requires a recognition that; firstly, current expenditure in the general extension service is negated by the lack of suitable technical packages for the general farmer and the the service is extremely weak, both technically and organizationally at the lower levels. Thus the general extension service should be retrained at the present time and then redeployed as both suitable technical packages and adequately trained personnel become available. Secondly, it requires a recognition that all aspects of manpower training cannot be carried out economically within Azad Kashmir. Thirdly, it should be recognized that, at headouarters level, the organizationql structure of the Department of Agriculture is overburdened at the top with insufficient delegation of nuthority to officers responsible for the coordination and control of suitable groupings of subsector functional activities. In addition, technical competence within certain headquarters support services is weak, notably so in the entomological services. Finally and most important, strategy implementation requires a twenty-year planning perspective broken down into between three and four implementation phases according to the subsector; only within such a framework can the present annual preparation of PCI documents have any effective relevance.

Proposed Action Programs

42. Action programs to implement the strategy are summarized below:

(a) the establishment of mini-zone simple experimental/ demonstration farms on a phased basis starting with two in the first year and expanding by two each year over two five-year phases. Initially, these farms would concentrate on the development and proving of TECHNICAL ANNEX 1 Page 15

simple improved grain pulses and fodder production techniques. Subsequently, they would be the bAse for agriculture extension staff. In the second five-year phase of each farm, additional facilities would be added to convert them to agricultural service centers (see Technical Annex 2); (b) an apple production progrpm involving 7,200 farmers reaching full mpturity over 20 years (see Technical Annex 3);

(c) a vegetable production program (including seed production) initially limited in scope and area, with gradual expansion over two five-year phases reaching maturity in a third phase of five to six years (see Technical Annex 4); (d) strengthening of facilities and technical competence of the headquarters agricultural support services in entomology, meteorology and soil testing (see Technical Annex 5);

(e) a manpower training program phased to meet the requirement of the foregoing by a combination of academic training (in Lyallpur and Peshawar) and in-service training; supplemented by consultant specialists and travel by key implementation officers to similar operational programs within and outside Pakistan (see Technical Annex 6); and (f) at headquarters, strengthening the number of personnel and their planning competence, reorganizing job function and providing additional office and logistical facilities (see Technical Annexes 11 and 12). Planning for Implementation

43. For the strategy and action programs to be successfully implemented, it is essential that local officers be heavily involved at all planning stages. Plnnning capacity is currently very weak, although individual staff members have ability to develop the necessary capacity provided they are given a defined framework within which to operate. Early detailed project preparation carried out by outsiders could be counter-productive and a fairly lengthy project preparation cycle should be anticipated. With the foregoing in mind, a three- year Technical Development Project is proposed which would initiate the actions discussed with the objective of preparing a follow-up project(s) which would finance the various programs discussed. Preparation of future projects within the strstegy would be carried out internally with some guideline assistance from consultants. TECHNICAL ANNEX 1 Appendix 1 Table 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

AGRICULTURE SECTOR

Rainfall in N.E. part of Azad Kashmir averages 1963-65 (inches)

Bandi Muqam Keran 4000 ft. 4500 ft. 4900 ft.

Sept. 2.55 1.45 2.13

Oct . 1.51 4.51 4.61

Nov. 2.62 2.79 2.32

Dec. 3.55 2.30 3.91

Jan. 5.15 3.24 5.34

Feb. 6.64 6.70 7.48

Mar. 8.95 10.02 10.04

Apr. 8.32 9.21 10.57

May 3.18 5.08 5.13

June 0.28 0.89 1.28

July 4.23 2.12 2.98

Aug. 2.53 2.08 1.37

Total yearly 49.56 50.39 57.16 average

Source: Forestry Department (1963-68, subsequent data collection discontinued) PAKISTAN -HILL FARMING TECHNICAL DEVELOPMEN', PROJECT

A3 I CU LTFUREE bECOR TECTN1CAL ANNEX 1 * ~~~~~~~~~~~ApDendix at;t or;:- .Q_ ;rnlnz=.r Sr~~~~~~~~~~~~Tale 2

e ¢Lr t: r a t r e t w.xa ieroe a4r e r a t r ¢si)>lt ,v-as.;^il^.|s"aJaJ'-V';-atA-ra-l, '-O';a. ki.. :.w w axst IrJL:I - 1'O

- I 5 | - @ - di S~~~~~~~~~~~~'~t a l

iarL. 54 .) 35 .6 7 -. 4 >o4J. 5 6) .3) 2.i 4i r-eo. G2. 5 4i. 2 9 JjJ 2. a;J * 7. i y o i^. 75.2k 51. i ob 4Z J 56-1: 7Q.. 4e.i p- 4J 5.1i) 5 'pr. ,.-S jc.-J ) 49 5- - l 7 2.4 5).)5 4 ) iK 4.U6 r.'y 9J.1 bj.5 9) 5'1 7i. B'i',7 6o.4 96 56 Jai- 9.0 '.7-.1 Ill1 2. 0 - so.8 il.J 1U8 a2. 2 67 )t. 1J Jai . -j 2.1.8 7 1. 113G 9 . >J) )4 .7 ' ) . L' 17 '-a 1j.)i,4. 2 i j1 7J 6.4) } y L 7 7V.J I2 b_) L. i. .'eP. IJ1 Ub/.t - J0 -,9.5 b 9.7 5 9 )b 1.-03 uCt. EV8.S ,;5} 4 7 V(1J.- i7.1- i . 2 54 1.11 i'oV. '77,S 4j. 2 6'. J U. IC, 7G.OU 42). 1 EV3 -C V.0 . ec. f6 J 7 4 v . 6 70 32 X: > outI ;5. 7 2 3) I. 4 i~~U6 T-jT3 I 9753.E5 J ar.. 63. 7 7. 5 74 J.()4 c J. }) O.>b 1 .35 j.Ub. ob.2 45.7 77 j) 7-7) V,5.Vu 43.6 75 3b 7.51 i.ar . 7J . 4;f.*2 6*) 40 7 . Jv) 71 @ 483 .1 O 7 4 )~ 7 7 ;.pr. 77.5 5.).- J 43 -C.31 7.7I- 7 50)-° 45 6. 17 V£a i1. 2 L-4.8 1DJ.) 53 4 e).l 8.14 1lil 5 2. 2 Jai S-Y.4 74. 2 lVE U2 4- 3J L;2.JrJ -J llu O) 0.73 J.ll. jl Z 7i-.'7 1 J.) ;b13a. I3. 75.1 1ljL- 6) V,.7 3. 8 72.C }RV)2$ 1i. 27 I 93/.7 72.6 P7 ti0 8.49 )'. 6.60 Z'eP. 8V-. 06.,+ ~ bJ K-b1. I 5.2 W.7 9 OLto 4) 2-03 bCct. 80. - )-.) ) J G-2 '3t) 83.J 55.) 0-42 i.ov . 77.2 44j-2 E2 J b 0. vs | 7~) . 4 '.4.- E2 41 4jec . o5.7 35.t 74 bl c. 8J 1~ .-7 L4J. 3 74 33 7.J5 1168n 64.70 gob 35.7 :5) 1.iQ tJen.~~~~~~~~t 5 o _4 3 1 4.72) 3 7.).3 oJ) 7-32 k'¢! z.4 3).1 7,- j2 4- 1- p I 4i.t: 7D6 Iar~' 75.4 50. k 8b 4,+ jJ-7D | ,. .vlv 5>2.1 )2 943 5. lE 14 4V 3.U5 r4r.- C-42 )rf. J5 45 c7i l i .J25c.) *,aQ, Go.i ,~~.4 9i ~ j 337 E1'.2 ;ze.i J D j 46 b.05 2 Ju. . 1, 1.6 7 2-4 Il c4 J . 6;j i,- .7 7.) .u IL)B oi c).7 Jai.. -5 .5 74.o i6 66 4.7-) j) -}. j..4 !Jw t'i b. 64 29 M6. i > v ~~7'. s ; i 3,-), i'Di 1J 53-b uO 3 l} 1 1_61 s~ep. 164o.) l 4 O.UOZ )J 7. J7 0 ct. 83.b 5 5 7 P7 51 i.0b 8u.u >;. 2 94+ ltov . 74. :4 46.t B; .7 2. 77 . ) 4'. 6 L4 36 (}.7 ' vec. tJ. 6 4 4-.1 ';l7 jj .U'' 7.,.5 37.7 76 34 U. U i7; 37.28 ;2.89

Jal. U2. 4 ,5'J'4 73 32 3- 4? i'eb. 6 .7 40.9 792 34 4. 18 i < r- 7. -'- -) Ei 4. 'J* ahp r. 90). 3 6.1.0o J4 5 2 i . A .a> -Yi . 1 6. 7 i14 oj .1. c7 ju. lU2.0 ,4.u iillU , 43 jul. i7 . U4.4 !J4 o6 7. 58 Aag y. 1 73. 2 IUC) b ; PAKISTAN -HILL FARMING TECHNICAL DEVELOPMENT PROJECT A31RICULTURE SECTOCR TECIRIICAL ANNEX 1

Ctatir,:: T' Table 3

'sle&ip t r a t a r k,zr.tra_y i! e I' e r it t 'A r es k Zj ilorltiy

1b.~~~~~~~~~~~~~~~~~~~~~kilLI' 1, tiol

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J ar * 7J. 1 31t *4 70 ) o 0. vJ,Q )5.7 jB- ) 73 -34 U.* beD. u9.8 4~-6. LI2 4i 7. i.) 711. 48.:, 64 35 5 .-J 2 liar. 7...4 54.5 b4 45 ~ .2b 74.1 52.* £5 6o.63 .,pr. f2. 1 ol. 2 5i .27!b,3.7 °* .u 95 vJ 3.o7 i-,ay -)5.9, 7,).9 h1 cD ~.06 ,/ 4.3 o . 7 107 )7 l.lB J UX. '38 3 7 . 3 1<5 3 @27 !O12 .9 7 J . 1W3 oo 0. 86 Ja1. j,5. 5 75-Si5(, 12. ow J-,i .; 76". 2 liuij 7w, l0).t; ;a. -31.i 73.93 j5 ; iw,.72 6 -. oI 4.J w°b 0 12.5u Z)ep. 87. 7 63.i1 ;2 i4 7.U3 I .1 7;!.) b,F 5.uJ3 Gct. o 7.2 62c.1 vi 5 70 6,>. 1 o-, -E ,2 4 2.J1 ..cv. 7.>. 4 ).Z C g) 3F 0'.WX ', 75.i 5i.) 8> 45 0.45 t c . 66 . 5 3 7 . 7 o _IJ1. o,. 2 4 4.6 7 4 4 u 7 .7 ? ILL7.70 12 57

,jar . 5).1i441. -i/U) 5.id2 0 .4 4 8 t733 1 .U4 rec. u4.7 4-).u 71 j7 . IC ,J) -s.i 4v). 1 to 3J j. 27 .,ar. 77.2 5.3.3 Lo 4.4 lo'u 8-3< . 1 ) 51 i+- 15 .,pr. E:7 . 4).J. -U lUv 4, 2.73 i 4S4. L 2. 7 i4 53 4. 28 I-.a ;y1- . bi. 5 1Xr ib1 * 4. >) )l-^ so. v 1,5 55j <48 Ja;.- 1;0)., 7c.7 1()e 2. -L ! 1,).42 77.2 1u ct 1.79 j. al . 94-; 7o.4- lu7-S 7. .). 0Sii. J 1U5 63 iD - 5c JV. U- tl-()j 7-i.5 8),5t.6j tl71.; '/). O t 64 ).41 -,ePt . t b.1 7 2.9 txo J . 2u ! t1.8 t7 7u., :* 8 62 2.49 CCL. 0S.,' 01.< 90 j'7 3. 11 I 67.1 u4.3 )2 5y 1.)8 1,0v '77 .d 5u. 3 8L 43 1. L7 ! b ,-j 5C.-5 6t 41 O.J%) LJeC. i*i b 4 2. 1 7 p3 . 5,+ 74.1 j-) I c .47)8D 0

Jan. 65.- 40.5 7033b t.74 , kt; . ot-3 4.) E 7t ~ 41 1. e. 1,.ar. 74 ., 54.4 c-6 47 2- 21 i p r. 3 .9 US . I W: o 58 J . 05 i~.ay- 1l0.Ec7' gj- 1 i2 Ye 1.i5 junX. 1JO .V 77. 3 iv7 6 . 5i

Jal. 9t6.,8 76.6 104 7i >.':7 sr livL) 74. vt PA,KTSTAN =-HILL FARMING TECHNICAL DEVELOPMENT PROJECT AiRICULTURE SECTOR TECEII5AL, ANNEX1

T'ae mnr e r a r B C,. n;'.T e roer a t u r e s °i ,r.n

yl~~~~~~~~~~~~~~~~~~~~~~~~~~ st

Jan. 45.8 34.1 5c ioi.92 !j 5S4.-2 4 2.0 C 34 4. 47 reo. 54.8 4U.8 6i 3i L.f4 i.I 2.0 32.7 oJ JL 6.41 .'.ar. 67. - 45.9 7J 4i 17.7) {3. 47., 70 41 4.4.L ,;pr. 74.1 56.) 84 4? 1li.v 4.7 5i.- 7E 41 12.%;5 t4Q- ~~81.4 L).5 66 5.) 1.64 1;78.1 ol.1 87 51 6.2k Jut . C~e-1 6-i. j y ol S .lE , o.7 '7j.2 i v54 J.94, . '1.0 67.- J );F 25.11 ,1C3.DWjo j 7.48 ~~A6- 80-4 |i. 5 oo tD01- j . 1J-o o.6 60 50 ). 96 _J. ~~~~77.8 c;.5 c 4.c &,-~,1. 7 b;+.o 87 56i i. Zo 0 c Wt. 7 c. j 5i. ,Ci . j . 3X', 75j.6 6--- S > 8i5 5 I. 3 ' .. ov.tf;, 5.0.o'7 4'.Z05.rA 5z- 7 4i2.14 ie C. 5 5 .2 ' 4 5z.wi i$5 i . 5 4 j. i 6e ;55 HD'> 65~~~~~.79 ,758.17

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it: O. 51.1 J';;. jl it, )V,5) 41-1 5 i,ar. CL..o 4-Y.j 7) 3j.lo , lW 5-). £ 41 )4} ipr. 74. o ;-O.) ej 44 l.o8J 71.° 55.4 84s .9 Wr.iy 78^. tU . Si 45, 2.; .~7eo 63_..3 VJ, ~ 7 , Junr. ywi.3 71.5t 97 61 4.J- Ir 1.i 7o.o9 tt S U 1.6 1 J.11. 82. Wk-u.t ,4 5;, 7i.t ', 6J.6 o8.7 7i4 60 9.Oj rwi. ~7j.2- 67.4 Z). x|j 9.7 a. x. 6E.6 Ey o_ o1 _ep. 83.5 67.9 86 ol U_.26 &J. 64.iot. t 56 k.43 C ct. 7' .5 E°l4 5u 3.1d 7, 5*.7t.3 bU 4< 4.56 ssOV. 4- .. 4)-5 '72 jeL,2i ;6u.,) 51.7 76 . &/aC. 55.).5 2-7 . 3- 62z.7 4c','. Lo

Jar' 5i 3j.o0 0. 3i 4.2D 1 re D. 5',.j L42.4 07 )7 4.,J ., k-ar. - 4>4. 7Gc. J.81i iaor. £'4.o bJ. iz,.. 4 h4'a 65.3 1.7.I 2t 1.'5 J=. ~85.4 7-.3 ,,> . J al. E1.0 . 1 i b4 has 7).i C4.4 8) v2 ii.JJ PAKISTAN - HILL FARMING TECHNICAL DEVELOPMENT PROJECT

ATRICULTUKE SECTORI - ~~~~~~~~~TECHNICAL .JxLX1 wLt.Ct.:- iArh:Gffi; Ap_pendix I

t , * t(_;,al5::S ) r a t a r ',,,r.ctaly 4L,ar,lip ,o w .a', , ,

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jan. tx .7 4 2.u 7J Ju 0)-,7 57. ib- bo.O) JUs f 2 ke n. o2.9 4:).i 7 ) iQ. / . - 52iS J. 73 34+ 12.722 6.r7.8 46.c 7Y 38 i1. 13 .. '67.i 4i-'7 78 37 1U.5? ?r. 74-4 53,5 S 45 tS. X . 75. j 52.8 0o 40 7.89 taa, S Qu,. ,> )b 5.~ 5.5)6 .. t, 8.2:57. :0V1 S 1 8. 58 Jare, )u- , 71.S5 1U5 $ 5v 5.)t . i S.4 L;y-9 -o U 5? 2.4*1 jai. -Y1.3 o~i. -S 1, 12 -74 _j. S ,j. - iuU b c;.26 G"9. qu .3 7V.4 7,z 0) lJ.5j 61 . 4 7J., 12 u1 17.4°a iep. Si. .4 614,8 903 55 j.d4 Ij 68.j oj.i 94 52 j.;;+ 0Cst. 75.6 5- 6'S' 40 8 34 78.2 51.2 8;rj '5 212 .'ov, 7j.2 41.c 7; 35 V .uJ ;_7 . J 44 .J 75 JE j.5u ;Jec. cxr.5 34,7 67 j J ;,i I . 2 4,5 CE ' 8.

J an. 50.8 37.} 22 )v 1>454 j 6. ° 3, j.70 iab. 57.2 36.J 70 i2 0.84 57).i J).) 'iI 3- li.o2 kiar. 71-i 45 .i 8,) 41 3i9 | 73.'i +8.4 6W 4+2 .1.34 ,hpr. 79.7 53.j s2 42 4, Z) 7c.1 5,-5 87 44 7.33 k-a EJ . j J.4 90 46 5 J1 I j.j Q1.- 1J, 5c 5.=~ JUri. 1OJ.O 06.) 1J7 01 5 4.) I?,?5 71.7 i,,7 Oc i.l2 Jal. t~~2.3 71. lv_; uj l.68 ! 4 . .-? 74.J i u c;7 o.zQ Asu. o8.9 6)-I. 2 i.2i11 90-o3 71.5 IL) 63 11.1o Liep. Y 2.7 o,. 2 90 5L ° J& 6s.) >. I 5 57 5.>8 C ct. 78.J 55.2 12 5J 2.74 2i. 6 57.1l U 5o ii. 2) 'ZY,. 37 .1 - 7i 2.77 63. y 45.5 31 j7 1.78 jec. 5e.7 3;.u bi 33 -4ju 6.s jo .da 70 3J U.Jo

-ian. 57 .0 3 b. 4 6c j i 5 . 23 keo. o2.i J4 .9 71 42 ouv 2w . ;5 .2 4 2. , 8 1 J , ,hpr. E .2 57u I UJ 2. i4 ;r,a i5-4 Ci. Ef 1;JJ) j 4.44v

Ww. i3. 7J. 3 J < 0 L6. 9i1 - 7j.1 _ ,7 _1LL8l_

()not available. rAKI:5TAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT 3A0D DISThIOUTIO9 BY TIl. 8.. UER5 A26 01S2 90C.IVA3BB SIZE

Ond.. 60& T.t.1Wl-t C..t0a attvataI U-eoti-..d C-oppd Ct.ppln6 7r.6,1I1 To.t. 1 0.5 0.1-1.0 % 2 0.2.5 1 2.5-5.0 7% 5 0.7.5 % 7.9-12 2 % 12.5-25.0 % 25.0-40.0 % *6.. % &at &o.a At" to At80 At.. 1n.t.-Il P.-.Ar..

8. 7I'r. 12.726 100 292 2 2.067 a 3.774 50 .4846 31 1.697 13 1,1119 9 354 2 30 7 * A.- 48.6522 100 90 7416 2 6,090 13 14.958 31 9.763 20 9.986 25 5.145 II 896 2 454 B 82.598 28,908 59 56,690 29.601 102

:tao... 30.233 Bno 1.446 1 2.942 lB 9,989 23 9.030 30 3.757 12 2.385 8 567 2 77 *39 91.877 100 359 * 2,039 2 1.620 2 30.631 13 21.955 26 21.716 26 9.051 30 2.218 2 2.490 5 191.812 72.933 79 118.919 79,279 109

N.. oF F.-,. 8.519 180 1.013 12 1.892 22 2.394 60 1.470 17 676 6 262 2 12 A ~;.l 56,961 140 302 2 1.269 7 1.135 30 6,853 29 2.729 16 2.343 1s 312 1 56,926 12.364 75 62,592 12.710 103 9 .f Fo.- 17.435 100 1.697 18 1.606 9 4.809 28 4.885 29 2.419 14 1.422 a 417 2 85 59 A-.. ~ 70.509 100 342 * 1.063 2 7.646 11 26.675 26 14.266 20 12.6187 to 6.065 10 2.313 3 8.211 12 209.690 68.834 97 140.856 80,012 110 110 .0 F.r. 41 471 140 2.135 2 4.8 10t 1210 29 12.277 20 1.30 11 3.750 9 1.292 3 501 1 99 A ~ ~ ~ 16.5I 5 57 * 2.9 2 I9,0 22 1964 2 70.6 19 26.575 21 20. 702 13 8.298 5 1.956 6 482.062 95.775 60 356.287 142,912 149 N.. oC Fo.- 17.602 540 816 1 2.004 11 4.920 28 4.620 25 2.679 14 1.917 11 661 6 196 1 191 1 A.,, 93,256 2D0 237 0 1.373 1 7.009 8 15.179 16 14.289 11 18.131 19 11,040 12 5.885 6 19.313 21 281.560 66.947 72 214,511 71,514 107

4... .7 F-,o 16,668 190 916 5 2.666 16 6.821 60 4.295 21 1.467 8 601 6 156 1 71 I'l,, 42.574 100 291 5 3.821 6 10.581 21 14.288 26 8.249 19 5.285 it 1.782 6 204 71 * 135.247 5t.606 76 103.641 36.649 116 AI4,1. I N.. of I,.-, 12.079 to0 252 1 965 9 3.885 51 3.376 30 1.496 16 806 7 272 2 26 3 Aor.. 39,426 100 73 o 668 2 6.216 16 11.329 29 8.670 22 7.220 i8 4.411 it 701 2 128 105.920 18,461 67 87.459 18,896 102 tk0.41NOY N. .t F.-.. 24.859 100 1.203 1 3.153 13 9,661 39 7.116 29 2.301 9 1.142 5 235 1 67 11 0..~~~~~~~~ ~70,228 100 236 * 2.202 5 15.160 22 25.712 36 13.177 19 10.105 14 3.585 5 1.421 2 213 1 162,636 53,735 77 86,899 63.852 119

0F.o~~~~. of 7~4.801 300 930 6 3,299 13 9.979 40 7,223 29 2.174 9 1.052 6 125 1 to 9 * _67036199 --L8 2.272 1 151660 23 25.956 36 12.563 19 9.405 14 3 991 3 316 * 593 1_ 178 230 48_,210 72 130.020 49.235 102

.0.,r.... .~~1 275.623 IO 700 5 23.677 11.6 69,111 33.7 58.638 28 8 23,596 it 8 16.,456 7.9 4.049 2 773 0.6 419 0.2 1,866.049 -./.773 70 1.368.276 585.400 110 00,0, ~~~~~~~705.7102.889 0 6.23 2.3 96,820 13.5 197.365 28 136.483 19.3 131,863 18.2 65.136 9.2 22.742 5.2 37.871 5.4 .

.0. I.v,...i 3.43 0 27 0 69 1.37 3.36 5.78 9.12 26 09 20.42 90.4

'tC,Il..ll:t:,d 11601y ooIlIvalrd 09~~~88 965 975 961 911 885 841 665 825 601

N.4,L;otboc iot. .1400* 41t1- .4 27 555 - ao yprobably du, tiU. f, y-. ,. Vt6...

1972Nh.11 --.-- td..'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~F, PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

CROPPED AREA AND PER ACRE YIELD OF AGRICULTURAL PRODUCTS IN AZAD KASHMIR FROM 1970/71 to 1974/75

Years 1970/71 Years 1971/72 Years 1972/73 Years 1973/74 Years 1974/75 Cropped Yield,/ Cropped Yield / Cropped 1 Yieldl/ Cropped Yield / Cropped Yield , Area (maunds- Area (maunds- Area 1 1 (maunds- Area (maunds- Area (maunds- (acres) per acre) (acres) per acre) (acres) per acre) (acres) per acre) (acres) per acre)

Maize 235,000 7.4 311,700 7.3 351,680 7.4 350,000 7.0 355,000 7.5 Wheat 165,000 4.6 174,000 5.8 141,270 6.5 150,000 6.8 160,000 Rice 10,000 - 16,800 6.8 14.7 23,050 13.1 25,000 13.5 Minor food grains 50,000 25,000 13.5 - 19,900 5.0 14,000 4.7 35,000 Gram, pulses & 4.5 40,000 5.0 oil seeds 17,900 4.4 27,700 4.5 44,900 4.3 Vegetables 30,000 4.5 35,000 5.0 - 177.1 6,000 174.3 15,960 162.5 Fruits 17,500 165.0 19,000 170.0 666,000 2/ 0.5 3/ 730,000 0.5 866,740 0.5 867,000 0.5 975,000 0.5

1/ Maunds = 82.3 lbs. 2/ Number of trees is given in place of area 3/Yield is per tree in place of per acre. >

Source: Director of Agriculture, Muzaffarabad. M

a| TEC1'IICkL ANNEX I AP.Pen x Page i

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT A riculture Sector WAPDA atershed Management Project

3. WAPDA, the federal Water and Power Development Authority, has been operating a Watershed Management Project for five years. The primary objective of the project is to check siltation of the Mangla reservoir by encouraging private farmers to undertake soil erosion works, inclading tree planting, the construction of check-dams, retaining walls and diversion channels, terracing and pasture improvement, including rotational grazing. The project area extends to 2 million acres, of which 1.5 million acres is in four divisions (Muzaffarabad, Bagh, Rawalakot and Mirpur) in Azad Kashmir and 0.5 million acres in three divisions along the west bank of the Jheluxn river in Punjab. The project is managed by a Project Director, three professional foresters, one engineer and one soil conservationist with a watershed management officer and supporting staff in charge of each division.

2. Divisions are subdivided into sub-watersheds of some 500 to 3,000 acres and initially a soil survey and land capability assessment is carried out and a sub-watershed plan produced. Cooperation of local farmers for implementing the various works is then sought using audio/visual publicity approaches, group meetings and individual contact. In order to induce farmer cooperation the labor costs of the operations such as tree planting, and terracing are paid for in cash by WAPDA, even though these are in private farmland.

3- The project is facing difficulties in translating plans into action. These are concisely sumarized in the WAPDA evaluation report 1974/75, which also indicates possible solutions, and is quoted below:

a. Problems Faced in Execution of Watershed Management Works The main problems generally faced are the same as reported in the past which are:

(i) Lack of Public CooReration. The project is working against very heavy odds. The afforestation and other water- shed management works are carried out in privately owned land with the voluntary consent of the land owners. There is no legislative cover under which works could be taken up or even maintained or protected. The project staff have to contact the local people, convince them of the watershed management program and seek their permission to carry out work in their areas. This is by no means an easy job. The problem is that the socio-economic conditions of the people are hardly conducive to easy implementation of watershed management program. People are illiterate and poor. Land holdings are small and human and cattle population very heavy. Agricultural methods followed are outdated. Range land management even in an elementary form is non-existent and grazing by cattle is heavy, unrestricted and without any control whatsoever. TECHNICAL ANNEX ] _Apendix 3

(ii) For these reaaons the project staff do not always get full cooperation and active participation from the people. Compact areas are not made available for carrying out comprehensive watershed management treatment and some times areas have to be left untreated.

(iii) Protection/Maintenance Difficulties. The projection and maintenance of grazing completed works is another problem. This especially applied to afforestation because the plants cannot grow unless these are adequately protected for some years against grazing, browsing, and cutting which at times becomes extremely difficult to control in spite of best efforts.

(iv) Pasture Improvement Difficulties. There is so much pressure of animals that grazing areas (pastures) are seldom spared for improvement although those may be producing only a fraction of their production capacity. Due to non- cooperation of the public very little work of range improve- ment could be done so far.

b. Efforts to Solve the Problems. Measures so far adopted and those vnder consideration for overcoming the above problems are indicated below:

(i) More &Mahasis on xtonsion Work. The best solution lies in public education so that people are more receptive to new ideas. For this purpose great emphasis is given to publicize the objects and working of the project. People are contacted and local leaders are persuaded to come for- ward and give a lead to the general masses by participating in the Watershed Management Program. These measures are proving useful and public cooperation has improved.

(ii) Compensation for Grazing Rights. The pastures cannot be improved unless grazing is regulated according to their production capacity. Since grazing pressure is heavy on pastures it is difficult to impose restrictions unless some compensation is paid to the affected people. Possibilities of providing compensation are being considered.

(iii) Watershed Management Act. A draft Watershed Manage- ment Act prepared by this Project in 1973 is under consider- ation of the government. Approval of this Act is essential and efforts are being made for its early approval. The pro- posed Act will be used in exceptional cases where the land owners are opposed to Watershed Yianagement Program. ...

4. Expenditure under the project amounted to PRs 4.3 million in 1974/75, of which PRs 1.1 million was expended on staff salaries and traveling, PRs 0.1 million tools and stores and PRs 3.1 on works execution. Funding of the project had earlier been shared b;r the Federal, Punjab and Azad Kashmir Governments, but is now wholly provided by Federal Goverrment. The mission did not have the opportunity of visiting any of the field works and made no assessment of the efficacy of the project. However, the mission considers it is significant that the State and Federal Governments have set up an institution to address the watershed management problem, are perusing an integrated land use approach and have allocated relatively large financial resources to these activities. TECHNICAL ANNEX 1 Appendix 4

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Horticultural Nurseries Operated by Department of Agriculture

.Area Name District Tebsil (Acres)

Batika Muzaffarabad Muzaffarabad 14 Chattar Kalas 2½ Chikar Hatisn 7 Sarai nI 3

Abbaspur Poonch Kahuta 7 Kahuta "1 22½ Rawalakote it Rawalakote 6 Bagh if Bagh 5 Chamyati it 3 Mong Rawalakote 3 Pallandari Pallandari 4

Bal Barahame Kotli Kotli 2

Mangle Mirpur Mirpur 10 Heer " 3

Source: Department of triculture, Azad Kashmir

TECHNICAL ANNEX 2 Page 1

PAKI STAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

AGRICULTURE - TECHNICAL PACKAGE DEVELOPMENT

Experimental/Demonstration Farms, Cooperative Mlaize Program and Associated Extension

Background and Introduction

1. As indicated in the review of the agricultural sector (Technical Annex 1) most cultivation takes place at elevations between 2,000 and 5,000 feet above sea level in mountainous terrain; (the exceptions are the rela- tively small areas in Bimber tehsil and parts of Mirpur which are flatter and at lower altitudes). Valley bottoms are extremely narrow and hillsides very steep, and it is not uncommon to find cultivation taking place at 2,000 to 3,000 feet differences in elevation within the radius of a single mile. Apart from altitude effect on temperature ranges, the mountainous topography creates local wind patterns, which combined with localized temperatures, cause rain shadows leading to uneven precipitation and also variable frost or hail probability. Besides the localized climatic variables, farming conditions are further complicated by considerable variations in the slope of land and the wide range of soil types, each with varying degrees of fertility and permeability. It therefore follows that growing conditions for any particular crop are so highly localized that generalized recommendations on husbandry practices and/or seed variety are inappropriate.

2. Presently there is no work being carried out within the state on any type of agricultural research, proving trials or even studies of better farmer practice. Results from research or trials carried out in other parts of Pakistan and elsewhere (usually-under a totally different set of conditions) can, at best, only be treated as indicative guides to what might be suitable for parts of Azad Kashmir. In order to provide suitable technical packages that may be extended with confidence to small farmers, it will be necessary to institute systematic experimentation and proving trials for specific areas. The definition and detailed assessment of areas for development is discussed in Technical Annex 11. The approach would be to select packages for which encouraging trials result have already been achieved elsewhere (e.g. NWFP), which are judged to be replicable in Azad Kashmir, test each component of these, and introduce modifications to suit localized conditions.

3. To establish full and systematic coverage of the state it is en- visaged that up to twenty small experimental stations would be needed within the framework of a development program over the next 10 to 15 years. In considering the program a number of factors need to be taken into account, including: (i) initial experimentation can be of a relatively simple TECHNICAL AiNEX 2 Page 2 nature and the degree of sophistication usually associated with research stations is unnecessary; (ii) the gross area of land for experimentation purposes can be quite small, but at the same time variations of altitude even within mini-zones need to be incorporated; (iii) an initial period of testing and developing of methodology is required before investment is made in a large number of small experimental stations; (iv) manpower con- straints limit the amount of experimentation that can be conducted in the early years; (v) a particular experimentation area/farm should provide the focal point for the dissemination of techniques in the future and possibly the focal point for integrating farming systems including input supplies; (vi) for maize, the work that has already taken place in Pakistan indicates that certain improved varieties may well be tolerant of diverse conditions, although related husbandry practices have not been proved; and (vii) for rain-fed crops other than maize very little experimental work exists.

4. Following discussions with state and federal authorities and officials of ARC, the CIMMYT supported federal maize program and the USAID sponsored Barani (rainfed) Crops Project, the project would finance estab- lishment of the first four small experimental/demonstration farms and simultaneously introduce the activities of the ARC/CIMMYT cooperative maize program to areas adjacent to the experimental farms. ARC and the associated agencies of CIMMYT and USAID have undertaken to provide technical support to the program. The details of these two complementary sets of actions are discussed below.

A. EXPERIMENTAL/DEMONSTRATION FARMS

5. Functions of Experimental/Demonstration Farms. Each experimental/ demonstration farm would pass through a three stage evolution of function. Stage one would involve the establishment of the land area and facilities, (see para. 15), and the carrying out of experimentation and verification of improved agricultural techniques. Stage two, which would begin as improved locally proven techniques became available (anticipated after two or three full seasons) would involve the use of the facilities to serve demonstration and extension purposes, and as a base for the extension staff for that zone; at this stage staff functions would change to emphasize extension work and two additional field assistants per station would be appointed for this purpose. The third stage is expected to follow about two years later as initial extension work starts to have an impact, when the farm would function as the agricultural service center for the area providing a focal point for input supply, extension, farmer training and marketing (see para. 35), in addition to continuing with verification trials.

6. The pace of development of each farm through these three stages would be dictated by the local progress in package development and farmer acceptance. As new farms are established in different localities in the future, each would begin at Stage one and evolve in its functions. TECHNICAL ANiNEX 2 Page 3

7. Project Activities. The project would include the establishment of the first four farms, two in year 1 and two in year 2. Farms would be about six acres in area and concentrate initially on the most important crops wlhich are maize, fodder and pulses. Farms would be located in areas with the highest potential for developing improved technologies which have relatively wide application in the different zones. They would establish a pattern of development through experimental introductions, demonstration, extension and production servicing as discussed in para. 5 and form the basis for replication in other micro-zones from year 4 onwards.

8. Selection of Zones. The four zones selected for inclusion in the proposed project include the areas of Danna, Kotli, Mang Bajri and Abbaspur/ Hajira (refer to map attached to main report). Areas were selected, using a combination of the Land Capability maps prepared by Huntings Technical Services in 1961 (see para. 2 of Technical Annex 11) and local knowledge of AK technical departments. The criteria for selection were as follows:

(a) flirpur district was excluded from consideration because of its ecological similarity to the Punjab province of Pakistan for which agricultural technologies are well developed;

(b) the northern-most areas of the Neelum River valley were excluded because of low population and low agricultural potential;

(c) constraints on trained manpower limited selection to four areas;

(d) areas selected had to be identifiable as relatively homogeneous zone with respect to topographical features, and agricultural potential;

(e) areas selected had to include a minimum of about 10,000 acres of cultivable land (classes I to IV in the Huntings Land Capability classification);

(f) areas selected had to be reasonably accessible to facilitate proper management and supervision of activities.

9. The general characteristics of each of the four zones selected are set out in Table 1. Estimates of total and cultivated area and of population are tentative only, and were established by subjectively defining the "boundaries" of a given zone (following watershed boundaries along ridges), and enumerating the villages within these boundaries. Census statistics for each village were then aggregated without reference to administrative (tehsil) classifications. ThGlN4iUAL ANNtA Z Page 4

10. Selection of Farm Locations. W4ithin the four zones selected, farm locations will be determined by the Department of Agriculture, according to the following criteria:

(i) a "farm" for each zone will consist of at least three sites, selected to represent different land-types and elevations. Typically a farm would consist of six acres: a three acre central site on which the main buildings would be built, and two outlying sites of approximately 1.5 acres each, separated from the central site and each other by elevations of at least 500 feet;

(ii) the location will be as closely typical of the zone in which it is located as possible, given the constraint of land availability;

(iii) the land would be purchased on a freehold basis by the Department of Agriculture;

(iv) the location would be accessible by all-weather road, although not necessarily sited on the main road (provision is made in the project for construction of an access road to the central site, and of con- necting tracks between outlying sites);

(v) the balance of different cultivatable land types on the farm area would roughly reflect that of the zone; non-arable land within the acquired area would be used for pasture establishment work (refer para. 14 (iv)).

11. Initial Program of Trials. The program of trials for each farm will be determined by the Department of Agriculture, after consultation with the agricultural specialist and Agriculture Research Council (ARC). The treatments described below would be included in the experimental program; these would be modified in the light of on-site experience gained. All trials would be designed with replicated treatments to ensure that the results are statistically sound, and would be conducted over a series of crop seasons.

12. Mlaize Trials. Emphasis would be given to treatments not covered by the ARC/CIMffT cooperative program. However, for control purposes, the maize variety and fertilizer trials which are established in the zone under that program would also be established on each of the three farm sites (see Section B, below). The trials would include investigations of the following: TECHNICAL ANNEX 2 Page 5

(i) tillage systems: the effect of plowing depth, plowing frequency, zero tillage, methods of seed- bed preparation (local practices vs. ridge cultivation) and weeding techniques (local practices vs. maximum and minimum treatments);

(ii) soil conservation techniques: comparison of local terracing and levelling practices with improved techniques of contour ridging with flood control;

(iii) row planting and plant population: comparison of local practices and row cultivation, at different levels of plant population;

(iv) date of planting: the effect of variations in date of planting on performance of different (early and late) varieties;

(v) fertilizer practices: the effects of different levels of NPK, farmyard manure, and trace element application;

(vi) pest control: the effect of various treatments on the incidence of insect and rodent damage.

13. Pulse Trials. Improved varieties of groundnuts, peas, beans, lentils, mungbeans and gram would be introduced and evaluated, in collabora- tion with the USAID-sponsored ARC Pakistan Barani Project. Particular emphasis would be placed on identifying suitable species and varieties to be grown as a winter (rabi) crop. A summer (kharif) crop suitable for interplanting with maize would also be identified. Trials with each of the introduced varieties would include the treatments described for maize.

14. Fodder Trials. Experimental work would include the following:

(i) varieties of winter oats and rye would be introduced and evaluated for their potential as rabi fodder crops following maize: fertilizer and cutting treatments would be tested, and methods of curing and pre- servation devised in collaboration with the Livestock Officer (fodder) of the Animal Husbandry Department;

(ii) other promising fodder crops would be introduced and evaluated, e.g., turnips, kale, choumoellier, and vetch;

(iii) each of the pulse crops grown would also be evaluated in terms of its fodder production potential; and, lItANl4UAL AJNP'J' Page 6

(iv) perennial pasture species would be introduced and tested on areas under long-term fallow and non- arable farm areas: in particular, perennial rye- grass, cocksfoot, phalaris, white clover and vetch varieties would be tested, as these have shown promise in nursery trials conducted by the Forestry Department; low-cost methods of establishing exotic pasture species into non-arable grasslmnd would be tested.

P*ysical Facilities. Provision is made in the project for the c,nsPruction of the following physical facilities:

(i) one mile of access road, and two miles of connecting tracks between sites;

(ii) a hostel for staff accommodation (1,500 square feet) 1/;

(iii) ofn office block and store (800 square feet);

(iv) water supply to the main buildings;

(xl) levelling and terracing as required for the whole areas;

(vi, fencing of each site to protect crops from un- controlled animal grazing;

(vii) vehicles, including a short wheelbase jeep with trailer, and two motorcycles;

(viii) equipment and tools, including soil testing equipment, scales, sprayers, maize sheller, ox-plows, ridgers, hand tools and sundry equipment;

(ix) office furniture and equipment.

16. Staff Requirements. The overall experimental program will be coordinated by an experienced specialist, to be recruited internationally and assigned to the Department of Agriculture. (See Technical Annex 12). Each station would be in charge of an Assistant Agronomist, of Grade 17 level, who would also undertake the experimental work in maize and pulse production. The fodder research would be undertaken by an Agricultural Assistant (fodder), of Grade 16 level. Three farm overseers (Grade 9) would be posted to each farm, one assigned notionally to the maize, pulse

1/ Hostel accommodation is provided initially since families of staff members are expected to continue to reside in the main towns for schooling and amenities. TECHNICAL ANNEX 2 Page 7 and fodder work respectively. Supporting staff would include one junior clerk (Grade 5) one semi-skilled farm worker ("baildar"), and one watch- man ("chowkidar"). Job qualifications and descriptions for the senior staff are attached as Appendix 1.

17. Technical Services. Supporting services of soil testing, entomology and publicity would be provided by the reLevant sections in the Department of Agriculture. (See Technical Annex 5).

18. Costs. A detailed schedule of physical requirements and costs by years is shown in Table 2. These include capital, staffing and operating costs covering inputs tillage and travelling expenses.

B. COOPERATIVE MAIZE PROGRAMI

19. Background. Early maize research in Pakistan in the 1960's concen- trated on the introduction of hybrid maize varieties and the direct transfer of technology developed in the mid-west of America. Little impact was achieved with this approach, however, and in the late 1960's, a selection program was initiated based on a large number of open-pollinated varieties introduced from tropical and temperate sources. In each province, selection has narrowed the range to four main populations, each with about four varie- ties. All are flint varieties with early-maturity, with white maize being preferred in NWFP, and yellow maize in the Punjab. AK has not so far been included in this development.

20. Two Maize and Millet Research Institutes were established by Provincial Departments of Agriculture in 1971 (one in the Punjab, and one at Pirsabak in NWFP) to continue the work of introduction and screening of varieties, and spearhead development of maize, sorghum and millets. The Agricultural Research Council of Pakistan (ARC) provides technical guidance for this work and has the responsibility to coordinate commodity research and production programs. ARC is receiving support for this from USAID and CIMMYT. The system for development and delivery of production packages is most dev- eloped in the case of maize and this mainly for irrigated crops. Attention is now being directed to rainfed (Barani) areas and besides maize, millet and wheat, other crops including oil seeds and pulses are being included for development of improved packages under rainfed conditions.

21. A two-part maize package, which requires no more facilities and equipment than the average farmer has at his disposal, was developed in 1973. This included (a) High Yielding (HYV) and (b) Package of Agronomic Practices (POP). The POP included only moderate levels of N and P (60 and 30 lbs./acre respectively) and insecticides. These packages were extensively tested in NWFP in 1974 through a series of 285 on-farm veri- fication trials which were carefully monitored. The regular extension service staff were used for instituting and following up on the trials and were motivated through a program of training at the Pirsabak center. Good responses were obtained from the use of either HYV or POP alone: TECHNICAL ANNEX 2 Page 8

20% and 25% increases in yields respectively. When both HYV and POP were used, a 63% yield increase was achieved. Similar trials have been repeated in 1975 and 1976, but an evaluation of these results has not yet been completed because of difficulties in establishing a confidence level for the data col- lected; field staff for these later trials were not as closely supervised as they were for the 1974 trials. However, the ARC and CIMMYT staff re- sponsible for the program are generally confident that these later trials had similar results to the 1974 trials.

22. On the basis of the 1974 results the program was extended to the provinces of NWFP, Punjab and Sind. ARC formulated a comprehensive Maize Production Plan for 1976 covering all four provinces, but excluding Azad Kashmir. To meet the seed demand a program for seed multiplication, using farmer outgrowers producing seed on one acre blocks, was instituted in NWFP in the spring of 1975. 1/ The results of these activities are not yet known.

23. In summary, whilst the results of the 1974 trials are very encour- aging, a good deal of verification remains to be done before it can confident- ly be claimed that packages are available for general extension in the eco- zones so far addressed by the Maize Program. Maize growing areas in AK are not generally represented by the eco-zones so far covered by the program and AK is therefore behind in this development. On the more positive side, what has been firmly established is (a) a seed base, and, (b) a methodology for on-farm verification trials. These together with the technical advice and staff training facilities offered by ARC provide a basis for extending the Maize Program into AK.

24. Project Activities. The project would include in-service training of field staff, establishment of on-farm verification trials and farmer out-grower seed multiplication.

25. Training. ARC have agreed with the Department of Agriculture to institute an in-service training program at Pirsabak commencing with eight technical staff 2/ in the 1977 Spring crop season. These eight staff would establish trials, during the 1977 summer (kharif) season in the four zones to be served by the experimental farms under the project. These would provide a base for the trials program proposed under the project in the 1978 cropping season.

26. The project would finance the continuation of the training program for a further three years, with eight staff undertaking the course each year. Thereafter this specific training need would be reassessed. It is anticipated that the eight staff sent for training in year 1 of the project would be

1/ The Pakistan Seed Project (No. 620 PAK) is designed to support sys- tematic production of certified seed to overcome any bottlenecks in supply. 21 Four Agricultural Assistants and four Field Assistants were nominated to attend the 70-day training program. TECHNICAL ANNEX 2 Page 9 corprised of four new trainees, and the four most promising of the 1977 trainees who would return for more intensive training. In subsequent year>, the trainee group is likely to be a mix of new and follow-up trainees, but the actual composition would be determined by the project management. Details of the training program are included in Technical Annex 6.

27. The Grade 16 Agricultural Assistants who have undertaken train- ing at Pirsabak farm would form a cadre of maize research workers under the supervisory control of the agricultural specialist. The number of such staff for the cooperative maize program will be maintained at eight, i.e., two for each of the four zones serviced by the experimental/demonstration farms. These staff would work closely with the staff of these farms, and assist in the replication of all fertilizer and variety trials on each of the farm sites (see para. 10 (i)). Additional staff trained at Pirsabak would be available for redeployment for extension duties as the program develops packages which can be extended to farmers.

28. Maize Trials. The cooperative maize research program would consist of the following types of trial:

(a) Variety Trials: (conducted by maize research workers, Grade 16). Each trial would consist of a one-eighth acre plot on which ten different varieties of maize would be tested in a randomized block design. Seed material would be made available by ARC, and would be chosen on the basis of the performance of the various varieties under the nearest similar conditions in NWFP. All varieties will be tested using a standard applica- tion of fertilizer (60-30-0) and insecticide. 1/

(b) Fertilizer Trials (conducted by maize research workers, Grade 16). Each trial would consist of a one-eighth acre plot, using four levels of nitrogen application and two levels of phosphate in a factorial design.

(c) "Diamond Trials" (conducted by field assistants, Grade 5). These are simple, unreplicated trials conducted on one- tenth acre plots, testing a local and a promising improved variety, each with and without the "best guess" package of inputs.

1/ Although each trial consists of a plot only 1/8th of an acre in size, the design of the trial is complex, with many small treatment plots. Careful plot layout, preparation, treatment, and subsequent controlled husbandry is required together with intensive recording of observations and yield. TECINICAL ANNEX 2 Page 10

29. Each maize resarch AA would be responsible for conducting five fertilizer and five varieties trials in each summer season. 1/ In each of the four zones there would therefore be ten fertilizer trials and ten variety trials established each year (repeated on the same sites). This would give a total of 40 fertilizer and 40 variety trials/year for each year of the project. The sites would be chosen so as to represent as closely as possible the range of agro-climatic conditions prevailing in the zone, and include trials at each of the experimental/demonstration farms. These latter may be part of the total nearly trials or additional, depending on the availability of staff.

30. The AAs would also be responsible for training field assistants, (existing extension staff will be seconded part-time for this duty) in the conduct of diamond trials. Two field assistants would be trained by each maize research worker in the first year, and an additional one in each of the second and third years. There will thus be 4, 6 and 8 field assistants in each zone for diamond trial establishment in years 1, 2 and 3 of the project respectively. Each trained field assistant would be provided with packages of materials for two diamond trials, and instructed to establish one at a high and one at a low altitude site in his home locality. He will be provided with data recording sheets and closely supervised in the estab- lishment of the trials and recording of the results. The total number of diamond trials established in each zone will be 8, 12 and 16 in years 1, 2 and 3 of the project respectively.

31. Seed Multiplication. It is anticipated that arising from the trials program, there may be a demand for improved seed. Provision has therefore been made in the project for the establishment of farmer out-grower seed multipli- cation plots of 50, 240 and 320 acres in years 1, 2 and 3 of the project respectively. These would be one-acre plots established by interested farmers under the supervision of the trained field assistants. Support for in-service training of extension staff to meet these requirements would be provided by ARC (para. 4). The project would provide all input requirements to the participating farmer. It is expected the seed would be locally distributed ex-farm.

32. Vehicles and Equipment. Each maize research AA would be provided with a motorcycle, and a set of field equipment consisting of a spring balance, simple survey equipment, sprayer, hand tools; and sundry equipment. He would also have access to the equipment on the experimental/demonstration farm.

33. Support Services. Provision is included for travel and subsistence costs of ARC, CIMMYT and USAID specialist staff to visit the trials for providing technical support.

1/ Experience from the maize program in NWFP suggests that this is the maximum number of trials that can be adequately conducted in one year by a trained agricultural graduate. TECHNICAL ANNEX 2 Page 11

34. A detailed schedule of physical requirements and costs of the cooperative maize program is shown in Table 3.

C. FOLLOW-UP EXTENSION

35. Follow-Up Extension based on ExperimentallDemonstration Farms and Cooperative Maize Program. The Experimental/Demonstration farms and Maize Program will generate a need for expanding the extension service to promote farmer adoption of the improved packages developed in the trials work. The pace of this expansion will depend on a number of factors, including: the purely technical aspects of developing improved packages; the social con- siderations of land holding patterns, (owners, tenants, share croppers); farmers' confidence in the technologies offered; availability of farm-family labor and possible readaptation of roles of family members; the complementary development of support services of credit, input supply and marketing; and, the physical infrastructure of storage facilities and roads. These aspects are discussed in Technical Annex 12, in relation to follow-up project prepa- ration.

36. In forecasting the need for expansion of the extension source, the following staff requirements have been anticipated (Annex 6 Table 2):

(i) From year 4 onwards, a graduate would be appointed at headquarters as Senior Extension Officer, with responsibility for the overall coordination of the State's extension sources;

(ii) for each Experimental/Demonstration Farm, two additional Field Assistants would be required from the fourth year of its development onwards;

(iii) the primary job functions of the two AAs and three FAs initially assigned to each Experimental/ Demonstration Farm would change from package development to extension work as each farm evolved into an agro-service center. This change is assumed to take place in year 6 for the purpose of the analysis, although in practice the change of job function could occur over a number of years;

(iv) after three years of trial work in each zone under the Cooperative Maize Program, the maize research AAs (two per zone) would transfer to other zones to initiate new series of trials. These would be replaced in the original zones by other AAs (also two per zone), whose function would be to coordinate the extension work of the eight FAs per zone trained by the maize research AAs. Their work would not be confined to maize extension alone, TECHNICAL ANNEX 2 Page 12

but would embrace promotion of all improved packages and farming systems developed for that zone.

37. At full development, therefore, it is envisaged that each zone would be serviced by five AAs and 13 FAs operating from the Agro-Service Center. TECHNICAL ANNEX 2 Table 1 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Location and Main Features of Zones Serviced

by Experimental Demonstration Farm

DANNA MANG BAJRI KDTLI ABBASPUR/HAJIRA

Elevation (ft) 2,000-6,000 2,5O0-6,O00 1,500-3,000 3,000-6,000

Est. amiual rain- fall (inches) 55 55 50 60

Occurrence of frost low altitudes 1/ + + ++ high altitudes I/ + + -+

Occurrence of snow, low altitudes 1/ - _ + high altitudes")/ + + _ ++

Population in area ('000) 1961 census 40 50 83 65 1977, est. 2/ 64 80 133 104

Total area, '000 acres 49 64 160 80 sq. miles 77 100 250 125

Population Density 830 800 530 830 (no./sq. mi.)

Cultivated area, '000 acres 20.6 % of total 43% per family 1.8 Area under maize (600 acs.) 16.7

1/ - denotes absence; + denotes incidence; ++ denotes heavy or frequent incidence (subjective data only). 2/ Assumes a population growth rate of 3% p.a. PAKTI STA HILL FARMING TECHNICAL DEVELOPMENT PROUECT

Details of Physical Requirements and Costs (PRs'O00)

Requirements (Years) Unit Costs Costs (Years) Activity and Items Units 1 2 3 (PRs) 1 2 3 Total

EXPERIHMTALDEYDNSTRATION FARMS 2 2 Land Acquisition at 6 acres7farmv acres 24 8,000 to 20,000/acre - - - -

Caoital Costs: 2 1,500 ft2 2 2 100/ft 300 300 600 Accomodation Hostel for 6 staff/hostel?/ 2 2 Store 800 ft 2 2 80/ft 128 128 256 Office Block and 0 Water Supply to Main Buildings 2 2 1 ,000/unit 20 20 40 Levelling and Terracing acres 12 12 400/acre 5 5 10 Fencing acres 12 12 3,000/acre 36 36 72 Access Roads, approx. 1 mile/farm miles 2 2 30,000/mile 60 60 120 Connecting Tracks, approx. 2 miles/farm miles 4 4 20,000/mile 80 80 Jeep, SWB and Trailer no. 2 2 100,000unit 200 200 Motor Cycle, 100 ccl10 cc no. 4 4 8,000/unit 32 32 64 Equipment and Tools;g sets 2 2 30,000/set 60 60 120 Office Furniture and Equipmenty sets 2 2 20,000/set 40 40 80 Sub-total 961 961 1,922

0nerating Costs: Farm Inputs of seed, fertilizer, oxen hire, insecticides, casual labor units 2 4 4 26,000/unit 52 104 104 260 Staff SalariestV Asat. Agronomist i/c Station Gd 17 no. 2 4 4 23,730/year 47 95 95 237 Agric. Assistant (Fodder) Gd 16 no. 2 4 4 19,000/year 38 76 76 190 COmp Overbeerr Mtda* Gd 9 no. 2 4 4 12,020/year 24 48 48 120 Crop 0l'graer, Pulses Gd 9 no. 2 4 4 12,020/year 24 48 48 120 Crop Overseer, Fodder Gd 9 no. 2 4 4 12,020/year 24 48 48 120 Junior Clerk Gd 5 no. 2 4 4 5,930/year 12 24 24 60 Baildars (= semi-skilled man) Gd 1 no. 2 4 4 4,620/year 9 18 18 45 Chowkidar Gd 1 no. 2 4 4 4,620/year 9 18 18 45 Jeep running at 8,000 miles/year 000 miles 16 32 32 2/mile 32 64 64 160 Motor Cycle running 12,000 miles/year 000 miles 48 96 96 0.35/mile 17 34 34 85 Office Expenses and Buildings Mntce. Y units 2 4 4 17,000/unit 3 68 68 17u Sub-total 645 16 rQ

Total, Capital + Onerating 1.283 1.606 645 3 534

/ To be acquired by GCAK at Danna, Kotli, Bhanguin, Abbaspur. Each farm would conmrise approx. 3 acres at rain center with 2 additional areas of appror' t P 1.5 acres to rerresent hifher/lover eco-zones; estimated distance (by road) between areas -1 mile with elevation variations or 500' to 1,000'. / Detailed plans being prepared by GOAK. Hostel acconmodation provided initially since staff fanilies are expected to reside in towrns for schoo and amenities. s l See schedulc 2 for details. I.. 1s/w " ] ~~~"I' PAK ISTA N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Details of Plyfcal Requireaents and Costs (PR.'000)

Requirements (rears) Unit Cost. Const (rears) Units 1 2 3 (PRG) 1 2 3 Total

MAIZE RESEARCH PROCAM ZXrSION (ARC/CalIST) Capital Costs: Motor Cycles 100/110 ¢c No. 8 8,000/unit 64 64 Fleld Equipmeent Sets 8 1,000/set 8 8 Sub-Totals 72 72 Operatinr Costs: 5 x 8 1/8-a¢re variety trials No. 40 40 40 55/trlal 2 2 2 6 5 x 8 1/8-acre fertilizer trials 440 40 40 100/" 4 4 4 12 1/10-acre Diamond trials n 32 48 64 50/" 2 2 3 7 1-acre farmer multiplication n 50 240 320 160/acre 8 38 51 97

Staff Salaries: Agric. Assistants Od0 16 n 8 8 8 19,000/year 152 152 152 456 Field n 5 16 214 32 -- - - Motor Cycle running costs at 12,000 miles/year 000 Mules 96 96 96 0.35/mile 34 34 34 102 Travel and subsistence, ARC staff W days 30 30 30 320/day 10 10 10 30 a ncnM nC 30 30 30 n10 10 10 30 n n " USAID, etc." 30 30 30 , n 10 10 10 30 Sub-Totals 232 262 276 770

Total Capital * Operating 304 262 276 842

/Existig staff n post who wlll be seconded for this duty. / Based on 100 miles/day at PRs2/mile plus PRal20/day for living costs PRs320/day. All three organizations bave indicated their strong support for the extension of the program to Azad Kashmir. USAID are apecifically addressing development of dry-land > cropping.

Xb PAKISTAN HILL FARMING TECHNICAL DEVELOPMENTPRUJECT Schedule of proiect salary scales based on COAK Pay scales for Gacetted and non-gazetted Officers (P. Rs. per year) Salary Total Annual Salary Scale Basic Monthly Monthly Yearly House Recreation Dail Scale Average Pay Rent Medi'cal 2/ Recretion waily Dietrojecg Sa(aver S 10. of Allowances- Allowance V Allowance4 Disturbane WtotWtthail Daysih1 age Basic at 15 Allowance- Allowance Dai ly Salary -/ day/month Allowance 1 250 340 295 3,540 354 100 99 ,16U 53iyear 4,b74 b,1/4 2. 260 365 313 3,756 375 100 105 2,160 563 " 4,899 7,059 3. 270 390 330 3,960 396 100 110 3,600 594 " 5,160 8,760 4. 280 415 348 4,176 418 100 116 3,600 526 " 5,336 9,035 5. 290 470 380 4,560 456 100 134 3.600 684 " 5,934 9,534 6. 315 525 420 5,040 504 100 140 3,600 756 6,540 10,140 7. 335 575 455 5,460 546 100 152 3.600 819 7,077 10,677 8. 370 640 505 6,060 606 100 169 3,600 909 7,844 11,444 9. 390 700 545 6,540 654 100 182 3,600 981 8,457 12,024 10. 410 760 585 7,020 702 100 195 3,600 1,053 9,070 12,670 11. 430 830 630 7,560 756 100 210 3,600 1,134 9,760 13,360 12. 460 900 680 8,160 816 100 228 3,600 1,200 10,504 14,104 13. 490 950 720 8,640 864 100 240 4,500 1,200 11,044 15,544 14. 520 1,010 765 9,180 918 100 255 4,500 1,200 11,653 16,153 15. 550 1,100 825 9,900 990 100 275 4,500 1,200 12,465 16,865 16. 625 1,325 975 11,700 1,170 100 325 4,500 1,200 14,495 18,995 17. 900 1,750 1,325 15,900 1,590 100 442 4,500 1,200 19,232 23,732 18. 1,350 2,150 1,750 20,700 2,070 100 584 8,100 1,200 24,654 32,754

19. 2,250 2,750 2,500 30,000 3,000 100 834 9,900 1,200 33,134 45,034 20. 2,600 3,225 2,913 34,956 3,496 100 971 9,900 1,200 40,723 50,523

1/ Based on 107. of Basic Salary; paid to all staff not provided with government accomsodation, In addition to Daily Allowances, staff are reimbursed the actual cost of hotels (up to x 2 daily allowance) and travel by public transport. Salary scales used in project cost calculations assumean average of 15 daya Daily Allowance for all posts involving duty travel; this amount would include incidental costs for hotel accomoodation and public transport. 2/ Reimbursement of cost of Medical bills, estimated at PRa. 100/year. 00 S 3/ one month's pay every three years up PRi. to maximum of 1000. C) A) t 4/ Payable when staff spend in excess of 6 hours/day more than 8 miles from duty office; normally 10 to 20 days/month for field staff on following basisB 5 C Salarv Scale (basic) Daily Allowance (PRO) X tD 2 I - 2 12 y 1x) C 3 - 12 20 13 - 17 25 18 45 19 - 20 55 Z 5/ Allowance based on 157 of Basic Salary for all Field Staff, subject to maximum of PRs 100/month.

I' TECHNICAL ANNEX 2 Table 2 Schedule 2 PAKIESTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT ftperimental//Demonstration Farns

EQuipment and OPerating Costs per Farm (Pus)

Eouipment. Tools and Furniture: Moisture testing equipment 2,500 Scales 1 ,500 Klapsack sprayer 500 Low volume sprayer 2,000 Maize sheller 6,000 Hand tools, wheel barrows, sieves, etc. 5,500 Ox plows, ridgers 1o,ooo Sundry farm equipment 2,000 Sub-Total 30,000

Typewriter 3,000 Calculator 1,000 Tables 1 ,000 Chaire 500 Cabinets 30ooo Cupboards 3,000 Files, shelves l4,o00 Sundry office equipment 4, 500

Sub-Total 20,000

Annual Operating Cost per Farm: Iabor for tillge 11,000 Seeds, local 250 Foreign seeds 500 Compost/manure 2,500 Fertilizers 2,9000 Bullock fodder 4, 000 Insecticides 2,500 Bullock hire 600 Miscellneous 2,650 Sub-Total 26,000

Annual Office Ex2enses and Building Maintenance: Stationery and field books 5,000 LIghting and heating 2,000 Sundry 1,000 Maintenance of buildings 9,000 Sub-Total 17,000 TECHNICAL ANNEX 2 Appendix 1 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Experimental/Demonstration Farms: Staff Job Descriptions and Qualifications

A. ASSISTANT AGRONOMIST/OFFICER IN CHARGE

Specific Duties

1. The Assistant Agronomist/Officer in Charge would be responsible for all activities associated with the establishment and development of the Experimental/Demonstration Farm to which he is assigned.

2. Specifically, he would undertake the following activities:

(i) Supervise and coordinate all activities concerned with the physical development of the farm facilities: construction, levelling and terracing, fencing and access road construction;

(ii) assist in recruitment of technical and support staff for the farm;

(iii) administer, and be accountable for, the work of all staff on the station, and the use of all facilities, equipment and materials;

(iv) under the direction of the Agricultural Specialist, personally take direct responsibility for all maize and pulse research work carried out on the farm, including the establishment and maintenance of trials, recording of observations, and the preliminary analysis of experimental results;

(v) work closely with the maize research AAs under the ARC/CIMYYT cooperative program, and offer assistance where possible in the establishment of these trials in the vicinity of the farm;

(vi) prepare monthly work programs and reports as directed by project management, including details of trial work, cost accounting, staff performance and operating difficulties. TECHNICAL ANNEX 2 Appendix I Page 2

Reporting

3. The Assistant Agronomist/Officer in Charge would be responsible to and subject to the direction of the Director of Agriculture, and through the Director to the Project Director, and render to him such reports, plans, discussion papers and estimates as the Project Manager may require. He would work closely with the Agricultural Specialist on technical matters.

Qualifications

4. (a) Technical Qualifications. The successful candidate must:

(i) be eligible for grade 17 employment;

(ii) be a graduate in Agriculture;

(iii) have demonstrated managerial ability; and,

(iv) be experienced in the conduct of field trials and land development.

(b) General Qualifications: The successful candidate must:

(i) be in good health;

(ii) have demonstrated ability to work independently on his own initiative; and

(iii) be proficient in both the Urdu and English languages.

B. AGRICULTURAL ASSISTANT (FODDER)

Specific Duties

5. The Agricultural Assistant (Fodder) will personally undertake responsibility for all fodder research work carried out on the farm, including the establishment and maintenance of trials, recording of observations, and the preliminary analysis of experimental results.

6. Specifically, the fodder research work would include the following:

(i) Introduction and evaluation of different varieties of winter oats, rye, and other promising fodder crops for both winter (rabi) and summer (kharif) production; TECHNICAL ANNEX 2 Appendix 1 Page 3

(ii) evaluation of the various pulse crops grown on the farm in terms of their fodder production potential; and

(iii) introduction of perennial species of pasture legumes and grasses, and testing of their performance on areas under long-term fallow and non-arable farm areas.

Reporting

7. The Agricultural Assistant (Fodder) would be responsible to and subject to the direction of the Assistant Agronomist/Officer in Charge of the Experimental/Demonstration Farm to which he is assigned, and through him to the Director of Agriculture and the Project Director and render to him such reports, plans, discussion papers and estimates as the Project Manager may require. He would work closely with the Agricultural Specialist, and the Livestock Officer (Fodder) of the Animal Husbandry Department.

Qualifications

8. (a) Technical Qualifications. The successful candidate must:

(i) be eligible for grade 16 employment;

(ii) be a graduate in Agriculture; and,

(iii) have experience in the conduct of field trials and the cultivation of fodder crops.

(b) General Qualifications. The successful candidate must:

(i) be in good health;

(ii) have demonstrated ability to work independently on his own initiative; and,

(iii) be proficient in both the Urdu and English languages. TECHNICAL ANNEX 3 Page 1 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Pilot Apple Production

Introduction

1. During project preparation a long-term apple production model over a 20-year program was developed as a component of the overall lon-term agricultural development strategy discussed and agreed with the Depprtment of Agriculture (DOA) (see Annex 1); the model is reproduced at Appendix 1. It is proposed that the project would finance the first three years of the model, with some minor modifications which take account of the initial man- power constraint and which defers some early capital expenditure pending the findings of a study of the overall market absorptive capacity in relatiux to the proposed Azad Kashmir apple program and other apple programs elsewhere in Pakistan (see para 18 below and Appendix 2).

Background to Current Apple Production

2. There are few data on apple growing regarding area planted to apples, yields, cultural problems and m.,rketing. Available data is discussed in Technical Annex 1, para 17. Tentative estimates of some of the main features of apple production are discussed below.

3. Area. Total area presently under apple production is probably around 600 acres. This is mainly composed of small groups of trees with up to as many as 17,000 farmers growing apples. The main concentration is in the Bagh tehsil, with smaller areas in Danna, N. Rawalakot, Dhirkot, Banghuin and some plpnting in Athmuqam and other more remote areas.

4. Varieties. There is a wide range, including many of the older varieties, introduced from the United Kingdom such as Jonathan, Granny Smith, Worcester Permain, Williams, etc., and local varieties of Kashmir Amri, Kasbmiri Red, Red Astrachan, etc. In recent years, higher yielding varieties of Golden Delicious and various Delicious sports, e.g. Starking Delicious, Red Delicious, etc., have been introduced. Some of the more enterprising growers have lopped the older low yielding varieties and successfully grafted (albeit in a rough and ready fashion) the newer varieties onto the old trunks.

5. Yields. The DOA's best guess of average yield is 40 lbs/tree which would be equivalent to a little under 2 tons/acre on a full stocking (110 to 120 trees/acre) basis. This estimate includes all age classes of trees and probably overstates the present position. However, very high yields can be and are attained. For example, the mission visited four adjoining apple sites owned by separate growers at Chamyath (elevation 4,500 ft). These contained 350 trees, equivalent to about three acres and had received considerable attention from the district horticultural assistant. Production of these trees had been recorded over the post two years and the h'rvest from heavy bearing indiridual trees recorded separately. Recorded yields for 1975 were: TECHNICAL ANNEX 3 Page 2

Golden Delicious - 30 trees 10 years from planting.(Maximum tree yield 576 lbs) 60 7 it " 110 I 5 " it if

200 trees yielding 17,036 lbs

Kashmir Amri - 87 trees (from non-bearing to 10 years old) yielding 6,849 lbs. maximum tree yield 820 lbs.

Starking Delicious - 63 trees (6 years old, second harvest year) yielding 4,279 lbs.

Total = 350 trees yielding 28,164 lbs. Average 80 lbs/tree.

6. All the trees appeared healthy but there was considerable disparity of tree growth between varieties. Pruning methods vwere generally defective; there appeared to be little realization that different varieties require alternAtive pruning procedures for best results. Discussions with the farmers elicited thpt their estimate of average yields, provided there is no damAging hail, is:

1st hprvest (fifth year from planting) = 15 seers X 31 lbs per tree 2nd " = 29 " = 60 " t "i 3rd it _ 40 = 82 it it 4th " = 62 -a127 t "i t 5th " onwards = 2 maunds = 164 tt II n

At the expected stocking of 110-120 trees per acre, this would be equal to 1.5, 2.9, 4.0, 6.2 and 8 tons per acre from Year 5 through Year 9 for Golden Delicious and about 18% less for other varieties. After Year 9, yields of 8 tons/ acre would be expected to continue to about Year 30, when the crop would be replaced. These yields compare with United Kingdom production for Golden Delicious using modern planting and cultivated practices of about 0.25 tons/ acre in first year after planting, rising to 15 tons (exceptionally, 20-25 tons) in the sixth year from planting.

7. Hail and Frost. The farmers at Chamyath indicated that there was some hail and minor frost every year, but that only one year in five was damage to blossom experienced fran hail which caused about a 20% reduction in yield; no frost damage was reported. 8. Harvesting and Marketing. At Chamyath harvesting usually commences mid-September, the main pick (especially for Golden Delicious) being over a fortnight, last week September/first week October. The majority of the crop is sold early, the growers delivering to a middleman buying point on a good "bus route" road; et this point the farmers received PRs 80 per maund (a fraction under PRs 1 per lb) for Golden Delicious and up to 50% premium for Starking. Apples stored and sold late, Janusry through March, fetch prices between 30% and 60% higher (note: these latter prices are somewhat above those prevailing in Europe ex-farm-gate stores which approximate PRs 125 per maund equivalent.) TECHNICAL ANNEX 3 Page 3

Storage methods are similar to those prevalent in Europe in the 1920s but with somewhat better results. Apples seen in March/April had suffered some minor skin crinkle, spoiling appearance but flesh quality was remarkably good. Marketing follows a different system in e.g. Athmuqam, where growers commonly sell the standing crop on the tree at substantially lcer prices than those obtained by the Chamyath growers, with the buyer arranging for harvesting. This would indicate a tighter credit position for farrars in the Athmnuqam area (see also Technical Annex 1, para 22).

Technical Factors

9. Nurseries. The tree nurseries are planted with crab apple root stock in the autunwthgrafting taking place in the following spring starting in March. The first grafting is by cleft budding; in May/June the ring buduing method is used followed by tee budding in August. The seedlings are considered satisfactory for transplanting one year after the grafting process at which stage they are considerably smaller and weaker than would be considered suitable by European fruit farmers. The reasons are poorer (slower growing) root stock and inattentive nursery management; budget constraints often prevent adequate weeding and nursery maintenance and limit availability of supervising transport.

10. Planting. The smaller than desirable seedlings require a more expensive plonted-out technique than is caomon elsewhere. Farmers are advised to dig holes of 0.75 m3 and refill with a mixture of soil and F.Y.M. around the root structure during planting. Subsequently, they are advised to apply the equiv- alent of 45-100 units of nitrogen (in the form of urea) annually. The validity of this advice is doubtful; potash and phosphate applications are more likely to be beneficial. However, in the absence of any soil testing, firm recom- mendations are not possible. 11. Pruning. Pruning of trees is largely dependent on the farmer who incorrectly tends to equate density of branches with yield. Technical advisers are aware of this deficiency in theoretical terms but lack experience; some have carried out some disastrous pruning demonstrations (based on book reading) and now lack confidence. The technicians are well-versed in where to prune but lack the ability to differentiate between varieties that y=iel on 1st year, 2nd year or 3rd year wood, and hence when to prune; hence correct demonstration pruning methods have been applied at the wrong time for the variety in question, with consequent disappointing results and lack of confidence in both the technician and grower. 12. Cross Pollination. Most apple varieties need cross pollination for the heavy setting crops. However, little attention is paid to this aspect and where good pollination occurs it is likely to be a matter of luck rather than design. The Department of Agriculture is promoting beekeeping to improve pollination and the need for this would be supported when a major planting program goes ahead. At present, however, with only minor and scattered plantings, TECHNICAL ANNEX 3 Page 4 it is doubtful if additional insects will have any marked effect. Of more importance is the need to plant a few cross pollinators (another variety) in each small orchard area.

13. Pests. There are no reports which indicate pests are a serious problem at the moment; technicians report ad hoc spraying of small areas for "apple borer, moths, scab and mildew" when the pests occur. As the terminology indicates, specific pest species have not been identified. Whether or not pests are a problem at the mcment, they are likely to prove so in the future unless specific pest control measures are programmed. During mission travel, the apple trees were dormant and examination for pests not possible. However, examination of other fruit trees in foliage and in blossom would indicate that most pests which attack apple trees are present, although the degree of infestation is unknown; in any event, specivlist entomological work is necessary for true identification.

1h. Over the next two years an attempt should be made to clearly identify the presence and degree of: Aphids - the four common ones are likely to be: apple grass aphid (Rhopalosiphum insertum), green apple aphid (Aphis pomi), rosy apple aphid (Dysaphis mali = D.Plantaginea) and red-leaf aphid (D.Deveota); Apple Leaf Midge (Da eura mali) damage is more likely to be importa_ntto young trees; Apple Sawfly (Hoplocampa testudinea); Apple Sucker (Psylla mali): hatching period extends from bud burst to green cluster stage; Capsid Bugs apple capis (Plesiocoris rugicollis) may be rare but common green capsid (Lygooris pabulinus) msy be common; Clouded Drag Moth (Orthosia incerta); Godling Math (Cydia pomonella), Earwig (Forficula auricular) particularly prevalent and damaging to Golden Delicious apple trees and fruit; Fruit Tree Red Spider Mite (Panonychus ulmi); Tortrix Moths, although many species occur on apple only three are likely to cause damage: fruit tree tortrix (Archips podana), summer fruit tortrix (Adoxophyes orana), fruitlet mining tortrix TPammene rhediella); Winter Moth (Operophtera brumata); Woolly Aphid (Eriosoma lanigerum).

15. Work is also recommended to identify the possibility of the following diseases: Blossom Wilt (Sclerotinia laxa); Brown Rot (Sclerotinia fructigena); Canker (Nectria galli&ena; Collar Rot (Phytophthora cactorum and P.Syringae); the latter species is also known as fruit rot and causes serious loss of stored fruit; Fire Blight (Erwinia amylovora), this is highly infectious disease which requires the generally eradication of diseased plants and stringent hygiene measures in the vicinity; Gloeosporium Rot (Gloeosporium perennas and G.Album); Mildew (Podosphaera leucotricha); and Scab (Venturia inaequalis). Specific Apple Replant Disease (SARD) is unlikely, nevertheless soil tests should be carried out where plantings are intended in areas previously carrying apples or closely related crops, such as pears. TECHNICAL ANNEX 3 Page 5

Scope of Proposed Apple Production Program

16. Although the current inappropriate technical advice, weak organization and lack of firm data on land areas suitable for apple production, prevent a firm assessment of the full apple development potential, it is apparent that apples grow and store well in the state and it should not be too diffficult to overcome the technical and organizational deficiencies. It is also clear that substantial areas of land lie within appropriate altitude ranges for apple growing. The major constraints to the size of future production are likely therefore to be those associated with marketing. At present data on marketing prospects are extremely limited; estimates by Federal officials indicate a large internal absorption capacity, but these estimates are heavily influenced by present shortages and high city prices. There is also a tendency to stress the importance of the potential export markets which is yet to be substantiated. It is possible that additional internal demand may eventually be as high as 80,000 tons per annum. However, this would be dependent on relative price structures. In considering production fram Azad Kashmir, the likely production from other areas of Pakistan needs to be taken into account and related to market outlets. Notwithstanding these deficiencies in available data, it is clear thet there is a ready mprket for a modest increase in production from Azed Kashmir and that a modest planting program may be embarked upon with confidence. From the pilot scheme, technical and organizational lessons can be learned which would provide the bpsis for future expansion and during the pilot scheme period mzrket studies would be completed on which to define the extent of the program.

Project Activities

17. The project would follow the bnsic approach outlined in the long-term model progam (Appendix 1). This would include completing the first three years of apple planting and laying the foundation for an expanded program, the size and pace of wnich would be determined during the project period. The specific actions under the project would be:

(a) provision for a study of the apple market;

(b) upgrading of three nurseries at Bagh, Chamyati and Chattar Kalas to provide better quality stock;

(c) the provision of a nucleus apple promotion service for assisting small farmers in establishing some 900 acres of new orchprds in the areas of Bagh, N. Rawalakot, Danns, Bhirkat and Banghuin, together with the necessary equipment and minor buildings;

(d) provision of a nucleus headquarters support unit together with small additional office and storage facilities and minor hostel-type accommodation for staff; TECHNICAL ANNEX 3 Page 6

(e) the provision of short-term consultancies, both foreign and from within Pakistan, to (i) provide speciali7ed technical advice; (ii) provide advice in suitable work programming techniques; (iii) assist with preparation of a follow-up project; (iv) provide key material and advice for in-service staff training; and

(f) in-service training for Hort.Assts.(2) and Field Assts. (60). Details of the training are given in Technical Annex 6.

Detailed Features and Costs

18. The apple marketing study would provide firm data on which to base decisions on the most suitable size and phasing of the future apple production program. The study would cover all major marketing areas in Pakistan. It is envisaged that the study would be carried out in the second year of the project by a combination of expatriate and local consultants and would involve two periods of work (August to October and March). Detailed terms of reference are included in Appendix 2. Estimated costs are PRs 46,000.

19. The upgrading of nurseries would include the nurseries at Chattar Kalas, Chamyat and Bagh which require minor supplementary irrigation facilities, land levelling, minor storage and equipment. To provide better supervision, an additional horticulturist would be posted to each of these three nurseries and financed by the project; sufficient junior staff are already provided for under normal budget for regular nursery operations, The project would also provide for additional inputs, including improved root stock, for seedling production on the basis of PRs 0.5/per seedling/per year. The number of seedlings to be produced would be relpted to the estimated planting program allowing production of three year old nursery stock at planting density of 120 plants/acre, plus 25% for nursery culling. (See Table I for details).

20. The nucleus apple promotion service would include the fielding of an additionsl 20 Field 4ssistants, designated apple promotion technicians (APTs),each year to a total of 60 in Year 3 and two field posted Grade 16 horticultural assistants (HA) per year to supervise the APTs, giving a ratio of one HA to each group of 10 APTs; (this ratio is slightly higher than shown in the model program in Appendix 1, due to initial staff constraints). APTs would be provided with a small office-cum-store of 300 sq ft and HAs with a similar building of 500 sq ft. Supplementary building construction, including housing, would be undertaken in the proposed follow-up project period. Minor office and technical equipment would be provided together with jeep-type transport for HAs and motorcycles for 50% of the APTs; the motorcycles are intended for areas where individual farmer apple plantings are more widely dispersed. TECHNICAL ANNEX 3 Pa;e 7

21 The nucleus neadaunrters support unit is designed to control both nursery work and the field services. In additioi, it would provide an initial accounting system for farm inputs, monitor and evaluate progress and coordinate planning for expnnsion of the program in the post project period. Provision is included for an apple production coordinntor at Deputy Director level (Grade 18), a planning/monitoring officer (Grade 17), and accountant (Grade 17) and eight junior support staff members. This staff would be provided with two jeep-type vehicles and necessary office equipment. The unit would require office accommodation (700 sq ft), minor storage facilities (600 sq ft) and pending house construction, hostel type accommodation (3,000 sq ft). The unit would report to the Project Director through the Director of Agriculture and would have access to the agricultural support services, see Annex 5 and support from specialist consultants, see para 22.

22. Short-term expatriate and local consultancy services would be provided in four specialized fields covering entomology, apple husbandry practices and programming, apple tree nursery production, and grading, packing and storage. Consultants would provide advice on technical issues, assist in implementation by (i) guiding the work program and (ii) by assisting in specialized procure- ment (e.g. what type of root stock should be used, where it is available and how it may be procured); they: would assist in planning of the anticipated follow-up project and would provide assistance in designing suitable in-service training systems. Although these consultants are costed within the pilot apple production component they will in addition assist other aspects of the overall project, e.g. the entomologist adviser would also be valuable to the state's overall entomological work. A total of 23 man-months would be provided includ- ing nine man-months expatriate consultancy. There would be one man-month in entomology (expatriate) in each of the first two years; four, five and three man-months in apple husbandry in PY 1, PY 2 and PY 3 respectively, including four man-months expatriate services; one man-month expatriate services in nursery work in Years 1 and 2 of the project supplemented by two man-months in each project year by local consultents In the third year of the project provision would be included for one man-month expatriste consultancy to pre- pare initial plans for grading, packing and storage of apples which would start to come on-stream during the post-project period. ExpAtriate consultancy fees have been costed at between us$6,000 and US$7,500 per man-month and local consultancy at PRs 5,250. Local travel costs and expenses for both types of consultants are rounded to an average of PRs 7,000 a man-month and expatriate airfares (nine round-trips) have been costed from Europe- Draft terms of reference for the consultants are included in Appendix 3.

Summary of Costs

23. The total cost (January 1977 base figures) of the pilot apple production program is estimated to be PRs 6.6 million. Details of physical requirements and costs are contained in Table 1 and summarized below: TECHNICAL ANNEX 3 Pa.e 8

Sunimarv of Costs (PRs '000)

FYi PY2 PY3 Total

A. Apple Marketing Study (i) Consultants fees and allowances 35C) 350 (ii)Other ccsts1 1< 115

Sub-total 465 465

B. Tree Nursery Improvement and Management (i) Capital improvements 90 97 187 (ii)Salaries 29 44 44 117 (iii)Incremental seedling production _7 79 101 237

Sub-total 176 220 145 541

C. Field Services (i) Buildings 80 560 560 1,200 (ii)Vehicles & equipment 2b7 297 257 861 (iii)Salaries 228 457 686 1,371 (iv)Vehicle and other operational costs 83 166 24R _497

Sub-total 658 1,480 1,791 3,929

D. Nucleus Headquarters Unit (iBuildings 48 418 (ii)Vehicles & equipment 217 217 (iii)Salpries 129 129 12S 387 (iv)Vehicle and office running costs 117 116 116 - 349

Sub-total 881 245 245 1,371

E. Consultancy Services (i) Entomology 80 80 160 (ii)Apple husbandry 116 183 103 402 (iii)Tree nursery management 105 104 25 234 (iv)Grading/packing/storage - _ 95 95

Sub-tota.l 301 367 223 891

Total 7,197 PA II S TA-N HILL FARMIN CHCA DEVELOPMENT PROJECT DebaUif- Physialc Reauiraaents a Cost MIi'OOO)

Roegremwta (Cears) umit Costs Coats (Tears) Units 1 2 3 PRe 1 2 3 Total PILOT APPLE SCI81 3 Upgrmding 1Rdsting Nreariey C1a'ats Chattar Bkg galas Nursery Production, based on 120 plans/acre plus 25% for called plants 000m 68 g0 112 Aple orchards tD be planted gar" 150! 300 1450 Capital Costs. Nursery 1 2 Headquarters 2 90 97 187 Office, Muaf ara 7G00 10/ft 70 7lo7/ Store n 12/ / n 600 80/' 48 so~iHostel 48 nf n . i 3,000 100/' 300 300 Field 2 Office/Store, Hort. Ast. (500 ft ) * (2) 1,000 (2)1000 (2)1000 80/ 80 80 80 t40 w' lield Asst. n (300 ft2)11/lg/ . (20)6000(206000 ' ' - 480 480 960 Office Equipment2/ Headquarters 3 0 Sets I 3 ,00 /set 33 33 na " Field n 2 22 22 1,500/ Jeeps, n 3 33 33 69 SiB for Headquarters staff NO. 2 92,,00/unit 184 n " ' Field Hort. Assts. 184 2 2 2 n n 184 184 184 552 Motor Cycles, 100 cc Field Asts. 10 10 10 8000/ p 80 Sub-Totals 80 80 1,072 954 857 oegratine Cosates, 2,883 Nursery Productaon Costs" OOOa 113 158 202 0.5/transplant 57 79 101 237 Staff SalariesW Project Coordinator (Apple) Od. 18 No. 1 1 1 1 32,750/year 33 33 33 99 Assistant (Planning & Monqring) " 17 1 1 1 23,730/" 24 24 24 72 Assistant Accounts Officeri " " 1 1 1 19,230/ " 19 19 19 57 Accountant i 11 n 1 1 1 9,760/" 9 9 9 27 Clerks n 5 3 3 3 5,930/ 18 18 18 54 Drivers " 3 n 2 2 2 8,760/ 17 17 51 Chgvkidars and 17 Peons ' 1 ' 2 2 2 4,620/" 9 9 9 27 Horticultural Aaut. (Fl:l) n 16 ' 2 4 6 19,000/ " 38 76 114 228 Apple Techniciens n 5 n 20 40 60 9,530/ " 190 381 Horticultural 572 1,143 Asit. (nursery) a 16 n 2 3 3 14,500/ " 29 44 44 2 Headquarters 117 Jeeps at 20,000 miles/year 000 EIe" 40 40 40 2/nile 80 80 80 240 Hort. Asst. Jeeps at 10,000 m y ailr n0 w1 60 W Field 0 40 80 120 240 n N/Cu 12,000 n n ' " 120 240 360 0.35/ 142 84 126 252 Ofrneo hpnsese and BuIlding Vai.nt.n eo 3 Sub-Totals 8 11' Z, AT, Consultanciest,iW Apple Dizacto antemlegiot (E) a mnth I 60,000/xa. 60 60 12O H-Aazbandry -- eclFI1ist 1 2 1 N 60 120 60 2140 of"n (p() ' 3 3 2 5,250/' ree 16 16 10 42 T" Nursery (lx) 1 1 60,000/' 60 60 if n n(Y) 120 ' n 2 2 2 5,250/" 11 10 11 32 Grading, Packing, Storage specialist IX) n " 1 75 000/' - - 75 75 Consultancy Air Travel (assured Europe) Return Fare 3 3 2 12,500/r.f, 38 38 25 101 " Local HonthsM 8 9 6 7,000/month $6 63 142 161 Z Sub-Totals 1 301 367 223 691 Mirketing Specialist for Pakistan Stud/rl 4 1/_ 465 46 >9 Total Capital + Operating + Consultancies 2,016 2,777 2,404 7,197 i/ See Technical Annex 3 for detailed description of Apple Develdment Program. L/ Land to be acquired by GOADI approx.1/8-acre/ Cal land operated by Depmrtat of Agrialitwe. 2/ See details in Schedtle 3. 1/ Site Available 'Wint Soils jab md k ;mawUbe 12/ Stwo oeutruoted in year following identifi- x 13/Aotponoible for introiuetia and udirltration of aundit m- cation/s/nrolent of 60-farmer group. 4/Oraft term of referemco bceng prepared by IBRD fbr approvl br O1A. 15/This study wvoul covt all Pakistan, lcludiy Aad Kalktzr- Jesbd 1 A 3, Apmiix 2 for TOR aU dtaliled oost estimates. TECHNICAL ANNEX 3 Table 1 PAKISTAN Schedule 3 HILL FARMINC TECHNICAL DEVELOPMENT PROJECT

Pilot Apple Scheme Nuxrya UoRgdi, Ofice' eguivment and Exvenses and Nursery Production Costs (P$s) Y_ursery Upgrdng: Chattar Kalas Chamyati Bagh Total

Office/Store 300 ft2 @ PRs 80 2410O0 24,,000 Existing 48,000 Hott.Asst. Home o00 ft2 @ PRs 100l0,000 Existing Existing 40,000 Water supply improvement channel reservoir, header tasks and pipe replace- ment 10,000 10,000 10,000 30,000 Reterracing 10,000 10,000 10,000 30,000 Fencing 5,000 5,000 5,000 15,000 Sprayers 5,000 5,000 5,000 15,0CO Tools and implements 3,000 3,000 3,000 9,000 Total 97,000 57,000 33,000 18,700

Office Equipment - Headquarters

Desks, tables, chairs 1O,000 Cupboards 2,000 Cabinet 2,000 I Typewriters, English, Urdu 12,000 Calculators 2,000 Telephone installation 2,000 Desk duplicator 2,000 Sundry 1,000 Total

Annual Office Expenses Stationery and postage 5,000 Lighting and heating 2,000 Telephone 1,000 Maintenance of buildings 30,000 Total

N78e P1979 1980 1981 1982 Planting targets (acres) 150 300 T50 600 750 Nursery Transplants at 120/acre + 25% culling ('OOOo) 22.5 45 68 90 112 2-year old stock 45 68 90 1-year old stock 68 90 112

Total stock for costing 113 158 202

Cost per year per seedling: PRa 0.50 TECHNICAL ANNEX 3 Appendix 1 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Base Model for a long-term Apple Productiorn Component

Introduction

1. In the context of Azad Kashmir,a successful apple production program needs to take into account the very small farmers,most of whcm could not plant as much as an acre and who would be unable to handle a complete acre in a single planting either financially or technically. Secondly, a time fr me needs to be adopted which takes into account build-up of advisory staff, technical competence, nursery development and planning of future marketing facilities and phased growth towards market absorptive capacity. With these factors in mind, it has been proposed that each farmer entering the program should plant a sixth of his intended acreage during six successive years and that six successive groups of farmers enter the planting cycle during a six- year period (a 6 x 6 planting model). As the small farmers use a "'kanall" (eight kanals = one acre) a single kanal containing 15 trees has been taken as the basic unit and for model purposes each farmer's target acreage is taken on 6 kanals (3/4 acre).

2. On the assumption that market capacity is at least 28,000 tons and possibly above 40,000 tons and that yields of between 4 and 8 tons per acre can be expected, the proposed model envisages 5,400 acres with 7,200 growers (1,200 growers entering the program each year) which infers a gross planting period of 11 years - 150 acres in first year:rising through 300, 450, 600, 750 to 900 in sixth year, and falling to 750, 600, 450, 300 and 150 acres in the seventh to eleventh year. In such a model,limited production (220 tons) would accrue in the fifth/sixth year rising through 882 tons in sixth year, 2,116 tons in seventh year with continually progressively rising increases through eleventh year and subsequent annual rises (but at a declining rate) up to year twenty when all trees will be fully mature.

3. Allowing for the continued production of other fruit trees the present nurseries could produce the necessary 18,000 first year trees and over project life gradual expansion could increase capacity (and technology) to 108,000 per annum; as requirement then gradually falls off, supervisory staff can either be diverted to marketing problems or full nurseries maintained with a gradual changing emphasis from apples to other seedlings (e.g. walnuts or mulberry).

4. Traditional merketing channels and methods (with minor improvements) would satisfactorily handle production through Year 6 (possibly Year 7) and no new storage methods would be needed in-situ to Year 8. There would there- fore be ample time to plan for storage and market logistics during a first phase which, if successfu, could be followed by the installation of facilities in the early part of a second phase - such facilities could be planned for gradual expansion during a third phase and in accordance with the planned production model (see Table6 5 - which, of course, could be scaled up or down according to findings during project implementation). TECHNICAL ANNEX 3 Appendix 1 Page 2

5. The individual farmer's costs for a kanal are simply computed as a one-eighth factor of the one acre model (see Table 1, together with note on base assumptions used). However, as he will be operating a cycle of six consecutive kanals his cash flow position alters considerably (see Table 2) - his gross borrowed funds through Year 6 becoming PRs 1,650 and his gross debts including compound interest, at notional 10%, becaming PRs 2,605 before he can make full repayments in Years 8 through 10. Table 3 sets out the investment requirement for a six farmer cycle and Table 4, the implication of a 5,400 acre program involving 7,200 farmers (both exclude interest factors). Table 5 indicates the likely production stream starting in Year 5 or 6(221 ton's) steadily rising to 42,870 tons by Year 19 or 20 - full maturity.

Field Services

6. Farmers entering the program will require technical, logistical and organizational support on a phqsed basis. It is proposed that, at the local level, groups of 10 to 30 farmers enter the program simultaneously and that for model purposes the group is taken as 15 farmers. Apple promotion technicians (APT) would be field-based at the ratio of one to sixty farmers (four groups) with 20 such technicians entering the service each year for six years (assum- ing foregoing production model). Each set of technicians would enter their own cycle of work parallel with the growing cycle of the farms for which they are responsible, thus there is the opportunity and time for technicians to be largely on-job trained. In Year zero, 20 members of existing general extension service would be given three months training at tree nurseries (increasing labor availability of the nurseries) in budding, grafting and planting techniques combined with some classroom training in elementary aspects of entomology, soil properties and soil sampling, and be given a further three months short orientation course in farmer approach problems and organizing farmer groups 1/. In Year 1 their main task would be to identify/assist and select the sixty farmers in their assigned area and directing them into suitable groups (at this stage, the groups might be as small as 5 farmers - subse- quently amalgamating two to four such groups) and establishing some 12 key farmer contacts; in the latter half of the year they would assist with the logistics of seedling distribution and physically assist farmers carry out their plantings. Following which they would return, durina the winter months, for a slightly more advanced course in entomology of three months, etc. In the second and subsequent years, the technicians would physically assist farmers with Dest control measures, g.eneral maintenance aspects and further improve coordi- nation amongst farmers as groups, during part of the winter months spending periods in training steadily improving their knowledge of entomology, pruning pollinption and, later, in grading and organized locally programmed fruit collection and grading.

7. Each of the six production areas (potential eventual grading/packing/ storage/dispatch plant service areas) would be placed under the charge of an area production manager (APM) who would supervise and coordinate all activities in that area, who would be assisted by horticulturists at the ratio of one for each six or seven technicians based in the area at any one time; as the gross plantings in a particular area increases the production manager would also have the support of an entcmologist and a logistical flow officer in the third and fourth year respectively.

1/ See Technical Annex 6 which describes the training program for these staff. TECHNICAL ANNEX 3 Appendix 1 Page 3

8. It is proposed thtt six potential production areas (a,b,c,d,e,f) enter the cycle on the bagis of two in Year 1 and rising to six in Year 5, and that groups of farmers within an area enter the planting cycle in three consecutive years; thus assuming, for the model purposes, that all six areas have equal potential,the field staff build up will be as Table 6. In summary, total field staff including clerks and drivers would be 30 in Year 1 rising to 59, 95, 135, 166, 200, 211, 217, 220, 223, 226 and 228 in Years 2 through 12. At full staffing (seven years after initiation) a particular area will have: 1 area production manager; 3 horticulturists; 20 junior technicians; 1 entomologist; 1 logistics officer; 6 clerks and 6 drivers.

9. As is the case for junior technicians, the work load on, and technical ability of senior and intermediate level field staff will be both seasonally limited and technically increasing during the early stages of the program. Thus, whilst the staff must have initial academic/experience qualifications above those of junior staff,they can also receive progressive in-job training which, it is suggested, be supplemented by short courses by consultant specialists 1/. The scheduled financial implications of field staff is set out in Table 7.

Seedling Nurseries 10. It is not intended that these nurseries be exclusively for apples (there is a continuing need for other fruit trees at present levels to be expanded from Year 7 onwards),but apple seedling production from the nurseries needs to steadily expand relative to other fruits during the first six years. In a.sense, therefore, these nurseries are treated as an input supply point. However, the program will support additional staffing of a specialist seedling production horticulturist at each nursery and additional funds over the five year period to support increased size of nurseries and their operation,based on the per apple tree forecast requirements three years hence. After the fifth year the nurseries would be operationally self-supporting, sales equating with expenditure. The scheduled/financial implications are set out in Table 8 and total PRs 936,000.

Grading/Packing/Storage and Dispatch 11. Apart from minor improvements to be carried out by field staff during the first six years, it is not anticipated that any substantial investment in grading, packing and storage facilities will be required until Years 7 through 19. A substantial investment will eventually be necessary if a major plantine program goes foreward. However, there is a lead time of between five and eight years before any substantial production returns will come on-stream. Thus, planning and design can be carried out during a first stage five-year project and the necessary facilities provided during a second stage project and tentative capital developinent costs of US$3,522,350 hvm an included in the cost benefit stream for these years - the operational co- a assumed to equate with income. Thus, first phAse project costs are limited x i-anning aspects and market investigation (see headquarters staff below). The internal market absorptive capacity of Pakistan is largely conjecture at this stage. Present supplies are clearly only a fraction of demand. Extrapolating fran the situation in India,

1 / See Technicol Annex 6 which describes the training program for these stnff. TECHNICAL ANNEX 3 Appendix 1 Page 4 it is possible that additional absorptive capacity exceeds 80,000 tons a year. However, this guesstimate needs examination and in addition data is necessary on recent plantings and future intentions in other parts of Pakistan which, if substantial, could detract from viable production in Azad Kashmir. The possibilities of long-term exports, e.g. to the Middle East, have not been explored and could well warrant attention.

Headquarters Support 12. Under the Director of Agriculture, a Deputy Director (apple production) will control and coordinate the program. He will be supported by accountancy staff and a small planning unit supplemented by a consultancy budget for advisory, planning and in-service staff training purposes (see below and also section on training). The full staffing and financial implications are set out in Table 9.

Consultants

13. Provisions have been mpde in the cost schedules (see Table 9) for a total of 960 expatriate consultancy days, 630 in the first six years and 330 in the following three years. Consultants will be required to provide advice, planning assistance 1/ and staff training in five specialized components associated with fruit production, especially apples, viz:

Ehtanology and pest control - 5 visits of 30 days each Fruit husbandry and local logistics - 5 visits of 60, 60, 30, 30 and 30 days Tree nursery specialization - 2 visits of 30 days each Apple mprketing specialist - 4 visits of 90, 30, 60 and 30 days Grading/packing/storage specialist - 5 visits of 30, 90, 90, 90 and 30 days

The expatriate consultants will be supplemented bv cnsultants drawn from within Pakistan, some of whose visits will partially overlap with those of the expatriates. These consultants will provide follow through in general terms and particularly so in the training aspects. Sixteen visits involving 993 days are anticipated.

14. Whilst these consultants have to be costed exclusively to the apple program they will all, as individuals, have a wider knowledge involving other horticultural products in their specialized fields and some of their time during each visit will be given to the proposed vegetable production component of the total project and their work will also have a spin-off effect on the growing of other fruit trees in Azad Kashmir. Similarly, as their work will partially overlap that of local consultants, there will be a spin-off benefit to other areas of Pakistan. It is anticipated that expatriate consultants will be drawn, in the main, from practical fruit growing firms and fruit processing firms in Holland, Italy, France or the U.K. Air transport has therefore been calculated on a R/T basis from Amsterdam.

1/ Planning assistance includes help with implementation schedules and second phase project preparation. TECHNICAL ANNEX 3 Appendix 1 Page 5

Buildings and Sitings

Apple Production Technicians

15. AB each technician enters service under the program he will require a small complex involving a small house and adjacent pesticide store/office (first year construction) and subsequently an additional store (3rd year construction) adequate for pesticide and sprayer sparei sufficient for 45 acres apple trees amongst 60 growers. The siting of which will be centrally situated amongst the growers.

Horticulturist (field based)

16. Each horticulturist will require a medium quality house and small office/store (first year construction) and a pesticide/spare parts store (3rd year construction) to hold reserve stocks required by technicians. The siting of which will be central to the six or seven technicians and the 360 to 420 growers for whom he is responsible.

Area Headquarters

17. Each area headquarters, which should be sited as near as possible to the anticipated site of an eventual grading/packing/storage station, will contain houses for the area production manager, entomologist and logistical officer, a small office complex, a small entomological laboratory (major work at HQ laboratory) and storage/distribution facilities for the supplies of pesticides, sprayers and spare parts applicable to the area. Construction will be on a phased basis according to requirement schedule.

Departmental Headquarters

18. Availability of suitable accommodation in Muzaffarabad is a serious constraint to recruiting and retaining good staff. Houses will be constructed for three of the senior officers. Additional office accommodation is also necessary.

Clerical, Driver and other junior staff housing

19. No provision is mtde under this head, a housing allowance included in the staff salary and allowances structure is consistent with the normal practice in Azad Kashmir.

Costs and Benefits

20.- Detailed Tables 2 through 9 have already been referred to; Tables 10 through 12 cover construction costs; and Tables 13 and 14 show farm-rate Drices to be used in the benefit stream. Additional Tables 15 through 22 cover vehicles, equipment costs, summaries of capital and recurrent costs, farmer contributions and benefits at farm-gate prices. In summary, the tables show: TECHNICAL ANNEX 3 Appendix 1 Page 6

First 6 Year Phase US$ '000

Capital for buildings, equipment/vehicles and nurseries 1,08i Capital injection into credit fund (early farmer input needs) 569 Consultancy services fees and allowances ) Consultants' travel costs ) Recurrent cost, salaries, office and vehicle running) 1,254

Total project investment cost 2,904 Add contribution by farmers 49

Total cost stream 2,953

Benefit(to farmers) 47

Second 6 Year Phase

Capital costs including new processing plants and equipment replacements 2,875 Capital injection into credit fund 642 Consultancy service fees and allowances ) Consultants' travel costs ) Recurrent expenses, salaries, office and vehicle running) 2,037 5,554 Add contributions by farmers 3,1437

Total cost stream 8,991

Benefits at farm-gate prices 12,099

Third 7 Year Phnse

Capital costs additional processing plant and 1,588 replacements Recurrent cost (continuation of technical services) 2,313

3,901 Add contributions by farmers 8,896

Total cost stream 12,797

Benefits to farmers 52,418

From Year 20 onwards per annum figures

Technical services, capital replacements/depreciation 400 Farmer contributions 1,394

Annual costs 1,794

Annual benefits to 7,200 farmers 8,531

Economic ROR - 25% over 20 years or 27% over 30 years, see Table 22. TECHNICAL ANNEX 3 Appenix 1I Table 1 - Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LONG-TERM APPLE PROGRAM

CASH FLOW FOR ONE ACRE OF APPLES-

Anniul Total Costs Cost/Inccme Income Yesr PRe. balance c/d PR.

1. Establishment costs (of vhich labQr R..450) 800 800

2. Interest on previous balance 80 Purchased inputs & services 260 Labor costs 300 640 1i,440

3. Interest on previous balance 144 Inputs 260 Labor 300 704 2,104

4. Interest on previous balance 210 Inputs 260 Labor 300 770 2,874

5. Interest on previous balance 288 Inputs 260 Labor 300 848 3,722 Harvest packing and transport on 40 maunds 800 4,522

6. Sale of 40 maunds at Rs.80 1,322 3,200 Interest 25% of 452 113 75% of 132 101 Inputs 260 Labor 300 Harvest costs 80 maunds 1 600 2,374 3,696 7. Sale of 80 maunds at R*.93 (3,744) 7,440 Interest 25% of 370 37 tv 75% of 77 58 Input costs 340 Labor 300 Harvest costs 104 maunds 2,080 2,815 (929)

8. Sale of 104 maunds @ 100 10,400

8 - 16 Sales progressively exceed expenditure rising to a gross margin of approC. PRs.20,000 in Year 16 assuming 7.94 ton yield and current price of PRs.100 per maund. In practice the increase in volume is likely to cause a fall in prices. Even a 50% price reduction would still yield a high profit margin.

17 See base assumptions on p.2. TECHNICAL ANNEX 3 Appendix 1 Table 1 - Page 2

One Acre Apple Production Costs

Base assumptions used are:

(a) Establishment costs and first year's maintenance of which lobor cost is R.h450 PRs. 800 (b) Annual sprays, fertilizers until Year 6 PRs.260 (increasing Year 7 onwards to Rp.340) Annual maintenance labor 30 man-days PRg.I300 560 (c) Fruit picking, packing, temporary storage and transport to "pick-up" point - average Rs.20 per maund (82.3 lbs)

(d) First harvest occurring in the fifth year with yields of 40 maunds through 80, 104, 168 to 216 in the 9th and subsequent years (i.e. 1.147 tons, 2.97 tmns, 3.82 tons, 6.17 tons to 7.94 tons) (e) Harvesting, packing and storage expense etc. occurring in production year but revenue (cash flow) accrues in subsequent year

(f) All input cost, including labor is on credit. The poverty target group cannot afford to give up off-farm income opportunity (sometimes out of State) or other- wise convert productive grain land to temporary unpro- ductive apples (g) Interest rate is taken at a national 10% p.a.camnpound

(h) Price assumptions Rs.80 per maund first year, Rs.93 second year and Rs.100 in subsequent years (assumes progressive delayed sales for higher price factor) (i) Yield levels allow for 4% reduction due to hail damage on blossom (20% reduction one year in five). TECHNICAL ANNEX 3 Appedixd 1 Table 2 - Page 1 PAKISAN

HILL FARMtG TECHNICAL DEVELOPHENT PROJECT LONG-TERM APPLE FROCILAM 1/ INVESTMENT SCHEDULE AND CASH FLOW FOR INDIVIDUAL FARMERS PRO. PRs. 1 at year planting and maintenance 1 kanal 100 2nd year 1 s planting RB.100 plus 1 x Rs.70 maintenanes 170 jrd yesr 1 x Rs.100 n n 2 x RS.70 240 4th year 1 x R8s.100 n " 3 x Rs.70 310 5th year 1 x Rs.100 n n x Rs.70

plus first harvest costs 5 maunds at Es.20 48o 6th year 1 x Rs.100 planting plus 5 x Rs.70 maintenance

plus s.ccd harvest % 10 maunda a Rs.20 - 750 less value 5 salmds S Ra.80 00 350 1,65o Add accumulative interest at 10% throagh Year 10 (Rs.955) 2,605 7th year IneQe fra 15 uands @ Rs.93 w 1,395 Leas 6 x R.0 mainenance costs plus 5 + 10 + 13 maunds harvesting costs - 1,040 Spendable cash income 355 8th year Incane fran 28 maunds @ Rs.100 2,800 Less 6 x Re.80 maintenance plus 5 + 10 + 13 + 21 maunds harvesting costs 1,4j60

1,34o Less repayment of capital and interest due 500 500 Spendable cash income 840

9th year Income fron 49 maunds @ Rs.100 4,900 Less maintenance Rs.480 plus 5 + 10 + 13 + 21 + 27 maunds harvesting costs 2,000 2,900 Less reppyment of capital and interest due 900 900 Spendable cash income 2,000

1/ Assuming the f Pmer plants one kAnal (1/8 acre) per year for six years.

(cont'd over leaf) TECHNICAL ANNEX 3 ADPRmdix 1 Table 2 - Page2

10th Year Incame on 76 maunds @ Rs.100 7,600 Less maintenance RS.480 plus 5 + 10 + 13 + 21 + 27 + 27 maunds harvesting costs 2, 5 40

5,060 Less balance of capital and interest due 1,205 1,205

PRs. 3,855 Spendable cash income

Subsequent surplus cash income rises to Rs.6,820; 9,180; 11,880; and 14 ,480 through Years 11 to 15 maturity. TECHNICAL ANNEX 3 Appendix 1 Table 3

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LONG-TERM APPLE PROGRAM

INVESTMENT SCHEDULE FOR SIX FARMERS ENTERING PROGRAM IN SIX SUCCESSIVE YEARS 1/

Year No. of Cycle of each farmer's expenditure PRS. Farmers PRs. Gross 1 2 3 4 5 6 Total Total

1 1 100 100 100

2 2 100 170 270 370

3 3 100 170 240 510 880

4 4 100 170 240 310 820 1,700

5 5 100 170 240 310 480 1,300 3,000 6 6 100 170 240 310 480 350 1,650 4,650 7 5 + (1) 170 240 310 480 350 1,550 6,200

8 4 + (2) 240 310 480 350 1,380 7,580

9 3 + (3) 310 1480 350 1,140 8,720

10 2 + (b) 480 350 830 9,550

11 1 + (5) 350 350 9,900

1/ Investment schedule (seed funds) excluding interest charges for six farmers planting one kanal (1/8 acre) per year but each entering the program in successive years. TECHNICAL ANNEX 3 Appendix 1 Table 4

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PROGRAM

1/ GROSS CREDIT REQUIREMENTS

Cumulative Total PRs. US$ US$.

Year 1 120,000 12,232 12,232 2 324i,000 33,026 45s258 3 612,000 62,385 107,643

4tt 98h,000 100,306 207,949

5 1,560-.000O 159 021 366,970 6 1,980,000 201 ,835 568,805 7 1,860,000 189,602 758,407

8 1,656,ooo 168,807 927,214 9 1,368,000 139,450 1,O66,664

10 996,000 101, 530 1,168,194 11 420,000 42,813 1,211,007

1/ From Table 3 the gross program funding (credit requirements), assuming 5-400 acres and 7,200 growers, and excluding interest charges. TECHNICAL ANNEX 3 Appendix 1 Table 5

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LONG-TERM APPLE PROGRAM

AREA IN PRODUCTION BY YEARS AND YIELD PER ACRE Gross Acres Gross Yield 1.47 2.94 3.82 6.17 7.94 Producing tons Year tons/acre tons/acre tons/acre tons/acre tons/acre

5/5 150 150 221 6/7 300 150 h4o 882 7/8 450 300 150 900 2,116

8/9 600 450 300 150 1,500 4,277 9/10 750 600 450 300 150 2,250 7,627 10/11 900 750 600 450 450 3,150 12,170

11/12 750 900 750 600 900 3,900 17,461

12/13 600 750 900 750 1,500 4,500 23,062

13/14 450 600 750 900 2,250 4,950 28,708

14/15 300 450 600 750 3,150 5,250 33,694 15/16 150 300 450 600 3,900 5,400 37,h90

16/17 150 300 450 4,500 5,400 40,093

17/18 150 300 4,950 5,hoo h1,727

18/19 150 5,250 5,400 42,610

19/20 5,400 5,400 42,876 PAKISTAN

HILL FAR?nNG TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PROGRAMt

FIELD STAFFING REQUIRED BY DESIGNATION AND YEARS

Year 1 2 3 4 5

Areas a b Total a b c Total a b c d Total a b c d e Total a b c d e f Total

Designation Area Production Manager 1 1 2 1 1 2 1 1 1 - 3 1 1 1 1 - 4 1 1 1 1 1 - 5 Horticulturists 1 1 2 2 2 1 5 3 3 2 1 9 3 3 3 2 1 12 3 3 3 3 2 1 15 Apple Production Technicians 10 10 20 17 17 6 40 20 20 14 6 60 20 20 20 14 6 80 20 20 20 20 14 6 100 Entomologist I 1 2 1 1 1 3 1 1 1 1 4 Logistical officer 1 1 2 1 1 1 3 Clerks/support staff 1 1 2 2 2 1 5 3 3 2 1 9 4 4 3 2 1 14 4 4 4 3 2 1 18 Drivers 2 2 4 3 3 1 7 4 4 3 1 12 5 5 4 3 1 18 5 5 5 4 3 1 23

Gross Total 30 59 95 133 168

Year 6 7 8 9

Areas a b c d e f Total a b c d e f Total a b c d e f Total a b c d e f Total

Designation Area Production Manager 1 1 1 1 1 1 6 1 1 1 1 1 1 6 1 1 1 1 1 1 6 1 1 1 1 1 1 6 Horticulturists 3 3 3 3 3 3 18 3 3 3 3 3 3 18 3 3 3 3 3 3 18 3 3 3 3 3 3 18 Apple Production Technfcians 20 20 20 20 20 20 120 20 20 20 20 20 20 120 20 20 20 20 20 20 120 20 20 20 20 20 20 120 Entomologist 1 1 1 1 1 5 1 1 1 1 1 1 6 1 1 1 1 1 1 6 1 1 1 1 1 1 6 Logistical officer 1 1 1 1 4 1 1 1 1 1 5 1 1 1 1 1 1 6 1 1 1 1 1 1 6 Clerks/support staff 5 4 4 4 3 3 23 6 5 4 4 4 3 26 6 6 5 4 4 4 29 6 6 6 5 4 4 31 Drivers 5 5 5 4 3 2 24 6 5 5 5 5 4 30 6 6 5 5 5 5 32 6 6 6 5 5 5 33

Gross Total 200 211 217 220

r H

> HILL PARKlINGTECHNICAL DCVEWOFME1H PROJECT

F'INAIrIAL COSTS OF FIIELJDSCAn &THAISF1ORT

Year 1 ~~~~YearSYear 3 Year 4 Year Yea 6 Year 7 yea H9ea S ea tO ea I Cast of Coat Cos.t Deeetpatoo Data Dolt oN Cca o Coa of Coat of Coa of Coat of Coat of C.., of Coat of Ytitt Coat Delta Cotta Salts Haste HoSts HaSte Setra Datlo Heirs teits

0 72,OHH oleotg-r Year 12,000 2 24,000 2 24,000 3 36.S0 C 40,000 5 60,000O 6 72,000 6 1,2.000 6 72,000 6 72,SHH 6 72,H0H 18 144,00H 18 t44,OOH is 144.H0H Ho-toiroet-na " ,000 0 16,SOH 5 40,000 9 72.000 t2 96,HSH 15 120,000 to 144,000 10 144,000 10 144,H0OH 720,000 TMrhottse 6,000 20 120.H0H 40 240,00H 60 3600,00 85 48H,H00 too 650,000 12H 720,00S0 120 72H,0DH 120 7S0,000 125 720,000 120 720,000 120 4H.000 6 40,000 6 40,000 Et.-, logtt ' a0,00 - 2 16.000 3 24,000 1. 32,000 5 40,000 0 40,000 6 4,0,0 6 6 48,00H 6 40,000 Omfcs ' H,HO - - - 2 16,000 3 24,000 4 32,000) 3 40,000 0 40,000 6 4O,000 LogSaicati. t48H8D0 1OO 148.80H Clarke 4,800 2 9,600 5 24,000 9 43,100 16 76,OO0 10 06.4Sf 23 it0,400 26 124,800 09 139,202) 31 148.800 31 33 118,800 34 122,400 36 129,600 DOCOS- " 3,600 4 14.400 2 23,200 12 43,200 IS 64,000 20 75,600 24 06,400 3D 108,000 32 1t5,200 06.400 36 36 86,400 36 86.400 Doarda, Claa.o.a..t.. ' 2,40D 4 9,600 7 16.8000 14 3380 1 00 450 27 64.800 33 70,2010 35 404.00 36 8.A,400 Sot-aetal ~~~~~~~~~~~193,602370.000 80.056.000 1.562,800 1flj.9OO 1.340.800 1.372.800 1.306.000 1!,38400 1,396.8i 834,960 038.080 Sa,f aleoea10116102200362,400 3,8 7,0 80.004.480 023,600 031,600 Offloe-/ 00 D taiaae 4 Offic- 18.000 Year 500 4 2,0 S 3,,50Q 14 7_000 71 100500 27 1,5003P 33 J±.Ž 35 17.500 36 10.000 36 10.000 36 2!f Roaato 856.080 SO-t-ttl 118.160 225.500 369_400 324.000 631 100 286_900 §ZI..2A0 841.680 049.600!!20

ell/titk-ops Offit.../ 36 360.000 Yea 1/ 10,000 4 40,000 3 20,000 14 140.000 21 210,000 22 220.000 33 330,000 31 30000 76 360.000 36 360,000 76 364,000 2 6 tarry 10.~I)'000,s-o /3D,000 --- 3f0550 2 60,000 3 90,000 4 1000 18,0 M/roe1es (trail 00% ec-bi Yea 3/ 3,6000 10 36.000 20 72,Q00 30 1000.000 40 14.0 0 100.00 60 216_000 60 216.000 60 216.000 10 216.000 Of 216.000 60 216_000 bikee) 756 Sub-total 36.00 i4,flQ _240.00 45.000 _546000 396.00 636.000 -666.000 696.00 o

sodtag Lusao2,000 2 24.000 3 30.000 4 40.000 5 00.000 6 72 000 6 7_2,000

Cr-td Total 410,760 773,500 1,269,400 1,794,100 333,980 2,600,900 2,750,700 2,050.400 2,901.600 2.938.500 3,008,080

2 90,.731 306,716 G-ad yoke i USiS (5 1:9.815 41,974 08,848 129.399 002,005 227,929 274,090 201,221 290,569 295,700

I/ OfflteeYeae ef 600 aiies4aoth 0 R0..1.39 aoaa 2/Lry il.s fakao St Os.3 pee ll.. 3' lotrcyleaaeooe1,00 alaameeb 1 Ha. 030 TECHNICAL ANNEX 3 Appeniix 1 Table 8 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LMG-T!M AMT!I PRORAM

Tree Nursery Development

Financial support for apple tree seedling production based on PRs 2 per tree of anticipated requirement 3 years hence, i.e. allows for initial capital injection (calculation is acres x 120 trees x PRs 2)

Year Rupees

1 Year 1 through 3 planting schedule 900 acres 216,000

2 Year h planting schedule 600 acres 144,000

3 Year 5 planting schedule 750 acres 180,000

4 Year 6 planting schedule 900 acres 216,000

5 Year 7 planting schedule 750 acres 180,000

Total development and operating costs 936,000 PAKlSTAN

HILL FARKINGTECHNICAL DEVEInP!INT PROtECT

LONG,-TERNAPPLE PIOGPAM

HEADQUARTERSTAFFING AND ORCURRENTCOSTS

Year I Yeee 2 Year 3 Year 4 Year 5 Yea 6 Year 7 Year 0 Year 9 Year O Year 11 No. ~~~~~~No.N.. No. . N-No No- No. No.-N. Des-rptloe loti hep o ep r ca f Cot o ae at Cs f Cat o Coatup o of Coat of Cos at Cost

Deputy Dit-ete/ No./ Peegem CeedL-atr Meoths 1,500 12 10,001 12 IH,000 12 10,000 12 10,2000 12 SI'll 12 SHIll0 12 10,0 12 10000 12 18.0 12 18,110 Ser.Aooo tettt 1.100 - - - - 12 12,000 12 12,0ON 12 12,010 12 12,000 12 12000 12 12,00 12 12000 12 112,001 J-Ae.Aoo tos ' 750 -12 90,0R '12 9,000 26 18,000 24 18,001 24 180101 24 INJINI 24 18,111 24 10,000 21 18,000 24 10,000

M-t-eotot OffEre ' 1,000 12 12,000 12 12,00 12 12.000 1 2 12,0 12 12,000 12 12,000 12 12,000 12 12,000 12 12,000 12 12,000 J.r.Plaei.g 7 50 - - 12 9,R000 12 0.000 12 9000 12 90.200 12 9,000 12 0.0000 12 9,000 12 9,000 12 9,000 Nursery KQeeeoc- C..dtaor 1/- 12 - 12 - 12 - 12 - 12 - 12 - 12 - 12 - 12 - 12 - Clerka 2/ 4 00 36 14,400 36 14,400 60 24,000 60 24,000 22 20,000 22 28,000 72 28,8010 22 20.800 72 28,800 22 28,800 Dri-es 3 300 24 7.200 24 7.200 24 7JJ200 24 7.200 24 7.20 24 242 24 2.20024 242.200 7.2002 7 D Sub-total 60.600 69.60 100 200 100.200 105.000 105.110 105.000 105.000 105.000 105 000 105,000 Co....ea-ea 4/ Apple diseases M.el RepoeelogCst (0) Rays 2,000 30 60,000 30 60,000 - 30 60,000 - 30 40,000 - 30 60,000 - Applhubnr iprtllt H) 2,000 80 120,000 60 120,000 30 60,000 - 30 60,000 - 30 60,000--- e 1755 83 16,:275 03 10,225 62 10,050 62 10.050 62 12,020 30 5.250 30 2,230--

Opertaltst (K) ~~~~~2,00030 62,000 30 60,000-- -- p (P7 l7OS 60 10500 60 10,500 60 11,510 32 5,250 - 30 5,250--- ferketteg Sper/tstlE) 250 90 225,000 - - 20 75,000 -- 60 150,000- 20 5,0-

It.r.. ag) 2.50 - 30 72,000 90 225,000 9 0 225,000 90 225,DO0O 90 225,1000

M-,tP-ele Offir-(P) ' 175 16j,275 16.275 ___ 62 II0.50 ______Sub-total 500.030 3580500 81.350 370.020 86,950 6525 445.5D0 285.000 75,ODO 225.00

tota trave .. e. '000 oiled/ (vbtl084 Year 1,500 50 75,000 50 75,000 50 75,000 50 25,000 50 75,000 50 75,000 50 75,000 50 75,000 50 75,000 50 75,000 Consu.lta-tste-ee1(tE) H/Fligt12,000 4 48,000 4 40,000 1 12,000 3 36,000 1 12,000 1 12,000 2 26,000 2 24,000 1 12,000 1 12,000 (P '000 atlas 200 22 4,40 22 4.400 10 0.200 14 2.800 14 2.800 10 2.200 10 3.600 -7- - Sab-tota 127.40 127.400 89.200 113,800 89.800 89.200 114.600 99.000 87,f000 87.000 75.00

ftetoosy61 Oiler40 7,000 0,000 10,000 10,000 10,0G0 10,000 10,000 10,008 10,000 10,000 SteE aI etoe 0 24.240 27.8404,8 0 40000 42 000 42 000 42,00 42.000 42 OIl 42 000 Sob-totL 31d24 35,.84 50.000 5008 52.000 5.052.000 52,000 520052 0003 200

Gred Tota 227,290 590,090 320,0830 134,030 333,750 311,420 717,100 541,000 319,000 469,000 232,000

GI...d Tota Lv 0US ( 1:0.81) 74,130 60,233 32,704 64,723 24,021 31.748 23,099 50,140 22,510 47,008 23,650

2 ROe. lyeek for Hoetlr-lt-iet alredy to regular budget. (P) Pokita a":-lde Aced Koahie

4/Consltant oat iclude tees and acro-sdetien.~ .....ca e. B/-osd oe ec-ay class trave Aa,apedlaR-1ptodi. TECHNICAL ANNEX 3 Appenlix 1 Tahle 10 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PRAJF,CT

Building Sizes and Costs

Houses

Technicians 320 ft @ pRs 50 = 16,000 Horticulturists, etc. 7002 ft @ PRs 50 = 35,000 Area Managers 1,2002 ft @ PRs 60 = 72,000

Offices

Technicians 1202 ft @ PRs 40 = 4,80o Horticulturist, etc. 2002 ft @ PRs 50 = 10,000 including clerk space Area Manager 3002 ft @ PRs 50 = 15,000 including clerk space

Stores

Technicians 3002 ft © PRs 40 = 12,000 one each Horticulturist 5002 ft @ PRs 0 = 20,000 one each Area Stores 6002 ft @ pRs 50 = 30,000 (three required)

Fruit Grading/Packing/Storage Stations

Main roadside collection shelters

3002 ft © PRs 30 9,000 each

Major units 2,000 ton cold store PRs 2,783,000 3,000 ton grading/packing house plus equipment PRs 1,100,000

1/ In subsequent tables this cost has been increased but divided into three phase construction to meet a particular area's programmed production levels PA7ISTAH

HILL FARMINGTECHNICAL DEVELOPMENT FROJECT

LONG-TERMAPPLE PEIGNAM

BU7ILDINGCOSTS BY YEARS (PR,. 'NOR) So No No. N. No N No No No No. N No Unit of Year of Year of Year of Year of Year of Y-ar of Year of Year Of Year of Year of Year of Year UiLt Cove Uait, I Uairs 2 Unit, 3 Ufots 4 Ufite 5 Uaits 6 Ufits 7 USits 8 Unit. 9 Ufit, I fUfits 11 Uaits 12

0douaes T-chniai- 16 20 360 20 360 20 360 20 360 20 360 20 360 Oorrrtodia.t. 35 4 140 3 105 6 210 6 210 5 175 5 175 2 70 1 35 Senior 72 3 216 - 1 72 1 72 1 72 72

fSub-to-l 716 465 642 642 607 607 70 35

TeAhalo100. 5 20 100 20 100 20 100 20 100 20 100 20 100 I_ er=d1ates 10 4 40R 3 30 6 60 6 60 5 50 5 50 2 20 1 10 Srnior 15 3 45 _ 1 15 1 15 5 1 15

S As-tot.l IR 130 175 165 165 20 10 Stores Teoh.i.i-as 12 20 240 20 240 20 240 20 240 20 240 20 240 In trndiate 20 4 80 5 100 6 120 6 120 6 120 3 60 Area 30 2 60 1 30 1 30 3 90 2 60 3 90 2 60 2 60 1 30 1 30

Sub--tal 60 30 350 430 620 450 420 360 30 30 Fruit Praoe-.ie. Collr-otia Centrsr 1/ 9 1 9 2 18 1 9 1 9 1 9 9 81 8 72 9 81 9 e1 9 81 10 90 P..ki. Houses 2/ 400 3/ 2 808 3 1.200 3 1,200 5 2,000 5 2,000 5 2,000 0 Cold Storagr 2,800 2 5.608 1 2 8RR 1 7 800 1 28800

Sub-total 4/ 9 18 9 9 9 81 72 1 .881 4 881 4.890 4_800

Tarel 970 643 1,176 1.256 6,201 1.303 5,382 1,686 6,911 4.911 4,090 4,800

1/ Collec11 catio rsr in eerly years err for tho impro--=rrt in tho procesaing of minori.rrent productton. 2/ AddItion reqoirienr w11 acrre an basis of 6. 4, 4, 2, 1, 1 Ia Years 13 throobh 19. 3/ U0i0 coal of fall paoriag sta_ion and eq9ip_ent ER.1,100R000 - ess,nod prooc sap... iiJof 0/3 rar p. I. -y - .e. ap-rly for 1,000 tars toni rooit re.t.k- r

4/ Additlotl ..1d store required In Year 13. _ TECHNICAL ANNEX 3 Appendix1 PAKISTAN Table 12

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LON3-TERM APPLE PROJECT

Summary of Building Construction Costs in US$ (rounded figures)

Processing and Year Houses Offices Stores Cold Storage'! Total

1 72,990 18,860 6,120 920 98,890 2 46,500 13,250 3,060 1,840 64,650 3 65,440 17,840 35,680 920 119,880 4 65,440 17,840 43,830 920 128,030 5 61,880 16,820 42,810 920 122,430 6 61,880 16,820 45,870 8,260 132,830 7 7,140 2,040 142,810 88,890 140,880 8 3,560 1,020 36,700 130,580 171,860 9 - - 3,060 701,430 704,490 10 - - 3,060 497,550 500,610 11 - - - 498,470 498,470 12 - - - 489,300 489,300 13 - - - 530,000 530,000 14 - - - 163,100 163,100 15 - - - 163,100 163,100 16 - - _ 82,050 82,050 17 - - - 82,050 82,050 18 - - - 41,030 41,030 19 - - - 41,020 41,020

Totals 384,830 104,490 263,000 3,522,350 4,174,670

11 Processing plants include equipment, staff housing, etc. Conversion from Rupee to Dollar at PRs 9.81 = US$1. TECHNIrAL 4NNEX 3 Appendix 1

INTRODUCTION TO TABLES 13 AND 14

Assumptions Used in Arriving at Farm-gate Apple Values

1. The eventual ex Azad Kashmir value of apples average PRa 100 per ma,md (in line with present prices) on assumption of:

22% early sales @ PRs 50 - 11 25% n mid-season sales @ PRs 80 20 25% late " " " @ PRs 120 - 30 28% " sales ex cold storage @ PRs 140 = 39

100 and on assumption that whilst increased volume will to same extent decrease present prices, increased quality and late sales increases retail price. Present prices average PRs 80 for early sales and between PRs 130 and PRs 150 for early mid-season sales - most sales are early.

2. Improved grading, packing and improved non-cold storage system will hDld apples at good quality through mid-season sales.

3. Farmer cost ex tree to present pick-up sites average PRs 20 per maund (labor PRs 4; packing material PRs 6; on-farm storage PRs 1; transport PRs 11).

4. When initial small collection stations come on-stream, in isolation, there will only be marginal benefits, but when these and packing stations come on-stream they absorb sane of farmers' present costs, at which time the farmers' cost ex tree to collection station becomes PRs 7 per maund (labor PRs 4; repeat packing materials PRs 1 and transport PRs 2); a saving to the farmer of PRs 13 per maund.

5. Operational costs.a$ small collecting stations is PRs 1.9 per maund (Prs 51.7 per ton - large stations elsewhere operate at PRs 15 per ton).

6. Operating costs of packing/storage stations including materials and transport frao collection stations average PRs 13.1 per maund (Prs 356 per ton).

7. When cold storage facilities become necessary (in conjunction with packing stations) the cost of operations is PRs 36 per maund (PRs 980 per ton); assuming 28% production is cold stored the average cost on gross production becomes PRs 10.

8. From the foregoing, Tabler 13 and 14 show the average price per ton payable by years, i.e. farm-gate prices to be used against gross production in a particular year. TECHNICAL ANNEX 3 Appendix 1 Table 13

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LONG-TERM APPLE PROGRAM

Ex Orchard Tree Prices per naund of Apples (based on assumption of single area)

Harvest Years 1 and 2 at minimum Rs. 80 (assumes all sales early)

less costs of picking, packing, storage and transport Rs. 20

Rs. 60

As costs included in investment stream price benefit taken as PRs. 80

Years 3 to 7

Locally improved on-farm storage techniques improves delayed sales percentage Rs.100

Less costs Rs. 20

Rs. 80

As costs included in investment schedule price benefit taken PRs.100

Years 8 and 9

Packing station in operation 30% early sales @ Rs. 70 Rs. 21 50% early mid-season sales @ Rs,100 Rs. 50 20% late mid-season sales @ Rs.130 Rs. 26

R8. 97 Farmer cost, now Rs.7 in investment schedule -

R,s. 97 Less operating cost of collecting and packing stations 13 x 2 R s. 26

(assumes below capacity) Rs. 71 PRs. 71

Year 10

Cold storage added to operations (see assumptions on sales) Rs.100

Farmer cost in investment schedule -

Less operating cost of packing station Rs. 20 (not yet at full capacity) Less operating cost cold storage 60% Rs. 14 PRs. 66 each capacity (Cont'd) TECHNICAL ANNEX 3 Apendix 1 Table 13 (cont'd)

Year 11 R5.100 Less packing stations cost Rs. 13 Less cold storage cost @ 70% capacity Rs. 13 Less additional city distribution costs Rs. 2 PRs. 72

Year 12 Rs.100 Less packing stations cost Rs. 13 Less cold storage cost @ 80% capacity Rs. 12 Less additional city distribution cost Rs. 3 PRs. 72

Year 13 and onwards Rs.100 Less packing station/cold storage costs Rs. 23 Less city distribution costs Rp. 7 PRs. 70 TECHNICAL ANNEX 3 Apendix 1 Table 14

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LONG TERM APPLE PROGRAM Average State-wide farm-gate value (full farmer costs included in investment schedule) by areas in operation: i.e. price to farmer

(PRs per maund (82.3 lbs)

Averaged out Price Year a b c d e f price payable per ton

5/6 80 80 80 2,117 7 80 80 80 80 2,117 8 100 100 100 80 95 2,589

9 100 100 100 100 80 95 2,589 10 100 100 100 100 100 80 95 2,589

11 100 100 100 100 100 100 100 2,722 12 100 100 100 100 100 100 100 2,722

13 74 74 100 100 100 100 91.33 2,486

14 74 74 74 100 100 100 87 2,368 15 66 66 74 74 100 100 80 2,117 16 72 72 66 74 74 100 76.33 2,078

17 72 72 72 66 74 74 71.67 1,951 18 70 70 72 72 66 74 70.67 1,924

19 70 70 70 72 72 66 70.00 1,905

20 70 70 70 70 72 72 70.66 1,923

21 70 70 70 70 70 72 70.30 1,913

22 70 70 70 70 70 70 70.00 1,905 PAKISTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PROGRAM

Vehicle Requirement Schedule

Years 1 2 3 4 5 6 7 8 9 10 11 12

NL/ RZ/ N R N R N RN RN R N R N R N R N R N R N R

Headquarters Jeeps2/ 2 ------2 - - - - 2 - - - - - 2

Field Jeeps 4 3 7 7 6 6 2 4 1 3 - 7 - 7 - 6 - 6 Trail Bikes 10 10 10 10 10 10 10 10 - 10 - 10 - 20 - 20 - 10 - 10 Lorries 1 - 1 - 1 - 1 - 1 - 1 -

Total Jeeps 6 - 3 - 7 - 9 - 6 - 6 - 8 - 4 - 7 - 7 - 6 - 6 - Trail Bikesv/ 10 - 10 - 10 - 10 - 20 - 20 - 10 - 10 - 20 - 20 - 10 - 10 - Lorries 1 - 1 - 1 - 1 - 1 - 1 - W 3

1/ N = New - additional vehicle to fleet. 2/ R - Replacement vehicle. 3/ Jeeps assumed to have life of 90,000 miles if headquarters based and 72,000 miles if field based. 2/ Trail bikes assumed to have four-year life. w PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONI-TERM APPLE PROGRAM

CAPITAL COSTS VEHICLES

(PRs.'000)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Unit No.of No.of No.of No.of No.of No.of Unit Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost

Jeep 60 6 360 3 180 7 420 9 540 6 360 6 360 Trail bike 6 10 60 10 60 10 60 10 60 20 120 20 120 Lorry 140 _ _ _ _

Total 420 240 480 600 480 480

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Jeep 8 480 4 240 7 420 7 420 6 360 6 360 Trail bike 10 60 10 60 20 120 20 120 10 60 10 60 Lorry 1 140 1 140 1 140 1 140 1 140 1 140

Total 680 440 680 680 560 560

H>

H

z z x PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PROGRAM

CAPITAL COST OF OFFICE AND OTHER MINOR EQUIPMENT

In Rupees '000 Technicians Office Officers Office Senior Officers Field Laboratory HQ Laboratory Item No. Equipment No. Equipment No. Office Equipment No. Equipment Equipment Unit of set of set of set of set Additions Total Total Unit Cost Units PRs.I Units PRs.3 Units PRs.6 Units PRs.12 N/A for in fear Year US$

1 20 20 4 12 3 18 - - 60 110 11,210 2 20 20 4 12 1 6 - - 60 98 9,990 3 20 20 7 21 1 6 2 24 - 71 7,240 4 20 20 6 18 1 6 1 12 - 56 5,710 5 20 20 5 15 1 6 1 12 - 53 5,400 6 20 20 5 15 - - 1 12 - 47 4,790 7 - - 2 6 - - 1 12 - 18 1,830 8 - - 1 3 - - - - - 3 310

C) _E PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LONG-TERM APPLE PROGRAM

Summary of Capital Costs in US$

Houses, Offices, Stores, Grading/Packing and cold storage facilities Of which: Office Tree Processing and and Nursery Farmer Inputs Proldessingage Laboratory Development (incremental Year Cold Storage Vehicles EquiPment Sub-Total (pRs) credit fund) Sub-Total Total 98,890 1 (920) 42,800 11,210 152,900 22,020 12,230 34,250 187,150 2 64,650 (1,840) 24,500 9,990 99,140 14,680 33,030 47,710 146,850 3 119,880 (920) 48,900 7,240 176,020 18,350 62,390 80,740 256,760 4 128,030 (920) 61,200 5,710 194,940 22,020 100,300 122,320 317,260 5 122,430 (920) 48,900 5,400 176,730 18,350 159,020 177,370 354,100 6 132,830 (8,260) 418,900 4,790 186,520 201,835 201,835 388,355 Six-year sub total 666,710 (13,780) 275,200 44,34n 986,250 95,1:20 568,805 66L,225 1,650,475

7 140,880 (88,890) 69,300 1,830 212,010 189,600 401,610 8 171,860 (130,580) 44,800 310 216,970 168,810 385,780 9 704,490 (701,430) 69,300 773,790 139,450 913,240 10 500,610 (497,550) 69,300 569,910 101,530 671,440 11 498,470 (498,470) 57,000 555,470 42,815 598,285 12 489,300 (489,300) 57,000 546,300 546,300

Second six-year sul 2,505,610 (2,406,220) 366,700 2,1140 2,874,450 642,205 642,205 3,516,655

13 530,000 (530,000) 69,300 599,300 599,300 14 163,100 (163,100) 69,300 232,400 232,400 15 163,100 (163,100) 69,300 232,400 232,400 16 82,050 (82,050) 69,300 151,350 151,350 17 82,050 (82,050) 69,300 151,350 151,350 a n 18 41,030 (41,030) 69,300 110,330 110,330 19 41,020 (41,020) 69,300 110,320 110,320 Third phase sub 0 total 1,102,350 (1,102,350) 485,100 1,?587,450 1,587,450

Total Investment 4,274,670 (3,522,350) 1,127,000 46,480 5,1448,150 95,420 1,211,010 1,306,430 6,754,580 x w~~~~ - PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PROGRAM

Summary of Recurrent Costs in Rupees (excludes operating costs of cold store, and apple processing/marketing - assumed self-financing)

Consultants travel Local Office Running and vehicle Consultancy Horticulturist Totals Totals Year Salaries and Allowances operating costs Fees at Tree Nursery PRs US$

1 253,200 149,400 203,400 508,050 24,000 1,138,050 116,010 2 439,600 261,340 269,400 358,050 36,000 1,264,390 139,080 3 706,600 419,480 342,200 81,350 48,000 1,597,630 162,860 4 956,000 574,180 467,800 370,850 60,000 2,428,830 247,580 5 1,167,800 703,180 539,800 86,950 72,000 2,569,730 261,950 6 1,389,000 838,900 635,200 65,250 72,000 3,000,350 305,850

Six year sub total 4,912,104 2,946,480 2,457,800 1,470,500 312,000 12,098,980 1,233,330

7 1,445,800 873,980 710,600 445,470 3,475,850 354,320 8 1,477,800 893,680 '735,noo 285,000 3,391,480 345,720 9 1,491,000 901,600 753,000 75,000 3,220,600 328,300 10 1,496,600 904,960 783,000 225,000 3,409,560 347,560 11 1,501,800 908,080 831,000 3,2140,880 330,360 12 1,501,800 908,080 831,000 3,240,880 330,360

Second six-yearsulb 8t91o4,800 5,390,380 4,643,600 1,030,470 19,979,250 2,036,620

13 1,501,800 908,080 831,000 3,240,880 330,360 14 1,501,800 908,080 831,000 3,240,880 330,360 15 1,501,800 908,080 831,000 3,240,880 330,39 16 1,501,800 908,080 831,000 3,240,880 330,360 17 1,501,800 908,080 831,000 3,240,880 330,360 18 1,501,800 908,080 831,000 3,240,880 3,0,360 ' 19 1,501,800 908,080 831,000 3,240,880 330,360 m :

Third phase sub 10,512,600 6,356,560 5,817, 00 .2,686,170 2,312,O120 _

Gross Totals 24,339,600 14,693,420 12,918,400 2,500,970 312,000 54,764,390 5,582,4700 PAKiSTAN

HILL FARMING TECHNICAL DEVELOPFMNT PROJECT

LONG-TERM APPLL P'ROJECT

FARMERCONTRIBUTIONS TO OPERATING COSTS - LABORAND PURCHASEDINPUTS

Rupees Year of Operations Year 6 7 8 9 10 11 12 13 of Contribution No. of 14 i5 16 17 18 19 Cycle per farmer Farmers in year Year Cycle 1200 1200 1200 1200 1200 1200 1200 1200 120

6 400 480,000 480,000 480,000 480,000 480,000 480,000 7 1,040 1,248,000 1,248,000 1,248,000 1,248,000 1,248,000 1,248,000 8 1,460 1,752,000 1,752,000 1,752,000 1,752,000 1,752,000 9 1,020 1,752,000 1,224,000 1,224,000 1,224,000 1,240,000 10 1,200 1,240,000 1,240,000 1,440,000 1,440,000 1,440,000 11 1,600 1,440,000 1,440,000 1,440,000 1,920,000 1,920,000 12 1,700 1,920.000 1,920,000 1,920,000 1,920,000 13 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000 14 2,160,000 2,160,000 2,160,000 2,160,000 2,160,000 2,160,000 15 2,280,000 2,280,000 2,280,000 2,280,000 2,280,000 2,280,000 16 2,280,000 2,280,000 2,280,000 2,280,000 2,280,000 17 2,280,000 2,280,000 2,280,000 2,280,000 18 2,280,000 2,280,000 -. 280,000 19 2,280,0O0 Z,z80,000 2,.250,502

Total in Year 480,000 1,728,000 3,480,000 4,704,000 6,104,000 8,064,000 9,640,000 10,552,000 11,080,000 12,120,000 12,960,000 13,320,000 13,560,000 13,680,500

Total in US$ 48,930 176,140 354,740 479,510 622,220 822,010 982,670 1,075,630 1,129,450 1,235,470 1,321,100 1,357,790 1,3P2,260 1,394,500

d >

I Z TECHNICAL ANNEX 3 Appendix 1 Table 21 PAKISTAti

HILL FARMAING TECHNICAL DEVELOPMENT PROJECT

LOu-T-..I APPLC PK31WAi

rP(3S5 PROT)TTrfTfT( U4TJTTTLS 4T -*TM-^Ta4PTCTS

Price per ton Value Value Year Tons PRs. PRs. US $ (rounded down)

5J6 221 2,117 467,857 47,690 7 822 2,117 1,740,174 177,380 8 ?,116 2,589 5,478 ,324 558,440 9 4,P77 2,589 11,973,153 1,128,760 10 7,627 2,589 19,746,303 2,012,870 11 12J170 2,722 33,12 6 ,740 3,376,830 12 17,460 2,722 47,526,120 4,84h,660 13 23,062 2,486 57,332,132 5,844,250 14 28,708 2,368 67,980,544 6,929,710 15 33,69k 2,117 71,330,198 7,271,170 16 37,490 2,078 77,904,220 7,9h1,300 17 4o,093 1,951 78,221 ,443 7,973,640 1B 41,727 1,924 80,282,748 8,183,760 19 42,610 1,905 81,172,050 8,274,410 20 42,876 1,923 82,45o,548 8,4>04,740 21 42,876 1,913 82,021,788 8,361,030 22 42,876 1,905 81,678,780 86,326,070 23 continuing.

Source: Table 5 figures multiplied by Table 14 figures PAYISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LONG-TERM APPLE PROGRAM

COST/BENEFIT STREAM IN US$

Year 1 2 3 4 5 6 7 8 9 10

Capital Costs and Investments 187,150 146,850 256,760 317,260 354,100 388,350 401,610 385,780 913,240 671,440 Recurrent Costs 2/ 116,010 139,080 162,860 247,580 261,950 305,850 354,320 345,720 328,300 347,560 Farmer Contributions 3/ - - - - - 48,930 176,140 354,740 479,510 622,220

Total Costs 303.160 285.930 419,620 564,840 616.05 743,130 932,070 1,086,240 1,721,050 1,641,220

Gross Farmer Incomes 4/ - - - - - 47,690 177,380 558,440 1,128,760 2,012,870

Deficit 303,160 285,930 419,620 564,840 616,050 695,440 754,690 527,800 592,290

Surplus 371,650

Year 11 12 13 14 15 16 17 18 19 20

1/ Capital Costs and Investments 598,280 546,300 599,300 232,400 232,400 151,350 151,350 110,330 111,320 69,640 Recurrent Costs 2/ 330,360 330,360 330,360 330,360 330,360 330,360 330,360 330,360 330,360 330,360 Farmer Contributions 3/ 822,010 982670 1,075,630 1,129,450 1,235,470 1,321,100 1,357,790 1.382,260 1,394,500 1.394.500

1,709,890 1,859,330 2,005,290 1,692,210 1.798,230 1,802,810 1,839.500 1,822,950 1,_836180 1,794.500

Gross Farmer Incomes 4/ 3,376,830 4,844,660 5,844,250 6,929,710 7,271,170 7,941,300 7,973,640 8,183,760 8,274,410 8,326,000

Surplus 1,626,180 2,985,330 3,838,960 5,237,500 5,472,940 6,138,490 6,134,140 6,360,810 6,438,230 6,531,500

20 year economic rate of return = 25 30 " " " " " = 27

1/ Includes replacement vehicles and equipment, and depreciation/maintenance of major buildings. Includes cost of establishing orchards until a farmer's income exceeds expenditure. a mz 2/ Excludes operating costs of grading, packing, cold storage operations,the costs for which have been deducted from prices paid to farmers. S x

3/ New labor generation in harvesting which represents 30% of Lhese figures has not been shadow priced. > tz 4/ Excludes compound interest repayments on credit received during first six operational years for each consecutive farmer group. TECHNICAL ANNEX 3 Appendix 2 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Pilot Apple Scheme

Draft Terms of Reference and Estimate Costs of Market Study for Apples

Background

1. Apple production is being encouraged in various areas of Pakistan, e.g., Murree Hills, Punjab; Hazara, NWFP; mid-elevation areas in Azad Kashmir; and, irrigated orchards in Baluchistan. The results of these programs are encouraging. Production is being enthusiastically adopted by small farmers and techniques of apple growing are becoming established with so far few major problems of pests and diseases being recorded. Whilst prices are relatively high in the market place (PRs. 7 to 1l/Kg.), apples are well established as a consumer good and it is confidently expected the market for fresh apples can be significantly expanded, particularly if the relative market price decreases. Improved yields would allow for reduced farmgate prices (presently PRs. 2 to 3 Kg.) and improved marketing systems and larger volumes could reduce distribution and marketing costs.

2. A pilot apple scheme is being implemented in Azad Kashmir which is expected to be the beginning of an apple development program which would establish some 5,400 acres of apple orchards (with eventual estimated annual production of 43,000 tons/year) over the next 20 years. Other promotion schemes of uncertain scale are in operation elsewhere in the country, (para. 1). Besides the income generation to small farmers accruing from apple growing, a further incentive to encourage this development, which is heavily subscribed to by government agencies, is the stabilized land use which is expected to derive from the creation of profitable apple orchards. The estab- lishment of orchards is being encouraged on steeper land which is unfit for annual cropping and improved land use systems are expected to develop from this activity.

3. However, before finalizing the apple development program in terms of the area to be developed and the rate of development for Azad Kashmir, and for the other apple growing areas, a national study is needed to assess the market demand for the product, indicate the size and location of the major consuming centers, and relate this information to the apple programs for the different production areas. The study would also indicate the possibilities for developing apple processed products; exports of apples and apple processed products; and, the timing and scope of further studies which may be needed for these developments. TECHNICAL ANNEX 3 Appendix 2 Page 2

Objectives

4. (a) To assess present national production and domestic demand for apples; estimate future production and demand; relate the production programs of the apple producing areas to projected demand; assess the extent to which apple orchard development could be developed within the market constraint and indicate the most suitable apportionment of production between the various apple producing areas, related to their respective socio- economic conditions.

(b) To assess:

(i) The present marketing arrangements between growers and consumers, with particular reference to handling, storage and market presentation.

(ii) The quantity of culls arising from fresh apple marketing, and projected future volume of culls, and, broad demand for apple processed products.

(iii) The possible export markets for apples and apple processed products,

and indicate the objectives, scope and timings of further studies which may be needed.

5. Suggested Terms of Reference

A. Assessment of National Apple Production Programs and Short Term Markets

(1) Production:

(a) Present Production

Assemble and evaluate data, and arrive at estimates by location of -

(i) Extent of areas under apple production.

(ii) Annual quantities produced and markets supplied; reliability of production with respect to the incidence of disease and frost damage. TECHNICAL ANNEX 3 Appendix 2 Page 3

(iii) Seasons of production.

(iv) Storage and marketing arrangements.

(v) Costs of production, handling, packaging and transport.

(vi) Prices to growers.

(vii) Profitability of apple production to growers.

(b) Future Production

Based on

(i) the areas already planted to apples, including young stock not yet yielding, and,

(ii) the current programs for apple orchard expansion, estimate future production for the different areas by years 1983, 1988 and 1993.

(2) Competing Fruits (e.g., Stone Fruits) Assess,

(i) Present production for the different areas where grown.

(ii) Seasons of production.

(iii) Storage and marketing arrangements.

(iv) Future production by years 1983, 1988 and 1993.

(3) Markets

(a) Present Consumption

(i) Assess the current size of the apple market and market for competing fruits, in the major marketing centers (e.g., Karachi, Lahore, /Rawalpindi), and the minor centers, and develop estimates of current consumption by zones. Include in the assess- ment any apple processed products, indicating source of supply and location of plant.

(ii) Evaluate methods of procurement and marketing arrangements indicating any bottlenecks in the present arrangements. (See also (b) (ii) below). TECHNICAL ANNEX 3 Appendix 2 Page 4

(iii) Assemble data on buying and selling prices, (indicating seasonal fluctuations), handling costs, storage costs, and operating margins of commission agents, wholesalers and retailers.

(b) Future Markets

(i) Estimate future size of apple markets for the major and minor marketing centers and develop country estimates for the years 1983, 1988 and 1993 taking account of the share of the market going to competing fruits. Indicate possible markets for apple processed products, types of products and market locations.

(ii) Indicate likely effects of relative price changes in apple producer prices.

(iii) Indicate possible bottlenecks in future marketing arrangements (see Part B (1)).

(4) Apple Production Programs

(a) Area and Special Location. On the basis of the results obtained under the assessment of future production (para (1)(b)) and market projections (para. (3)(b)) recommend an indicative program for apple production for the apple producing areas (e.g., Murree Hills, Hazara, Azad Kashmir and Baluchistan), detailing:

(i) Target production tonnages.

(ii) Areas for orchard development.

(iii) Timing of planting programs.

(b) Apple Processing. Estimate the proportion of the crop which would be culls and thereby arrive at estimates available for apple processed products, indicating the location of the supply. TECHNICAL ANNEX 3 Appendix 2 Page 5

B. Follow-Up Work

(1) Marketing

(a) Based on the finding arising from paras. 3 (a) (ii) and (b) (iii) above, assess the extent to which marketing arrangements, including finance (to grower/ distributor), collection, handling, storage, market presentation and transportation, may require further study and evaluation.

(b) Outline the objectives and content of such a study.

(c) Indicate timing when study should be undertaken in relation to production programs.

(2) Apple Processed Products

(a) Arising from findings under paras. 3(a)(i), 3(b)(i), and 4(b), assess volume and location of culls to support the manufacture of apple processed products; assess broad development potential for these products.

(b) Indicate whether further study is needed, including objectives and outline of such a study.

(c) Indicate time when study should be undertaken in relation to production programs.

(3) Apple Exports

(a) On the basis of current data, assess the broad prospects for apple exports and indicate the export potential of apples produced in Pakistan, outlining related aspects of type and size of apple, product, presentation, market representation, storage and handling, and shipping.

(b) Carry out a preliminary assessment of possible near markets to Pakistan in the Arabian Gulf and Middle East countries, indicating the likely extent and adequacy of apple handling/storage facilities existing for fresh fruit and prospects for apple processed products.

(c) Indicate any further study which may be required for developing apple and apple processed products exports, including a study outline and suggested timing in TECHNICAL ANNEX 3 Appendix 2 Page 6

relation to the production programs and domestic market expansion.

C. Participating Agencies

(1) Production Areas

(a) Growers.

(b) Commission agents.

(c) Transport agencies.

(d) Government officials.

(2) Marketing Centers

(a) Commission agents.

(b) Wholesalers and Retailers of fresh fruits.

(c) Distributors of processed fruit products.

(d) Government officials.

(3) Retail Market

(a) Consumers of fresh apples, other stone fruits and processed apple products.

D. Execution and Cost

(1) The study should cover the apple harvesting period (August to October) and the harvesting period of a major competing fruit (mangoes) in March, a total of four months.

(2) The study would be undertaken by internationally recruited specialists, which could be a Pakistan firm, or a combination of a joint team of foreign/Pakistan consultants. TECHNICAL ANNEX 3 Appendix 2 Page 7

(3) Estimated costs are as follows:

Local Foreign Total ------(PRs. '000)------

Four months Consultancy Specialist(s) 300 1/ 300

Return Air Fare (assumed Europe) 15 15

Consultant's Local Travel and Subsistence 50 50

Interviewers 50 50

Questionnaire production, tabulation, analysis and report preparation 50 50

150 315 465

(US$'000) (15) (31.5) (46.5)

1/ This may be wholly or partly local, depending on choice of Consultants (see (2) above). TECHNICAL ANNEX 3 Appendix 3 Page I

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Pilot Apple Production Component Draft Terms of Reference for Consultants 2

1. The Government of Pakistan (GOP) would be engaged in a technical development project in Azad Kashmir which would be partly financed by the International Development Association (IDA). The project would involve the development of activities in the agricultural sector in preparation for a follow-up larger scale project, and would include an apple production component for :

(a) the upgrading of three fruit tree nurseries to produce better quality stock and a larger output of apple trees for transplanting;

(b) the establishment of 900 acres of apples by very small farmers, each having a small orchard area, as the first phase of a long-term program;

(c) the provision of a nucleus apple promotion service to assist small farmers with apple production husbandry practices;

(d) the provision of a nucleus headquarters unit to (i) control and monitor the initial pilot planting program and, (ii) plan a long-term 20 year apple production program based on the draft program outline described in Annex 3, Appendix ], of this report.

International Consultants

2. The project is expected to become effective in mid-1977 and would require the following internationally recruited consultancy services for the apple component:

1/ Excludes apple marketing study consultants (see Appendix 2). TECHNICAL ANNEX 3 Appendix 3 Page 2

(a) An entomologist, with specialized knowledge of pests an diseases prevalent in fruit production, especially in apple production, would assist the Department of Agriculture entomological service to: (i) design a suitable pest/disease identification program; (ii) draw up suitable pest/disease control measure recommendations, and specify the methodology by which the recommendation may be carried out most economically; (iii) estimate the cost implications of the foregoing; (iv) develop a suitable series of instruction on entomology for inclusion in the in-service training program for horticulturists and apple promotion technicians. In addition, the consultant would make recommendations on additional laboratory equipment that might be necessary during the follow-up project.

(b) An apple husbandry specialist, with practical experience in the management of apple orchards, with a wide knowledge of apple varieties, and with experience in advisory services associated with apple production. The consultant would work in collaboration with a local consultant to:

( i) advise and assist the Apple Production Coordinator to develop: the most suitable cultural practices to be recommended to small farmers; the operat- ing methodology of the apple promotion service and allied logistical support needs; and, to recommend an appropriate mix of apple varieties to be grown;

( ii) assist the Department in the design of the long-term apple program including the identifi- cation of suitable apple growing areas;

(iii) in liaison with the principal of the Agricultural Training Institute, prepare teaching material on the subject of apple husbandry practices for inclusion in staff training courses.

(c) A fruit tree nursery specialist, with speci a ized knowledge of apple tree production who would work in close collabora- tion with a local consultant to:

( i) review current nursery p1anting and husbandry practices, the type of root stock used and the grafting methods employed; TECHNICAL ANNEX 3 Appendix 3 Page 3

( ii) advise on and assist with the carrying out of improved practices recommended as a result of the review;

(iii) draw up detailed nursery planting schedules, together with cost estimates, necessary to meet short-term objectives and the objectives of the proposed long-term apple program;

( iv) give practical advice and demonstration instruction to staff of the Agricultural Training Institute and horticulturists engaged in the project.

(d) A fruit grading and packing specialist, with practical experience in the design, construction and operation of plants for apple grading, packing and storage. The consultant would make preliminary recommendations on the siting of appropriate plants to meet the requirements of the long-term program. He would indicate design standards required for grading and storage plants (including cold stores) and draw up terms of reference for detail ed design work, specifying plant size related to site. He would plan an appropriate construction schedule for the various plants and ancillary stores, in a manner consistent with anticipated production levels. In carrying out his assignment, this specialist would be guided by the model long-term apple production program (as modified in the course of pilot project implementation) and by the results of the marketing study (see Appendix 2).

3. Seasonal factors will make it impracticable for all expatriate consultants to be simultaneously in the field. Consultants would therefore need to study each others reports, and work in close collaboration with local consultants and project staff to harmonize their recommendations.

Local Consultants

4. The following local consultancies would be needed to reinforce the expatriate specialists, provide a continuity between the visits of specialists, and, assist in the coordination of specialists' recommendations.

(a) An apple husbandry specialist to work with the international consultant in this field, provide intermediate consultancy services on his own, and, liaise with the entomologist and, grading and packing consultant. TECHNICAL ANNEX 3 Appendix Page 4

(b) A fruit tree nursery specialist to work with the intermational consultant in this field, provide intermediate consultancy services on his own, liaise with the entomologist consultant, and, coordinate with the Pakistan Agricultural Research Council.

Timing of Consultancy Services

5. The timing and duration of expatriate consultancies are expected to be as follows :

Timing Duration

(a) Entomologist May, 1978 1 month July, 1979 1 month

(b) Apple husbandry specialist April, 1978 1 month Sept/Oct, 1979 2 months May, 1980 1 month

(c) Nursery specialist April, 1978 2 month October, 1978 1 month

td) Grading/Packing specialist September, 1979 1 month

6. The timing and duration of local consultants are expected to be as follows :

( i) Apple husbandry - April, June and Sept. in specialist 1978 3 months - April, June, Sept. and October in 1979 4 months - May, 1980 1 month ( ii) Nursery specialist - September, 1977 1 month - April and October, 1978 2 months - March and July, 1979 2 months - March, 1980 1 month Consul tancy Reports

7. On the completion of each consultancy, consultants would render a report to the Project M4anager with a copy to the Director of Agriculture. Consultants' fees and expenses would be paid from the special project account following approval by the Project Manager.

TECHNICAL ANNEX 4 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Vegetable Seed Production and Pilot Vegetable Scheme

Introduction

1. Conditions in Azad Kashmir are suitable for the production of many types of vegetables for which there is a market both within the state and in Pakistan generally, (see Technical Annex 1). This activity is well suited to small-farmer participation and a base for expansion already exists. Estimates of current production indicate there are some 600 acres under summer vegetable production and 1,430 acres under winter vegetable production with a total output of around 5,800 tons/year. The Department of Agriculture operates a 25-acre farm at Chattar Kalas which is presently producing small quantities of vegetable seed. Production is limited by lack of irrigation for growing the crops and lack of seed processing equipment.

2. There are three principal constraints to development; inadequate availability of reliable seeds, lack of an adequate extension service and absence of a defined marketing structure. Vegetable seed supply is a common problem throughout Pakistan with present supplies mainly being obtained from low quality degenerated seed locally collected and used and small quantities of high cost imported seed. This deficiency is being partially addressed in the Pakistan Seed Project (620-PAK) in which the Bank is participating through the establishment of a small vegetable seeds plant in Baluchistan. However, production from the Baluchistan plant is not expected to supply more than about 10% of total demand.

Project Strategy

3. During the 3-year project, emphasis would be given to developing solutions to the major constraints with the objective of preparing a sub- stantial expansion in vegetable production as a component of a follow-up project. With respect to seed supply, the Chattar Kalas farm would be upgraded and become the nucleus seed production source for the State and undertake variety testing and multiplication for improved seed introductions. A seeds processing plant would be installed to provide an adequate supply of reliable seed at reasonable cost for farmers in the State, with any surpluses being available for marketing elsewhere in Pakistan. This would complement the proposed Baluchistan seeds plant and is well supported by GOP. An intensive pilot vegetable extension scheme would be implemented in the Bagh, Hattian and Majira areas to assist farmers in expanding vegetable production and achieving higher productivity; and also to develop the present rudimentary system of farmer-outgrowers producing TECHNICAL ANNEX 4 Page 2 vegetables for seed, which would be processed at the seeds plant. A pre- liminary study of suitable marketing arrangements for future production of both vegetable seeds and vegetables would be undertaken. This would provide a basis for planning production emphasis in the follow-up project with regard to vegetable types and product mix of fresh vegetables and seeds.

Project Details

4. Chattar Kalas Seed Farm. (25 acres). Because of inadequate water supply, only about four acres is presently irrigated which is severely limit- ing seed production. The farm is adjacent to the river Jhelum and a small irrigation channel (2-1/2 miles) has been partially constructed (see Easement Notice at Appendix 1), but is not functioning because of the lack of funds to complete the work. Some small-scale seed processing is presently being under- taken using primitive methods. There are presently no buildings facilities nor any seeds processing equipment at the farm and farm equipment is rudi- mentary.

5. The project would include:

(a) the renovation of the irrigation channel, (GOAK is obtaining a detailed survey and design for scrutiny by the Association before construction), minor land levelling and improvement and extension of terminal distribution channels;

(b) the provision of farm equipment for intensive cultivation and harvesting of the crops;

(c) construction of buildings for,

(i) seed processing plant and store;

(ii) tomato drying shed and an outside seed drying plinth;

(iii) offices and implement shed.

(d) seeds processing machinery and equipment based on the design and specifications for the proposed Baluchistan plant; (it is proposed that this component is reviewed and finalized by the consultants to the Pakistan Seeds Project - see para. 7 below);

(e) a lorry, pick-up and office equipment;

(f) operating costs, including salaries, wages and materials for the farm and seeds plant for the three years. TECHNICAL ANNEX 4 Page 3

6. Consultancy Services. Consultancy services would include the costs of specialists to assist with:

(i) final design of the seeds plant, preparing equipment specifications and tender documents and assisting with bid evaluation, (para 5(d));

(ii) supervision of equipment installation;

(iii) running-in seed plant and initial training;

(iv) market assessment of vegetable seed and fresh vegetables; development of seed supply planning and quality control; formulation of marketing objectives for fresh vegetables; and,

(v) follow-up in-service training in seed procurement, processing, and market presentation.

7. Provision is included for one month of consultant's services for each consultancy. GOP have confirmed that the consulting firm appointed for the Pakistan Seed project would be suitable to undertake these services. Draft Terms of Reference for the consultants are contained in Appendix 2. If possible, the first consultancy ((i) above) should be completed before project implementation. Consultancies (ii) and (iv) above would be timed for year-1 of the project, consultancy (iii) in year-I or year-2 and consultancy (v) for year-2. These arrangements would need to be confirmed with the consultancy firm.

8. Pilot Vegetable Production Extension. Three extension units would be established, each composed of a Grade 16 Agricultural Assistant (Vege- tables) supported by three Grade 5 Field Assistants and three skilled farm workers, with the dual objective of selecting and assisting vegetable seed outgrowers to augment the supply of seed material for the Chatter Kalas plant and promoting fresh vegetable production for local consumption and marketing.

9. Each unit would be equipped with a motorcycle, simple survey equipment, minor tools and a crop sprayer. Units would be established in the Bagh, liattian and llajira areas. These areas have been selected for initial vegetable development because: they already possess nucleus vegetable growers; are within a reasonable distance of Chattar Kalas for transport of seed material; are within reasonable distance and have access roads to vegetable markets; and, are suitable for the production of two or three crops a year. Mirpur and Bimber have been excluded because they are too distant from Chattar Kalas for seed supply and supervision during the initial development phase.

10. Each unit would establish sub-areas for the three field assist- ants (FA's), with each FA establishing a number of contact growers; ten in TECHNICAL ANNEX 4 Page 4

the first year, increasing to 30 in the third year. Contact growers would produce a minimum of half an acre of vegetables under the detailed super- vision of the FA and with the physical assistance of the skilled farm worker during the grower's first year of operations. Thereafter, the grower would receive intensive follow-up guidance. Contact growers would be expected to enter into an agreement to establish from 3 to 5 "outreach growers" each, and transfer to them the technical knowledge and advice they receive from the extension unit.

11. The Agricultural Assistant (AA) in charge of an extension unit would supervise work of the FA's and make periodic visits to "outreach growers", to monitor progress. He will be responsible for logistical arrangements for inputs, carrying out local market surveys and develop linkages between the seed processing plant and farmer seed multipliers. In addition, on selected farms he will carry out small trials of new vegetable types of varieties.

Management

12. The operation of the Chattar Kalas farm and seed plant, and coor- dination of the field extension units, would be under the direct management of the Farm and Plant Manager (Grade 17), who would be responsible through the Director of Agriculture to the project director. He would be assisted by a farm superintendent, a seed processing superintendent and a maintenance mechanic (all in Grade 16) at the farm, and the three extension AAs, to- gether with clerical support staff.

Costs

13. Detailed physical requirements and costs for the 3-year project are contained in Table I and summarized below: TECHNICAL ANNEX 4 Page 5

SUMMARY OF COSTS (PRs. '000) 1/

Years 1 2 3 Total

Chattar Kalas 'Seeds Farm

Irrigation and Levelling 450 450

Farm Equipment 240 240

Seed Plant Equipment 414 414

Buildings 306 306

Vehicles and Office Equipment 316 316

Operating Costs 2/ 226 473 481 1,180

Consultancies 281 67 348

Vegetable Extension

Vehicles and Tools 36 6 42

Operating Costs 155 197 197 549

Totals 2,424 743 678 3,845

US$ (OOOs)

I/ Some additional costs for 6-month courses for the Seeds Processing Super- intendent and Plant Mechanic are included under training costs.

2/ Excludes on-farm inputs of seeds, fertilizers, sprays and labor which would be provided by the farmer. TECHNICAL ANNEX 4 Page 6

Preliminary Production Targets and Sales Values

14. Chattar Kalas Farm. Initially, 19 main vegetable types have been identified. These are listed-in Table 4 together with applicable seeding rates; 13 of these are scheduled for production and processing on the seed farm at Chattar Kalas. A production schedule for the farm based on Department of Agriculture data is developed on Table 2; this will require refinement during implementation. It is based on the concept of advantageously using winter and summer production seasons and the assumption that not all produc- tion will be suitable for seed purposes and part of production would therefore be in fresh vegetable form. The data reveals some anomalies in relative prices of fresh vegetables and seeds which would require further scrutiny. For estimating annual production, the predicted yields indicated by the Department of Agriculture have been used but product prices have been reduced by 30% to arrive at prudent estimates of sales revenue.

15. On this basis, the analysis summarized in Table 2, indicates that at full development, the farm would annually produce 84 tons of fresh vege- tables and 5.5 tons of seed with a sales value of PRs. 390,000 (US$39,000). This would be about equal to the operating costs of both the seeds farm and the seeds plant, with the costs of the latter being mainly attributable to processing seeds supplied by farmer outgrowers - see para. 17 below.

16. Farmer Outgrowers. Estimates indicate that there are currently 600 acres under summer vegetable production and 830 acres under winter production, with a total annual production of 5,800 tons. Of these areas, it is estimated that some 390 acres of summer and 600 acres of winter production, presently producing about 4,100 tons of fresh vegetables, are within economic distance of the Chattar Kalas farm; these have been selected for the pilot extension scheme. The scheme would promote improved technology leading to increased production and offers farmers the opportunity to market part of their crops for seed, for which they would receive a premium price. An indicative pro- duction schedule for the scheme is included in Table 3. This envisages an eventual annual production pattern, of 2,200 tons fresh vegetables and 107 tons of seed equivalent which would more than double present farm incomes (from all vegetable sales) and at the same time provide the processing plant with some 94% of its seed material. These estimates are based on crude data and would be subject to firming up during project development. They do indicate however, that if farmer outgrower seed production was 50% of the indicative estimate, results would still show a substantial income gain to farmers and a sufficient supply to the seeds plant to maintain viability of the plant.

17. The combined estimated investment costs, value of sales and operat- ing costs for the seeds farm and farmer outgrowers (at full production) are presented in Table 5 which indicates a gross earnings, before interest and depreciation of some 63% on the basis of the assumptions underlying the production estimates in Tables 2 and 3. This would be reduced to around 21% if farmers' seed production was 50% of the estimated level. At 10% reduction in the value of sales would give a result of 36%. These results are TECHNICAL ANNEX 4 Page 7 essentially tentative and will require further scrutiny and updating during the course of preparation of the follow-up project which would be based on the results obtained during this 3-year developmental period.

Impact of Seed Supply

18. On the basis of the seeds production scheduled in Tables 2 and 3, a preliminary analysis has been made of the impact this would have on seed supply and vegetable production in Pakistan, which is summarized in Table 6. At full production, the seed plant would be producing annually about 113 tons seed, which could be sufficient for planting up to 50,000 acres of (combined summer and winter) vegetables, with an estimated production of fresh vege- tables of 350,000 tons. Assuming the Baluchistan seeds plant produced seed at a similar level, the combined production of the two plants could be equivalent to some 700,000 tons vegetable, equal to about 22 lbs/per capita/ year. In practice, there would be some losses in the transfer of seed to growers and in crop failures which would significantly reduce these estimates.

19. The two seed plants would represent the only domestic sources of selected and improved vegetable seed. If it is assumed that production from these plants contributed 20% of total sowings (e.g., a quality seed replacement every five years), this would equate with a total potential national vegetable production of up to 110 lbs/per capita/year, which is still a relatively modest consumption level. The analysis demonstrates the need for promoting vegetable seed production at both the Baluchistan and proposed Azad Kashmir plants. PA KISTAN

HILL FUAIWNG TICIMICAL DEVZLOSW FRWJUCT

DeILs of Project ftsica.l RegAoiremento id CoQts (PRa.000)

_ Re ul ents (Ye Unit Costs 0 a (Yers) Unite 1 2 YR.3 2 3 Tote]

Upgrading Chattar lEalas seed famn and insts]l]aaMon o r seeds pl ant. capital L6b/ Renovation of 3 miles irrigation channel nileS 3 135g000/i1le 410 410 Improvement in leveNlin- and feeder channels over 20 acres. acres 20 2W000/.a' 140 40 Farm Equipment7 45 hp. traetor 1 78 78 Two-Furrow reversible plow I 15 15 Disc Harrows 14 4 Cul tivator | 14 4 Grader-] eve)l er 3 4 4 Seed drill (vegetable seed) I 320 2 Ridger I 3 3 Veg. seed Thrasher I 50 5p Motor Sprayer j 1 I 52 Tractor Trail er I i 12 122 Snall Tools 10 i 10 ci Spare Parts inventorsy ip of oapital aost) 35 35 Seed Plant Equipments 3 27 2 Clipper (seed harwester) I 6D2 Cleaner and Grmder 65 65 Indented Cylinder (Processing) 35 35 Gravity Separator 1 2,34 3 34 Z Scales sets 3 2 000/set 6 6 Seed Treater (Drum) 8 8 F.eat Sealing Machine (packaging) 1 07 70 Bins, Racks, Small Tools Seed Germinator I 3 3 Moisture Tester I 3 i 3 Seed Drryer 13 13 Seed Extractor (Tomstoes, Peppers) I 35 I 35 Air Conditioner _17_ 1 117 S Detailed survey and coat estimates by -W rlea O sng ODl;ne Oy Based on requirements specified in Pakdstwn Seeds Project (Report 781a PAK). To be vetted and finally approved by cmsu]tants from this project. To be instal]ed in existing store for storage of certain seeds. P A K I S T A A

JLL RARMING TECHN1CAL DEVEWPEW! PILO=T

Dutai a of Pr1ieot Piystical Requirements and Coie (fpi:booo

Re r_nts (_e_) unit Cox" Coat (r ) Units 2 2 3. 1 2 T otl

Generator set, I5K - -o.2 77 77 5KY n 3 38 38 Wiring and Switch gear 26 26 Tools set 10 I0 Process Hall and Store 2,000rt. 3 80/ft. 3o60 Tomato Shed 600 n 1 40 24 24 Implement Shed 400 n 3 40 " 16 36 Outside Drying Area 2,000 n 1i4 n 28 28 &in ineering and Deign on above at 8% 18 38 Office Block 600 " I 100" 60 3-Ton Truck No. I X>20000/unit 200 A Jeep SWB n1 92,500/ 10 92 92 Office Fniture and Equi nt I 2- 24 Sub-Total s 1,726 1,7Z6 -- Operatin!. Costs: II Staff: Fain and Plant ManMer Gd. 37 1 1 23,730/year 12 24 24 60 Fam Superintaedent n IS I 1 1 14,500/ 7 14 15 36 Process " " 16 I 14,300/" 7 14 1S 36 Maintenance Mechanic " 16 I . I 1400/" 7 14 15 36 e t3 i Records Offioer/Accomtant a 13] 2 03 i lead Clerk " l0 12I 9,070/ 5 9 923 Clerk-Typist 'P 5 I 1 3 5,930/ 3 6 6 15 - z - Field men n 5 14 4 4 5,930/ 12 24 24 60 0 Farm Baildera "n I 8 8 8 4,620/ 18 37 37 92 " Casual labor md. 4,500 4,500 4,500 13/md 29 59 59 147 Drivers n 3 3 3 3 8,760/year 13 26 26 65 Plant Operators n I 4 4 4 4,620/" 9 18 18 45 Plant Casual Labor ad. 3,800 1,800 1,800 13/md 12 23 23 58 P Chow Kidars, Peons, Cleaners n I !4 4 4 4,620/year 9 18 18 45 4 Farm inputs of fertilizer, sprays, seed, etc. 350/acre 4 7 7 18 Tractor runnin- costs houre 1,000 1,000 1,000 20/hour IO 20 20 50 Generator rtLnrinj costs 5Kw I 2,000 2,000 2,000 7/" 7 24 14 35 Generator I i 15Kw J ],000 2,000 I2,0o 14/ n 7 '4 14 35 L2L 5a of full -ycar operatin: costs in Year 1. PA_ K I S T A N

HILTL FAPING TECHNICAL DEVELOPENT PROJECT

Details of Proiact Phzsical Rqaoirsments aii Costa (FRi .000)

Co ta (year ) -. rements (Yeers) Unit Coata 1 2 3 Total Units 2 3 MR. T']- - _ Pachacing Materials 37 37 93 Maiintenance of Plant, 10% of capita] costs 10 20 20 50 20 20 10 2/mile runnin7, 3-Ton Truck 000 miles 20 20 50 Vehicle n10 20 10 So 10 1 n" Jeep n 6 g g 38 Office Expenses and Buldding NAintenance ;2 25 Haintenace of Main Channel 47- 41 Sub-Totalsa226 Consul tancies ZOI ]. Desi -n of p]ant and equipment; prepare documenta; snecification and tender 65,000/mm. 65 65 I 65 assist with bid evaluation U 65 n I1 . 2. Supervise equipment installation a 65 65 trainitg n ! 3. Running-in plant and initia] I L. Seed Farm plaannin r; market out]ets 50,00 n 50 50 budgeting 1 58 assessment; detailed J 58,ooo 58 s. In-servig trainin- and procurement n Air Travel O/ _ 36 9f 4__5_ months 4 i 2 9 ,000/Eonth Local Travel and Subsistence : 281 a6 348 Sub-Total s ; I Vestables E,tension I , 24 N -H Carital Conts 3 8,0C0/unit 24I Cycle., lOocc/3Oo0c No. 6 18 0 Motor 6 2,000/est 12 Sprayers and Tools sets 36 Sub-Total s I D z Costs 57 171 ' %Oeratinpc 3 3 3 19,000/year 57 57 tural iOfficer(Vegetables) Gd.]2' No. 86 229 Asst. Agricul 9 9 9 530/" 57 86 te n " 5 1 I 0 110 Fie]ld Assistants 99 9 4,620/" I 28 41 41 a i I 11 11 33 Fie]dnen 30 30 30 0.35/mile 11 Motor Cycle Running CO 10,000 miles/year 000 ml.es Experimental Suppl ies 2 2 2 _6 I X Too]sa aintenancn I _ 155 49 Sub-Tota-l s1_ ' -- ,8-4-;4 Totals Eor veietsble Cowponent. Project. Air Fares would be absorbed by that project. same consultants WhlOare associated vith the Pakistan Seeds 2O/ It is prooo-d tn use the Cor this initial phase. 21 Existin oUces/storns wae avnil abe and adequats farmers either on cash or credit. GOAl are advisin-I credit arra~eent, rvolvin fn r iihsnoc iipoe provided to PAKISTAN

HILL PANNINGTECRNICAL DEVELOPMENT PROJECT

VEGeTALE SEED PRODUCTIONAND PILOT VEGBTABLESCHEME

INDICATIVEPROJECTION OF VEGETABLEAND SEED PRODUCTIONFROM CHATTER KALAS GOVEPNlENT FARM 1/

E.Citfstd Yield/Acre of yield per o Combined Cro.s.re Yield Freh Veg. 6 SRod 3/ 4/ Add.d V-lue frue if in if sold as Crops after De.-lopment Es.tmoted A-nul Production Ettim-ted- E.-F.r- frice- Estimated Sale, Revenue Acres Fre-h gefCablos Froportiom of Crop Fr-sh V.g.trblhs Fresh Vegstablee Seed Fresh Veget-bles Seed Fresh Vegeftblos Dre-sed Soed fron Freh Vogtoableo fro- Seod. Total (aulunds32/ Proessed foe Seeds 5/ (-sund.) (aaomds) (lb.) (maced.) (lb.) (PR./mooed) (PR./lb) (PFU) (PM.) (PR.) (FL.)

Su0r Produrlom Lady Fi.Sgr- 6 150 900 50 600 300 3,600 30 6/90 9,000 24,000 33,800 15,800 Peppers/Chilliee 4 100 400 30 30 120 120 45 100/- 5,400 12,000 17,400 (600) Totoe- 4 200 gOO 60 50 240 200 30 100/- 7,200 20,000 27,200 3,200 Cocurbits 4 200 0oo 60 300 240 1,200 15 10/- 3,600 12,000 15,600 3,600 Igoplents 2 150 300 80 60 160 120 15 30/- 2.400 3.600 6.000 1.500 Sub-tote 1060 5.240 27,600 72,400 IGO, 23.500 W-itter Productios 000l Kohl 4 200 800 60 400 240 1,600 15 34/50 3,600 55,200 58.800 46.800 C.bbage 3 200 600 60 400 180 1,200 30 63/25 5,400 75.900 81.300 C,uliflomer 3 200 63.300 600 60 100 180 300 30 201/25 5,400 60,300 Spin ch 1 250 65,700 47.700 250 s0 400 s0 400 I5 3/45 1,2W0 1,400 2,600 (1,200) Turrip 3 250 750 s0 400 240 1,200 15 32/20 3,600 38.600 42,200 31,000 Radish 1 200 200 60 400 60 400 15 8/05 900 3,200 4,100 P555 2 100 2OO 1,100 3000 0 1,200 30 6/90 I.OO 8.300 10.100 4.100 Onion 3 200 600 60 300 100 900 30 23/00 5.400 20.700 261 8.100 Sab-tot.l 20 1 220 7.200 27,300 263.600 290,900 200.900 Totals 2,280 12,440 54.900 336,00 390.900 224,400

Note- E.eint-d -elue oR sales if a11 peoductiom -krceted -o f-sh veftables 166,500 1/ V-rieties yields sod price assU plicce bh-ed 00 det. supplied by the Department of Agi-culture, Mu.affarhbad. 2/ M.aod- 82.3 lbs.. 3/ 757 of preseo. market pi.ts. (f.etg.te) hb. been assened to sIIR fot deep ±n prices as volu- e of -ar-eted nidet.blesK nrie-s... 4/ B-..d on anticipated price levels of dressed seeds, tkhen to be 70% of cureent a-esge price. 5/ oa the bhsit f prices assuosd, pepper/chill ee nod spirehb ore rmre profitably -rrketed 55 fresh vg.eteble. The pricing structure fur thase, and the ocher vegetables, oill to The costa of soeds processing and gross peofit colculetlon is sti cvarted need be revie-ed ic note detail. In Table 5 t5 - 1 ~~~~~~~~~~~~~~TechnicalAnnex 4

S 0 0C 0 C CIC

C.OC _ OP Con NOCC 0 e j C;.

- -C - f ^ S ' CI ROX°RS -_I

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Cs C CU -

,X>a n.x 'ICCC 00 OCCO vC I x| C

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5A 0 -ax in ooo. 00.nonO 04 OU S ooo rroo o o ver az Cnn

e > t 4 @> 4 A > - rl t , o- 5 _l * e~~~~~~~~~~~~~~

COO 'CCC ---RR-

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x~ ~ ~~~~~~~~~ °° 8 °I w 2CC-8 '°°°

IC C '_~~~~C C _U . C_

X~~~~~~~~~~ nx2_

ula o

CDO Co;

C C a °,xxC . . - a C C 0 :b1o

O ,nC aCCCC n n:on-C o HOC x an CnCxn. 0CCn.o

C CO nxx ECxCnCn TECHNICAL ANNEX 4 Table 4

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Vegetable Varieties and Seed Rates (per acre)

Sr.No. Name of Seed Seed rate per Acre

1. Water MeJon 4 Lbs.

2. Musk Melon )4 Lbs.

3. Chillies 2 Lbs.

4. Onion 8 Lbs.

5. Lady finger (Okra) 24 Lbs. ]/ 6. Tinda Gourd 8 Lbs.

7. Brinjal (Egg plant) ½ Lbs.

8. Bottle Gourd U 8 Lbs.

9. Cucumber 4 Lbs.

10. Turnip 3 Lbs.

II. Carrot 8 Lbs.

12. Radish 8 Lbs.

33. Spinach 24 Lbs.

14. Peas 30 - 4o Lbs.

15. Caulinfower 2 Lbs.

16. Cabbage 2 Lbs.

17. Kohl Rabi (Knol Khol) 4 Lbs. 18. Tomato ½t Lbs. 19. Lettuce 4 Lbs.

I/ Not included for production durine initial project. TECHNICAL ANE 4 Table 5 Pa,g,e 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Vegetable Seed Production and Pilot Vegetable Scheme

Indicative Gross Earnings Statement (PRs.OOO)

Government Farm and Seeds Plant Farmer Outgrowers Total (Chatter Kalas) (Extension Service)

Capita] Costs : Initial Building,Jlant Equip. l,4o5 36 |

Consultancy Fees - 348 Additional to reach full production (estimated) 500 250 _ 3,253 286 ;2,539

Value of Sales 391 6,345 16,736 i/I Operating Costs 3/ 395 118 Payments to Farmers 4,230 Additional Costs at full production (estimated) 200 200 -595 4758 -5,]43-

Gross Profit 1,593 C 923)

Gross Return (before interest, depreciation and taxes) % 63% " " " (with 10% reduction in Sales Revenue 36% it" "(with 50% rejduction in Farmer Outgrowers Seed

I/ See Project Cost Sheets summarized in Table I. 2/ See Tables I and 2. Based on assumption of 30% reduction in current sales prices. 3/ See Table 2. v/ Assuming reduction on seed selling price of 10%. / Assuming reduction of 50% in Farmer Outgrowers Seed Supply implying :-

Value of Sales 3,5'S3 Operating Costs3,028 Gross Profit 535 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Ve2etable Seed Froduction aLd Pllot Vefetabl e Scheme

Indicative Analysis of Seed Production, Potential Vegetable Area based on Seed Yroduction and Gross Annual Output of Vegetab]es from Potential Vegetable Area SJ

Type Production of Seed Seed Rate of Gross Area Bstimated Yield Gross AnnuAl of Prom Chattar aas I From Outgrovers Total Soving/pr, Planted Fresh Vegetab es Production of Vegetables Vegetable (pounds) lbs. - (acres) (tons/acre) (tons)

Lady Finger 3,600 24,000 27,600 29.0 952 5.6 5,330 Pepper/Chillies 120 1,440 1,560 2.4 650 3.7 2,1405 Tomatoes 200 4,800 5,000 O.6 8,333 7.4 61,700 Cucumbits 1,200 33,200 32,400 9.6 3,375 7.4 24,975 Egg Plant 120 1,440 1,560 0.6 2,6oO 5.6 14,560 Kno] Khol 1,600 22,400 24,00 14.8 5,000 7.14 37,000 Cabbage 1,200 39,200 20,400j 2.4 8,500 7.4 62,900 Cauliflover 300 14,800 5,loo1 2.14 2,125 7.4 15,725 Spinach 400 29,200 19,600 29.0 675 9.2 6,220 Tuanips 1,200 i 32,000 33,200 I 4.0 8,300 9.2 76,360 Raddish 400 25,600 26,000 9.6 2,708 7.4 20,o40 Peas ] ,200 19,200 20,400 40.0 5]0 3.7 3,887 Onions 900 36,OOo 36.900 9.6 3.844 7.4 28.440 Totals 253,720 47,572 357,542

2 The assumptions in this analysis are intentiona3ly optimistic in order to test a maximum vegetable seed impact situation; in practice, there would be a significant loss in production (up to 30% +) through seed handling, viability loss and crop failure.

Using the optimistic assumptions herein made, and asBuming the Baluchistan Seeds Plant would produce a simil ar quantity of seed, total maXimUn vegetable production would be 700,000 tons/year frm these sources; equivalent to about 22 lba./per capita/year.

, Recumended planting rates (Table 3) plus 20% wastage. TECHitNICAL ANNEX 4 Appendix 1

Record of Easement for Water Channel - Chattar Kalas Farm

Office of the Revenue Commissioner Azad Government of the State of Jarmuu and Kashmir - Muzaffarabad

NOTIFICATION

*WHEREAS it appears to the undersigned that the land regarding which a Notification under Section 5 of the Iand Acquisition Act has been issued by the Government vide Notification No. RS/650-54/69 dated 22/10/1969 is required to be taken by the Government at the public expense for a public purpose, namely for construction of a Water Channel at Chattar Kalas Tehsil and District Muzaffarabad. IT IS HEREBY DECLARED that the land described in the specification below is required for the above purpose.

This declaration is made under the provisions of Section 6 of the Land Acquisition Act, 1894, TO ALL WHOM IT MAY CONCERN and under the provisions of Section 7 of the said Act, the Collector of is HEREBY DIRECTED to take order for the acquisition of the said land.

A plan of the land may be inspected in the office of the Collector of Muzaffarabad District.

SPECIFICATION District, Tehsil Village Khasra Nos. Area Muzaffarabad MZD Chattar Kalas 4 27,428,.Z29, K M 430,505 1. 6

Sgd. (A.H. Suhrawardy) Commissioner.

No. CMR-4904-08/69 dated 10/11/1969.

1. The Collector Muzaffarabad for infonnation and necessary action. 2. Director Information with a spare copy for Publication in the Government Gazette. 3. Development Commissioner, Muzaffarabad for information. 4. Director of Agriculture, Muzaffarabad.

Sgd. (A.M. Suhrawardy) Commissioner. TECHNICAL ANNEX 4 Appendix 2

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Vegetable Seed Production and Pilot Vegetable Scheme

Consultants

Pages

Correspondence regarding appointment 1-3

Draft Terms of Reference 4-6 TECHNICAL ANNEX 4 Appendix 2 Page 1

Mr. M. Mumtaz Ali February 3, 1977 A.D.C./Joint Secretary Food and Agriculture Division Pak Sectt Block "B", Room 237 Islamabad, Pakistan

Dear Mr. Mumtaz Ali:

I would like to thank you for meeting on January 26 with Messrs. Zimmer-Vorhaus and Andrew Mercer concerning the vegetable seeds component which it is proposed to include in the Hill Farming Technical Development project now being appraised. The component would include:

(a) establishment of a 25-acre vegetable seed farm at Chattar Kalas to form the base supply for the seeds plant;

(b) setting up a seeds processing plant on the farm;

(c) a pilot vegetable extension program to:

(i) improve vegetable growing practices generally, and

(ii) enroll farmer out-growers to produce vegetable seed to supplement the supply from the base farm at Chattar Kalas. The seeds plant would be designed with capacity to absorb out-growers' production of seed; and

(d) an examination of the market for seed sales from Azad Kashmir and assessment of additional facilities which would be needed for a subsequent expanded vegetable seeds program.

The activities (a), (b) and (d) are broadly parallel to those in the recent Seed Project assisted by the Bank and would need similar consultancy advice. Moreover, there is obvious merit in standardizing in machine design and manufacture to minimize servicing and spare parts problems.

For these reasons it was suggested at the meeting, that the con- sultants already appointed for the Seeds Project (described in items No. 12 and 13 of Appendix 1, Annex 7 in the Appraisal Report), be asked to review and refine the proposals for the Azad Kashmir vegetable seeds component to ensure this is given the benefit of a good basic initial design, and also for the same consultants to have an input into the Azad Kashmir component, during the 3-years of the project, which would be combined with their visits in connection with the Seeds Project.

On the basis of the discussions with you and with the agreement of the GOAK, the appraisal mission intends to make recommendations TECHNICAL ANNEX 4 Appendix 2 Page 2 along these lines to our Bank Management and seek retroactive financing of the Hill Farming Project, which is expected to be presented in July next to cover the cost of the initial'appraisal. We would need to formalize the proposals in preparing the project documents and I would therefore be glad of your confirmation of the arrangements herein outlined.

With best regards,

Sincerely yours,

Alexander F. Kirk Resident Representative TECHNICAL ANNEX 4 Appendix 2 Page 3

D.502/ADC/77 GOVERNMENT OF PAKISTAN

16th February, 1977

Mr. Mumtaz Ali ADC/Ex-Officio Joint Secretary

Subject: HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Dear Mr. Kirk:

Thank you for your letter dated the 3rd February, 1977 on the above subject. For the reasons stated therein, we have no objection to the Hill Farming appraisal mission making recommendations along the lines indicated in para 3 of your letter viz. that the consultants already appointed for Pakistan Seed Project be asked to review and refine the proposals for the Azad Kashmir Vegetable Seed Component to ensure that it is given the benefit of a good basic initial design and also for the same consultants to have an input into the Azad Kashmir Component, during the three years of the Project, which would be combined with their visits in connection with the Seeds Project.

With kind regards,

Yours sincerely,

Sgd. (M. Mumtaz Ali)

Mr. Alexander F. Kirk Resident Representative International Bank for Reconstruction & Development Islamabad TECHNICAL ANNEX 4 Appendix 2 Page 4

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Vegetable Seed Production and Pilot Vegetable Scheme Draft Terms of Reference for Consultants

1. The Governments of Pakistan (GOP) would be engaged in a technical development project in Azad Kashmir which would be partly financed by the International Development Association (IDA). The project would involve the development of activities in the agricultural sector in preparation for a follow-up larger scale project, and would include a vegetable production component for:

the upgrading of the existing Government of Azad Kashmir (GOAK) vegetable seed farm at Chattar Kalas (25 acres);

establishment of a vegetable seed processing plant at the farm (on a similar basis to the proposed Baluchistan plant), to be operated on a commercial basis by the Department of Agriculture;

a pilot extension service for developing vegetable production by small farmers and securing a network of farmer-outgrowers to augment the supply of seed material for processing at the plant.

2. The project is expected to become effective in mid 1977 and would require the following consultancy services for the vegetable component:-

(a) A vegetable seed processing specialist to assist with

(i) final design of the seeds plant, preparing equipment specifications and tender documents and assisting with bid evaluation;

(ii) supervision of equipment installation;

(iii) running in seeds plant and initial training of staff.

(b) A vegetable seed production specialist to assist with -

(iv) initial market assessment of vegetable seed and fresh vegetables; prepare a detailed work program for the project including a development plan TECHNICAL ANNEX 4 Appendix 2 Page 5

for the Chattar Kalas seed farm and seed supply planning for farmer-outgrowers; prepare an annual budgeting system for the seed farm operations; instituting seed quality control.

(c) Both specialists for follow-up advisory services for

(v) in-service training of staff in seeds procurement; processing; market presentation; and, seed quality control.

3. The timing and duration of the consultancies are expected to be as follows:

Timing Duration

(i) Processing specialist Preferably April, May or 1 month June, 1977 before finalizing project details.

(ii) " " Year 1 of the project. I month

(iii) " " End of Year 1 or beginning of Year 2 of the project depending on seed supply.

(iv) Seed Production Year I of the project. 1 month Specialist

(v) Both Specialists Year 2 of the project. 1/2 month each

4. The specialists would be assigned to the GOAK and responsible to the Director of Agriculture. They would liaise closely with the seed production and processing staff.

5. GOP have agreed that the consultants who have been appointed for the Pakistan Seeds project (620-PAK) would be requested to undertake the con- sultancies herein described as an addition to their work program. Consultancy fees have been calculated on a similar basis to the Seeds Project; air travel fares have not been included as it is assumed these would be absorbed by the Seeds Project. (See Table 1). TECHNICAL ANNEX 5 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Agricultural Support Services

A. SOIL TESTING AND FOLIAGE ANALYSIS

1. There is an almost complete lack of data covering soils. Without this information, it is not possible to develop economic production packages to extend to farmers. The present staff of the soil laboratory includes a soils chemist and two laboratory assistants who are competent to carry jut the necessary work, but are handicapped by lack of equipment. Provision is included for equipping the laboratory to undertake a program of sampling in areas selected for early implementation of developed packages. The field sampling will be coordinated by the land use planning section of the project and results incorporated in the land use development plans.

2. Areas to be sampled will include:-

(a) Experimental/Demonstration farms and adjacent areas including cooperative maize program trials.

(b) Apple growing areas.

(c) Vegetable seeds farm and vegetable extension areas.

(d) Spot sampling at different altitudes in other zones of the state.

(e) Other sampling as indicated by production programs being developed by the project.

3. The program would include 1,000 full analyses and 1,500 partial analyses a year, giving some 7,500 samples during the 3-year program. On this basis, detailed soils/nutrient maps would be produced for specific areas selected for development; these samples would be additional to the indicative samples to be taken by field kits. All sampling would be recorded on data sheets indicating sample code number and date and include:

(i) Location (latitude, longitude, altitude, local name).

(ii) Topography and aspect.

(iii) Vegetation type, with details of cropping history of soil for past three years. TECHNICAL ANNEX 5 Page 2

(iv) Land use.

(v) Climatic data with indication of nearness of source.

(vi) Visual description of soil profile including depth and color of main horizons, down to underlying strata where possible.

(vii) Mechanical analysis by sedimentation to estimate proportions of sand, silt and clay.

(viii) Chemical analysis of soil to determine pH, organic content, and content of N, OP, K, Mg and Ca.

Full samples, would, in addition, include chemical analysis of foliage and analyses for trace element deficiencies.

4. A schedule of additional equipment items and cost is contained in Appendix 1. A short-wheel base 4WD vehicle, vehicle running costs and laboratory operating costs are also included; these are detailed in Table 1.

B. METEOROLOGY

1. Basic climatic data is also lacking. The Department of Agriculture has undertaken to compile data through field staff. Provision is therefore included for equipping all stations with rain gauges and thermometers and, in addition, providing barometers for main stations. Some altimeters have also been included to enable the survey section to accurately record eleva- tions at the various weather stations.

2. Regular monthly weather statistics will be reported to the Land Use Planning Section (and be available for the national meteorological service).

3. Details of equipment and costs are contained in Table 1.

C. ENTOMOLOGY

1. The existing laboratory facilities are available for conducting in- vestigations to provide back-stopping of the project activities. However, these are not fully utilized because there is presently no post of Entomologist.

2. Provision is included for an entomologist to be paid for by the project. GOAK have given verbal assurance the post will be created, but will need to formalize this decision.

3. Costs are summarized in Table 1, which include a contingency provision of PRs. 20,000 for ancillary equipment. The job description and qualifications for the post included in Appendix 2. TECHNICAL ANNEX 5 Page 3

D. PUBLICITY

1. There is a need to improve the flow of technical information to all staff, which would become increasingly important as the results of the ex- perimental activities become available. A publicity officer is already in post but the department is lacking finance to properly use his services.

2. Provision is included for the monthly printing of pamphlets pri- marily to keep all staff posted with best practice techniques being developed and to indicate priorities in the allocation of work emphasis.

3. Costs are summarized in Table 1. PAKISTIN HILL FARMING TECHNICAL DEVELOPMENT PROJECT i_ ~~~~~~STS'

Requirements (Years) unit Costs Cbots (Years) Units 1 2 3 PRO. 1 2 3 TOTAL

AUuliUVfAL. bUYJurUT UZKV1(Ub Soil Testing and Foliage Analyaisd Capital Costs: Laboratory Equipment 24/ set 1 500 500 Jeep, SWB no. I 92,000/unit 92 92 Sub-total 592 592 Operating Costs: Jeep running costs, 10,000 miles/years 000 miles 10 10 10 2/mile 20 20 20 60 Laboratory stores 10 10 10 30 Toole Maintenance 1 1 1 3 Sub-totals 31 31 31 93 Meteorological Rain Gaugest Demonstration Farms no. 12 Field Asaiatants, Maize no. 12 Main Laboratory Qo. 1 Apple Technicians no. 60 General Field Assistants no. 75 Additional Sitea no. 6o SUb-tot&ll 50/unit 12 12 Thermometers, at same posts as rain gauges no. 230 40/Unit 9 9 Barometers: at main stations no. 20 1,000/unit 20 20 H F Altimeters: for field use no. 5 800/unit 4 25/ Sub-totals 45 5Z Fhtomology-' Entomologist (Grade 18) 1 1 1 32,700/year 32 32 32 96 Ancilliary Equipment 20 20 Sub-totals 52 32 32 116 > Publicity Printing of information pamphlets for field staff and lead farmers no. 7,000 7,000 7,000 500/1,000 4 4 12 Total Capital and Operating 724 67 St 858 23/ Annual Samplings 1,000 full samples plus 1,500 partial sampleslyear, excluding field kit (Indicative) samples. bo1. cnemnst and 2 assistants are in post and available for this vork. 24/ See Schedule 4 72/ Laboratory facilities exist and laboratory running costs are provided in normal budget. PAXISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Agricultural Support Services

SOIL TESTING AND FOLI&GE ANALYSIS

List of additional equipments required for the Soil Testing Iaboratory

Cost in PRs.(thousand Rs)

1. Atomic absorption spectrophotometer for the determination of micro-nutrients from soil and plants. 250

2. F]amcphotometer, for the determination of Calcium, Magnesium, Sodium, and Potassium complete with all accessories. 35

3. Mettler Baaance (Top loading analytical). 25 4. Colorimeter (EEL) for the determination of phosphorus. 4 5. Spectro photometer (Beckman), Gallan Kamp) for the estimation of metal ions in soil. 30

6. Oven for the drying soil and plant samples. 8

7. PH meter (Beckman, Gallen Kamp or pye-unioam). 10

8. Macro-Kjeldhal apparatus with digestion and distillation assembly and with six automatic heaters and switches, for the estimation of Nitrogen from Soils. 10

9. Muffle furnace. 20

10. Plutunium crucibles (12 Nos). 20

12. Forty soil field testing kits for Apple technicians for rapid soil tests of soil physio-chemical properties. 20

12. Weily mill for the grinding of leaf and plant tissues. 20

13. Centrifuge machine for the shaking of bottles and tubes. 18

14. lab. Chemicals (Supplies). 20 35. Soil Augers. 20 at PRs. 50 each. 10 Total 500 TECHNICAL ANNEX 5 Appendix 2 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Agricultural Support Services

Job Description and Qualifications - Entomologist

General

1. The project aims at developing improved technologies in food and fodder crops through a series of experimental and replication trials; finance pilot programs in apples, vegetable seed and vegetable production and fuelwood plantations; undertake fodder utilization trials and cattle breed improvement; and through a coordinating land use planning section, combine these activities in the preparation of a follow-up project to increase productivity of the agricultural sector and the living standards of small scale farmers. The entomologist would head the entomology section in the Department of Agriculture, which would provide technical support to the project activities.

Specific Duties

(a) Under the Director of Agriculture and in consultation with the project director, set up a reporting procedure to be followed by project staff and agricultural field staff, for insect pest incidence.

(b) Investigate insect pest problems and develop and assist with the implementation of preventive and remedial measure. Special emphasis will be given to the production and storage of maize, pulses, fodder crops, apples and vegetables; some other tree crops may also be included.

(c) Prepare work schedules and costings for the pest control operations developed, including presentation of the data in a form suitable for incorporating in small-farmer credit arrangements.

(d) Prepare information bulletins for circulation to field staff and undertake periodic instruction during refresher courses for field staff in field sampling, reporting and remedial measures.

(e) Liaise with the Agricultural Research Council and Pakistan Forest Institute in developing reporting procedures and remedial measures, and with the TECHNICAL ANNEX 5 Appendix 2 Page 2

entomology sections of Provincial Departments of Agriculture.

(f) Prepare data for, and participate in, specific investigations carried out by the project; e.g., apple diseases consultant.

Reporting

3. The entomologist would be responsible to and subject to the direction of the Director of Agriculture, and through the Director, to the Project Director for the technical back-stopping of those activities financed by the project, and render to him such reports, plans, discussion papers and estimates as he, the Project Manager, may require.

Qualifications

4. (a) Technical Qualifications

(i) Age preferably between 30 and 50 years.

(ii) A degree in agriculture and post graduate qualification in entomology.

(iii) Practical experience in conducting field sampling, reporting and diagnosing of insect pest problems, and developing remedial and preventive measures; and

(iv) Candidates should have an understanding of small-farmer production/storage systems.

(b) General Qualifications

(i) Candidates must be in good health.

(ii) Candidates must have demonstrated ability to form sound judgements and to work independently on their own initiative.

(iii) Candidates must be proficient in both the Urdu and English languages; and,

(iv) it is important that candidates have the ability to create a cooperative approach to development with small-scale farmers.

TECHNICAL ANNEX 6

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Agricultural Training

A. INTRODUCTION 10 The shortage of trained imanpower in agriculture is a serious constraint to agricultural development in the State. Trained personnel are confined to government employment, as there are no large scale farm enterprises to employ such staff, and the injection of improved technologies into the farming systems will need to be undertaken by the Department of Agriculture (DOA). The DOA presently employ 59 staff in the graduate grades (16 and above) and 123 technical certificate-level staff-in Grades 5 and 9 (Table 1). However, a significant proportion of graduate graded staff are non-graduates. On the basis of present staff employed, there is a density of one graduate officer per 8,500 acres of cultivated land. In the context of the diverse and scattered nature of the farm land, this is inadequate for effective development activities even assuming all staff were fully trained.

2. The State has an Agricultural Training Institute located in Muzaffarabad. This became functional in 1976 and has a graduate staff consisting of a principal, a senior instructor and two junior instructors, and facilities for twenty students, A first priority in training is to operate a series of refresher courses for existing certificate-level staff. There will also be an urgent need under the project (para. 18 below) for specialist three-month short courses for apple techni- cians. These training requirements would fully use the capacity of the institute during the three-year project period. Formal training for both certificate and graduate new entrants would therefore continue to be obtained from other institutes during this period. The future role of Muzaffarabad institute in contributing to training needs would be assessed during the project (See Technical Annex 12). 3. At present, Azad Kashmir has quotas for entry of graduate and certificate- level trainees at Iyallpur and Peshawar Universities, as follows:

Iyallpur Peshawar 2-year certificate course 1/ 10 students/year 10 students/year 2-year FOS.C. (AgricultureT course leading to 3-year B.Sc.(Ag.) course 5 students/year 5 students/year

The stream of 10 matriculants entering the F.S.Co (Agriculture) course and sub- sequently taking the 3-year B,Sc.(Ag.) course results in a net intake of only approximately 4 graduate appointments per year to the DOA, which serves only to replace losses through natural attrition of existing staff. The present high student "dropout" rate is a result of a number of factors, including:

(i) selection for filling of quotas is not solely based on residence criteria; non-resident applicants who can give evidence of past

1/ Entry at matriculation level. TECHNICAL ANNEX 6 Page 2

familial residence in Azad Kashmir are also eligible and these seek employment outside Azad Kashmir;

(ii) not all students filling the quotas are nominated by the DOA and these also have no obligation to return to Azad Kashmir for employment; and

(iii) no undertaking to return to work in Azad Kashmir is required of the students who are sponsored by DOA.

40 Direct recruitment of trained staff to fill posts cannot be relied upon as a long-term solution because there is strong competition in other pro- vinces for trained staff, and non-Azad Kashmiri people would prefer to work and live in other provinces where conditions are more amenable, Moreover, the farming conditions in Azad Kashmir are unlike those in most parts of Pakistan so that experience gained there is of limited value elsewhere. What is needed is a cadre of trained staff with this special background who have personal reasons for living in the area and career prospects which will induce them to apply their training and experience to the special problems of agricultural development in the State.

B. ANALYSIS OF MANFOWER REQUIREMENTS

5. Table 2 summarizes the proposed development activities in agriculture during the project period, and the anticipated project-related activities for a further five-year period, DOA's manpower requirements and anticipated sources are analysed in detail for the three years of the proposed project in Tables 3 and 4, and indicative manpower analyses for an eight-year period are shown in Tables 5 and 60

6. The project activities would create a demand for 41 graduate staff and 84 certificate-level staff by year 3 (Tables 3 and 4). In addition, certificate- level staff from the general extension staff assigned part-time to the project would total 32 by Year 3 (Table 4). This would place a severe strain on the present staff complement and would require some reassignment of present staff and also direct recruitment of personnel from other provinces to fill posts created by the project. The analyses indicate the following levels of reassignment and direct recruitment of staff: Graduates Certificate-Level Reassigned Recruited Reassigned Recruited

Year 1 16 16 16 18 Year 2 - 7 7 23 Year 3 - 2 - 20

16 25 23 61

7. The longer-term analyses of manpower requirements (Tables 5 and 6) anticipate the total departmental needs over an eight-year period. The peak incremental demand for both graduate and certificate-level staff would occur in Year 4, during which 28 new graduate and 5h new certificate-level appointments would be required (before allowing for natural staff attrition). By the end of TECHNICAL ANNEX 6 Page 3 the eight year period, the annual incremental requirement would have reduced to four graduates and ten certificate-level staff.

8. The analyses indicate that in the eighth year after project initiation (FY 1984), the total DOA technical staff strength would be 149 graduate (G) and 336 certificate-level (C) staff, i.e. a ratio (G:C) of 1 : 2.6; broken down by function, the G:C ratios would be as follows:

Administration and support services 1:0.31 Technical package development 1/ 1:1.07 Horticulture 1 3.1 Vegetables 2/ 1:1.86 General extension 1:3.59

9, The overall density of graduate staff in the State in FY 984 would be one graduate officer per 3,400 acres of cultivated land (compared to one per 8,500 acres at present, para. 1). This would represent a considerable improvement in graduate staff density, and should enable the complex agricultural problems facing the State to be more adequately addressed.

C. TRAINING PROGRAMS FOR STAFF EXPANSION

100 Anticipating the future staff needs outlined in paragraph 7, the pro- posed project would finance scholarships for training at both certificate and graduate-level as follows:

(i) Certificate level. Agreement has been obtained with Lyallpur university to increase the intake of students for the 2-year certificate courses from 10 to 15 students per year. This agreement is subject to overcoming constraints on hostel accomo- dation (see para. 12). It is also expected that an additional 5 places can be secured in the Agricultural Institute at Peshawar. Thus a total of 30 scholarships per year would be provided, which would generate a stream of certificate trained staff from year 3 onwards;

(ii) F.S.C. (Agriculture) level. The existing intake quota of five students per year per university cannot be readily increased, as this course represents a bottleneck in the agricultural education system, and the quotas are politically determined. The project would, however, continue the existing stream of students entering Lyallpur and Peshawar universities at this level, except that full scholarships would be provided, and a bonding agreement would be required from scholarship recipients. Trainees enter the 2-year F.S.C. (Agriculture) course at matriculation level, and proceed thereafter to enter the 3-year BoSc. (Ag.) course. Thus, five years is required for students entering F.S.C. (Agriculture) to graduate with B.Sc.(Ag.);

1/ Experimental/demonstration farms and cooperative maize program (both in trials phase).

2/ The G:C ratio for vegetable extension is low because graduate staff would deal extensively with "contact farmers" who are not certificate-level. TECHNICAL ANNEX 6 Page h

(iii) B.Sc. (Agriculture) level. In view of the projected high incremental demand for agricultural graduates in the early years of a possible follow-up project (Table 2), a scheme to enable the shortening of the lag-time inherent in the usual 5-year training period (see(ii) above) was suggested by the Vice-Chancellor of Lyallpur University. This involves the recruitment of F.S.C. "pre-medical" students 1/ and subjecting them to a 1-semester "remedial" course in maths, extra botany, agrononrW, and introductory horticulture, prior to their entering the 3-year B3.Sc. (Ago) course. Students thus trained would there- fore require 3A years to obtain B.Sc. (Ag.).

11. To match the number of B.Sc. (Agriculture) scholarships with the anticipated staff requirements, the University of Lyallpur has indicated their agreement to accommodating a "special batch" of 30 F.S.C. "pre-medical" students to begin study in October 1977 (subject to overcoming hostel accommodation constraints; see para. 12). They would thus be able to graduate in March 1981. This "special batch" would be followed in subsequent years by a regular stream of 10 students entering each year on a similar basis. The Vice Chancellor has offered the university's assistance to the Azad Kashmir government (GOAK) in the selection (and pre-examination) of scholarship recipients. Detailed arrangements would be made during follow up discussions between GOAK and university representatives. 12. To overcome the constraint of limited on-campus hostel accommodation, the Vice-Chancellor of Lyallpur University has suggested that a hostel could be constructed utilizing a loan borrowed from a local bank. The loan could be serviced from the project-financed scholarships, provided realistic hostel accom- modation fees were included in the scholarships for direct payment to the University. He estimated such a realistic fee at Rs 3,600 per year per student for graduate course trainees, and Rs 2,400 per year per student for certificate trainees. 2/

130 the Vice-Chanmellor of IXallpur University also provided estimates of tuition and subsidtm*intasts for both degree and certificate oorases. On the basis of these estimates, the following allocations per student per year are proposed for project-financed scholarships:

Degree Course Certificate Course

"Capitation fee" 3/ Rs 4I,ooo Rs 3,000 Registration and tuition fee 4/ 190 130 Hostel accommodation fee 3,600 2,400 Subsistence allowance 2,400 21400 Rs 1__19 Rs7, 1/ i.e. graduates of F.S.C. (Science); a 2-year course with zoology and some botany. There is an abundant supply of such students, who have been unsuccessful in gaining one of a very restricted number of seats in medical schools. F.S.CO "pre-engineering" students would also be eligible, although would require more remedial training prior to B.Sc. (Ag.) than FeSoCe "pre-medical". 2/ Assuming two and three students accommodated per hostel room respectively0 3/ University teaching expenses expressed on a per capita (student) basis. IjI Nominal fees only. TECHNICAL ANNEX 6 Page 5

These unit costs have been used in the estimation of the costs of the agricultural training component of the project (Table 7).

14. Tables 5 and 6 also analyze the anticipated impact of these special training programs at graduate and certificate-level on the projected departmental staff requirements. After taking account of likely "dropout" losses from students already in training and those provided scholarships and also allowing for an annual 5% rate of natural staff attrition, the analysis indicates the likely required number of direct recruitments from outside the State. It indicates that after the initial high requirement for direct recruitment of staff during the three years of the project, the necessary number of direct recruitments at the graduate level falls to only approximately two ,per year.

15. The projected requirement for direct recruitment of certificate-level staff, however, remains at approximately twenty per year during the five years following the proposed project. The decision as to how best to meet this antici- pated demand in the future would be made by the Project Manager in consultation with the Director of Agriculture, after assessing in the first two years of the project the experience of direct recruitment of certificate-level staff vs. the provision of scholarships. A third alternative to be considered during project preparation would be the use of the Agricultural Training Institute in Mhzaffarabad to provide the requisite numbers of certificate-level staff for a follow-up project.

D. IN-SERVICE TRAINING PROGRAMS

16. The project would also finance a number of in-service training activities to upgrade the technical expertise of existing DOA staff. These would include short courses in maize research, horticulture, vegetable seed processing, and seed plant mechanics. The coats of the various types of in-service training programs proposed are summarized in Table 7. 17. Maize Research Training. Technical Annex 2, paras. 25 and 26 outline the 70-day tai g program for maize research workers which has already been initiated for the 1977 crop season. The NWFP Maize and Millet Research Institute, located at Pirsabak, has agreed to absorb eight trainees each year for training in maize research techniques. The training, which would be focused on the spring crop season at Pirsabak farm, would be divided into two phases: February/March (coinciding with the spring planting) and May/June (coinciding with the harvest of the spring crop)0 The intervening period would allow trainees to return to Azad Kashmir for the maize planting period to establish the maize variety and fertilizer trials and train field assistants in the establishment of diamond trials. The trainees would return for the second training period in May/June, and still be in post in Azad Kashmir for the major part of the growing period and the entire harvest period of the Azad Kashmir crop, Costs per student for each 70-day train- ing program (to cover a per diem plus travel) are estimated at Rs. 2,500 (Table 7).

18. Apple Technician's Tnrining 0 The present Agricultural Training Institute in Muzaffarabad has been operative since 1976, and has a capacity for 20 students (see Technical Annex 1, para 38), It is proposed that this institute concentrates initially on providing refresher courses for general field staff, and later providing in addition specialist short-term courses for technical graduates. TECHNICAL ANNEX 6 Page 6

During the three years of the proposed project, emphasis would be placed on providing 6-month courses for the apple technicians (Grade 5 level) engaged in the pilot apple program. Twenty apple technicians each year would receive an initial 6-month course, and would return each subsequent year for a 3-month repeater course0 The Institute is adequately staffed at present, and staff are suitably qualified, to provide these courses during the project period. Training costs (including subsistence) are estimated at p 400 per man-month (Table 7)0

190 Short Courses in Fruit Production0 Provision is made under the proposed project for four horticultural assistants to undertake a special six- month course in fruit production at an appropriate institution in one of the four provinces. This would prepare these Grade 16 officers for their initial roles as field-based horticultural assistants, from whom area production managers would be selected in the later years of the proposed pilot apple scheme. (See Technical Annex 3)0 Arrangements for these courses would be made by the project manager and would be phased (2 courses per year in years 1 and 2) to meet the requirement for trained horticultural assistants in the field0 The cost of each six-month course is estimated at' Rp6,O000 (Table 7). 20. Short Course in Seed Plant Operation. To prepare the maintenance mechanic (Grade 16) for the task of operating and maintaining the vegetable seed processing equipment proposed for installation at Chattar Kalas farm, the project manager would arrange for him six-months in-service training in Pakistan0 This training would resemble a special apprenticeship, during which the mechanic would work at an established seed processing plant, and would be involved in the operation and maintenance of machinery similar to that proposed under the project 0 The cost of the course is estimated at Rp0 6,000 (Table 7). 210 Overseas Course in Vegetable Seed Processing. The vegetable seed farm and plant manager (Grade 17) would be sent to Europe or the United Kingdom for six months, to enable him to gain practical experience in all aspects of the management of a small vegetable seed industry, including methods of identifying and supporting "outgrowers". The place of study would be carefully chosen to represent as closely as possible the scale and 'operating conditions of the pro- posed seed farm and processing plant in Azad Kashmir. Arrangements for the course would be made by the Project Mnager0 The cost of the course, including air travel and subsistence, is estimated at Rp. 60,000 (Table 7). TtfIDllCL lxi 6

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NVJSIlVd PAKISTAN

HILL FARMINGTECHNICAL DEVELOPMENTPRWECT

Assignment of Agriculture Department Technical Graduates during Project

Existing FY 1977 -, FY 1978 V FY 1979 / Graduate Regular Project Regular Project Regular Project Function staff 1/ Proarm 3/ F 4/ NT 4/ Total Program3 F 4/ NF 4/ Total Froera3 F 4/ NFp4/ Total

General administration 11 11 - - 11 11 - - 11 11 - 11 Training 4 - 4 4 - 4 4 - 4 4 Soil testing 3 - - 3 3 3 3 3 3 Land-use planning6/ - - I - I - I - 1 - I - I Entomology 3 3 1 - 4 3 1 - 4 3 1 _ 4 Experimental/dmonstration farms, trials - - 4 - 4 - 8 8 - 8 8 Cooperative maize program, trials 45/ - 8 - 8 8 - 8 8 Horticulture headquarters 3 2 2 - 4 2 2 - 4 2 2 - 4 nurseries (7 (7 2 - ( ( 3 - ( ( 3 - 16 extension ( ( 2 11 ( 4 - 6 Vegetables, potatoes 3 3 - 3 3 - - 3 3 _ 3 seed farm/plant (7 (4 2 - (9 (4 2 - (9 (4 2 - (9 extension ( ( 3 - ( ( 3 - ( ( 3 - General exters ion, regular program 14 6/ 13 - - 13 13 _ - 13 13 - - 13

Total graduate technical staff (cmulative) 59 43 25 7 75 43 32 7 82 43 34 7 84

No. ot staff reassigned fromi regular program to project activities: 7/ (incremental) 9 7 - - - -

New graduate appointments required, by function: 8/ (incremental) Experimental/demonstration farms 4 4 Cooperative maize program 4 Horticulture, headquarters I entomology l nurseries 2 1 extension 2 2 Vegetables 2 2

TOTAL 16 7 2

1/ Derived frm Table 1. "Graduate staff" defined as grade 16 and over; at present, not all staff in these grades possess degrees. 2/ FY = Fiscal year (July I - June 30): FY1977, FY1978, FY1979 assomed to correspond to years 1, 2 and 3 of the project respectively. 3/ staffing of "regular program" derived as a residual number, by extrapolating present staff numbers in each function less those reassigned to project activities. 4/ F - salary to be financed by project. NF = salary not financed by project, but staff to participate in specific project activities. 5/ Four graduate staff (shown in Table 1 under "General Extension") were assigned to training for the Cooperative Maize Program in early 1977. 6/ One graduate reassigned to Land-Use Planning Unit as surveyor; two assistant surveyors to be recruited by Project Manager as trained surveyors with agricultural background. 7/ Derived as follows: (i) "NF" staff are reassignments, by definition; (ii) "F" staff reassigned = existing staff (59), less staff remaining in regular program (43), less "NF" staff (7) w1 The Agriculture Department would recruit new personnel to fill critical staffing gaps in the regular program, consequent upon posLtng experienced staff to the project. The number of such critical gaps thus caused may be fewer than the 9 staff shown to be reassigned and financed by the project, since some former positions could be filled by lower-grade staff functioning with "special charges". The 7 staff reassigned to participate in project activities but not financed by the project (training and soil

8/ New graduate appointments during the project years would be made by direct recruitment on a short-term or permanent basis. PAKISTAN

HILL FARM1NGTECHNICAL DEVELOITIFXI_PR0ECT

Assignment of Agriculture Department Certificate-Level Technical Staff during Prolect

Existing FY 1977 2/ FY 1978 -FY 1979 Cert.-Level Regular Proiect Regular Project Regular Project Function Staff I/ Program 3 1 4T NP 4/ Total program 3/ F 4/ NF 4/ Total Program 3/ F4/ NF 4/ Total

General administration 2 2 - - 2 2 - 2 2 - - 2 Training 2 2 - _ 2 2 - - 2 2 - 2 Entomology 2 2 - - 2 2 - - 2 2 - - 2 Experimental/demonstration farms, trials 5/ - - 6 - 6 - 12 - 12 - 12 - 12 Cooperative maize program, trials 6/ 7/ 4 - - (16) - - - (24) - - - (32) - Horticulture nurseries 17 15 - 2 17 14 - 3 17 14 - . 3 17 extension - - 20 - 20 - 40 - 40 - 60 - 60 Vegetables, potatoes 7 7 - 7 7 - _ 7 7 - 7 seed farm/plant (8 (4 - - (4 - (13 (4 - extension ( 13 ( 6 - ( ( 9 - ( ( 9 - Agriculture 4 4 - - 4 4 - - 4 4 - 4 General Extension, regular progrem 5/ 77 71 - _ 71 65 - 65 65 - 65 Total certificate-level staff (cumulative) 123 107 32 2 141 100 61 3 164 100 81 3 184 No. of staff reassigned from regular program to project activities(incremental) 8/ 14 2 6 1 - - (+16) 7/ (+8) 2/ New certificate-level appointments required (+8)7/ by function (incremental) Horticulture, extension ( 20 20 Vegetables, extension 18 3 TOTAL 18 23 20

1/ Derived from Table 1. "Certificste-level" staff defined as Grades 5 and 9 technical staff for which certificate training is required (e.g. "budders" were excluded because certificate training is not n-eess*ry for this function); at present, not all staff requiring certificate training possess certificates. 2/ FY - Fiscal year (July I - June 30): FY1977, FY1978, PY1979 assumed to correspond to years 1, 2 and 3 of the project respectively. 3/ Staffing of "regular program" derived as a residual number, by extrapolating present staff numbers in each function less those reassigned to project activities. 4/ F = salary to be financed by project. NF salary not financed by project, but staff to participate in specific project activities. 5/ Staff for the experimental/demonstration farm trials are assumed to be drawn from the general extension staff (with the exception of the first year, see footnote 6 below), which is thus proportionately depleted in the regular program,and increased as extension packages become available from the Experimental Farms/Maize Program. 6/ Four certificate-level staff (shown in Table I under "General Extension") were reassigned to training for the Cooperative Maize Program Ln early 1977. These are assumed to be utilized on the experimental/de=onstration farms under the project, and their places in the Cooperative Maize Program taken by graduate staff trained for the purpose in early 1978. 7/ ( ) denotes part-time participation only: staff drawn from general extension staff, and enumerated within that function. 8/ Derived as follows: "NF" staff are reassignments, by definition; "F" staff reassigned - staff in regular/existing program in previous year, less staff in regular program, less incremental "NF" staff. The Agriculture Department would recruit/reassign personnel to fill critical staffing gaps in the regular progrm, consequent upon posting experienced staff to the project. The staff reassigned to participate in project activities (shown under "'Nfor apple nurseries) would not require replacoments. PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Agriculture Department: Analysis of Anticipated Staff and Training Requirements for 8-Year Period; Graduate Staff

Existing Estimated Graduate Staff Requirements, by wear 3/ Graduate Function Staff / FY1977 2/ FY1978 FY1979 FY1980 FY1981 FY1982 FY1983 FY1984 General administration 11 11 11 11 13 7/ 13 13 Training 13 13 4 4 4 4 5 5 5 Soil Testing 5 5 3 3 3 3 3 3 3 3 Land-use Planning - I I 1 1 1 1 1 Entomology 3 4 4 4 4 4 4 4 4 Experimental/demonstration farms, trials - 4 8 8 12 16 16 16 20 Cooperative maize program, trials 4 8 8 8 8 8 8 8 8 Horticulture headquarters 3 4 4 4 4 4 4 4 4 11 nurseries and extension 7 11 14 16 27 34 39 40 40 Vegetables, potatoes 3 3 3 3 3 3 3 3 3 seed farm/plant extension 7 9 9 9 11 11 11 11 11 General extension, regular program 14 13 13 13 13 13 13 13 Agro-service centers 13 - _ - - - - 4 8 8 Coop-maize program - - - - 8 8 8 16 16 Total graduate technical staff (cumulative) 59 75 82 84 112 123 132 145 149 New graduate appointements required (incremental) 16 7 2 28 11 9 13 4 Graduates available from training program From students already in training 4/ 6 6 6 6 6 From Matriculants under scholarship 5/ 8 8 8 From F.S.C. "pre-medical" graduates under scholarship 6/ 24 8 8 8 8 Total graduates available 6 6 6 30 14 16 16 16 Natural staff attrition (at 5%) 4 4 4 6 6 7 7 7 Net addition to staff numbers 2 2 2 24 8 11 11 11 Direct graduate recruitments required 14 5 - 4 3 (2) - (7) 8/

1/ Derived from Table l."Graduate staff" defined as grade 16 and over; at present, not all staff in these grades possess degrees. 2/ FY = FLscal year (July 1-June 30): FY1977, FY1978, FY1979 assumed to correspond to year 1, 2 and 3 of the projecc respectively. 3/ Derived from Tables 2 and 3. 4/ On the average only 4 graduating students per year return to Azad Kashmir at present, although the State is assigned 10 seats in the quota (i.e. a student "dropout rate" of 60'%. It is assumed that an additional two per year will be attracted as a result of project activLties. a 5/ 5-year course; 20% student dropout assumed. v 6/ 3½ year course; 20% student dropout assumed. 7/ From year 4 onwards, the agricultural specialist's functions would be taken over by two senior graduates: one as Senior Agricultural Research Officer and one as tural Extension Officer. Senior Agricul- 8/ In theory there would be a surplus of 7 graduates in 1984. In practice this is unlikely to occur because the 5-year course for matriculants is expected to bc phased out in the next few years., PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Agriculture Department: Analysis of Anticipated Staff and Training Requirements for 8-Year Period; Certificate-Level Staff

Existing Estimated Certificate-Level Staff Requirements, by Year .3/ Certificate-Level Function Staff 1/ FY1977 2J FY1978 FY1979 FY1980 FY1981 FY1982 FY1983 FY1984

General administration 2 2 2 2 2 2 2 2 2 Training 2 2 2 2 2 2 2 2 2 Entomology 2 2 2 2 2 2 2 2 2 Experimental/demonstration farms, trials 5/ - 6 12 12 18 24 24 24 30 Cooperative maize program, triala 4/ 4 (lb) (24) (32) (16) (24) (32) (16) (24) Horticulture, nurseries 17 17 17 17 17 17 17 17 17 extension - 20 40 60 72 100 120 120 120 Vegetables, potatoes 7 7 7 7 7 7 7 7 7 seed farm/plant and extension 8 10 13 13 19 19 19 19 19 Agriculture 4 4 4 4 4 4 4 4 4 General extension, regular program 5/ 77 71 65 65 59 53 53 53 53 experimental/demonstration farms - - - - 4 8 8 12 16 coop-maize program - 32 32 32 64 64

Total certificate-level staff: (cumulative) 123 141 164 184 238 270 290 326 336

New certificate-level appointments required: (incremental) 18 23 20 54 32 20 36 10

Certificate-level staff available from training program From students already in training S/ 18 18 From students under scholarship 7/ 27 27 27 27 27 27 Total certificate-level staff available 18 18 27 27 27 27 27 27 Natural staff attrition (at 5%) 7 9 10 13 15 16 28 18 Net addition to staff numbers 11 9 17 14 12 11 9 9

Direct certificate-level recruitments required 7 14 3 40 20 9 27 1

1/ Derived from Table 1. "Certificate Level" staff defined as Grades 5 and 9 technical staff for which certificate training is required (e.g."budders" were excluded because certificate training is not necessary for this function); at present, not all staff requiring certificate training possess certificates. 2/ FY = Fiscal year (July 1 - June 30): FY1977, FY1978, FY1979 assumed to correspond to years 1,2 and 3 of the project respectively. 3/ Derived from Tables 2 and 4. 4/ Four certificate-level staff (shown in Table 1 under "General Extension") were reassigned to training for the Cooperative Maize Program in early 1977. These are assumed to be utilized on the experimental/uemonstration farms under the project, and their places in the Cooperative Maize Program taken by '-i graduate staff trained for the purpose in early 1978. 5/ Staff for the experimental/demonstration farm trials are assumed to be drawn from the general extension staff, which is thus proportionately depleted in the o ol0 regular program and increased as extension packages become available from the Experimental Farms/Maize Program. 6/ Assuming that on average 18 graduating students per year return to Azad Kashmir from the current 20 quota seats filled (i.e. a student "dropout rate" of 10%). This number would include a small number of dropouts from the degree course who would qualify for and accept certificate-level employment. 7/ Assuming that the number of quota seats is increased from 20 to 30, and that the student dropout rate is 10%. PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Agricultural Training

Requirements (Years) Unit --- Cocets (Years)---- Cost Activity and Items Units 1 2 3 (Rs) 1 2 3 Total -(Rp '000) -______Maize Research Workers 26/ trainee 8 8 8 2,500 20 20 20 60 Apple Technician's Course 27/ man-month 120 120 120 400 48 48 48 144 Apple Technician's Repeater man-month 60 120 400 24 48 72 Course 27/ 2-year CertificateCourse 28/ student/yr 30 60 90 7,930 238 476 476 1,190 3-year Graduate Course 79/ 30 40 50 10,190 306 408 510 1,224 5-year Graduate Course 30/ " 10 20 30 10,190 102 20h 306 612 Special 6-month Fruit Course 31/ trainee 2 2 6,000 12 12 24 Special 6-month Mechanics Course 2/ " 1 6,0oo 6 6 Veg. Seed Processing Course 33/1 60,000 60 60

TOTALS 792 1,192 1,408 3,392

Source: Extracted from Physical Requirements and Cost Tables.

26/ ARC/CIMMYT Cooperative Maize Program Special Course: 70-days in-service training at Pirsabak (NWFP).

27/ Conducted as part of in-service training at Muzaffarabad Agricultural Training School; 6-months initial course; 3-months repeater course each subsequent year.

28/ 15 students/year each at Lyallpur and Peshawar Universities0

29/ For FoSoC. pre-medical candidates, offered special remedial training before entering B.Sc.(Agriculture) course at Lyallpur University. H 30/ Continuation of present arrangements for matriculation candidates (5 per year each at Iyallpur and Peshawar Universities) entering the 2-year FOS.Co (Agriculture) course prior to the BoSco (Agriculture) courses. 31/ In-service training to be arranged in Pakistan. 37/ In-service training at an operating seed plant to be arranged in Pakistan, 33/ Arrangements to be made for Plant Superintendent for in-service course in Europe or UoKo (6 months).

TECHNICAL ANNEX 7

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Forestry Sector

INDTEI

A. Sector Background Page

Areas 1

Ownership and Rights 1 -h

Production, Timber 4 - 5

Resin and other products 5 - 6

Forest Industries 6

Azad Kashmir Logging and Sawmill Corporation (AXIAS) 7 - ll

B. Forestry Department

Forest Management ll

Staff and Training 11

Management Plans for Demarcated Forests 12 - 13

Expenditures and Revenue 13

Development Expenditure 13 - 14

W.F.P. Project 14 - 15

C. Devel.opment Strategy

Constraints 15

Land Use and Watershed Management 16

Legal States of the Forests 16

Reforestation Techniques 17

Fuelwood 17

Timber Preservation 17

TECHNICAL AkWEX 7

PAKITA.N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

FOEESTRY SECTOR A. Sector Backgrourd

Forest Areas

1. The classified forest areas are recorded as 1.4 million acres, ecual to about 48% of the total land area. More than half of this area is treeless and includes high altitude (over 7,000 ft) range land in the Neelum Valley used for seasonal grazing, large areas of precipitous mountains twith broken and rocky surfaces which are essentially unworkable watershed protection areas, and extensive areas of rocky slopeland with sparse grass/bush cover which have been dowmgraded over time by en.croach- ment for agriculture, unauthorized fellings, widespread grazing and fuel gathering which has inhibited natural regeneration of the former indigenous forests.

2. Productive (com.ercial) forests are recorded as extending to some 420,000 acres conposed of 150,000 acres Chir Pine (?inus rcxburghii) nainly in the Nirrur and Kotli divisions in the center south; 110,000 acres of Blue Pine (?. wallichiana), 100,C00 acres of Fir and Spruce (Abies pindrow and Picea smithiana) and 53,000 Of Deodar (Cedrus deodara), mainly in the Keran ard Sharda divisions in the Neelum Valley. These recorded areas over- state the net areas for cormercial timber production and conceal the high variability in stocking densities of the forest. Complete canopy fully stocked forests are rore and mainly occur in the higher altitude remrote areas of the Neelum. Valley; the latest working plan for these forests (1975-1984) indicates a net productive area (conmercial + local remuirements) of' -06,000 acres of Blue line, Fir, Spruce and Deodar, from a gross coim'erciAl area of 162,000 acres. Similarly, cormercial exploitation cf the Chir Pin.e forests in the Mirpur and Kotli divisions is limited to a lesser area than the recorded 150,000 acres because of low stocking densities over much of the area. Exploitation operations in the productive forests in the remaining territorial divisions of Huzaffprabad, Jhelum. Valley, Bagh and Rawalkot are presently almost wholly restricted to the supvly of local requirements for house construction with no significant coTmmercial. operations taking place. The recorded forest areas are su*mnarized in Table 1.

Forest Dvnership

3. Apart from about 112of the total forest area which is privately owned, all forests are classified as "Designated Forests" and are burdened wi't rights and concessions. Forest boundaries are subject to a 40-year review when the forest staff and lecal interest groups present their cases in the 'ccal court for bcuandary revisicns vi the light of changing land use over the preceding years. In scme areas, e.g., Pccnch district, identifica- ticn of forest boundaries on the ground is still a problem (althouah these are recorded on the land revenue maps), and is a specific activity In the current work croRrari. Encroachment of the forests fcr agricultural cropping TECHNICAL ANNEX 7 Page 2

is common in all divisions resulting in a continual stream of court actions and litigation.

4. Rights over the forests include:

a. Construction Timber

(i) Free issue of trees to victims of floods, landslides, etc.

(ii) Persons residing within three miles of forest boundary, a concessionary issue of trees for house construction and repair at 1/16th of a standard stumpage rate set by goverrment for sales to gorernment departments, army, con- tractors undertaking government work and persons living outside concession areas. In many dis- tricts, the concession is further increased by limiting payment to a nominal price per tree, e.g., PRs 5/tree in Sharda Division and PRs 10/ tree in Keran Division, regardless of the standard rate.

(iii) Persons living within 3 to 5 miles of forest boundary, concessionary issue for house con- struction and repair at one-quarter of the standard rate.

(iv) All other residents, concessionary issue for house construction at the standard rate, which is currently about 50% of the full market rate.

(v) Government departments and army also obtain their timber requirements at the stand&rd rate. The total quantity of recorded concessionary isFues of construction wood trees over the past five years is estimated to be one million ft3/year, equal to 30% to 40% of total log production. The data indicates a substantial increase in conces- sionary issues in 1973/74 to some two million ft 3 . There is general concensus among senior forestry staff that, in addition to recorded issues, a significant but unqullantified volume is stolen.

b. Fuelwood

Local neople are entitled to remove deadwood, branchwcod and non-commercial spezies without payment, except in areas declared under enabling legislation by the Forest Department to be closed for rehabilitation purposes; TECHNICAL ANNEX Page 3

closed areas cannot exceed more than 25% of a forest block at any time and in practice are well below this maximum. The widest interpretation is given to the expression of this right and virtually all trees with- in several miles radius of habitations are debranched. In many places, debranching has reached the stage where only the top 10% to 200 of the crown remains and outright topping of trees also occurs with consequent death of the tree. Another practice which occurs in the Chir pine areas is the removal of thin verticle slices of the bole of the tree at stump level which is used like a candle for home lighting. These practices are significantly depleting the value of the forest resource, both in absolute terms in the volume lost by slowsing down tree growth rate and eventually killing some of the crop and also in the quality of lumber which is subsequently produced from the surviving trees because of the large proportion of loose dead knots occurring in the timber as a result of leaving 6" to 12" stumps at the bases of the branches removed for fuelwood. Ground vege- tation, including shrubs and tree coppice growth is regularly cut over and natural regeneration of the domi- nant established species is not possible unless effective closure of the area is secured. Roadside avenue trees are similarly molested, and in the Mirpur district, for example, the several miles of avenue trees observed were uniformly being hacked to death with a large proportion already completely removed. c. Grazing

In general, the right of grazing is exercised without any control and extends to nomadic people who enter from Punjab and NWFP to herd their livestock in the alpine rangeland during the summer season. The exceptions are the limited number of closed areas; which in terms of area, have only a token affect, and are subject to considerable disregard. A recent attempt by the FD to introduce limited controlled grazing coupled with pasture improvement in the alpine rangeland was thwarted by local opposition and lack of political support to press home the ultimate advantages to be gained through systematic control. Wiidespread grazing in the treed forest areas is a further severe constraint on natural regeneration of the forests. In the non-treed areas, uncontrolled grazing has resulted in an overall erosion problem which varies between moderate to very severe. d. Fodder collection, brush for roof heat insulation, grasses and sapplings for plaiting and basket wcrk, and other minor products are also freely gathered as a right. Page 4

5 The exercise of rights and the concessionary issues of timber which have become institutionalized, effectively limit the role of the FD, as the agency of government, in the exercise of management of the forest and has resulted in a situation in which the department is in open conflict with an alarmingly high proportion of the pcpulation. It is reported that there are currently more than 50,000 cases of forest offenses pending in the courts, which could amount to about one family in five being involved in a reported forest offense. The FD have on the staff a fulltime super- intendent of police and three fulltime magistrates especially for forest offenses. This is in addition to the magisterial authority of the more senior forest officers who are competent to impose sanctions for most forest offenses and widely exercise this powier. It is difficult to establish the extent to which FD staff devote their time to the administering of legiti- mate rights and the pursuit of law breakers, but this is likely to be more than half of their total work load, and severely limits their availability for technical management and development of the forest resource.

6. Two firm impressions arise from a consideration of the present ownership pattern:

a. Under the present system, widespread degradation of the forest resource is taking place in the loss of timber, quality of the timber, and erosion of the treeless areas.

b. FD staff are not able to approach the full exercise of their talents as a technical agency of government to manage and develop the forest resource.

Forest Production

7. The main products are timber for domestic requirements within Azad Kashmir for house building and other construction and for supply to the Pakistan market, firewood for local consumption, resin and a small quantity of Kuth, a product from the root of the shrub Saussurea Lapna used in the preparation of medicines and incense. A limited amount of walnut wood (Juglans regia) is harvested from private farmland and used in the local carving and furniture making industries; the volume involved is reportedly a few thousand cubic feet/year and stocks are insufficient to support any increase in the annual harvestable volume.

Timber Production

8. Recorded timber production for both local consumption timber and ccmmercial sales is summarized in Table 2. The data indicates that realized commercial sales have averaged about 2 million ft 3 /year over the past four years whereas concessionary sales for local consumption have increased frcm 850,000 ft3/year to around 2 million ft3/year during the same period (the latter volume needs rechecking). TECHNICAL ANNEX 7 Page 5

9. The Azad Kashmir Logging and Sawmill Corporation (AKIAS) was established by the government as a subsidiary of the Azad Kashmir Mineral and Industrial Development Corporation in 1972 with the objective of phasing out private contractors and AKLAS undertaking all commercial logging and sawmilling operations with the concessionary issues for local consumption continuing to be managed by the FLD. Since then, no further private sales agreements have been entered into and private sector operations are now limited to completing the remnants of the earlier concessions and sub- contracting to AKLAS and the FD for logging operations only. This change from private to public sector operations has resulted in a haitus in the flow of logs and timber to the market. The intention was to process the entire annual production of commercial logs of about 3 million ft 3 in the Mirpur sawmill operated by AKLAS (except for small dimension logs of 8" diameter and below sold as roundwood and poles). Achieved performance of AKLAS's logging and sawmilling operations has been between 600,000 and 800,000 ft 3 /year. The accumulated shortfall,which amounts to about 5 million ft 3 , is represented by a growing inventory of standing timber which has been marked for and awaits logging and marketing by AKLAS. This bottleneck in the flow of timber has also significantly reduced the revenue from stumpage income to government (see Table 3). Resin

10. In the Mirpur and Kotli Divisions, resin is produced by tapping Chir pine (Pinus roxburghii). This is a seasonal operation from spring to autumn employing around 1,000 local tappers, each with about 1,000 trees to tap, 300 imported seasonal tappers with a production of some 2,000 trees/tapper and some 700 local people employed in transportation and collection depots. There are about 1.6 million trees currently under tapping with an average production of 1.85 kg/tree; total yearly production is between 2,200 tons to 3,000 tons/year. The current sales price ex-depot Mirpur is PRs 170/maund (PRs 4,560/ton), cost of sales, including tapping, collection, depot and supervision about PRs 30/maund, and current revenue about PRs 13.6 million/year (gross), ?Rs 11 million/year (net) equal to about 45% of total forest revenue. Since 1972, resin collection and marketing by private con- tractors has ceased and the FD have undertaken the management of the whole operation; FD continue to employ minor contractors for organizing the tapping operations and employ their own staff for the collection and storage opera- tions through a series of field depots to the central depot near Mirpur. 11. The entire production is marketed to a private company, the Kashmir Resin and Turpentine Company, Mirpur, which produces rosen and turpentine. Present recovery rates are about 65% rosen, 15% turpentine. The company is planning to refit the factory with new equipment which is expected to increase the rosen yield to 75%. The proposed new plant will be operated cn oil fuel instead of the present fuelwood, which is used at the rate of 120,000 ft3/year (2,400 tons). TBCHNICAL ANNEX 7 Page 6

Kuth, Walnut and Minor Produce

12. Kuth is collected as a seasonal operation and occurs in the forests of the Neelum Valley. Yearly production is in the range of 6 tons to 19 tons/year. FD undertake the marketing and the current selling price is PRs 500/maund (PRs 13,000/ton). Production is limited to a fewr areas where growth of the shrub occurs naturally and expansion of production is not considered feasible. Walnut trees mainly occur as isolated trees in private farmland. Felling permits issued by FD, with the objective of controlling the rate of exploitation, have recently been re-instituted, following a period of relaxation over felling when the FD became alarmed at the rapid depletion of the remaining stocks, and the likelihood of exhausting supplies to sustain the small but important wood carving and furniture industry in Muzaffarabad and Mirpur. An attempt is now being made to encourage further planting of the species by making tree seedlings available to farners. FD permits are also required for commercial felling of other tree species on private land; these represent an insignificant volume in total production.

Forest Industries 13. The forest industries include about 40 small scale (1 to 8 persons) wood carving and furniture workshops in Muzaffarabad and several in Mirpur and Rawalakot; the AKLAS sawmill at Mirpur; the Mirpur Resin factory (see para. 11); single band saw sawmills in most of the smaller towns which operate cn a part-time basis to custom saw timber to customers' recuirements; and teams of local pitsawyers performing a similar service. In addition, a match factory is under construction by AKMIDC in Muzaffarabad and another private sector match factory planned for Mirpur; FD have not been consulted regarding wood supply for these.

Small Scale Satqmilling

14. The existing single band-saw mills supplying local needs are performing a useful service and it is doubtful whether further substantial investment in these is justified at the present time. The band saws used are produced in Pakistan at relatively low cost and there appears to be adequate capacity. TWhile the mills operate -with the minLmum of mechanical eouipment, the operators produce a fair quality product with high conversion rates from log to sawn dimension.

15. Pitsawing is generally not of a high standard. A 4t x 2½1" saw mounted in a wooden frame about 4' x 2'8" in size is commonly used with the log to be sawvn precariously propped at an angle from the horizontal. NTeither the type of saw nor the method of log support are suitable for producing straight sawn boards and planks and the product is low grade. By comparison for example, the heavier type 6' to 8' wedge pitsam in combination with well secured logs on a substantial trestle or pit used in Sri Lanka and East Africa, produces a far higher quality product. TECHNICAL ANNEX 7Z Page 7

AKIAS Sawmill, Mirpur 16. The construction of the sawmill at Mireur stens from a feasibility study carried out by Industrial Projects Consultants, Switzerland in 1962 (this firm also undertook the feasibility study for the Dir Panjkora Valley sawmill complex now under construction in MiFP) and historical reasons. At the time the study was undertaken, there was no road access to the Neelum Valley, some 200 miles north of Mirpur, where most of the log supply for the mill is located. Traditionally, logs from the Neelum Valley, and also the Hazara district of NWFP on the west bank of the Jhelum river, had for many decades been floated down the river to Jhelum town, 20 miles south of Mirpur, which became one of the main timber centers in Pakistan. Thus, on the basis of log transport by river, Mirpur was chosen as a suitable center, using the Mangla reservoir as a catchment area for ponding the logs. The river is difficult for log floating because of the rocky bed and fluctuations in water level giving rise to many stranded logs, but was the only transport method then available.

17. Since the study, the Neelum Valley road has been constructed and the incidence of theft of logs from the river is reported by AKLAS to have increased to some 30% of the volume floated. This latter is confirmed by one private contractor and is attributed to the extreme scarcity bf timber among the riparian dwellers and the high prices obtainable for black-market logs. Effective policing of the river is considered impracticable. Only about 25% of logs are now floated, the rest being transported by road, and the intention is to eliminate river transport. The main reason for siting the mill at Mirpur is therefore no longer valid and there are strong argu- ments, on the basis of high road transport costs, for limiting the volume intake at Mirpur to the level required for local supply of dimension lumber and to feed the Joinery plant which is being developed in the mill. 18. The sawmill was'i*der construction from 1969 and cemmenced produc- tion in 1973. Capital costs wiere around PRs 44 million and partly financed through a Polish Government loan which also undertook engineering design, equipment supply and installation. The stated rate capacity is 3 million/ft 3 log intake, on the assumption that 66% of logs would be fed through a 24" gang saw breakdown and 33% of logs of larger dimension through a band samw breakdomn. The mill is designed for log intake via a 1,700 m cable from the log pond to an elevated platform adjacent to the two breakdown sat-s. Scantlings from the breakdown saws are conveyed by mechanical green chain to resaws and crosscut saws for producing dimension stock and then delivered by mechanical green chain to the timber yard. A battery of three drying kilns, each of 1,800 ft 3 capacity with a combined annual capacity (at 72 hours cycle) of 0.5 million ft 3 /year is part of the original installation. The mill complex includes capacious workshops and stores, and a lavish office block. Power is by electricity from the grid. Since original construction, a small subsidiary sawmill has been installed alongside the main mill, composed of twTo medium-size band saws to handle smaller dimension logs using traditional sawging techniques and a joinery factory, producing mainly doors, Page 8

door-frames and windows, have been added. The mill is the first attempt to establish a large scale sophisticated sawmill in Pakistan. A similar mill, also under a Polish loan agreement is now under construction at Dir, IWP.

19. AKIAS management have encountered the following problems at the sawmill: a. They have no experienced staff either in logging, sawf- mflling or marketing and are having to develop expertise over time.

b. The log intake system is not designed for road delivery; resiting of a stores block and preparation of a log yard to include a satisfactory log infeed system is necessary to adapt the mill to road delivery which will involve additional capital expenditure. Meantime, some of the logs brought by road are off-loaded into the reservoir for delivery by the cable system!

c. The free market is said to be biased towards round logs and scantlings (large baulks) in the demand pattern, and about 75%O of sales is in large dimension sizes (scants). As a consequence, the resawing facilities of the mill to produce dimension stock are under-utilized and the drying kilns operated at only about 10% of capacity.

d. The log sizes presently being brought to the mill are mainly in the diameter classes over 24" whereas the breakdowns are designed for a larger volume under 24" diameter.

e. Management is not free to discharge unsatisfactory labor.

AKLAS Logging Operations

20. At the time of the sawmill construction, a large investment in cable logging equipment was made, including over 30 drum winches with cables and two sets of ropeways, and the Polish team installed a main 2,400 m cable ropeway and one feeder skyline at Kundal Shahi in the Neelum Valley. Most of this equipment is still in store at Muzaffarabad with the exception of an additional two feeder lines to link with the main ropeway installed by .A4LAS engineers, and some spare machines held at site. In theory, the main line has a capacity of 1,600 ft3/day, ecuivalent to some 320,000 ft3/year and the three feeder lines should be geared to supply a similar volume to the head of the main line. Actual production over about three years from 1973 to early 1976 has been 250,000 ft3, an average of 90,000 ft3/year. The remainder of the volume logged over the same period of 1.6 million ft3 (see Table 3) has been by private contractors worxing on sub-contract for AKIAS. T¶CHNICAL AMEIN 7 Page 9

21. The AXIAS logging section, which is also managed by the project director in charge of the Mirpur sawmill, has expanded to sizeable proportions. An office/residential block has been constructed at Kundal Shahi and over 60 permanent staff are employed in the Neelum Valley operations, including three engineers, an administrative officer with accounting staff and 53 forestry staff on deputation from FD. The forestry staff is composed of two DFO's, three foresters and 48 forest guards. There appears to be some overlap of the AXLAS forestry staff dith the territorial staff employed by the FD, and their function is not clearly understood. Labor employed on the physical logging operations is mainly casual, with some 30 fulltime labor operating the ropeway and skylines.

22. ARIAS logging operations are severely constrained, alike with the sawmill, by lack of experienced management. The logging areas are among the most difficult to be encountered anywhere in the world, and evolving an efficient system is a major technical challenge. It is not at all clear that the semi-permanent/heavy equipment cable system which is under trial is best suited to the terrain and a likely alternative which would need pilot testing would be the development of a highly mobile light cable system to augment the traditional all-manual method (which still produces the majority of the annual volume), combined with 4 x 4-3/5 ton wich lorries.

23. Current sales prices ex-mill Mirpur for ungraded timber are high by compariso4 with comparable timber in other countries; deodar is selling at PRs 75/ft', blue pine PRs 55/ftM, fir PRs 45/ftl and Chir pine 49/ft). These prices compare with cif prices at European ports for Canadian and Scandinavian graded softwood timber from around FRa 23/ft 3 for the lower grades to PRs 41/ft 3 for the higher grades. The Mirpur prices are in line with other market prices in Pakistan, e.g., Rawalpindi ex-timber yard deodar PRs 100/ft 3 for scantlings; Muzaffarabad ex FD depot dqodar PRs 60/ft 3 for scantlings; Lahore ex-timber yard deodar PRs 80-100/ft'. On the basis of these prices an analysis indicates that the Mirpur mill could operate with a gross profit of around 40% before tax and depreciation, even allowing for the high costs of stumpage, logging and log transport. (See Table 4).

24. Some major problems facing ArITS have been discussed with ArIAS and FD staff and these, together with possible solutions, are summarized below :

a. Log Marketing. It is highly unlikely that AKIAS direct logging operations can be geared up to handle the qnormous back-log of standing volume of around 5 million ftl in the Neelum Valley, or that the sawmill will be able to expand capacity to more than 1 million ft 3 in the next few years, (see para. 9). An easy solution would be to reopen, on a larger scale, private contractor logging, on contract to AKIAS, and release logs for sale to the free market through the log depots at Muzaffarabad or, as the road becomes widened to two-lane traffic, further up the Neelum Valley. Taking 75% of the prescribed felling volume vide the Working Plan, a realistic annual volume to be logged would be 2 million ft 3 . The present valley road is limited to 200 ft 3 /truck load which equates with about 50,000 ft 3 /truck year on the basis of one round trip TECHNICAL ANNEX 7 Page 10

day/250 days/year. On this basis, 40 trucks would be needed for log transport from Athmuqam to Muzaffarabad, which is within the capacity of the private truck contractors, but would be tight for the present road condition. However, the road is under widening and improvement operations, and the traffic carryIng capacity will be significantly improved in 1976. Assuming 800,000 ft' of this volume to AKIAS Mirpur mill (the balance of 200,090 ft 3 from Mirpur/Aotli), this would leave 1.2 million ft for the market, which on current prices, would yield around PRs 24 million additional revenue after sales expenses.

b. Audit of AKIAS Operations. An independent audit of the various departments and operations of AIUAS, carried out by a local reputable firm, would highlight the current loss areas in the present operations and form the basis for tighter management planning and control. There would be merit in including an examination of the market prospects for the Joinery products and a profitability analysis of the proposed expansion of this activity.

c. Logging Operations. It is unrealistic to expect young, inexperienced engineers, no matter how enthusiastic, to devise suitable techniques without the guidance of an experienced and competent logger. The possibility of employing an expatriate specialist on, say, 2 two-year contract justifies serious consideration. There is no formal logging training in Pakistan and in the context of the exceedingly difficult terrain in Azad Kashmir, in-service training is a more fundamental approach to improving on the present all-manual technology and the attempt to introduce cable logging which has not been a technical success. However, improved logging is largely dependent on the confidence with which clear-felling with follow-up replanting operations can be introduced, and until the social and technical aspects inhibiting reforestation are adequately resolved, the question of substantially increasing log supply from these difficult hill areas is in doubt. d. Sawuilling and Joinery. A similar situation exists at the sawmill and an experienced expatriate samuiller would be able to adapt the present mill to maximize production and eliminate bottlenecks in addition to increasing the expertise of the local staff and operators. Both the logging and sawmilling posts can be put on a commercial basis and salaries charged against current revenues. e. Decision on `?uture Size of Mirpur Mill. As a first approxima- tion, it is logica] to limit the size of the Mirpur operation to the size of the market for local timber plus the quantity for onward disposal south into Punjab, including joinery components as well as sawnwood. The markets of Rawalpindi and Islamabad would more rationally be supplied direct from Muzaffarabad or by roundwood delivery to those towns ex-forest. TECHNICAL ANNEX 7 Page 11

There is virtually no wastage at the sawmill (common throughout Pakistan) and residues, which are reportedly about 25% of round volune, have a ready market as firewood, selling at PR8 4 to 6/ftJ, which probably offsets the cost savings in transport which could be gained by squaring the logs in the forest. These residues also assist in relieving the local pressure for firewood. A more meaningful assess- ment of ultimate mill size would follow after results for the activities discussed in (b), (c) and (d) above are known.

B. The Forestry Department

Forest Management

25. For general management, the territory is divided into two circles, Musaffarabad and Mirpur, each in the charge of a Conservator of Forests. Operational management of the demarcated forests is effected through eight territorial divisions (four in each circle), which are further subdivided into ranges, blocks and beats. In addition to the territorial divisions, there is a divisional forest officer (DFO) in each circle with responsibility for forest demarcation, and a DFO for range management in Muzaffarabad. Headquarter services and staff assignments include Conservator Planning, with one DFO in charge of the Foresters' training school, Muzaffarabad and Research, and another responsible for preparing 10-year working plans for the demarcated forests; a wildlife warden, three fulltime magistrates and a superintendent of police. An organization chart is included in Table 5.

Staff and Training

26. Full-time staff, excluding casual employees engaged for forest operations, total just over 1,000. The department is headed by a chief conservator of forests, with three conservators, 13 assistant conservators and 30 forest rangers. Entry to these grades is normally limited to graduates from the Forest Institute, Peshawar, VWFP, with about 30% of forest ranger posts being filled by promotions from the forester grade. Some 13 of the senior staff have undergone post-graduate overseas training. There are 125 forester grade staff (in charge of blocks) and 413 forest guards (in charge of beats). Foresters are selected from serving junior staff (e.g., forest guards) and undergo a one-year training course in the FD school at Muzaffarabad, which was established in 1956; forest guards have a six-month training at the same school. There are 20 forester students currently under training at the school, including four from Baluchistan and two from Gilgit. Without exception, the staff met by the mission displayed a keen awarenes9 of their responsibilities, capacity for work, frankmess in discussing problems and the limitations of present technologies and a commendably high level of physical Table fitness. 6 contains dtaila of the staff coMplemnat . TECHNICAL ANNEX 7 Page 12

Management Plans for Demarcated Forests

27. A system of 10-year management plans for the demarcated forests has been in operation since before 1930. There are four current plans covering Keran/Sharda, Muzaffarabad/Jhelum, Bagh/Rawalakot and Kotli/(irpur. These are comprehensive documents, describing the division of the areas into compartments (for which historical and prescriptive registers are kept), distinguishing compartments between protection forests and production forests, and prescribing felling volumes for the latter based on visual assessment of the stocking density related to proportion of closed canopy and physical measurement of the girth of the standing trees. This "Selection" System of felling is designed to preserve a continuous tree cover and maintain a sustained yield from the forests, with successive fellings at approximately 30-year intervals, being scaled to the density of the forest and the proportion of trees over a minimum predetermined diameter. Translated into a time-frame, for example, at a rotation of 120 years, there would be four felling operations involving the removal of the largest 25% of trees (say, over 30" diameter at breast height (DBH), with regeneration following each felling to provide the young stock for the subsequent cycle. By making the diameter the second criteria for felling decision, the System can be fitted to alternative time frames or rotations. Felling prescriptions under current management plans are summarized in Table 7. 28. Historically, the minimum diameter for felling has been 30" DBH, which represents a very large tree containing upwards of 150 ft 3 and weighing 3 to 5 tons green weight. There are a number of disadvantages in growing trees to this large dimension; considerable damage to the remaining standing crop is inevitable in felling such tall/heavy trees; extraction of large dimension logs down the hillsides results in significant damage to young regeneration and soil displacement; truck loading and trucking on narrow mountain roads is more difficult than with smaller logs; efficient sawmill conversion of large logs requires expensive heavy duty equipment. Moreover, it is almost certainly the case that annual increment of the older (larger) trees, e.g., 60+ years for Chir Pine and 80+ years for Blue Pine, Deodar and Spruce, is dropping below the mean annual increment attained in the earlier years and greater wood production/acre would be achieved by shorter rotations. On this basis, the recent Working Plan for the most productive divisions, Keran and Sharda (197 5 -19 8 4i), has prescribed for fellings down to 24" DBH instead of the former 30" with the result that prescribed annual fellings ha e been increased from around 1.5 million ft 3/year to about 3.0 million ft/year. Realized felling volume is usually about 75 percent of the measured standing volume after adjustment for over-estimate, breakage and defects.

29. In theory, except for the fir areas, natural regeneration of Chir pine, Blue pine and Deodar from the seeds cast by the remaining trees should be sufficient to sustain the forest stocking and it is a fact that these species, particularly Chir and Blue pines, do exhibit vigorous regeneration in many areas. However, in practice, the widespread grazing, which has been a cause for concern since the 1930's, and fuel gathering which takes place throughout the forest, and the inability of the FD to effectively close large areas to grazing because of local and political pressures, is causing a breakdown in the system, and greater use of artificial regeneration is now considered more practicable. This brings into question the efficiency of the present planting technology, the merits of genetic improvement of presently used species to maximize on growth rate and desirable tree form, and the possibility of introducing species with a higher economic value. TECHNICAL ANNEX 7 Page 13

30. In the six territorial divisions other than Keran and Sharda, management is further complicated by the relatively heavy demands for concessionary timber, which tends to pressure the local forest staff to permit fellings in areas which are only poorly stocked, and the high incidence of theft. It is significant that commercial feIlings in these divisions has been reduced to small volumes (about 200,000 ft 3 /year for Mirpur and Kotli) or even zero (Bagh + Rawalakot), in an attempt to build up the stocking densities of these forests. This is unlikely to succeed unless the pressures on the forests for fuelwood, grazing and concessionary issues are reversed and the FD staff released from a preoccupation with boundary protection and control of concessionary and illegal fellings in order to fully address the technical problems of intensive forest management.

Forest Exaenditure and Revenue 310 A comparison of normal budget expenditure and revenue for the main departments of government indicates that the FD revenue is around PRs 30 uillion/ year and represents over 95% of departmental revenues. Normal budget expend- iture on forestry, of which about 50% is in staff salarles, is around PRi 7.4 million/year and ranks third to education (PR. 25 miliion) and police (PRa 9.2 million). Most of these forestry expenditures are related to revenue earning activities and protection of the forest estate.

Develoqn>Mt linenditure

32. Fourth plan expenditures amounted to PRO 7.4 million over the five-year period, as followas:

Fourth Plan Forestry Development Expenditures

- Expenditure Activity (PRs million)

a. Demarcation of forests 0.60 b. Soil and water conservation 0.10 c. Staff housing 0.17 d. Research in volume tables, medicinal plants, olea species 0.60 e. Reforestation in indigenous forest 3.50 f. Forest tree nurseries establishment and production 0.82 g. Rangeland improvement 0.19 h. Watershed improvement in Bhimber/Bhandar 0.4 i. Trout hatchery, Neelumn 0.10 j. Wild life protection 0.30 7.12

33. Proposals for the Fifth Plan include sa extension of: (c) staff housing; (e) reforestation; (f) nurseries; (g) rangeland improvement; (h) vatershed Improvsrent! (j) wildlife protection; and, Include new development activities of tourism; subsidies for roofing material e arid lquid gas to economize on domestic wood use; forest fire protection; access roads; counterpart funding of an PAO/WFP watershed management project; and, community fuelwood plantations, as follows : Fifth Plan Requested Forestry, Development Allocations

Requested Allocation Activity (PRs million)

a. Reforestation in indigenous forest 20.00 b. Nursery tree production 4.22 c. Rangeland improvement 15.00 d. Watershed improvement 5.00 e. Wild life protection 1.50 f. Tourism development 4.50 g. Subsidy for supply of galvanized iron roof sheeting and 4.52 (roofing) liauid gas to substitute for concessionary issues of 11.50 (gas) timber and firewood h. Forest fire protection 0.50 i. Staff housing 2.19 j. Access roads 3.70 k. Counterpart funds for proposed FAO/WFP land managemert project 5.90 1. Commmnity fuelwood plantations 6.00

Total 8L.53

34- The proposed expenditure pattern indicates the high priority allotted to preservation of the existing forests (items (c), (d), (g), (h), (i), (j) and (k) and the development of new forest resources by plantations establishment (items (a), (b) and (1)). What is not included and yet is considered to be a vital item to ensure success of the main program is provision for species trials, provenance trials, and nursery/ plantation establishment trials. This omission has been discussed with senior FD staff who wholly agree it needs to be rectified.

Other Forestry Investments

35. Apart from small scale isolated planting by private persons on their own land, mainly retired government officials developing their small farms, there are no investments outside FD activities at present, other than the Mangla watershed management project undertaken by the Water and Power "'evelopment Authority (WAPDA); see Technical Annex 1, Appendix 3.

WP? Proposed Pro.1ect

36. The UN/FAO/ '? project is expected to be financed in 1977. The project is an attempt to arrest encroachment of the forest areas and soil erosion in four selected pilot areas (Lohargdli and KCathapiran in Musaffarabad district, Rawalakot in Poonch district and Sarsawa in Kotli T3MIAL ANNEX 7 Page 15

district), by an integrated land management approach involving reforestation and erosion control (forestry), farm land terracing and crop improvement (agriculture) and rangeland/livestock/animal feed improvement (animal husban- dry), together with the construction of mule tracks, water facilities for animals, produce stores and offices. The project would be of five years duration at an estimated coat of PRa 25 million (WFP PRs 7 million, GOP 18 mi ll ion) .f

37. A feature of the project in the inducement of farmers' cooperation by the free issue of food rations (three man-day rations per man-day worked) and the free issue of cattle feed (tmize or wheat) for stall-feedings to participating farmers in the rangelarld development aspects, for the first 1½ years of the project. This approach bas been used under a pilot WFP project in the adjacent Hasara district of NWPP. There are two opposing views to this: one argument is that initial inducsemet is a necessary condition to involve local people in the activities; the other holding that it is basically unsound to engender an attitude of expectation of subsidy payments among primary bene- ficiaries of the project. The project document does not indicate the institutional framework through which farmer participation would be secured.

38. To the extent that certain activities of any future Rural Development project will rely upon a self-help contribution, without free food, and cattle feed issues, there could be a conflict between the WFP and RD approaches, particularly as both projects are likely to occur concurrently in neighboring districts.

C. Development Strategy

Constraints to Develop2ent

39. An overriding constraint is a genera] historical attitude of the public that forests are a natural phenomenon freely available to supply the needs of the populace and capable of reproducing themselves without special effort and protection, whether for timber, fuelwood or grazing. FD staff themselves have reacted to the inadequacy of the traditional approach of sustained yield by natural regeneration in which they were schooled and are increasingly directing their activities to replenishment of the forests by protective closure, enrichment planting and reforestation (notwithstanding techniques so far developed can be significantly improved). Public support for this is as yet only partial and the conflict between the FD and the public is evidenced by the extraordinarily high number of prosecutions brought for forest offenses (para. 5). The public attitude is understandably related to need, particularly fuelwood and fodder. At the same time, there is the anomaly that whereas farmers invariably protect their food crops from damage by grazing animals, they are unwilling to provide the same protection to fodder areas and seedlings, although these are equally important to their needs. Other aspects requiring modifications in attitudes are a lack of awareness of rational land use and the legal status of the forests. Besides these social constraints, there are a number of management and technical problems which will need to be addressed in order to prepare the basis for a long-term development strategy. These constraints, and the special role of AKIAS, are discussed below and possible solutions, which have been agreed with FD and AKIAS officials, are suggested. TECHNICAL ANNEX 7 Page 16

40. Land Use and Watershed Management. Most of AK is composed of difficult mountainous country requiring a land use pattern to be evolved which will enable the farmer to maximize his production and at the same time reverse the downgrade in the land which is presently occurring through erosion. In the macro context of the Mangla dam and its command area, this aspect has national implications. (See Technical Annex 1, para. and Appendix 3). The development of land use plans for sub- watersheds, along similar lines to the WAPDA project is a sound basic approach. This needs to be reinforced by the creation of a competent section for land use and development planning within GOAK which would secure the involvement of local people in developing sub-watershed/ village development plans and coordinate the activities of forestry and other departments in the development of plans. The proposed Land Use and Development Section is discussed in Technical Annex 11.

41. Legal Status of the Forests. The present confrontation of the public versus the FD inhibits development. This largely arises from the exercise of rights of grazing and concessionary timber issues and is aggravated by political leaders lobbying FD staff to favor the right holder. In an earlier period of conflict, grazing fees were instituted to limit the numbers of livestock to the carrying capacity of the grazing areas and reports indicate this was substantially successful. The proposed project would be specifically addressing the technical problems of improved fodder production on farmland (see Technical Annex 2) and improved fodder utilization (see Technical Annex 10). Successful development of those two activities would provide underlying support for introducing measures to rationalize forest grazing. 42. Indications are that concessionary timber issues have incremented in value over time because of pegging maximum price charged per tree; for example, PRs 5/tree paid by a concessionaire in Sharda Division compares with a stumpage value for a commercial sale of around PRs 1,500/tree. This situation adds to the general scramble to make a personal gain from the public forests.

43. A review of the current legal structure with a view to making modifications which would improve on the present unsatisfactory position is indicated. Such a review should consider the possibility of the re- introduction of grazing fees and the dedication of some of the forest areas to local wood supply as a trade off against the forfeiture of rights over parts of the forests selected for closure for protection and for intensive commercial management. (See para. and Technical Annex 12). 44. Role of AKIAS in Commercial Forest Operations. AKIAS has been entrusted with the main part of the commercial forestry operations in the State. Performance to date has been disappointing both with respect to volumes of timber handled and lack of profitability. The key problems and possible solutions are discussed in para. 24. TECHNICAL ANNEX 7 Page 17

45. Reforestation Techniques. Serious attempts to secure artificial regeneration have only been undertaken in recent years and a considerable amount of work needs to be done on improvement of the indigenous species, introduction of suitable exotics, improving nursery and plantation establishment techniques. A component covering these activities is included in the proposed project. (See Technical Annex 8).

46. Fuelwood. The establishment of sufficient fuelvood to meet the needs of local people, through a combination of private tree planting, community tree blocks on shamlat / lands and fuelwood blocks in declared forests or public land is considered by the FD and the mission to be an urgent need and a prerequisite to systematic management of the forests and hillsides for commercial production and watershed management. A limited component, on the basis of the best techniques so far evolved, would be included in the proposed project. (See Technical Annex 8). This would concentrate on improving techniques and developing suitable systems for securing the participation of local farmer beneficiaries in cost sharing for establishment and maintenance of the fuelwood blocks, which would serve as a basis for a follow-up expanded program. At the same time, an assessment of future needs would be made, taking account of possible improvements in domestic wood fuel efficiency. (See Technical Annex 12).

47. Timber Preservation. The large annual volume of free and concessionary issues of timber (mainly for house construction), is a significant drain on the timber resources of the State. (See para. 8). At the present time, there are no facilities for even simple timber preservation treatments. Simple preservation could prolong the useful life of construction timber by three or more times. This could significantly reduce timber usage and also the labor involved in reconstruction. A pilot timber preservation trials component is included in the proposed project to test the efficacy of introducing this activity. (See Technical Annex 12).

V land held in communal ownership by villagers. It may revert to private ownership at the unanimous wish of the beneficiary owners. PAKISTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT SUMLMARY OF RECORDED FOREST AREAS

______. ______(in '000 acres) .___ _ _. Comnercial Areas Sub Uncoiamercial Deodar Blue Pine Fir/Spruce Chir Pine llardwoods Total Areas Total

l.luzaffarabad Circle

Divisions Kcran and Sharda 51.7 28.9 57.6 - 0.1 138.3 637.7 776.0 Mtuzaffarabad 0.2 27.4 llh.9 8.3 1.2 52.0 29.2 81.2 Jlelum Valley i.1.4 46.i 20.1 9.7 0.8 78.1 74.2 152.3 Mirpur Circle

Divisions M4irpur and Kotli - - - 125.4 - 125.4 56.5 181.9 Raualakot and Bagh?_ 8.3 8.1 11.6 - 28.0 220.6 218.6

Totals 53.3 110.7 100.7 155.0 2.1 321.8 1018.2 lW0.0

/ A recently prepared Working Plan for Keran and Sharda for the period 1975 to 1980 apportions smaller effective (105.80O acres) commercial areas as follows:-

Keran Sharda Total ('000's acres)

Commercial Areast Gross 110.5 152.0 262.5 Net ( 61.0) ( 45-8) (105.8) Non Commercial Areas: lieforestation 31.0 24.4 55.4 Protection 14.9 81.3 96.2 Range Management 90.5 51.5 1l12.0 (albove tree line) Wtlldlife 18.0 - 18.0 Unaccounted - 104. 101.8 D t 264.9 1014.o 678.9

?/ Produiction in these divisions is almost entirely reserved for supply or local needs for house construotion. J Only part of conunercial area is operated for commercial exploitation, the major part of timber production is for siipplying local needs. HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Summary of Recorded Forest Production

1970/71 1971/72 1972/73 1973/74

3 Loc l Local Local Local TIDBER ('000 ft. ) Commercial Consumption Commercial Consumption Commercial Consumption Comuercial Consumption

Keran Forest Division) 1,817 ) 225 1,051 ) 5) 1,552 ) 223 1,077 59

Huzaffarabad " 181 27 17 21 ) 169 83 JheluW4 Valley " 295 69 369 ) 431 ) 282 158 Mirpur t 69 68 158 37 52 18 150 951 Kotli " _ 149 148 102 200 70 65 548 Rawalakot 312 77 120 bagh " ) 82 87

Totals 2,362 850 1,893 504 2,451 470 2,0145 2,102

IILSIN (Tons) 2------,200 to 3,000/year------

KIJTII (Tons) ------6 to 19/year ------

Source: Forest Department, Huzaffarabad PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Summary of AKLAS Operations 1972 to 1975

1. Forest Logging Operations Standing Volume Removed by Stumpage Stumpage 1972 to 1975 marked 3 AKIAS Due Paid ------million ft. ------million Rp.------

Keran Division 4.8 1.2 29.7 9.8 Sharda " 2.1 0.7 15.9 4.2

Total. Neelum Valley 6.9 1.9 45.6 14.0 2. Recorded Log Input at 1973 12 Mirpurawmill1973at 197__5 Mirpur_Sawmll_ (part (full (V year) year) year) 3 --- million ft. ----

0.2 0.65 o.4o

3. Estimated Sales Volume and Value, Mir-pur Sawmill3/

Sales Volume (million ft. ) ? 0.50 0.20 " Value ( " Rp. ) ? 19.00 11.00

J Data from DFO Keran. Information for Hirpur and Kotli is not included. t/ Data from AKIAS Hirpur. PAKISTAN

HILL FARMING TECHNICAL 3DEVELOPMENT PROJECT Indicative Average Realizable Profit (Rp/ftt.__= AKIAS Sawmill Ml_rpur TBased on part AKIAS data and part field data)

Weighted Deodar Blue Pine Fir Chir Pine Average

Ex H11 Average Sale Price 75.0 4 5 .0 49.0 54.0 Proportion of Sales 22% 23% 4l5% 10% Cost of Sales : 2/ Sturnpage (average) 17.5 11.0 7.5 15.0 Felling & Logging to 2 roadside by contract 2.4 2.4 2.4 2.4 Road Transport to Hlirpur 4.2 4.2 4.2

Sub-Total 24.1 17.6 14.1 21.6 x 1.33 for' conversion from log 6 to sauwlvoo(I at 75d recovery 32.0 23.4 18.B 28.7 Sawmilling Production costs -/ 10.0 10.0 10.0 10.0 Total Direct Costs 42.0 33.4 28.8 38.7 33.2 Pr-ofit bro Ior depreciation wxd tax 33.0 22.6 16.2 10.3 20.8 1/ Data from AK[AS 21 Of It 3t 3/ to It it 3 3 / " " D based on 2 current contracts at Athmugam one at Rp.2.25/ft. and the other at Rp.2 37/ft. C " Private Contractor currently transporting logs from Athmugam to Jhelum at Rp.4.18/ft. 0 " AKIAS. Mill recovery from round log to finished product is reported ass Scantlings 60% Planks & Boards 15% Offouts & Firewood 10% Waste I O'fcuts and firewood are sold ex-mill at around Rp.4/ft.. This revenue not included in above caXZi7ation. (/ Data f'rom AKIAS based on reported costs of Rp.16/ft? 1973/74 and Rp.5/ft. 1974/75. PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

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SM.UGTH OF FORMT ~~I

i) Off$cq geqttU pa for above BR.1500/-. 1. Chief CoDaervator of Foret. (1) Forei-g trained.

2. Ccervators of Forests. (3) - o -

3. Asaistaut uarvatOrB of ForeSW. (9) o -a_ iii) Officers uittJg R frog Rs.7511 to Ra.1 /

I4. Revaue Azaiatant. (1) iv) Offimce. aetlnt ry lm U-aI/- to ARs7, 5. D.S.P. ti) 6. Sub-Judge:- (2)

7. Assistant C=awrvat*rs of Forost(4) 8. Forest Rangers- (13)

9. Accovtats - (2) 10. Office Susal.ntuidentm- (2) v) Offic z3. ,stn,Wa fro fls,15- Xo }l.CO

U. Office S rxpets- (l)

12. Az:oovatia - (9) 13. t g (1) U. lead C1 s- (24)

15. Beior Cl1ka- (17) 16. imnior Cl1kt- (4O)

17. Steno-tYpists- (3) 18. Range Clez*mu- (30)

19. Fore8t Rangars:- (I7

20. Foresterss- (18)

21. Kuth Supervisors:- (1)

22. Game Jamdar:- (-)

23. Fishere Inspector:- (1) T3KHI[ICU A1NNE PAKISTAN Table 6

HILL FARMING1 TFvrNAT. TFV'FT.OPMFffTL PROJECT

24. Sub-Insector Police (3)

25. Head Constable:- (1)

26. Naib Tehaildar:- (2)

27. Patvur:- (2)

28. Surveor:- (2)

29. Draftans- (2)

30.*D±veras - (7)

XI) Officiaik getting RIXy MR to Rs.l1O2-

31. 2s- (86)

32. Ddk BRameru- (21) 33. Chowidarss- (59)

34. Po:-starm - (7)

35. Forest (sards:- (413)

36. Closure atbchares- (22)

37. s -e:- (30)

38. Police Constables:- (17)

39. me Watchbews- (14)

W. uth O srdas- (10)

B1. Resik ada.- (4)

44. HM (1)

i6. -ookm- (2)

1.6. 2weepecoo-(19)

laupee s FD OaW, 1976 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

3 Summary of Fellinp Prescriptions (nill Ion t.)

V ~~~~~~~37 Divlsioii Kouan Shairda Hirpur + Kotli Bagh1 + Rawalkot Huzaffarabad + Jhelum

Commorcial local Commercial Local Commercial local Commercial Local Commercial Ical AK_AS RequJ roments ANKAS Requirements AKIJS Requirements Requirements Requirements l)eodar 0.no 0.02 0.30 0.01 r - ) - HIlue Plne 0.16 0.18 0.10 O.o0h _ ) Nil I?Ir/Spruc 0.o5 0.25 0.02 0.91 0.06 - - ) Chir Pine 0.20 0.50 )

T tal 1.6) 0.22 1.31 0.11 0.20 0.50 - 0.25 1 7

3 j1/ Working I'lan Prescriptions, 1975 - 1901t. Older recoris indicaLo 1.5 million ft. /year for Keran 1 Sharda. 3 2J Approximato Piguroa by verbal cowmunication. Older records indicate 0.4 million ft. /year commercial fallings for Illpur + Kotli fid 0.2 million ft. /yoar ror MLgh + Rawalkot.

/ Updaltud tlta nriot obtained, but tuderstood commercial fe ings are presently of negligible volume. Older racords in(IicaLo 1.0 million ft. /yenar. H TECHIICAL AMU 7 Table 8 PAKISTAN

HILL FARMING TECHNICAL DEVELOPM NT PROJ'ECT

ComDarison of Delartmental Revenue and Expenditure

NorLXAL BUDGET

1 A - REEVMM FOR THE YEAR 1973-7 L AND 197h-75

S. No. Demartment 1973-74 1974.-75

1. Forests 2,64,0,2244.00 2,95,00,000.00 2. Police 48, 13.00 60,000.00

3. Agriculture 1,32,295.00 1,50,000.00

4. Education 1,32,960.00 13,00,000.00

5. Animal Husbandry 25,465.00 30,000.00

3 - MU=-,DITURE

1. Forest 51,73,"1I.00 73,62,000.00

2. Police 76,19,922.00 91,93,000.00

3. Agriculture 9,97,399.00 19,73,000.00

4. Education 1,61,78,559.00 2,53,32,000.00

5. Animal Husband7r: 7,62,410.00 10,67,000.00 6. Revenue: 12,30,126.00 21,03,000.00

C - BREAK UP OF EXP""DITURE OF FOREST DEP.RTE2BTT FOR MIE YEAR 197 -75

1. Pay ...... 20,30,500.00

2. Allowances ...... 13,60,100.00

3. Construction and repair of buildings, roads and fencing: 6,39,000.00

4. TiJuber, Resin, Kuth, Driftwood extraction: ...... 28,55,000.00 5. Miscelaraecus: Petrol, purchase &id repair of vehicles, field work, Law Charges, niforms and other cantinsencies. L,77, LCO.00 G. Total 73,62,000.00

RsinR/ a=orx.Rp:1 .a mil-lion Ku+", R",15.7 TECHNICAL ANNEX 8

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Forestry Anperimental Trials and Pilot Fuelwood Plantations

Introduction

1. The State's forest resources are being seriously depleted largely because of the acute shortage of fuelwood. (See Technical Annex 7 para. 4 (b)). In addition, the general shortage of timber for construction and general ase in Pakistan is exerting a strong pressure to over-exploit the natural forests in order to maintain a minimum flow of timber into the economy. The natural forests of Azad Kashmir (AK) are a traditional important supply source of timber for the country benefiting both the State's and the national economy. To maintain the supply, changes are needed to relieve local pressures on the forests and to increase forest productivity.

2. The Forest Department (FD) are changing their approach to forest management from an historical natural regeneration management system for timber production, which under prevailing conditions is only partially successful and of low productivity, to more intensive forest production using man-made plantations. This new approach is basically sound, but will require considerable effort to improve techniques of reforestation to ensure success for commercial application. In this respect, the proposed Hazara Forestry Technical Development Project would provide a substantially improved technical base which would have wide replicability in many parts of AK. Another important recent change in the FD approach is the initial establishment of plantations for fuelwood for local use, both in declared forests and through the provision of seedlings to interested farmers. This has involved the use of introduced species more suited for fuelvood. The basic techniques for these operations also need to be improved before embarking on a large-scale program. Whilst these technical aspects need to be stressed, the development of public relations to the extent that local residents accept the obligations necessary to establish, protect and efficiently manage the forests and tree blocks is an equally or even more important consideration.

ProJect Strategy

3. The proposed project would concentrate on developing improved techniques to provide a sounder basis for embarking on a fol3ow-up large scale fuelwood program; and, finance a pilot-program of fuelwood plantation establishment to test improved techniques under field conditions and develop suitable systems of involving local people, who would be the beneficiaries of the plantations, in their establishment and maintenance. During the project period, an assessment would be made of the projected demand for loca3 fuelwood/poles (see Technical Annex 12) and a program prepared for inclusion in a follow-up project. The work carried out under the experimental trials activities would also provide basic techniques for use in commercial forest operations. A close link would be maintained with the Pakistan Forest Institute (FFI) and the proposed Hazara Forestry project to coordinate technical development. Technical T$HNICAL ANNEX 8 Page 2 detail s of experimental plot design and size would be worked out with the PFI and the Hazara project manager.

Project Activities

4. Experimental Trials. These would include establishment trials for nursery and field planting; genetic improvement of existing species through rigorous seed selection and establishing seed sources; and, species trials. The main center for trials would be at the FD station at Batika Forest (about 15 miles from Muzaffarabad) where the experimental nursery would be established; the nursery would also produce seedlings for fuelvood plantations in that area. Provision is included for some species trials to be commenced in the Mirpur area in the second or third year of the project. Activities of the trials are as follows :-

a. Establishment Trials

(1) Nursery Research. Almost all nursery operations are subject to significant variation and these variations have important effects on the size, vigor and survival of stock; for each operation a range of techniques mast be tested in designed, comparative experiments. For most of the following operations at least three quarters should be tested with up to 27 combina- tions for fertilizer trials.

(i) Sowing Time. This is normally related to the required size of planting stock and to the conditions (rainfall, temperature and insolation) at the time of sowing. Planting has been practised in both the short and the long rains and there is a range of sowing time that could produce potential planting stock. (ii) Seed Covering

Depth. The depth of material has a marked effect on success of seed germination and plant production. If materia] is too deep it may inhibit germination and hypocotyl growth; if it is too shall ow it may not protect the seed against insolation and desiccation and it may allow the seed to be washed out of the pot or bed by water drops, particularly if rotary overhead water systems are used. For pines a common rule is to cover the seed to a depth of 1-3 times its own diameter.

Material. Various covering materials have different capacities for absorbing oxygen, water, heat and light or preventing them reaching the germinating seed. Organic mulch (chopped, dried pine needles) should be compared with sand, gravel, artificial vermiculite, etc. TZHNICAL ANNEX 8 Page 3

Shading. Once seeds have germinated and the hypocotyls have appeared above the soil surface they are susceptible to excess heat and light. Shading reduces this but may increase the incidence of damping off. Different materials such as wooden laths or, better, nylon neeting should be arranged to reduce light intensity by 25, 50 and 75%.

(iii) Tubes vs. Beds: Time of Pricking Out. Bed material is intended for bare-root or ball-root planting and may not be successful on a large scale; it should be compared with potted material at different planting times (para. (2) (iv)) for different plant sizes (para. (2) (iii). The cost of filling and transporting pots increases the cost of nursery stock, but commonly decreases the failure rate. If potted plants are adopted the seed may be sown direct into the pots or into beds; if the latter, it is necessary to test different stages of seedling development for optimum pricking-out condition. Usually pines are best pricked out within a few days of germination, just as the seed coat is shedding; but other stages can be tested; care must be taken not to touch or damage the hypocotyl, and seedlings can best be held by the cotyledons.

(iv) Tube (or Bag) Size. Different pot sizes affect the size of transplant produced, the ratio of root to shoot growth, the depth or breadth of root development and the extent of root binding ("pot binding", development of circular patterns of growth at edge of pot). The econouics of pot size must also be considered, especially the cost of transporting soil to the nursery and pots to the field.

(v) Soil Mixture. The composition of soil affects plant survival and growth through its effect on aeration, water retention and chemical nutrition. Organic manure has been demonstrated to be deleterious in some nurseries and need& further testing and other soil mixtures can be compared (proportion of soil to sand).

(vi) Fertilization Composition and Amount. Whatever soil mixture is used seedling growth and health can often be increased by use of artificial fertilizers especially nitrogen, phosphorus and potassium (NPK). To determine the optimum composition it is usually necessary to test all 27 combinations of three levels of each element. Such experiments are relatively simple to conduct in the nursery.

(vii) Root Pruning. This may be practised on pot or bad plants and it is intended to stimulate the lateral develop- ment of roots and the production of a dense, fibrous root system. Different methods can be compared and at different frequencies. TECHNICAL ANNEX 8 Page 4

(2) Development of Establishment and Cultural Techniques. When healthy, vigorous planting stock are produced their survival and growth are improved by careful attention to establishment and cultural methods. Much of the evidence seen during the mission emphasized the need for the maintenance of optimum conditions in the first one or two years. Throughout the following trials, it is recommended that all transplants are in tubes and that two provenances of the selected species be used to minimize the chance of using a source that is not typical of the species. Provision is included for 20 acres of trials in both year 2 and year 3 of the project.

(i) Ground Preparation. The manual methods used may be compared at different times (in relation to date of planting) and at different depths of pit preparation and area of pit. (ii) Time of Planting. These trials should be co-ordinated with the trials of nursery sowing times (para. 1 (i)) and size of planting trials will need to be related to the known rainfall and temperature patterns to test for the planting season which yields the maximum establishment success and initial growth. This will vary between locations. E.g., in Keran, late winter and early spring are potential planting times, with the possibility of early winter planting in sheltered areas. In southern areas, the late winter, early monsoon and mid/late monsoon are potential planting times.

(iii) Size of Translants. In many afforestation programs the size of transplants is often excessive. Depending on the early weed competition and the likelihood of dry, hot periods immediately after planting, trees should be 20-25 cm tall, but a range of sizes should be compared.

(iv) Weeding

Frequency. Weeding is an expensive operation but, under conditions of limited soil moisture, it is critical. Up to three or four weedings may be necessary each year for one or more years depending on the method used. Experiments must be established to cciapare weeding frequency. Number of Years. The cost of weeding clearly makes it desirab7e to reduce the number of years to a minimum. Trials should therefore compare different numbers of years and at different frequencies. TECHNICAL ANNB1 8 Fage

Method. Several methods should be oompared (8pot weedingp of varying diameter spots, line weeding, complete weeding) and effects on plant vigor measured.

(v) Fertilizer.

CowDositito and Amou_nt. As with nurssry fertilization (para. (1) (v7i, it is desirable to test in the field all combinations of three levels each of N, P and K. However, the desig of such trials in the field is difficult and it should be confined to a Main site with reduced follow-up on the others. There ia no evidence of micro-nutrient deficiencies, but tests should be carried out to confirm this.

Time of Application in Year. Depending on the time of application, solid fertilizer may scorch roots or it may be leached out of the soil too rapidly for use by the plant. Trials are therefore necessary to compare applications at the beginning, middle and end of the rains and in the dry season.

Number of Years. The aim of fertilization in the first year is to give the tree an initial boost to combat weed growth. However, the fertilizer may also increase the weed growth itself. Fertilization after the first year may also be profitable up to about 12 years (in a 15-year rotation). Experiments should be conducted initially on the main site but repeated one year later on ather site types. b. Species Trials

Trials, including provenances within species, of likely species which would provide superior volume production and shorter felling rotations than species presently used. This is particularly important for securing an early impact on the fuelwood supply position, but also of prime importance in increasing production of structural and industrial wood. The activities proposed are :

(1) Confirmation of promising fast growing species for the different ecological areas and further investigation of their potential in provenance trials; by screening, in species elimination trials, of a larger number of indigenous and exotic species which appear to have promise.

(2) Estimation of yields from a number of species selected from (1) above. A list of suggested species is given in Table 1. These will need to be examined more carefully before making the final selection and a control species selected (e.g., Pinus roxburghii). Criteria for selection of species would include average energy (BTU) value of their wood matter and ability to yield leaf fodder. TSCHNICAL AMWB 8 Page6

(3) Provision is included for 10 acres/year of species/ provenance trials for years two and three of the project. The final, area needed would be based on the number of apecies/ provenances to be tested and standard replicated plot layout systems which have been developed for these type of trials. These details would be worked out with the PFI and in association with the Hazara Forestry Project. Comonvealth Forest Institute (CFI), Oxford, Bagland have produced standard foraats and can advise on these and also the range of likely species to be included and seed sources. (GOP is a member of this Institute). The Director, U.S. Forestry Seed Center can also assist with these services (see Table 1).

c. Genetic IMrovement

Genetic improvement of existing species is needed to ensure that replanted areas are stocked with tree seedlings raised from the most productive 'seed sources available. A two stage approach is suggested as follows :

(1) This can be initiated immediately as a measure of securing significant gains in production by selecting in existing plantations, pheno-typically best stands or individuals (seed stands, seed trees and plus trees), for the production of seed and confining seed collection to these seed trees. Initially, the main selection criteria would be vigor and stem straight- ness.

(2) For the longer term developmant of seed orchards, plus trees would be selected at relatively low intensity and used for propagating into seedling and clonal orchards and techniques developed for vegetative propagation and controlled pollination of some species. Progeny tests of selected species would be introduced as early as possible in the program. Improved techniques of seed collection, testing, certification and storage would be introduced.

These activities would be coordinated, through the PFI, with the work to be undertaken by the Hazara Forestry Project, and would provide a basis for a longer term program of genetic improvement.

5. Manegement of Experimental Trials. The experimental trials and genetic improvement activities would be the responsibility of a Divisional Forest Officer (DFO) (Fast Growing Species) to be appointed under the project. The present DFO (Research) has demonstrated an interest in this work and is a possible candidate; his present duties, which include the development of yield tables for indigenous forests and training, would then be undertaken by a replacement DFO. The DFO (Fast Growing Species) would be responsible to the Chief Conservator of Forests and through him to the project director He would be assisted by a Range Officer (Research) Grade 16 and Forester (Research) Grade 5. The DFO (Fast Growing Species) would give technical supervision to the pilot fuelwood plantations (see para. 9 ), and would be provided with a jeep and trailer for carrying and supervision. IICHNICAL AMEh 8 Page 7

6. Training and Consultancies. The Pakistan Forest Institute (PFI) havt undertaken to give technical support to the ;roject. Pro-ision is in- cluded for the DFO to have a one-month in-service training at .±e PFI and proposed Hazart Forestry Project in experimental/trials methods in each year of the project. Provision is also included for one-month in-service training at the Hazara Forestry project for the Range Officer (Research), and pilot plantation senior field staff (two Range Officers and two Deputy Rangers), for each year of the project. Consultazcy services would be provided for a plantations/geneticist specialist for one month in year I to assist in setting up the trials and for one-month in year 3 to assist in evaluating progress and preparing a follow-up program. These consultancies would be closely coordinated with similUar consultancies for the proposed Hazara Forestry Project to maximize the exchange of technical knowledge.

Fuelwood/Pole Pilot Plantations

7. Whilst the present techniques of reforestation can be substantially improved through the program of experimental trials discussed above, there is a sufficient technical base for proceeding with a limited plantations establishment scheme. Moreover, there is an urgent need to address the problem of creating supplies of timber for local use and motivating farmers to devote some of their resources to meet this need. Preliminary assessment of selected areas indicates that present usage of fuelwoo4 is in the range of 0.2 to 0.4 maund/day per family, equal to about 180 ft' to 300 ft 3 per family per year, see Table 2. This is equivalent to the natural yearly increment of about four to eight acres of forest per family under present management systems. There are probably some 300,000 households using faelwood, and even at the lower estimate, this usage would consume the total annual increment of the State's forests assuming it was all accessible and able to be exploited, which would leave no balance for local construction timber and commercial exploitation. In fact, much of the forest is inaccessible and pressures for fuelwood are concentrated where the forests are less extensive with the result that these are being severely depleted.

8. On this basis, pilot plantations would be established by the project in areas of acute fuelwood shortage with the objectives of field testing improved technology and detenmining suitable management systens involving local participation for creating local timber supplies. A complementary component is included for testing the possible introduction of improved wood burning stoves which could significantly reduce the quantities of timber needed for domestic use. (See Technical Annex 12).

9. Pronosed Activities. These would include :

a. Extension and upgrading of 1½ acres of nursery at each of the existing nurseries at Bagh, Hajira and Kotli (the Batika nursery would also be included, (see para. 4), and production of some three million tree seedlings, of which 600,000 would be for sale to farmers and 2.4 million for plantations establishment;

b. setting up of four field units at Batika, Bagh, Hajira and Kotli for establishing 3,000 acres of plantations during the three years. T$CHNICAL ANNEX 8 Page 8

10. Location and Area. Plantations would be established as follows :

Project Years (acres) 1 2 3 Totael

Bagh 150 375 375 900 Batika 100 150 150 400 Hajira 150 375 375 900 Kotli 100 3$0 350 800

Totals 500 1,250 1,250 3,000

The transplant requirements for year 2 plantations would be supplied ftron existing nursery stocks.

11. Areas for Planting. Plantations would be located according to land availability in the different villages using Declared Forest, State Land and Shamlat or Private tand. The size of individual plantations would vary up to 50 acres or more depending on availability of land and numbers of families to be served. All blocks would be demarcated and closed to grazing. Controlled cutting of fodder would be permitted. After agreement as to location, blocks would be surveyed, mapped and registered with the Land Registry. It is expected that year 1 plantations would be established in government owned Declared Forests, whilst forward arrangements are being negotiated for including a proportion of years 2 and 3 plantations on Shaulat and Private Lands.

12. Nurseries. Extensions of 1½ acres to the existing nursery sites at Bagh, Hajira and Kotli, (two acres at Batika to provide 0.5 acres for bEperimental Trials), would include levelling, preparation of terminal irrigatlon channels, fencing, the construction of a Range Office/Store of 500 ft. and provision of tools. For most species, production would be of 1-year old stock, with targets related to the following year's planting program on the basis of 800 plants per acre; this allows 20% for culling and beating up. In addition to seedling production for pilot plantations, each nursery would produce about 50,000 transplants a year for sale to farmers; the proposed sale price would be PRs 0.15/transplant. About 60% of production is expected to be tubed transplanta. Seed supplies would be obtained through the DFO (Fast Growing Species), who would also advise on suitable soil mixtures for nursery soils. The Range Forest Officer (or Deputy Ranger) would supervise the nursery work. (See para. 14).

13. Technical Data for Plantations. The species selected would be for rapid fueJwood production with better quality stems being selected for poles. Generally species which coppice would be uqed with an expected rotation of 8 to 10 years and yields of 100 to 140 ft. /acre/year. Species which are easy to establish but do not produce useful timber (e.g., Ailanthus spp), should be avoided. Planting espacement would be on the basis of 8 feet by 8 feet, (680 trees/acre). Replacement of failed transplants (beating up) should be carried out as near to the original planting date as practicable. Technical data is summarized in Table 3. T'CHNICAL ANNEX 8 Page 9

14. MAna&ement of Plantations. Range Officers (Grade 16) would be appointed to be responsible for the Bagh and Hajira plantations and Deputy Rangers (Grade 6) for the Batika and Kotli plantations; the Range Officers/ Deputy Ranger at Bagh, Hajira and Rotli would be assisted by a Forester (Grade 5), with the Forester (Research) assisting at the Batika plantations. Range Officers/Deputy Rangers would be responsible to the Chief Conservator of Forests and through him to the project director. These field supervisory staff would be provided with motor cycles.

15. For forward planning of the siting of plantations, field supervisors would liaise with the project manager to ensure that sites which are chosen are relatively accessible, are in line with the development planning for the area, and, for Shamlat and Private Lands, have been formally agreed upon with the local owners. (See Technical Annex 12).

Costs

16. Physical requirements and costs for the experimental trials and pilot plantations are detai]ed in Table 4, and summarized below. The experimental trials costs include the capital costs of extending the 2 nursery at Batika, including an office/store/minor residence of 600 ft. , a jeep and trailer and furniture and equipment; and, operational costs of the trials and staff salaries. Nain office accommodation for the DFO (Fast Growing Species) is already available at the Muzaffarabad Forestry School. Training and consultancy costs include the attendance at PFI and the proposed Hazara Forestry project for the DFO and five Range Officers/Assistant Rangers for one month for each year of the project and a one-month consultancy of a forestry specialist in years 1 and 3. The pilot plantations include the capital posts of the nursery extensions, comprising a small office/store of 500 ft.' at each nursery, tools and equipment and motor cycles for the four field supervisors. Operating costs for the pilot plantation have been based on the assumption that all work of establishment would be on a cash wage basis, whereas it is expected that in years 2 and 3 of the project, self-help schemes would be introduced for Shamlat and Private Land to be planted. The full costs are included as a contingency against possible delays in implementing self-help schemes, in which event, plantations would continue to be established in Declared Forest areas. TECHNICAL ANNEX 8 Page 10

Summary of Costs (PRsOOOs)

Years 1 2 3 Total

Experimental Trial s Capital 187 187 Operating 130 157 161 448

Training and Consultancies 65 5 65 135

Pilot Plantations Capital 191 191 Operating 553 1,202 1,309 3,064

Totals 1,126 1,364 1,535 4,025

Benefits and Risks

17. A main objective of the experimental trials is to establish sound techniques for planting with known species to provide a confident basis for proceeding with costing and evaluation of a follow-up large scale program. The activities of specials trials and genetic improvement would also form the beginning of a longer-term program of tree improvement from which it is confidently expected that early yield increases of 20% or more would be obtained with eventual increases of 50% plus.

18. A preliminary analysis of the financial costs and benefits of pilot fuelwood plantations indicates a rate of return in the range of 8% to 17%. Costs used in the analysis have been based on per acre costs developed from the project cost data with estimates for future maintenance and additional capital costs which are likely to be involved under full-program conditions. The 8% and 17% results relate to different calculations of benefits accord- ing to the low or high estimates of rotation length, yield and stumpage value of fuelwood, respectively; see Table 5 . These results do not include on-site or off-site benefits of soil and water conservation which are significant.

19. The main risk is that farm families are slow in responding to the allocation of some of their land and labor to tree growing. This would result in a significantly reduced follow-up program and, more importantly, would indicate that community acceptance of rational land use and development planning was not making progress. TECHNICAL AIOIU 8 Table 1

PAKISUN

HILL FARMING TECHN-ICAL DEVELOPMENT PROJECT

Suggested Species for Introductory Trials.

Fuelwood Species

Eucalyptus spp. Robinea pseudoacacia - ip to 4 seed sources Alnus spp. Betula spp. Acacia spp. Lespedeza spp. Sesbania spp. Leucaena spp. Casuarina spp.

Timber Species

Pinus patula 1'tnus greggi Pinus elliottii Pinus taeda Pinus Kesiyz. (Syn. P. Khasya, P. insularis). Pinus caribaea (lower elevations) Pinus pseudostrobus Pinus radiata Cupressus coAhmeriana Cryptomaria japonica callitris opp. Auricaria app. industry. also, Morus spp. especially for foliage production for the sericulture

the Pakistan on species to be used and seed would be obtained from 1/ Advice agencies may Forest Institute and Hazara Forestry Project. The following be able to assist with limited seed supply for trials :- U.S. Forestry Seed Center (b) Director (a) Director, Institute U.S. Forest Service Commonwealth Forest P.O. Box 819 University of Oxford MACON, GE(3CIA 3J202 South Parks Road U.JS.A. O?D OXI 3B - GIAND PAKISTAN HILL FARMING TECHNICAL DEVELOPMENT PROJECT Forstr C2NMent lupyz of BAsic DAta for areap yisited by the Mission de onatratint asthodolove of aegenana aorease reauired for develoainz fuelvood plaptAtions

DANNA JAGH AFZALPUR SENSA ATHMUQAH KAHUTA

LAND ARXA (Acres) 40880 90870 73030 98570 311940 82800 Private Land: Cultivated Land 12030 20960 12000 15190 9630 11470 Cultivatable Wasteland n 2920 455° 13000 7810 - 27720 Uncultivatable Wasteland n 23400 41625 48030 29550 33360 30730 (of which Shanlot land) n ( ) (Nil) ( ) t ) ( ) State Lands Domarcated Forests 23730 400 acres of 46020 268954 12200 Closed Hillside CONDITION OF FORESTS Private Lands Few trees. Few trees. Fair Few trees. Good Few trees. Frequent trees. Severely lopped. oondition. condition. All Severely lopped. Heavily lopped. Demarcated Forests Encroachment for Physical en- avenue trees Some physical Some physical cultivation croachment tak- along canals encroachment. encroachment significant. Lop- ing place. Lop- and roadsides Lopping, damage and illegal re- ping and ilegal ping and illegal severely lopped to butts and il- movals. Lopping removals extensive. removals ex- and being des- legal removals not yet severe. tensive. troyed. extensive.

EBOSION ASSESSMENT Severe Severe to fair Severe Fair Slight POPULATION 36570 89000 60000 40080 42800 48290 Number of Families 7310 17800 12000 8016 8570 9655 LIVESTOCKt Cattle No. 9365 34290 9930 18620 20200 17985 Buffaloes n 3605 16980 12950 19144 2620 17260 Sheep 7 2750 82990 4920 7840 18150 13170a Goats a Poultry 11750 75110 23950 44920 18000 18000

co HILL FARMING TECHNICAL DEVELOPMENT PROJFCT Forestry CoamDoaent

DAANNA BAGH AFZALPUR SDlSA ATHNUQAM KAHUTA

1Eatited Famdly Ommatio 0.3 0.3 0.2 0.25 0.4 21 dUUds ElSquivalent WdV2 3/yo&r 1600000 3900000 1752000 1460000 280000 Present bpp3y Seurees (Iwtimted) Farm Tress md Iseidkes 10% 10 15A 15% 15%% - Cow dumg 55 - 10% 10% - Wastelands 6S% 35) 50% 35% - Purchases from Outside - Som 1_eme. 10% som0 25% so" Y% - Bamm purehass and Ker*- kerosene. of ftr.wod a¶ 41o4e. Up. 10 to is Puxrbases Nound from Punjab at Bp.10 to 14& Xouound Lop and Sop from legal felUng 10% 10% - 10% Illegal rovalm from Den. For. 10% 30% - 25% Estimated Volwm/year for Fueljood BlOk Planting (ft 3 ) (50%) 0000 (5i) 1450000 (66%) 1160000 (50oA) 730000 - - Estimated Plantation Area to b3 3 3 developod (Acres) lkOttoni 6000 lhoft3mi 10000 1140ft .i 8300 1I4Oft wa 5200 llOft3mai - llOft3mai

21 On Basis of 1 Nomd - 2 ft 3 ffrwood (Solid Volxm) 3/ Local Asemat. ota. F.I. Timber Treds ftudy 56/57 estimated 4 to 5 lbs/dsy/por oapita iu ills" and 2 to 3 lbs/day/capita "Plains". TECHNICAL MNIE[ 8 Table 3

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Pilot Fuelwood Plantations

Summary of Technical Data for Tree Blocks

Species : Eucalyptus spp. Robinia pseudo acacia. Norus spp. Poplar, Albizsia, Melia.

Espaceuent : 8' x 8' (680/Acre).

Rotation : B to 10 years, coppice system.

Expected 3 3 Yields : 100 ft to 140 ft /acre/year.

Nursery Practice : Polythene tubes most spp. Poplar: cuttings.

Fencing : All tree blocks to be fenced using local material.

Planting : Pits; ensuring loose soil to 240 for accelerated root penetration.

/ Actual species to be decided with reference to site and in collaboration with PPIL PA KIS TAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Physical Requirements and Costs (PRB.000)

Units Requirements (Years) Unit Costs Costs (Years) Total 1 2 3 FEs. 1 2 3 FORSSTRY EXPER1%IENTIL TRIAIS AND PILOT PIANTATIONS Experimenta,l Establ ishment Trial s acres - 20 20 Genetic Trialsa 10 10 Nursery Production at 800/acre (including 10% culling) transplants 24.000 24.000- 24,o00 Canital Costs: Extension of Elxisting Batika Nursery 2 acres Levelling and Terracing 2 2,000/acre 4 4 Fencing 2 3,500 n 7 7 Water Supply ' 2 12 12 Office/Store/Residence 600 ft. 1 80/ft. 48 48 Hand Tools and Sprayers 4 4 Jeep and Trailer, DFO Research I 100,000/Unit 100 100 Office Furniture, Scales, Calculator, and Measuring Equipment 12 12 Sub Totals 187 -187 OperatinR Casts Nursery seeds 3 3 3 9 Soil and Sand 2 2 2 6 Compost and Fertilizers 2 2 2 6 Pol ythene Tibes 2 2 2 6 Insecticides 1 1 1 3 Oxen hire 1 1 1 3 Tools maintenance 3 3 3 9 Z Nursery man no. 1 1 1 4,620/year 5 5 5 15 Casual Labor for nursery work, land > preparation, planting and tending man days 400 1,800 1,800 13/md 5 23 23 51 t4 Plant Transport 4 4 8 > Casual Labor for weeding and cleaning n n 300 600 n _ 4 8 12 zZ Casual Labor for Firebreaks and Tracks 60 60 n I 1 2 StaffsDFO Research (Fast Growing Species)Gd.j no. 1 1 1 32,750/year 33 33 33 99 Range Office (Research) n 16 " 1 1 1 19,000/ ' 19 19 19 57 oo Forester n 5 n 1 1 1 9,530/ " 10 10 10 30 Driver n 3 " 1 1 1 8,760/" 9 9 9 27 Jeep Running Costs, 15,000 miles/year 000 Miles 15 15 15 2/mile 30 30 30 90 Office Expenses and Buildings Mtce. 5 S4b To,.als Capita] + Operating T9 P A X I S T A N

HILL FARKING TECHNICAL DEVELOPMENT PROJECT D.t.ie, of lsical Recuirements and Costs (PRs.000)

Units Requirements (Years) Unit Coste Costs (Years) Total 1 2 3 PRe. 1 2 3

Trainine and Consultancies DFO (Fast Growing spp.) tY months 1 1 1 1,000/month 1 1 1 3 Forest Rangers and Dy. Rangers 6/ 5 5 5 B00 n . 4 4 12 Plantations Specialist/Oeneticiat W " 1 1 60,000 " 60 60 120 Sub Totals 65 5 65 135 Fueluwoo,/Pole Pilot Plantations Program a Bagh acres 150 375 375 Batika " 100 250 150 Hajira 150 375 375 Xotli 100 35 3-5 Totals 305 2a Nursery production at Boo/acre Transplants 400,000 1,000,000 1,000,000 Plus sales to farmers 200.000 200.000 200.000 Totals 600.000 1.200s000 1120.000 Capital Coats Extension of 1.5 acres tt sting nurseries at Bagh, Hajirs, Rotll Levelling, irrigation channels, seed beds and paths acres 4.5 2,000/acre 9 9 Fencing 2 4.5 3,500/ "2 26 16 Nursery Store/Range Office 500 ft. 3 80/ft 120 120 Tools and Equipment sets 3 3,000/set 9 9 Office Fumioture and Equipment sets 3 1,500/set 5 5 Motor Cycles 100 cch/l0 cc no. 4 8,000/unit 32 32 Sub Totals 191 3912

)X/ Research nursery and main trisls at Batika Forest; some field trials would be instituted in Mirpur division in years 2 or 3. The Batika (D nursery will also provide transplants for Batika pilot plantations. (See previous page) 11.) 2J/ Will provide technical supervision to pilot plantations and give in-service training at Batika nursery. Main office accommodation for DFO availab3e and suitable at Muzaffarabad Forest School. (See previous page) L/ In-service training at Hazara Forestry Project and P.F.I. "/ Using similar consultants servicing the Hazara Forestry Project. 3/ 81 x 8' spacing - 6 8 0/acre plus 20% beating up and culling. 397 Batika nursery capital costs included in Experimental Program. X P&KISTAN HIL'L FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Physical Recuirements and Costs (PRs.000)

Units Requirements (Years) Unit Costs Costs (Years) Total 1 2 3 PRa. 1 2 3

)Perating Costs of Four Production Nurseries: Seeds and Planting Stock 2 4 4 10 ?ertil izers tons 0.3 o.6 o.6 1,400/ton 1 1 1 3 Soil 65 130 130 50/ n 3 7 7 17 3and n 30 60 60 60 n 2 4 4 10 'ompost/Hanure n 7 14 14 300 " 2 4 4 10 Polythene Tubes (60% Production) 000 360 720 720 60/1,000 22 43 43 108 Insecticides 2 4 4 10 iire of Oxen, 20 140 days/year/nursery 80 160 160 35/day 3 6 6 15 iurserymen 4 4 4 4,900/year 20 20 20 60 Too] MMaintenance 2 4 4 10 casual labor at 7 man days/1,000 man days 4,200 8,400 8,400 13/md 55 109 109 273 Plantation Establishment Costs: land Preparation at 20 pits/man day n n 17,000 42,500 42,500 n n 221 553 553 1,327 Fencing, using local materials on 50% of area at 10 md/acre n " 2,500 6,250 6,250 n n 33 81 81 195 rransport of planting stock by hired trucks at 12,000 plants/day/truck truck days 30 75 300/day 9 23 23 55 Manual Transport of Seedlings at 300/md man days 1,133 2,800 2,800 13/md 15 36 36 87 Planting, 150 transplants/man day a n 2,266 5,660 5,6606 o 29 74 74 177 Replanting (Beating Up) 9 23 32 Weeding, Year 2, at 5md/aore h N 2,500 6,250 it n 33 81 114 Salaries, Forest Rangera ad.16 no. 2 2 2 19,000/year 38 38 38 114 , Deputy Rangers ad. 6 a 2 2 2 10,140/ " 20 20 20 60 P' ' t1' Foresters Od 5 3 3 3 9,530/ " 29 29 29 87 09 J t Muhafis (Guards) at 1/50 acres " 10 35 60 1,800 18 63 108 189 Z Motor Cycle Running Costs at 8,000 miles/year 000 miles 32 32 32 0.35/mile 1] 11 1) 33 Tools Maintenance and Replacement 10 20 20 50 Office Expenses and Bulldings Maintenance unit 4 4 4 1,500/unit 6 6 6 18 Sub Totals 03122-I391,664 Capital + Operating 744 1,202 1, 3o9 7Z33

Total Forestry Components 1,126 1,364 1,535 4,025 Co TIEHNICAL ANNEX 8 Tabl e 5

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Pre ininry Anr)IYsis to Indicate Profitability of Fuelvood P2 antations

2. 2// Net Net Tear Costs Benefits I Benefits II Benefit Benefit I II

2 1,300 (1,300) (1,300) 2 1s3070 ( 70) ( 70) 3 n 14 5nn 6 U n a 7 ,, n n 8 " 4, 300 n 9 ( 70) 10 " 2,500 11 n ( 70) n 12 n 13 U

15 U n n 16 n4, 300 n 27 U U~ ~~~~~~~~~( 70) 18 U n 19 20 2,500 n 21 22 * n H 23U H 23 4,3oo n n

25 U H 26 U 27 * U 28 U 29 * U 30 * 2,500 Internal Bate of Retur 8% 17%

I/ See project cost sheets:(a)Numery Transplants, PRes.130/ 800 - 1 acre plus estimated Capital Cost 70 2 (b)Plantations 9stabislent a .730/acre plus estimated Oapital Coats of roads(200), fire lines (20) staff housing/office(150) n 370 1.100 (a) + (b) 1,300 (c)Yearly maintenance, Muhafi (36) Supervision (14) Rood and Fire lines (20) 70 3 / Beefits

tioni Benefit I II Kstiated yeld: 100 -ft-7acre/year 120 W7tacreyjear Rotation length: 10 years x 3 rotations 8 years x 3 rotations Stumpage Val ue zt- . 8/YAInd at llarket FRs. 12/bd d at Market a* 4/ft-' a 6/ft' less 1.5/" logging + transport less 1:5/"ogging + transport

Revenue Stream t 100 ft3 x 10 years x PRs.2.5 120 ft 3 x 8 Years x PRs.4.5 - FRs. 2500 in year - PRs. 4300 in years 20, 20 and 30. 8, 16 and 24. TECHNICAL ANNEX 9

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

LIVESTOCK SECTOR

fDE2 Page No. A. Sector Backgrotmd General 1-2 Cattle 2-3 Buffaloes 3 Sheep and Goats 3_4 Poultry 4-5 The Nomadic Flocks 5 B. Animal Husbandry Department

Staffing and Organization 5 Veterinary Services and Disease Investigation 56 Breed Iprovement 6 Lachrat Government Sheep Farm 6-7 2UNDP Poultry Project 8-9 UNDP Livestock and Dairy Development Project 9 Other Schemes 9 Schemes proposed for the Fifth Six-Year Plan 9-10 C. Livestock Feed Balance and Potential for Increasing Feed Resources

Assessments of Overgrazing 11 Nutrient Requirements 11-12 Importance of Nomadic Flocks 12-13 Nutrient Availability 13-1 4 Conclusions 14 Potential for Increasing Feed Resources 15-16

D. Development Strategy

General 16-17 Increasing Animal Feed Resources 18 Breed Improvement of Cattle 18-19

TECHNICAI ANNEX 9

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT LIVESTOCK SECTOR

A. Sector Background

10 Livestock play a very important role in the economy of Azad Kashmir. In addition to being the sole source of draft power for seed-bed preparation, livestock rearing provides a cash income for almost all families, as well as being the source of milk, meat, eggs, manure, wool, and family insurance. Annual meat consumption averages about 5 kg/capita, of which about 65% is com- prised of cattle and buffalo beef, 30% of goat and sheep mutton and the balance of poultry meat. Annual per capita milk consumption is about 85 litres, of which 65 litres is derived from the buffalo herd. 1/ The estimated value of production of the livestock sector, based on farmgate prices, is approximately Rp 360 million (Table 1).

2. Although a livestock census was conducted in April 1976, the most recent census data available on livestock numbers in the State are from the 1972 Livestock Census of Pakistan. The livestock populations estimated in 1972 are outlined in detail in Table 2, and summarised below:

Cattle - 400,000 Buffaloes - 260,000 Sheep - 190,000 Goats - 390,000

In addition, there was a poultry population of about 750,000 birds, and small num- bers of horses, mules and camels.

30 Despite the importance of the sector, the genetic quality and the pro- ductivity of all classes of livestock are low: animals are generally of non- descript breeding, and are subject to considerable stress from nutritional defici- ency and disease incidence0 Approximately 70% of the feed requirements is derived from grazing of forest areas or cut grass hay (Table 13)o The balance is made up primarily of by-products from cropping activities: purposive fodder production is negligible0 4. The high livestock numbers and the lack of proper grazing control combine to create a serious and increasing problem of overgrazing in the State (para 47). While the problem is generally recognised, the solution is evasive, as many tech- nical and socio-political factors are involved0 Many measures will be necessary if the overgrazing problem is to be corrected in the future, These include:

(i) improving the efficiency of utilisation of feed resources;

(ii) exploiting the potential for increasing fodder production on cultivated areas;

1/ Mission estimates, derived from Table 1. TECHNICAI -AN1'1 9 Page 2

(iii) improving the productivity of the rangeland areas;

(iv) upgrading the productivity of the livestock kept;

(v) reducing or eliminating the goat population; and

(vi) reducing the number of animal units kept.

5. Cattle. The cattle population of approximately 400,000 is comprised almost entirely of small, non-descript village cattle, locally known as "t desil" cattle. These are usually kept in small units of 1-5 head. The number of cattle of recognized breeds is unknown, but is probably fewer than 10 , being mostly Dhanni-cross or purebred Dhanni, a popular draft breed from the northI.ern i>m j: A few Red Sindhi animals are kept for milk production.

6. The primary function of the cattle population is the provision of draft for ploughing purposes 0 There are about 165,000 adult working males which are used in pairs with a yoke harness and wooden tine plough. This number represents a ratio of one bullock pair to about 6 acres of cultivated land, an adequate ratio for the existing intensity of land use0 1/ However, because of the small size of farm, many farms have only one or no draft animals9 The ratio of bullock pairs to farm holdings is only 1:2.5., and thus farmers often depend on informal borrowing or hiring to meet their draft requirements. Cows are rarely used for draft purposes.

7. Mjilk, meat and manure are products of secondary importance: cows are kept primarily for the purposes of rearing more draft bullocks. Female calves not required for replacement purposes are therefore disposed of at the end of their dam's lactation, and female calf mortality is significantly higher than that for male calves, which are reared more carefully. This functional specialisation is reflected in the herd composition (Table 2), which indicates that adult males comprise 42% of the total herd, whereas adult females comprise 32%.

8. Cattle are grazed on common grazing land for most of the year. During the summer months, many are taken to alpine pastures at higher altitudes, and during the winter months in colder areas, cattle are housed indoors and fed pre- dominantly on hay and cereal residues0 In the southern areas (South Kotli and Mirpur Districts), fodder crops such as Egyptian Clover are commonly fed, together with some concentrates such as mustard seed cake and cottonseed cake.

90 In addition to nutritional stress, diseases such as roundworm, liverfluke, blackquarter and haemorragic septicaemia are common. Foot and mouth disease is present, but outbreaks are rare. No data on performance characteristics exist, but productivity is low and is probably considerably inferior to that of village herds iA Punjab province.

10. Neither cattle nor buffaloes are kept for meat production. Beef is a by-product obtained when animals are slaughtered after their useful life, and therefore tends to be tough and unpalatable. Mutton from sheep or goats is generally

1/ c.f. the ratio in the Punjab of one bullock pair for about 10 to 12 acres at prevailing cropping intensities of 110%. TECHNTICAI ANNE( 9 Page 3 preferred to beef as a meat. Slaughtering conditions in the village are uncontrolled. Slaughter-houses located in the towns are subject to a cursory veterinary inspection by the Department of Animal Husbandry, but hygenic con- ditions cannot be imposed due to the lack of appropriate legislation. Retail beef prices are fixed at Rp 5.6 per kg. 11. Buffaloes. The herd composition of the buffalo population reflects more functional specialisation than for cattle. Of the approximately 260,000 buffaloes, about 70% are mature females kept solely for milk production (Table 2). Most of the buffaloes are of non-descript "desi" type, with small frames, poor udder development, and low milk yield. Small numbers of an improved breed (Nili-Ravi) are present, usually purchased from markets in the Punjab. 12. Typically, a farm family would keep one or two buffalo cows with followers. Those in milk are stall fed, the diet consisting basically of roughage (cut hay and crop residues), with some grazing, Supplementation with 2-5 kg day of cottonseed cake is common for the higher yielding milkers. Milk surplus to family requirements is sold, or converted to ghee. Female calves are carefully looked after, but male calves are generally poorly fed and mortality amongst them is high. Few adult males are maintained: farmers pay a service charge of Rp 10-20 to those farmers keeping bulls.

13. As with cattle, nutritional and disease stresses limit the productivity of the herd. The disease pattern in buffaloes is similar to that for cattle, except that the incidence of haemorragic septicaemia is higher. No data are available on village production parameters, but performance levels are likely to be inferior to those for the Punjab. Tanner (1976, mimeographed paper) has esti- mated the annual milk production of a buffalo cow to be 1,290 liters in Mirpur district (one lactation per year), and only 330 liters in Muzaffarabad district (three lactations in five years). 14. With the present availability of animal feed, especially the low levels of good quality fodder, the buffalo appears to be the rational choice of animal to provide for the individual family's milk consumption requirements. The primary sources of feed available at present to most farmers during the winter months are low quality cut hay and cereal residues. Unlike a cow, a buffalo is able to produce about two-four liters of milk per day on su3h a high roughage, low protein diet.

Approximately 75% of the milk produced in the state at present is deri-ved from buffaloes (Table 1). Organized marketing exists only in the vicinity of the urban centers, where private traders colle-t and market the milk to local shops and hotels0 There is no control over milk quality, and adulteretion of milk is commonplace. The retail price of milk is fixed at Rp 2.8 per kg, although milk traded privately by farmers (and 'guaranteed" unadulterated) sells for up to Rp 4L4 per kg0 16. Sheep and Goats. Sheep and goats are usually kept in small, mixed flocks, and depend primarily upon grazing for their feed resources0 Most flocks are kept under a transhumant system, i.e., they are kept in valley areas for most of the year, but are herded to adjoining upland pastures during the summer months0 Some small household flocks of sheep are kept purely for fattening for sacrificial purposes. Both the sheep and goat populations are primarily composed of animals of non-descript breed: the sheep are small-framed with thin tails and coarse wool; the goats vary widely in body size and length of hair. Small numbers of distinct Page L breeds are present; in a remr7te northern area of the Neelum Valley, an indigenous -ne-wooleed sheep breed known as Kail is found, and highly prized by the local and nomadic shepherds; and in the southern part of the State, increasing numbers of the small bodied, prolific-breed-ng Teddy goats are kept0

17. Data on production parameters are lacking. However, lambing rates are thought to be about 80%, whereas kidding rates are higher because of a much greater incidence of twinning in the goat population. Sheep are usually shorn t-wice annually, and yield only 3-4 lbs of coarse wool per year. Wool is used for weaving of rugs and blankets in home-based cottage industries, for which brown and black fleeces are particularly prized. Goats are rarely shorn for hair, but are often milked for family consumption (one doe yielding up to 115 kg of milk per year in excess of kid requirements). Mature animals generally weight only about 27 kg liveweight.

1 80 Mortality rates are thought to be high (approximately 20% to one year of age), primarily because of the period of severe nutritional stress during the winter months. Disease problems are more severe in sheep, particularly internal parasites (such as liverfluke and lungworm) which have been shown in a survey to have a very high rate of incidence.

19, 7here is no formal marketing system: animals are sold to livestock traders in the village, who operate on a commission basis for local butchers or for the armry (which represents an unknown but very significant part of the local market). There is, however, some control over slaughtering conditions in the urban areas: butchers pav a nominal fee (PRs 0.50/animal) for slaughtering and dressing services in Council abattoir, Purchase price3 vary according to season, but generally are approximately PRs 5. per kg liveweight. Retail mutton prices ire fixed et. PRs 11.1 per kg.

20. AT current price Levels, farmers aplparently find it more profitable to keep goats rather than sheep, particularly as yields and quality of wocl are low, and goats have greater reproduztive efficiency, fewer disease problems, and the added benefit of 7ielding milk, 'he goats, however, because of their non-selective grazing habits, and particularly tr-eir darnage to tree seed'ings and shrubs, present a serious threat to the State's Lcres'. r-esorces. Previoilu- legislative attempts to eradicate the goat failed,f and the St-ate is fac-. -With a arery Tf ere problem.

*Ž10 Poultry. Poultry production in Azad Kashmir consists -almost entirely of village production using non-descript "'Desi" birds, which are kept in small flocks around most households under a scavenging no-cost system0 Commercial poultry production with caged birds and intensive management is limited to the overnment Poultry Farm in Muzaffarabad, and a few small private units in Kotli and Mirpur Districts.

22. The indigenous "Desi" fowl is a low producing bird, but is hardy and well adapted to the local village conditions0 Birds reach a liveweight of about 0,7 kg at three months, and females lay about h4 eggs per year. Both eggs and meat command high prices in the market: eggs, although small, sell] for Frs 0.5 each; birds are sold live for approximately PRs 12 per kg, A typical household flock consists of about five birds0 However, because of the well-dispersed pattern of settlement in the rural areas, the UNDP Poultry Advisor has estimated that the feed resources from scavenging around each household would support at least twice as many birds; the numbers currently kept are low primarily because of high mortalities from disease outbreaks. TECITNICGA AMIEX 9 Page 5

230 The disease of majcr irrportance in preventing a buildup in the poultrl- population is Newcastle Disease, which can be controlled only by regUiar vaccin- ation of birds three or four times a year. Other important disoa_es are Mareks_ Leucosis, Fowl Pox and Fowl Cholera, altuhough the incidence of these is not known, The Health Extension service of the Department of Animal Husbandry con- ducts a regular vacciration program, but the number of birds regularly covered Is prcbably less than 50,00O A recent UIDr Poultry Project (para 37) has as its major thrust the organization of an effective mass vaccination program ov-er the entire State.

24. The Nomadic Flocks, Twice each year, over 13000 nomadic families with their flocks of sheep and goats traverse the state on their way to and from summer grazing areas. The nomads, who are officially stateless (most having their origins in Indian-occupied Kashmir), spend the winter months in the cropping areas of the Punjab grazing stubbles and waste areas, and adjoining low-lying rangelands. They rnigratc annually to alpine pastures in the Northwest Frontier Province and Gqlgit Agency. En route, they pass through Azad Kashmir along well-defined corri- dors, which fan out from the river crossings over the Jhelum River, converge for a time along a corridor beside the Neelum Valley, then branch off in different directions to their remote destinations outside Azad Kashmir.

25o The exact number of nomadic animals is not knmwn, but is thought to total approximately 90,000 goats and 44,000 sheep. These are generally shepherded in flocks of 70 to 130 head. The animals are of high genetic quality, since the no- mads have been skilled practical animal breeders for generations. Their interaction with the local population is limited to purchase of Kail rams at premium prices, and to regular arrangements with particular farmers along the routes, who allowJ the flocks to camp overnight on their fields in return for the benefits from the manure deposited. The movement and grazing habits of the nomads are not subject to any control. While the impact cf their grazing on the State as a whole is insignificant, t,e lcc'Lized effect of the hi&h grazing pressures alcng the corrid]ors (para jo)is a significant factor contributing to overgrazing and erosion, and preventing regeneration of forests.

P. The Anirra2 Nusb4ndiry Depari.ment 3taI fing _ nd Orcanizatcr

26. The Ani!ma] Huband: De,rtrnet (L., is currently in a period of expansicn and reorga.n zaticn, with-1 a large recen't expansion in para-professional staff (Veterinary Dispensers), and a planned expansion of staff for the U1D? Poultry Pircect (para 40). The present technical staffing strength and organi- sationa) structure of the department are shown in Table 3. and the major furctions undertaken by it are discussed below0

27 ~ Veterinary Services and Disease Investigaticn. The main work of the Department. is in disease control and health services, including preventative and curative work. Assistant Directors, each responsible for cne of the fcar districts, report directly to the Director. The field staff work from a number of veterinary hospitals (3), dispensaries (L3'}, mobije dispensaries (?), and First Aid Centers (60), distributed quite evenly throughout the State. HospitalS and dispensaries are staffed by Veteirinary Surgeons or Veterinary Assistant Surgeons, withl five years' trbainirg ;(DVIM) at. lahore University, and stock assistants or veterinary compounders wi1h ar1o years' .rainrng provlded by the AND at its headquarters in iluzaffarabad. T Trz i-T'.`PL A_TPNEX Page

28. The level of protective coverage for the main diseasec of eatt`e and buffaloes is only about 1C?1,4 and for other classes of stock -t mllucm. less (Table 4)0 Coverage is limited because of the lack of vehicles. .`f'ieulty of access, and supply of drugs and chemicals. The ratic of profes-s-c.na staff tc. livestcck population is about 1:27,000 and of professional staf.. i.csub-professional

personnel, about 1:3 (both ratics are approximately the same as J'cr .rnijao provin.re)>

29. There is no organized reporting system to assess the erudenifo2ogy of each disease, nor to ensure a regular coverage of individual vi.: g Howe-'ev,o. the field staff generally spend a fair proportion of their time ir! ;7Lltge visi.'Os, are quick, tc respon(d to disease outbreaks (with the assistance cf tMe! mobile dispensaries), and are com tantly seught after for curative trea .meent of individual animals. All vaccines and treatments are supplied free of charge tn the farmer0

30. The work of the Health Extensicn Service is supported by tPhe Disease Investigation Laboratory in Muzaffara.bad, staffed by a Disease Investigaticn Cfficer, Research Officer, and supporting staff of Research Officer, Research Assistant and four Laboratory A.ssistants. This laboratory provides a diagnosis service to the veterinary hospitals, snd undertakes disease survey work.

Breed Improvement

31. "Breeding Centers"0 The extensicn work in livestock produlction has been confir.ed almost entirely tc a breed improvement program involving the dis- tributicn of improved bulls, rams, bucks and st;Mlions. Each animal rlaced in a village is referred to as a "breeding nenter". Anirvals are prnoided' free to selected custodian farmers, who are provided with rmaintenarce allowanc-er (PRs 1CC per morth for bul2s, ERs 20 per month for rams an-] bucks, FIRs 200 per month for hcrse stallions, and PlRs 300 per month for donkey stallions), and are expected tc nake the animals available to surrounding farmers without service fees, and to maintain records of matings and births. The centers are visited regularly by veterinary extension staff, and provided with full health coverage. Although breeding center establishmenit has been undertaken by the department since 19h8, the number of animals distributed and the impact on the livestock population have -eern mrninm.'i (Table 5)Q At present. '0 bulls, 31 buffaloes, 32 rams and a few s-tallions and bucks are being maintained as breeding centers: the average number of births recorded per center Fer year is 1lL, 19 and 23 for cattle, buffalo and sheep centers respectively. In each case, the number of improved progern resulting from the breeding center program each is less than 0O4% of the total population.

32. Lachrat Government Sheep 2arm. The sheep farrm wac established by the department in 1960, with the objective of undertaking breeding research, and producing improved fine wool rams for distribution to farmers. The farm is situated on a 500 acre site in a chir-pine forest zone in the Neelun Valley. Tn 1970, administration of the farm was transferred to the Forestry Department, although technical responsibility for management of the flock and breeding program remains with the Animal Husbandry Department. The breeding program of the farm has been devoted to the development of a fine wool sheep adapted to the local conditions. After some small-scale experimentation, a program crossing import.ed Rambouillet rams with local Kail ewes was begun, with the progern being backerossed twice to Rambouillet to produce the "Topcross" ram for distribution, as follows: TECHNICAI ANNEX 9 Page 7

K:a ewe x .iambouillet ram -- > Fl

-I ewe x Rambouillet ram Eo Backcross

Backcross ewe x Hambouillet ram ? Topcross.

Early indications of Topcross performances (Table 6) (based on very _rall samples) were encouraging: average fleece yield of greasy wool was about llbs(c.f.Kail, h lbs), live weight of ewes was about 80 lbs at 18 months c.f. Kail, 5o), and fiber diameter of the fleece was 19. micron (c.f. Kail, 32) However, the early promise of the program has not subsequently been borne out: the breeding program, for a number of technical and administrative reasons, has been little more than a holding operation. Lambing percentages have not reached more than 63%, and the overall h year average is less than 50%; and mortality rates of young and adult stock have been consistently over 10%. As a result of these poor performances, the culling rate has been necessarily low (less than 5%), and the nucleus of breeding ewes has been able to do little else but replace itself. After 15 years of breeding, a total of 8 active Topcross rams has been bred, and an output capacity of approximately 12 rams per year reached. Details of the Flock Register for recent years are shown in Table 7. 34lv The output of the breeding program has been disappointing and the quality of stock and performance characteristics appear to be well below early expectations 0 The original stock of 6 Rambouillet rams purchased from Punjab province has declined to 2 active rams, and no new Rambouillet blood has been added to the system. 1/ The stock of Kail ewes was supplemented in 1974, but many ewes were not purebred and progeny are not breeding true to Kail characteristics. Scanty data on yields of greasy wool from the flock indicate average performances well below the somewhat idealised projections summarized in Table 6. No evaluation of the impact of the few rams distributed has been made, to judge whether a measurable increase in productivity results from the crossing of a "Topcross" ram with the local"Desill ewe. 35. One of the principal reasons for the poor performance of the Government Sheep Farm is the total unsuitability of the site, which is essentially a mature chir pine forest with a cold aspect and inadequate grazing area. Until last year, no timber clearing or pasture improvement work had been carried out, as the area was subject to forestry regulations0 In addition, the joint administrative arrange- ment has not proved satisfactory: since 1973, no professional officer of the Animal Husbandry Department has been stationed at the farm, and the breeding program has been left entirely in the hands of a senior stock assistant with minimal technical supervision.

36. The sheep farm has thus minimal value as a base for developing a sheep improvement program in the State: any breed improvement program, therefore, will have to rely on imported genetic material (whether as semen or purchased rams).

1/ The quality and genetic purity of the original rams is believed to have been poor. 5-IFCMCAL ANNEX 9 Page 7

37. UNDP Pouitry Project. A three-year UNDP project 1/ was initiated in December 1976, covering the four provinces of Pakistan and Azad Kashmir. The project was preceded in Azad Kashmir and the Punjab by a twelve-month "preparatory phaseW. The project is focussed kqpon the village scavenger chickens, with the following objectives:

(a) to provide mass prophylactic vaccination to all village scavenger birds against contagious diseases;

(b) to establish the most suitable type of chicken and feed supplements for different ruiral areas;

(c) to provide villagers with improved poultry stock; and

(d) to train school children and villagers in improved poultry husbandry systems.

38. The project is expected to benefit almost all rural families in Azad Kashmir over the three-year period, by doubling the production of poultry meat and eggs. This would be achieved primriarily by lowering the presently high mortality rates through vaccination and the introduction of elementary management practices. Promotion of supplemental feeding practices and the appropriate type of bird for village conditions would also increase the productivity of each bird kept. The preject, with its emphasis on preventative health treatment and widespread coverage based on maximum local participation, should provide the department with valuable experience in methods to extend the health coverage of other classes of stock.

390 A summary of the znrcject costings 2/ over the three-year period is shown below: JN DP Goverrment 'otal Project 0ontribution Contribution Costs Usslooc.--- C . Poultry specialist 3/ 15,, - 15.5 Local staff -2, Vehicles and imported equip. 11,0 11.0 Local supplies and equipment - 14.9 i 14.9 Land and premises - -3,.8 23.8 Training 0A4 1%5 1%9 Miscellaneous 8 - 0.8

27.7 63.0 90.7

1/ "Coordinated National Program for the Development of Rural Poultry", PAK/74/067/A/01/120

2/ Derived from the "PC-1" Preparation Document submitted by the Animal Husbandry Department,

3/ Includes support personnel and internal travel. TECHNIGAL ANNEX 9 Page 9

0 . The project will place heavy demands on the technical staff resources of Animal Husbandry Department: it. is articipated that when fully urnderway, 24 graduate staff and 161 staff of grade 5 and 8 status would be involved in the pro- ject (excluding non-technical staff requirements). The prcnect includes, therefore, extensive provision for staff training, including short-term coLrses at the Poultry Research Institute in Karachi, training of matriculants to Stock Assistant level in Muzaffarabad, and the provision of refresher training courses to staff at each of the four district headquarters. A resident FAO Poultry Husbandry Specialist is ,provided under the project and is in the post.

41o UNDP Livestock and Dairy Development Project. Under a separate UNDP financed program 1/, the AHD has available the services of a resident FAO Animal Husbandry Specialist. The three-year national program provides FAO advisory staff in all four provinces ard Azad Kashmir, and a Chief Advisor to the National Livestock Development Committee in Islamabad. Provision is also made for 36 man- months of consultancies as and when required, and for overseas study tours for twelve senior officers. The objectives of the project include, inter alia, assistance to the provincial and Azad Kashmir governments in:

(a) preparing coordinated livestock and dairy development plans;

(b) improving the marketing of livestock products;

(c) promoting milk and meat production by improved management, feeding and health control and forage crop production;

(d) training of livestock and dairy development staff at all levels; and

(e) identification and preparation of investment programs in the livestock sector.

42. Other schemes. Two other small program are presently being undertaken by the AHD. One is a scheme for improving the Muizaffarabad milk supply, which invclves the provision of Government subsidies to assist farmers in the vicinity of Mazaffarabad to purchase improved cattle or buffalo cows. They are then provided extension advice and veterinary services to enable them to supply milk to the urban market. The other is a pilot scheme for promoting sheep production in the Neelum Valley, involving extension advice and government subsidy for the establishment of 50 small (4O-ewe) sheep farms.

43. Ongoing and NewJ Schemes proposed for the Fifth Six-Year Plan. Ongoing sch;emes (totalling P s 1223 million) still in the development budget of the depart- ment and to be continued imder the Fifth Six-Year rlan (1977-83) include the following:

1/ Coordinated National Program for Livestock and Dairy Deve2onnent", PAK/714/01 8/A/'01 /1 92 TECHTICAI ANNE( 9 Page 10

Scheme Estimated cost, 1977-83 (PRs million) (a) Comprehensive Animal Health Scheme 2.9 (bj Improvement of m4uzaffarabad milk supply 0.6 (~) Improvement of Government Poultry Farm 0.6 (d) Pilot scheme for increased sheep production 0.5 (e) UNDP Poultry Project 8.2 1/ 12.8

4L0 New schemes tentatively proposed by the AHD for inclusion in the fifth six-year plan give recognition to the neglect of production-oriented activity in the past. The suggested programs (totalling PRs 640 9 million) are as follows:

Scheme Estimated cost, 1977-83 (IRs million)

(a) Training of AHD personnel 2.5 (b) Creation of Planning Cell in AHD 1.0 (c) Improvement of urban milk supplies 9.0 (d) Survey and Control of Parasites in Livestock and Poultry . 0 (e) Improvement of livestock with "breeding centers" 6.0 (f) Artificial Insemination Scheme 5.o (g) Investigation into fodder production 2.5 (h) Central Investigation Station at Muzaffarabad 0 (i) Livestock sub-stations at Mirpur and Panjera 6.0 (j) Miscellaneous and World Bank/FAO assisted schemes 23.0

640 9

45. The budgetary allocation to the AHD for the Fifth Six-year plan had not been determined at the time of the appraisal mission. However, there is a possi- bility that the full amount requested, based on the abova schemes and estimated costs, would not be allocated. In this event, the AHD would need to revise the proposals and determine those priority proposals which should be undertaken during the plan period.

C. Livestock Feed Balance and Potential for Increasing Feed Resources

46. Because of the chronic shortage of livestock feed and its severe impact on the productivity of the livestock population, an attempt has been made to assess the overall feed balance situation in the State. The objectives of the exercise were as f(loWS:

(a) to indicate the major sources of animal feed under current mana- gement practices;

(b) to assess the relative importance of the migratory nomadic flocks;

1/ Includes the equivalent of PRs 2.8 million in foreign exchange which is to be provided by MNDP. TECHNICAL ANNEX 9 Page 11

(c) to assess the distribution of existing feed resources between the different classes of stock.

47. Assessments of Overgrazing. The deleterious impact of overgrazing on the forest resources of the State has long been recognized. In a chapter of the book, "Forests of India", the grazing of both buffaloes and goats is referred to as the Kashmir Forest Department's number one problem. In a graphic description, the devastating impact of overgrazing on the Jammu foothills is described: 1/

"One hundred years ago this part of the State was densely wooded; it was shown on the earlier survey sheets as forest. But by the early part of the present century, little of this remained. Natural vegetation, with the exception of useless shrubs, which even goats will not eat, had been destroyed. Springs had dried up, ravines had formed, and cultivation had been destroyed by spates 2/ from the hills. In fact, in many places the people were already finding it difficult to obtain a livelihood for themselves or grazing for their half-starved cattle."

48. The depletion of forest resources in the State, of course, results as much from population pressure and the attendant illicit tree falling, as from overgrazing effects. Nevertheless, the State appears to be facing a serious deterioration of its land resource base., and the impact of the high livestock numbers (particularly goats) is highly significant. A more recent assessment of the effect of overgrazing 3/ is that the grazing capacity of the Neelum Valley area has been reduced by 7'-90% of their potential productive capacity: "where one acre could support a sheep, 4-10 acres are required now for the same purpose."

49. Nutrient requirements. The annual nutrient requirements of the State's livestock population (Table b) and the nomadic flocks (Table 9) were estimated by the mission. The per head requirements of Total Digestible Nutrients (TDN) and Digestible Protein (DP) used for each class of livestock were extracted from the 1974 FAO/World Bank Iivestock Sector Survey, and are considered to be conservative, and appropriate for small animals with low levels of productivity. These per head requirements were applied to the 1972 Livestock Census of Pakistan figures, although projections of inter-censal growth rates suggest that the present livestock popu- lation may be somewhat higher.

50. The annual nutrient requirements of the livestock population (Tables 8 and 9) are summarized below:

1/ Forests of India, 1925-1947, Sir Harry Champion, OUP, 1962, Po4 18o 2/ torrents of water

3/ Project Proposal for Neelum Valley Rangelaid Scheme, prepared in 1970 for the Fourth Five Year Plan by the Forestry Department. TECHNICAI ANNEX 9 Page 12

Tal DP

'000 tons 10o00 tons _

Cattle 456.6 47 L6.5 46 Buffaloes 393.8 41 42.7 43 Sheep 31.2 3 2.9 3 Goats 66.3 7 5.8 6 Other 12.2 1 1.2 1 Nomadic flocks 7.6 1 0.7 1

Total requirements 967.7 100 99.3 100

51. Importance of nomadic flocks. The above table indicates that the impact of the nomadic flocks is negligible in terms of the overall livestock feed requirements of the livestock population. Their localised impact along the traditional stock routes or corridors, and in particular the Neelum Valley corridor, is assessed roughly below:

(i) Impact on all corridors. There are approximately 300 miles of nomadic stock routes within Azad Kashmir. Allowing a corridor -width of 1 mile, this repre- sents an affected area of 300 square miles, or 192,000 acres. This in turn represents 192 000 or 7' of total area of state. 7 t376 160 To compare the relative importance of the nomadic flocks to local livestock population in these corridors, the nutrient requirements of the nomadic flocks (over a period of four months, Table 13) are compared below with those of the local livestock in those areas, estimated pro rata from the area, i.e., 7% of the total livestock population's requirements. TDi DP ___.____'000 tons … State livestock population's requirements (Table 8) 960 99

Requirements of local livestock in corridors (7T) 67.2 K2

Requirements of nomadic flocks (Table 9) 7.6 0.7

Total requirements in corridors (local and nomadic) 74.8 7.6

Proportion of nomadic to total requirements in corridors (M) 10 9.2"o

(ii) Impact on Neelum Valley Corridor. The longest route (riollar, Kotli, Bagh, Dhani, Sharda, Kail, and Helmet) is approximately 150 miles in length; the shortest route (Ullan, Muzaffarabad, Dhani, and Sharda) is about 85 miles0 For the purposes of' the exercise, average distance traversed is assumed to be 120 miles each way. The NeelumIlalley corridor, through which every route passes, is approximately 45 mi'es long; therefare, on TECMNICA! TNNEYX 9 Page 13

average each individual flock spends 45/120 (40Q) of its total traveling time in the Neelum Valley, The nomadic flocks nutrient requirements in the Neelum Valley corridor are therefore approximately [0% of the total nomadic requirements. The area of Neelum Valley corridor (45 square miles, represents 1% of the total area of the state, and therefore the local live- stock population's nutrient requirements are approximately 10 of the state's total. Thus, the nutrient requirements of the nomadic flocks are compared with those of the local livestock population below: TDN Do -___'000 tons----

State livestock population's requirements (Table 8) 960 99

Pequirements of local livestock in Neelum Valley corridor (1') 9.6 0.99

Requirements of nomadic flocks while in Neelum Valley corridor (4hO% of total) 3 0 0.3

Total requirements in corridor (local andl nomadic) 1206 1.29

Proportion of nomadic to total requirements in Neelun Valley corridor (%) 24% 23%

52. Nutrient Availability. Estimation of the total nutrient availability from various sources of feed within the State is a far more provisional exercise. Table 10 outlines a tentative breakdown of the total larnd area into the relevant land-use categories: forest (commercial and non-commercial.); cualtivated, fallow and non-arable farm areas; and non-farm areas (11shanlat", residential and waste area)0 Tables 11 and 12 outline the estimated unit nutrient availability from various cropland and rangeland sources, respectively.

53. By applying the appropriate factors to the areas under each land-use category, a rough breakdow,n of the total nutr-ent availability from each source was derived and shown in Table 13, Th-s tahle is summarized below,, and compared with the estimated total nutrient requirements. Page Ih

TDN DP '000 tons S '060 tons T 'COO0 tons Forest area, grazed 550 60 130O" 64

Cultivated area, crop by-products and fodder wheat 212 24 15.9 16

Uncultivated and on-farm area, cut hay 126 13 12.6 13

Concentrates 25 3 7.' 7

Estimated total availability 918 100 100.7 100

Estimated total requirements (para 49) 968 99

Difference::C,

5h. The degree of overgrazing of the rangeland areas cannot be directly quantified from the livestock feed balance model. 1/ Since the feed requirements estimate is considered to be conservative (para 49), and the actual level of productivity of the rangelands is probably below the estimated poLential r&:ic i- vity (as a result of overgrazing), the difference between theoretical nutrient requirements and availability is conceivably much greater than the 51 calculated above. Substantive differences could only be interpreted as indicating unreliable data, or extreme morbidity and low performance of the livestock population0

55. Conclusions. The above analyses provide support for the following general conclusions:

(i) the cattle and buffalo populations together constitute the source of nearly ninety percent of the total demand for livestock feed resources;

(ii) the impact of the nomadic flocks is confined to localised corridors; in the Neelum Valley corridor, their annual demand for feed resources approaches one-fourth that of the local livestock potOu- lation; and

(iii) the single most important source of livestock feed is grazing of the forest areas, which accounts for an estimated 60-65% of the total nutrient availability. 2/

1/ This would require substantial time-series data on the dry matter productivity and carrying capacity for representative sites.

2/ The potential level of productivity of these rangeland areas has been estimated very crudely from scanty data from the adjoining Hazara District, and after making several simplifying assumptions (Table 12). However, the model developed is extremely sensitive to the parameters applied to this land-use category. TECHNICAL ANNEX 9 Page 15

56. Potential for Increasing Feed Resources. While there is some potential for increasing the productivity of the dominant feed resource, the forest areas, there are many formidable technical and institutional factors to be first overcome. On the other hand, there is considerable potential for rapid increases in fodder production on the areas under control of the individual farmers, both cultivated and non-cultivated. A brief outline of the expected potential for each category of land resource is given below:

(a) Forest areas/rangeland. The Forestry Department, under its iXeelum Valley Rangeland Scheme for the Fourth Five-Year Plan, attempted an ambitious program of developing four rangeland areas totaling 12,000 acres. The range improvement practices were to include resting of over-grazed areas, weed eradication, artificial seeding of denuded areas, improvement, of livestock watering facilities, fencing of demonstration areas, nursery and demonstra- tion areas, nursery and demonstration plots, and control of public grazing in project areas. The mission was not able to assess the impact of the project, as the summer pasture areas were snow-covered. However, the nursery plcts examined appeare&' to have been abandoned, and reports of progress in other aspects of the scheme were disappointing. Strong resistance from the local population was encountered, since the attempt at institating grazing control in the areas apparently infringed on the traditiona' rights of access to grazing in the forest areas. Since the main- tenance of even the nirsent levels of productivity of the forest areas is dependent upon the rationalization of the grazing mana- gement, considerable efforts must be devoted to educating and involving the local people in th,e preservaticn ol their oat resource. In addition, the base of techlnical kncwledge neePds to,. be expanded, to ascertain approriate management practices fcr each area;

(b) Area under grair crops. Maize stcie-r clirrently represents aboat, 15% of total available TDM, ancl 11;1i of total a'-_ilable Digestible Protein. Wiith the increases in maize yields anticipated as a result cf the agricultural program, the amcunt of stover avJ,la,b.e for feeding to livestock will increase considerably. There is considerable scope for improving the utilization of this resource, by introducing chopping or chaffing and feeding in troughs. Simple techniques of silage making from stover and bean stalks using supplementation with molasses and urea could be devised that are appropriate for the individual farmer (a si-ilar techniqlue using cane-tops ensiled in plastic bags is being developed in Mauritis>'. Similar potential exists for improving the utilizatic'n of straw from wheat and millet crops. Summer-growing legumes (peas, beans, lab-lab bean, etc.' could be intrcduced in rotation wi Elcereal cropping;

(c) Area under wheat for fodder. The 'catch as catch can" systerm of producing wheat for fodder as a second option for an lznsucr:essful wheat crop leaves considerable scope for rationalization. 3y TECBNICAL ANNEX 9 Page 16

developing cultivation techniques and wheat varieties to achieve more reliable grain yields, and by introducing varie- ties of winter fodder crop (especially oats), farmers could be given the option of planting both grain and fodder crops to follow their maize. Oats is particularly suited for use as a fodder cereal, as it can be cut several times during the winter season, and still, if required, be grown out for grain;

(d) Area under rice cultivation. All irrigable areas currently sown to rice during the kharif (summer) season could be sown to an irrigated fcdder legume during winter. Isolated small patches are alreqdv evident with "berseemn" (Trifolium alexandrium) and "Shaftal" (Trifolium resupination) being the most common: most stands inspected, however, looked very poor, which suggests that there is considerable scope for improving cultivation and irrigatiorn techniques, as well as increasing the area under cu'Jt-T,t:on. The appropriate species for each situation must be de.ermireci: e.g., lucerne (IMedicago sativa) grown as an annual on heavy souls cArn often outyield berseem;

(e) Areas under teng-term fallow. Arable areas not. used fcr cropping ;-irF currerift:T _left wider native vcunteer grasses, all of which :ire summer-gro-wing and dormant during winter. There is great potentiatl for sowing these areas to appropriate mixes of summer an-' winter orotwing past.ure species, with a legume base. The land vtus under pasture could significantly increase the fodder pro- ducticn on those areas (which are subject to grazing control as they are part of individual farms), and at the same time serve as a "pasture ley" phase in a long-term rotation. The few nursery trials conducted under the Range Management Scheme in Muzaffarabad District have demonstrated the ready adaptability of several exotic pasture species (perennial ryegrass, cocksfoot, white clover, lucerne and vetch); and

(f) "'-hamlat" anci non-arable farm areas, Areas currently cut for hay, and grazed heavily during winter, can also be made more pro- ductive by developing management systems including grazing control and improved hay-making, preserving and feeding techniques. There is also scope for introduction of exotic legumes and browse shrubs.

D. Development Strategy

57. The primary work of the Animal Husbandry Department has historically been that of a veterinary service, providing diagnosis and clinical services to the State's livestcck. Almost all professional and semi-professional staff have basic training and orientation in veterinary medicine rather than in animal hus- bandry, with the result that in the past, livestock production and development programs have been neglected in favour of clinical and regulatory functions. The Department has, however, moved strongly in recent years to reorientate their dev- elopment program towards production activities, as is evidenced by the ongoing TECHNTICAL,ANEX 9 Pagye 17

Poultry Project (para 37), the appointment of an FAO Animal Husbandry Advisor (para il1) and the developrnent schemes proposed for incl usionn 'n `.he Fifth Six- Year Plan (para 41) 0 To effectively implement these producticn-oriented pro-ams, the AID has recognised the need to develop a cadre cf technical staff with specific training ir animal husbandry and livestockm producticn techniques, rather than veterinary medicine. The training sub-component of the proposed Technical Develop- ment Project would support the AHD's for strengthening their staff comrlenent with staff having graduate and certifi(ate-level traiLning in arimal husbandry (Technical Annex 10, para 21).

58. The future development work of the AND would be greatlly facilitated by the reorganization of the department along functional lines, tc include a specific Livestock Development Division. A decision is pending on an applicaticn madie by the AHD for approval tc formally reorganize the department into the fcolowing divisions:

(a) Veterinary Division, whose function would be to proiLde continued clinical and diagnostic services through the network of reterinary hospitals and dispensaries;

(b) Disease Investigaticn Divisicn, whose funcLtiicns would be to provtide labc,rt:,orv services to other divisions, and also to under- tal•e researrh i.to im.prCoved methols of disease control;

(c) Poultry Development Division, which would be concerned with the implementation cf the UNDP F-oultry Proiect. ancl subsecuent. poultry development. work; and

(d) Livestock Deve]cpment Division, which would undep1 .ake livestock development, activities in--,Kuding breed .mnro fodierder:er:, utili- sation trials, and other proluction.-criented prcgracri.

59. The Department shcnld focus its limited resources on areas of priorit,y for developmernt, rather than att.empt to -a:Idert,ake the broad spectru'.t of actiP .- s represented by the tentative proposalc submitted for the iric7usicn a.n the Piflt,h Six-Year Plan Ipae.p hL> T:icrity areas identifiec in aiscu.ssions ;etw-wen tvhe AIM, FAC Advisors and tre miss-ion ircluded tltry de,.-elopment, -irrrovin- Techniinues of fodder utilisation, and the genet.ic improvement c: :he cattle populaticn. Some priority is also attached by Department to the improvement cf the urbar. milk supply and the developmenrt of the sheep industry in the Neelum Valley. With the excepticn of the ongoing pCul-try project, th.ese developmental activities will recquire an initial period of staff development, field experimentation, and pi0ot program work before large scale programs can be initiated.

6o, fc complement the ongoing An, and UNDP prograns, the proposed Technical Deve'cpment Project would provide assistance to the AID in imrroving thne efficiency of fcdder uti2isat ion in the State, andc undertakiJrc breed i:m,roi-ement activities a2rred at, the intrcduction of dual-purpose cattle breeds. It is anticipated that during the three-year pro4,ect, technical informtk-ionr and fJiel.d experience gained with pilot programs wiJ1 er.able the preparatiron of more extensive livestcck pro- duct'ion prograrz. cr a follol-up project. TECHNIGAL AITNEX 9 Page 18

61. Increasing animal feed resources. Despite the difficulties inherent in quantifying the severity of the overgrazing in the State (para 5h), obser- vations on the low productivity and general morbidity of the livestock population (particularly in the wviiiter months) suggest that the lack of sufficient grazing and fodder resources represents the single most important constraint on the productivity of the livestock population. Attempts to upgrade the genetic potential of the livestock through breed improvement would be futile unless accompanied by significant improvements in the fodder resource base to enable genetic potential to be expressed.

62¢ Responsibilities in the area of development of the fodder resource base under the project would be shared between the Department of Agriculture and the AHD. Technical Annex 2 describes the fodder production trials which would be undertaken by the Department of Agriculture on each of the proposed Experimental! Demonstration farms. These would both include the development of fodder crops for cultivation in arable areas, and the introduction of perennial pasture species for long-term fallow and non-arable farm areas. The AX41would focus on development of techniques of improved fodder utilization, including more efficient use of grass hay and crop residues, production of silage, the use of mineral blocks and other feed supplements, and improved management practices for the proper adjustment of animal feed rations. Details are presented in TechniclJ. Annex 10.

63. Breed Improvement of Cattle. The cattle and buffaao populations accourt for rearly ninety percent of the pressure of animal grazing on tl-e States limited feed resources (para 55). However, because of the traditional practice cf keeping two separate herds for specialised functions (cattle for draft purposes and buffa- loes for milk production), there exists the potential for achieving significant reductions in grazing pressure through the introduction of dual-purpose cattle. The present "two-herd" system could thereby be largely rerlaced with a single herd of improved cattle providing both draft and milk requirements.

64. The introduction of such a rationalised herd structure wouad require a long-tarm program of genetic improvement of the indigenous cattle, accompanied by major improvements in the availability of good quality feed (especially in the winter months) and in standards of animal management and veterinary care. Without these parallel improvements in the resource base and managerial levels, individual farmers are unlikely to be convinced of the superiority of any improved dual-purpcse breed, since with the existing feed-base of poor quality roughage, buffaloes are definitely superior in milk production to local or improved cattle (para 14)0 Additional constraints to the early response of farmers to a change in their present practices are the farmer's scepticism regarding the utility of crossbred cattle for draft purposes, and their preference for buffalo milk with its high butterfat content.

65. Experience elsewhere in the subcontinent suggest that the milk production of indigenous cattle can be lifted dramatically by cross-breeding with exotic milk breeds such as Jersey, Friesian or Brown Swiss. Experience with the draft performance of the cross-bred bullocks has been generally satisfactory when used in plains agriculture. The objective of breed improvement of the indigenous desi cattle in Azad Kashmir is, therefore, to significantly raise the milk pro- duction of the cows to a noint where buffaloes need not be kept, while retaining in the cross-bred bullocks a satisfactory level of draft performance under hilly conditions. TECHNICAL AIRhE( 9 Page 19

66. The breed improvement subcomponent of the proposed project would initiate a pilot program designed to test the practicability of extending the use of artificial insemination to a significant part of the State including the hilly areas, and to identify a suitable dairy breed which, when crossed with the indigenous cattle, would produce progeny with the required characteristics. Details are presented in Technical Annex 10O PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Estimated Value of Production, Livestock Sector Estimated Total value Value to at farmgate Product Cattle Buffaloes Sheep Goats Poultry Total Producer ('000 PRs)

Beef (tons) 2,850 1/ 2,700 2/ - - - 555 PRs 4.4/kg 3/ 24,1400

Mutton (tons) - - 820 l4/ 1,970 5/ - 2,790 PRs 8.9/kg 6/ 214,800

Poultry (tons - - - - 760 7/ 760 PRs 12/kg 9, 100 liveweight)

Milk (tons) 36,550 8/ 108,990 9/ _ _ - 145,5L40 Plls 2/kg 291,100

Eggs ('000) - - - - 11,1400 10/ 11,1400 PRs 005/egg 5,700

Wool (tons) - - 250 11/ - - 250 PRs 16/kg 14,000

Hair (tons) - - - 80 12/ _ 80 PRs 5/kg 1400

TOTAL 359,500 13/

Source: Bank mission estimates derived from 1972 census data shown in Table 2, and the assumptions shown in the footnotes. Livestock products consuned on the Farm valued at Farmgate prices.

1/ Estimated 8% offtake, av. carcass weight of 90 kg. (1/3 of offtake is young stock). T/ Estimated 15% offtake, av. carcass weight of 70 kg. (4/5 of offtake is young stock). 3~/ Estimated producer price of PRs 2/kg liveweight; average dressing out percentage of 15%. T/ Estimated 140% offtake, av. carcass weight of 11 kg. §/ Estimated 50% offtake, av. carcass weight of 10 kg. 6/ Estimated producer price of PfRs 4/kg livewieight; average dressing out percentage of 45%.-. t 7/ Estimated 60,g extraction rate, av. live weight of 1.7 kg. i '3/ Average lactation yield of 500 kg. 9/ Average lactation yield of 900 kg0 :> To/ Average 40 eggs per year per layer; 38% of flock are layers. IT/ Average 1.5 kg wool per adult sheep. P5 T5/ Average 0.5 kg hair per adult goat, hair taken from 50, of adults. T5/ The estimated value of production is very sensitive to the assumed farmgate price for milk. At PRs 2/kg, the value of rmilk represents 81% of the total value of production. \0 TECHNICAL ANNEX 9

Table 2 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Livestock Census I92 Ltvestoek EMulaton and composition, from I7 Pakistan Au&d Musatf- lrr ibad Poonch -aldstan

Cave, aoqw 3 vrs., In|',1Zk ' 73.1 18 27.4 20 29.4 20.14 16.3 144 ,0{ 9.5 8.6 Cove, S5.3 14 27.8 20 18.0 12.6

10 2,070 17 calvaudn 49.3 12 19.3 J1J 18.8 13 11.2 65.9 57 5,530 4&5 alma, over 3 yra. 165.2 42 39.6 29 59.7 41 1a 1.900 15 Wes, ild*2 3 yt. __.6 14 21.9 16 . 13 . TOL 396.5 136.0 95.4 U15.2 12,JSO

Cove,in o±3iover 3 yra.,. 121.1 47 17.2 h o0 46.4 47 57.4 49 tf,500 47 1¢7 ove 3o 26 20.2 17 Codrs GyS 3 Cma,~~~~~~~~~~~~~~~~~~~60.4 23 15.5 35 24.6

' Heifer% aM* feale 29.7 24 2,800 29.5 a lves 60.8 23 9.1 21 22.1 23 0.7 1 1,300 13.5 Hole, ovr 3 My . 2.1 1 o.6 1 0.9 1 3 lo.h S 1,000 10 Holes, uer 3 yr. .6 6 I. 3 239 TOTAL 259.0 43.? 96.9 1l8.L 9,600

42.6 65 Fwwals, over 1 7r. 136.2 73 45.1 79 48.4 75 16.!z 25 Male, over I yr. 28.9 16 5.1 9 7.1 '2 mouns,under 1 yr. 21.4 1 6.6 12 8.6 13 6.3 la TOTLW 186.5 56.8 64.1 65.3 -_ _

?emala, over I 7r. 303-0 77 55.4 77 62.5 73 185.3 78 15.3 7 Maleo over1 yr. 29.1 7 5.9 a 7*9 9 15 loa=, mnier 1 yr. 62.1 16 10.6 15 3 18 1C.1 TOM 391..2 71.9 85.7 236.7

2a1.7 23,500 Poultry - 7ho.0 2J 154.9 311.5 1,961 Dtonkeys 21.14 0.6 0.8 20.0 Horass 3.7 2.0 0.7 1.0 1 0.9eesO-S 0.3 0.3 0.3 790 UaeI3 3.0 0.5 0.0 2.5 2CTAL

±itc two separata ±3a-ricta. .aTh eerT-a #at tak" r,5-cr 'O tts 1t-.slon of -xur or. The Animal Husoandry Department estimated t.hs total poultry poruj to be 2.6 millio in 97t7 -.- ; -kRMING IECHNICAL DEVELOPMENT PROJECT 1977) Animal Husbandry e-za-rmen.: 3ummary of Technical Staff by Grade and Function (January

Disease Salary Adminis- Veterinary Services Invest. .'ther xrades 1 6+ Grades 5 Scale tration H Mtbad Mrpur Kotli Poonch 1 1 19 Director 1 Deputy Director 1 18 1 1 Disease Lnvestigation Cfiicer 18 1 1 Livestoci Officer 17 1 1 17 Sheep Development Officer 1 1 1 1 4 17 Assistant Director 1 16 Veterinary As3t. Surgeon/ 1 Store Officer 23 Surgeon 6 3 7 16 Veterinary Asst. 1 Farm 1 16 MLnager, Poultry 1 16 Research Assistant 5 17 8 Veterinary Assistant 3 6 2 1 35 3 4 122 5 Stock Assistant 29 29 22 3 139 TOTALS 174 rGRAND TOCTAL

>4 TECHNICAL ANNEX 9 PAKISTAN Table 4

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Veterinary Services Activity. 197 -75

Muzaffarabad Mirpur Poonch Kotli. Total

Treatment3

Contagious 10,507 9,418 8,930 4,805 33,660

Non-contagious 75,766 57,1410 69,890 329506 335,572

Castrations 1,031 4i9467 69900 1,892 14, 290

Vaccinations

Haetorragic 9,736 28,796 32,513 15,518 86,v563 Septicaemia

Blackquarte- 14,300 11,620 38,343 12,678 76,91,

Ranekit (Ne'cas_le 76,449 103,339 64,908 24,124 268,820 Disease)

Fowl Pox 5,500 10,400 5,039 1,313 22,252

Spirochetosis 2,100 7,400 - 2,700 12,200

Rabies 21 16 - 6 43

Fowl Cholera 80 - 2,300 600 2,980

Enterotomemia - 7,680 - - 7,680

Pleuropneumonia 10,500 200 630 - 11,330

Rinderpest 810 3,000 - - 3,810 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Livestock Breeding Centers

1. Bulls and Stallions iio. of Centers No. ofMatins Recorded No. of Births Recorded March 1976 Av.70/71-74/75 Total, 5 yr.±Av./Center/yro T Cattle 50 1/ 61 9,754 32 4,391 14.4

Buffaloes 31 29 5,948 40 2,010 18.6

florses 2 3 284 19 57 3.8

Donkeys 1 1 428 86 161 32.2

2. Rams and Bucks 1973-74 1974-75 No. orf N. of Matings births Centers Matings Births Centers Matings Births Av./Centerfyr. Av.1Center/yr.

Raims 12 1i87 318 13 314 287 30.8 23.3

Bucks (Angora) - - 7 66 87 9.4 12.4

1/ 19 red Sindhi bulls and 31 Dhanni bulls. PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT Lachrat Uovernment Sheen Faz m, Indicati7e Performance -Characteristics

1. Breed liveweiZhts and :wool Yields

'Weaning Adult Weight Greasy Wool BiSthweight Weight (128 months) Yield (lb.) (lb.) (lb.) (lb.)

Rambouillet male 10.5 45 135 11 female 8.5 35 100 8.5 Kail male 5.5 30 70 4-5

female 4.5 20 50 3.2

Fl male 7.0 35 80 7.0 female 6.0 30 65 5.3 Backoross male 7.8 4o 90 8.0

female 6.8 35 75 7.0

Topeross male 8.3 42 100 8.8 (proiected) female 7.3 38 82 7.3

2. Breed Fleece Characteristics Tube Wcol Fibre Diam. Krimps Fibre Count microns ner inch (J) Rambouill et 70's 18 15-17 96 Kail NA/A 32 5 63

Fl 60's 21 12 88

Topcross N/A 19.5 12 N/A

I/ The data supplied to the -ission were computed in 1973 on the basiz of very small numbe-s of animals, and are not considered reliable.

Note: N/A: Not Available TE;CMICAL ANNEX. PUSAIS Tabl

#ILL FARMING TECHNICAL DEVELOPMENT PROJECT

0 * @Dj_vWW, r*?2

I9 0 3t40k ca hand, R6 3 4 3 0 16 26 T7 85 a 0 133 PA ws 1I. 1 5 T 0 1 foes" ism 2 o a 29

1L- stook f an a,m 6 1 1 . 0 9 (1wa 3372) on"_10 386 17 0 129 USU2-Mbe 0 0 1 12 0 23 rma3alambs 0 0 23 14 0 27

9n S ockaak or h,rn 8 o0 3 IL 0 23 Lua-ob 373) Own 6 6072 n0 a 165 wa2sI -. 0 1 3 20 0 2h fr1.1abs 0 2 2 21 0 25 ama d±,tx±bdtM 0 0 6 1. 0 II CiusoIA 3 6 13 4 0 26

1071..is2 3tSon band, rTs 7 0 3 2 21 aeu 6 57 6 44 3 177 2aimba 1 I 10 13 6 33. f.m*1_ba 2 2 15 21 5 45 3.ind3s~1.but.d 0 0 6 20 0 26 Cial Sold - 14

197L-L9?~Stock a d, rau 6 0 2 1 7 16 (=h~ 3375) 1/ _o 6 2.1668 62 6 258 uslIab. 1 5 14 20 10 50 rainla1u 0 3 30 13 7 53 asfllributa4 0 0 10 11 0 21

Colzeaold- - . - __

1.97-1976 Sttock on had, ram 5 5 O 1. 2 35 (Mth 1976) W^, IL lo4 71 s9 2.0 252 ma2siambs 0 1 12 16 16 14 'mla1axb9 I. 0 21 22 1.5 5 'a d>buted 0 0 15 0 2 17 veo -,r1Z. 1975) Cu1. S,ol 2 10 0 0 23 (to Apr%l 197i) *ZL6t 'U,2 JO int9 )S( AT'r

0 c,ra Jo N _sm.~ Z-c*6 T rC'9c U37PtrdOd x o'aT7

2'C 2 90P0 06'0 COEm

?0 9-0 L0*0 CLIO 6,o COD 5'z L'OOC 0*0 IL,I , 900 r.9 0 oo TIM

Lao rg r o r ragOm*;

90 L9 mUoo czDo r6 J r 5'1 tl 5%15a*O Lro o-coc i . 'em, & OD

E(0 92 ZD-0 EraO£Tt

5'0 919 O0'0 cZo 6o9z J '1 si I o0z g8r 6s'mo 9tO *.&o I'ST-I nd

T'*OToo 'rsL'to Tro s,W@t roTEll tW_&t*PM 'iny"Wm zm1O 5'in9-j.j ro irt a-~~~tco"ro U@1I1-5 r jtD _9

Lac ?OK tgo-o WSo 0109 jomImv

r4 o-16 wso gri ri w %MD'mo

sq 9*0 90O 0 s 0.0 Soo Oro W! 3ub s rCi C*59 'rro LVIT rvc ktw.ms 'WSTL s.-t C

rg z,, Tro 16,0 ossA llf S o orT C.9g sro grt rcL 3mm U aIr R=

_ /aubq/u

01f0aao~ nIWqdIRA3 'xIVOINHaZ ONIWSA TImE a.T@ , 6 viX2N; TECHNICAL ANNEX 9 PAKISTAN1 Table 9

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Nutrients and Nutrient requirements of nomadic flocks: Total Digestible Digestible Protein

Goats Sheen l44,ooo Approximate numbers in nomadic flock (head) 90,000 0.17 of TDN (ton TDN/head/yearY 0.17 Annual requirement 1/ 0.015 0.015 Annual requirement of DP (ton DPAead/year7 .057 .057 Requirement of rDN during 4-month period (ton/head) .005 Requirement of DP during 4-month period (ton/head) *005

2,500 TOTAL TDN requirement (ton TDN)- 5,130 220 ,OTAL DP requirement (ton DP) 450

Total nomadic flock requ±rements TDN ('000 tons) : 7.6

DP ('00O tons) : 0.7 (Table ) % of total state livestock nutrient requirements TDN 0.8%

DP 0.7%

Table after totaling I/ Annual requirements per head are derived from total n'.Mber of requirements for each class of stock and dividing by the of nomadic aninals; the implicit assumption is that the herd composition flocks. flocks does not differ greatly from that of the state Azad Kashmir in transit 2/ Assuming flocks spend on average 4 months in

to and from the northern summer Dastures. TECHNICAL ANNEX 9 PAKISTANg- Table 10 HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Provisional Breakdown of .=ad Kas~ir Tota Atrea, bty Land-Jse Cate7o~r 5acress

OUTSIDE LNSIDE TEHSIL TEESIL SUB- XLANDOA'G0Y AfMINISThATION A2IISTRATIOTI TOTAL T0TAL

Forest commerical 322,000 322,000

1/ 1,120,925 I.,442,9 2 5 non-commercial 688,111 432,81l

Farm Area cultivated 497,773 497,773 2/ 00 100 short-term fallow 10,000 10,000 long-term fallow 60,000 60,00

137,937 137,937 705,,710 non-arable

Non-Farm 4/ Area "Ishamlat' 324,325 324,325

residential 30, 000 30,coo wate area -373,200 373,200 727,525 (inc. river beds, etc.)

TOTAL AREA (acres) 1,010,111 1,366,049 2,876,160

Primary source: 1972 Azad Kashmir T-hsil Censuso

1/ Notional, arrived at by difference between total area reported under control of Forest Department (1,442,925 acres) and area of State outside tehsil administra- tion (1,010,111 acres)..

2/ Land in fallow for up to 2 years, estimated at 2% of cultivated area (based on 1972 Pakistan censua data).

3/ Land in falloi for more than 2 years ("culturable wasteland"), estimated at 12c of cuiltivated area (based on 1972 Pakistan cenwas data). hLund,ienerilly uncultivated, owned Jointly by a number of families; area shcn is notional, arr4lred at by difference between total area under tehs4l admir.istration and other categories. 51 Arpro-miiation cased on estimate of 10 fni-iao per ac:e fo! residential niul-oocc. 6/ Est;Lnated at a notional 200 of area unde- tehsil administration. TECHNICAL ANNEX 9 PAKISTAN Table 11

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Estimated Unit Nutrient Availability from Cropland Sources of Feed SUPply and Concentrates Fed

SCURtImZ $ VT .7zL-ITt AS5'TIONS

F.-Lize Grai ziald 575 lb. gran/aToga±m:straw-l:4

Wei3ht of stovser (DM) 2,300 lb/ac TEN * 40

MN y±8ld (stosrer) 920 lb. TN/ac DP . 3%

3P yield (stover) 70 lb. DP/ac

'lheat fcr ___a__l_ Grain yflds 560 lb. grain/ac

Weight of wheat straw (DM) 700 lb./ac &ra±n:strawwl:l.25

TDN yield (wheat straw ) 340 lb. T*N/ac =1 - M2

DP yie3d (wheat stray) 20 lb. P/ao DP 3;

Wheat for fodder YiedJ green matter 2,500 lb./ac

Yield dry matter 625 lb/ac O4 - 25;Z

MN yield 300 lb. 31N/ac TVI -a,*

DP yIe 20 lb. DP/ac -p. 3%

Millet Grain yield 820 lb. grain/ac

WJeight of millet straw 3,280 lb./ac &rain:s-traw-1:4

MN yield (millet straw) 1,310 lb. TOM/ac TDUN. 40*

BP 7yield (millst straw) 100 lb. OP/ac P . 3% ~.ce Grain yield 1,080 lb./ac graina3trzwl1:1.25

Weight of paddy straw (OH) 1,350 lb./ac Y * 38%

TEN yild (paddy straw) :.olb. TON/ac IP *4

OP yield 50 lb. OP/ac_

onccntratcc DOrr natter of ccttonseel 36,000 tons OH total concentrates caza equivalent fed fed equivalent to 2 kz./day =,I fed armually 25,200 tons '-N cottonseed fad to 50c of bu!!aloes in DP fed ann;uaJr 7,200 tons ;P milk for 300 das:r-/ TON>= 7C@,

1/ Using tdis asxsiipt'on, the calculated arounts of rDTN and OP fed represent res-ectt7el-: L4 and *5'of the total Tr2 and DP :iutrient a'7ailsa-il4ty. This is rouX--. cons.ztent with the equivralent provortions for ?skc-stan as a whole (0,. and 12.5 s den7ed fron 'he F.,O/,io:lc Bank Tivestcz:k Sector Sz=se;, 197L. PAKISTAN TECHICAL AME:TaR HILL FARMING TECHNICAL DEVELOPMENT PROJECT

34t! ated USit Nutrient Wvtilaoillt-' from flrasslatnd Sources of ?"d Sugn,ly

As ,stions

To estimate roughly the current product'vity of the forest and

grassland areas of the State, the folloWing simplifying aaasmptions have been

mades

(i) Forest grazing is confined to non-comrcia forests,

which are aeied to have a canopy cover of less than 56c.

(1U) All non-commrcial forest grasses are grazed, not cut for

hay, whereas all grassland under private and communal

owmership is cut for hay and not grazed (these asaunptiona

determine the levels of TDN and DP applied to each

category). t ±4_ ) Dry-matter productivity estimated includes grass herbage and

shrub herbage bowsed by soats.

(lr) Dry-matter productivit7 of uncultivated farm areas and

"shamlat" areas is equivalent to that of the non-commercial

forest areas.

(v) Under grazing, TDI - 50% and DP oof dry matter yiell,

whereas under a system of cuttire hay, TDN - 30% and DP - 3%.

Losses incurred durilng handling of hay are 20o.

Forest Grazing Potential Zcne 'roductivity % of Total (lb. !z/ac) Forest .4rea Subtropical subhumid 500

Subtropical hwaid 2,000 35

Temperate humid and 2,500 37 sub-alpine Zstinated Actual Dr7 Matter Productivity: 2,200 lb. M/ac (of forest area as a whole)

TN yield 1,100 lb.T=V/ac

DP ,1ield 130 lt.DP/ac

Cut Hay

Dry ?Xatter ?roductivity 2,20c lb.

2DN yieli (&fter losses) : 50 lb.lT:l/ac

DP yield (after losses) : 3 1b.P/3C

1 Derived fet= 'Range Yanage-rect in Hazara District", M.J.F.?.,M. .-.war iEn., jme 1971. TjCHNICAL ANINEX 9 PAK I5.'T Table 13

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

t,utz-int .AvailaoiU>t-: Te'l Di-eei.1' a

.utr-artaJnts `7b-o9?te4 :

Zsr,aL.atad =.I ?odution DP Produztitn A/ lb.-- ;er rIJu vlbper _ _ tonz ' ('Coo aes.) _ze t^ns

550553 600 130 55.' > FOFns- non-ccrmar,2ial, 1,120 1,100 43s; grazed

70 C 1 ^C1 LmI7ATD maize, sto"vr 350 920 TLh 15 20 1-3 1 i.deat for grain, 150 3ho 23 ' st.raE 2 20 1.3 -. heaa for foddar 150 300 20 3 100 1.8 2 miilet str 1,2:0 2h 5 0.6 1 riep straw 25j6 ' :~ _.:c_ z <: c_7 . ,. _5~~~~~~:.9 uA;;rLz I- FZA 7ATED - 53 °- I sncrt-le--m a&uvow 10 2,07 53 1-4 I .ong-tenrm faiwm, 60 530 4 1 c:.;t ha:, 53 3*3 3 non-ara 1e, 13a 530 3'

3 ?7 - 53 77 .A4E'A 4'shar-aw" 324 530

25 2 - 7.2 ' 3= coCton seed caks _ - sequir3aent c. C0.7 i TOTAL (eCO) tons) TDN: 9_

See Table 14 TECHNICAL ANN 10 Page 1

PAKISTN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Fodder Utilization. Breed Imvrovement. and Animal HishandrY Training

BackEod

1,e The Animal Husbandry Department (AMD) is at present in a state of uncertainty with respect to its directorship which is filled by an assistant director on additional charge, and a requested reorganization pending approval. Implementation of the project components proposed for the livestock sector would be greatly facilitated by the creation of a separate Livestock Production Division fTechnical Annex 9, para 58).

2. The UNDP Poultry Project, right3y accorded high priority by the Department, is making substantial demands on the manpower resources of the AHD (Technical Annex 9, para 40). After due allowance foa the continuation of the State's veterinary services, the residual manpower available for deployment in livestock production programs is very limited. However, the Department has available the services of a resident FAO Advisor in Animal Husbandry, and the AHD and FAQ have confirmed that he would be able to participate in the super- vision of the livestock components which are proposed for the project.

3. Two priority livestock production activities (see Technical Annex 9, pam 59) are proposed for financing under the project together with provision for training of additional manpower in animal husbandry. These activities are:

(i) fodder utilisation trials: the development of fodder conser- vation and feeding technologies; and (ii) breed improvment: the genetic improvement of the indigenous cattle for use as dual purpose animals.

Fodder Utiliszation

4. The estimated contribution of total digestible nutrients and digest- ible protein from various sourCes within the State are as follows (Technical Annex 9, para 50): Total Digestible

Grazing of forest area 60% 6 4% Crop residues, including very limited fodder production 24% 16% Hay froa uncultivated farm areas 13% 13% Concentrates 3% 7% 100% 100% TECHNICAL ANNEX 10 Page 2

While grazing of the forest areas currently constitutes the most important sour(e of nutrients for livestock, there is potential for a significant increase in both the area uneer fodder crops and permanent pasture (see Technical Annex 9, para. 5), and the efficiency of utilization of the exist- ing fodder resources. At present, grass i'ay is customarily cut well after full flowering, resulting in p{or nutrient quality; hay storage techniques are primitive and result in further significant losses of both quantity and quality; crop residues are fed uncut and wastage due to trampling is high; mineral supplementation is rare, and little knowledge of ration adjustment for different classes and age of stock is in evidence. Techniques to improve fod- der utilization are well established, and include improved haymaking and storage, silage production, chaffing of crop residues, and feed supplementa- tion (with minerals, urea and molasses). Such techniques, however, have not been introduced into Azad Kashmir, and they would need to be adapted to suit the conditions and resource constraints of the local farmers.

5. The project would finance the appointment of a Livestock Officer (Fodder) of Grade 17 level, and equip him to undertake an intensive program of technique adaptation and carefully monitored demonstration. The program would be confined in the first year to trials in one area (probably Dhanna, 26 miles from Muzaffarabad 1/). In the third year, activities would be directed to promotion of tested techniques in areas surrounding the proposed Experimental/Demonstration farms (Technical Annex 2).

6. In the area selected, the Livestock Officer (Fodder) would recruit approximately 30 farmers willing to participate in the program of the trials. 2/ The trials would consist of two phases: the testing of fodder conservation methods (hay and silage), and the subsequent testing of feeding techniques with the sanie group of farmers. The participating farmers would be divided into six groups of approximately equal size. Corservation techniques tested would include the following, together with any additional techniques devised by AHD:

(i) traditional havmaking and storing (control); (ii) traditional haymaking with improved storage; (iii) improved haymaking with improved storage; (iv) silage making using a bunker silo; (v) silage making using pit silos; and (vi) silage making using plastic bags. 3/

1/ It is anticipated that this area woulid also be selected for the initial phase of the breed improvement program (para. 13). 2/ Approximately 90 cattle ane 60 buffaioes should thus be included. 3/ The use of plastic bags would enable the testing of silage making, using combinations of variotus levels of nat:''.e grass, green fodder, maize stover, legume residue and urea/molcsses supplementation. TECHNICAL ANNEX 10 Page 3 7. Subsequently, the farmers would be appropriately subdivided into groups for trials of feeding techniques, including the use of simple feeding troughs, chaffing of rations, and provision of water troughs, mineral supple- ments and concentrates. Details of the techniques to be used would be finalized by the AHD in consultation with the FAO Livestock Advisor, and would be predominantly determined by the local availability of materials and labor. Techniques to be tested in the area in the second year would be devised on the basis of results in the first year.

8. Each activity would be carefully monitored as to physical requirements and costs (labor and cash inputs). The benefits, in terms of additional nutrients made available to the livestock fed, would be assessed by measuring total output from each technique and analyzing samples of feed for dry matter and crude protein content.

9. Based on the findings of the trials in the first and second years, the Livestock Officer (Fodder) would undertake promotional activities in the third year in the vicinity of the four Experimental/Demonstration farms proposed for the project. He would liaise closely in this work with the Department of Agriculture staff on the farms, especially the Agricultural Assistants (fodder). The primary objective of the promotional activity would be to assess the response of farmers to the improved techniques.

10. The Livestock Officer (Fodder) would be provided with the necessary field equipment, office, simple laboratory and laboratory equipment for dry matter analysis, 1/ and a motorcycle for day-to-day supervision. He would be assisted by two stock assistants residing in the area selected for trials. A four-wheel drive jeep and trailer would also be provided. It would be assigned to the Livestock Development Officer of the AHD, but would be available to the Livestock Officer (Fodder) whenever required for transport of materials and equipment. Details of physical requirements and costs are shown in Table 1, and a job description for the Livestock Officer (Fodder) is attached as Appendix 1.

11. The Livestock Officer (Fodder) would be directly responsible to the Livestock Development Officer of the AHD, and through him and the Director of the AHD, to the Project Director. He would work closely with the FAO Livestock Advisor on technical matters.

12. The Livestock Development Officer would supervise and support the activities of the Livestock Officer (Fodder), in addition to the breed improve- ment activities financed by the proposed project, and for these purposes he would be provided a vehicle (para. 10). He would also be responsible for the preparation of a livestock component of a follow-up project, for which purpose he would be responsible to the Project Director.

Breed Improvement

13. Cattle and buffaloes are presently kept for specialized functions (Technical Annex 9, paras. 6 and 11). Cattle are kept primarily for draft purposes, since the draft performance of the castrated bullocks is adequate, but the milk production of the cows is very poor. Buffaloes, on the other hand, are able to produce adequate quantities of high butterfat milk on a high roughage diet (which is the type of fodder resource available to most farmers), but are unsuitable for draft purposes in hill country because of their large size and ungainly gait. Under the present resource endowments of the typical farmer, therefore, the "two-herd" system is rational from the individual farmer's point

1/ Crude protein analyses would be performed using spectrophotometric equipment proposed for the soil testing laboratory, or by sending milled samples to laboratories elsewhere for analysis. TECHNICAL ANNEX 10 Page h of view; it does, however, necessitate the maintenance of many more animals than should be required. Since the cattle and buffalo populations together represent nearly 90% of the total demand for livestock feed resources in the State (Technical Annex 9, para 54), replacing the "two-herd" system with a single dual purpose herd would significantly lower the intense grazing pres- sure on the limited land resource of the State.

14. The most likely method of achieving this would be the genetic improvement of the local "desi" cattle, by cross-breeding with an improved dairy breed. If this is accompanied by a simultaneous improvement in the availability of better quality fodder (through increased fodder production and improved fodder utilization), the farmer's resource endowment would be sufficiently altered to induce them to replace buffaloes with crossbred cows with equal or greater milk production.

15. The proposed project would finance the development of improved fod- der production (Technical Annex 2, para 14) and better fodder utilization (para 4 above). A program for genetic improvement of cattle, however, is necessarily long-term in nature and poses two primary questions which need resolution before a long term strategy for genetic improvement of cattle could be devised. These are:

(i) the extent to which an artificial insemination program can effectively reach large numbers of farmers in the hill regions, and therefore the appropriate balance between Al and natural service required; and

(ii) the choice of improved dairy breed(s) which, when ossed with the local desi cows, will produce cross-bred progeny with suf- ficiently high draft and milk performance to induce farmers to change their traditional "two-herd" ownership pattern.

16. The successful introduction of an artificial insemination program in the hilly areas will require the solution of many practical difficulties. These include:

(i) the scattered settlement pattern and small numbers of animals per family;

(ii) mountainous topography making regular access difficult;

(iii) resistance of local religious leaders (inmans) to the use of AI;

(iv) the occurrence of pronounced breeding seasons (March/April and Sertember/October) limiting AI eOffttivens to these periods;

(v) the difficulty of heat detection in local desi cows under nutritional stress; and

(vi) the current lack of experienced inseminators and AI equipment in the State. TECHNICAL ANNEX 10 Page 5

It is anticipated, however, that these difficulties can be overcome in the following ways:

(i) initial choice of areas with a relatively high density of cattle;

(ii) initial choice of accessible villages in the vicinity of established veterinary hospitals and dispensaries close to HMzaffarabad;

(iii) the program would be operated intensively only during the breeding seasons, with the objective of providing a daily AI service at the village level during these periods;

(iv) village livestock owners would receive training in oestrous detection, and would be encouraged to be vigilant in watching for signs of its onset; and

(v) village livestock owners would receive training in artificial insemination techniques by arrangement with an appropriate institution in Punjab province (e.g. the Punjab Livestock and Dairy Development Board).

170 The project would finance the initiation of an Al program in the State, including the costs of training of inseminators; semen importation; purchase of liquid nitrogen containers and insemination equipment; a vehicle to facilitate supervision and the regular supply of liquid nitrogen; and operating costs for the duration of the project. The AI program would be designed to test the practicability of the long-term expansion of AI services in the hilly areas of the State. In the course of the program, semen of proven quality dairy type bulls would be imported and used, including Jersey, Brown Swiss and other small breeds which have proven dairy merit, suitable characteristics for draft purposes, and would be capable of adaptation to a mountainous grazing environment. The project would also include provision for the importation of a number of bulls of breeds having the above characteristics, to enable:

(i) the testing of breeds for which semen is not readily available; and (ii) the testing of the "breeding center" approach in an inaccessible area unsuited to AI service.

180 The program would be administered by a newly appointed Livestock Production Officer (Grade 16), who would be directly responsible to the Livestock Development Officer of the AHD, and through him and the Director of the AHD, to the Project Manager. He would work closely with the FAO Livestock Advisor on technical matters. TECHNICAL ANNEX 10 Page 6

19. Detailed proposals for the design and scope of the breed improvement subcomponent, the staff and equipment requirements, and the type of semen and bulls to be imported would be repared by the Animal Husbandry Department with the assistance of FAO. These would be submitted to the Association for approval before disbursement against project activities for this sub-component. The estimated cost of the proposed breed improvement program (Table 2) is PRs 770,000 (US$77,000); Schedule 6 outlines (for indicative purposes only) the likely pbysical requirements and costs of the program.

20. The Animal Husbandry Department would closely monitor the costs and evaluate the impact of the pilot AI program, and of any bulls which might be imported under the project. The evaluation of these specific project activities would be preceded by an exercise in evaluation of the impact of the breed improvement activities already undertaken in the State. Specifically, the 19 Red Sindhi "breeding centers" maintained over the past decade would be visited, and the traceable results recorded in a systematic format by officers of the Department. The format for data collection would be designed by the Livestock Development Officer in the Department, with the assistance of the FAO Advisor, and would cover the following aspects:

(i) the performance of the distributed Red Sindhi bulls with respect to number of progeny, longevity of service life, disease incidence, etc;

(ii) the breed characteristics of the crossbred progeny;

(iii) the levels of feeding and health control prevailing in each recorded situation;

(iv) the milk and draf-t power performance of the Fl and F7KY progeny compared with local "desi" animals;

(v) the response of local farmers to the improved genetic potential, in terms of preferred use of the exotic bull, castration of "desill bulls, improved management and feeding of crossbred progeny, etc;

(vi) the breeding history of the herd in the locality in the absence of control, i.e. whether the farmers have attempted to maintain 50/50 blood lines, have progressively upgraded progeny towards exotic blood, or have allowed the breed characteristics to dissipate; and

(vii) farmer attitudes as to the utility of the crossbred progeny for milk and draft purposes.

3/ Fl and F2: First and second filial generations, respectively. TZCHkIICkL ANNEX 10 Page 7

210 All animls Judged to be of at least 50% exotic blood would be tagged and registered to allow further sonitoring of performance. A represen- tative sample of animals would be subjeoted to supervised testa of mling and draft performance. 22. A cadre of graduates and field assistants with trainin in Animal Husbandry will be required to conduct an expanded livestock developent program (Technical Annex 9, para 57). Provision is therfore made to finance two strems of training:

(i) three studftb per year wold be funded to undertake the four-year B.Sc. (Animal Husbandry) course at Lysllpur University. The first three students would graduate in 1981; and (ii) five Iivestock Assistants would be trained each year in aix-month courses in Animal Husbandry conducted by the University of ly&lpur. 23. Funding of the training costs would be conditional upon a bonding arrmngmnt being agreed upon, whereby a student is obliged to serve in Azad Kashmir flloUwing graduation for a period equal to the legth of training ("year for year bonding"). Costs of the training sub-component SLtio outJ in Table 2.

P A K I S T A N HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Physical Requirements and Costs (PRa.OOO)

Units Requirements (Years) Unit Costs Costs (Years) Total 1 2 3 PRa. 1 2 3

LIVESTOCK FODDER UTILIZATION TRIALS Capital Costs 2 26 Office, 40/ 260 sq. ft. unit 1 100/ft 2 26 18 Laboratory, 0 25 sq. ft. unit 1 80/ft 18 4 Office Furniture Al/ set 1 4,100/set 4 Laboratory Fy1iture set 1 6,000/set 6 6 Drying oven 41/ unit 1 24,000/unit 24 24 Other laboratory equipment - 1 2 2 Vehicles: Jeep SWB with trailer unit 1 100,000/unit 100 100 8 Motor Cycle, 100 cc. unit 1 8,100/ " 8 Field Equipment: Tarpaulines unit 2 2 1,000/ " 2 2 4 Bunker-type si)y7 unit 1 1 2,000/ " 2 2 4 Miscellaneous - set 1 14,000/set 14 14 Sub-Totals 206 4 210 Operation Costs 4 Staff salaries Livestock Officer, Gd.17 no. 1 1 1 23,730/year 24 24 24 72 69 Livestock Assistant Gd. 8 no. 2 2 2 11,440/ " 23 23 23 18 Junior Clark Gd. 5 no. 1 1 1 5,930/" 6 6 6 27 Driver Gd. 3 no. 1 1 1 8,760/" 9 9 9 15 Peon Gd. 1 no. 1 1 1 4,620/" 5 5 5 6 0 tx1 Casual Labor nanm3/ days 150 150 150 13/day 2 2 2 C mater atis unit 1 1 1 6,000/unit 6 6 6 18 r Laboratory Z Office expenses set 1 1 1 3,100/set 3 3 3 9 m C0 Field expenses ut0 Polythene bags unit 100 10 1 1 Urea bag 20 20 10 50 1 1 1 3 60 Molasses and mineral blocks 20 20 20 Vehicle operation 16 48 Jeep 000 miles 8 8 8 2.0/mile 16 16 Motor Cycle 000 miles 10 10 10 0.35/mile 4 4 4 12 119 358 Sub-Totals 120 119 Totals, Capital + operating 326 123 119 568 40/ Office for Livestock Officer (Gd.17) @ 160 sq.ft. plus office for clerk @ 100 sq.ft. 41/ See Schedule 5. 42/ Approximately 12 cubic feet capacity. 43/ Glassware. chemicals, bags, twine, maintenance and sundry expenses (lump sum provision), rEcHNICAL ANNEX 10 TA-E, 1 Schedule 5

PAKI STAN

Fodder Utilization Trials

Details of Furniture, Equipment and Office Expenses

Item Un.i t Cost No. Total Cost PaS) (PRa)

Office Furniture Wooden chairs 100 4 400 Office desk, iron 800 1 800 Office tables, wooden 500 2 1,000 Office chair 200 1 200 Filing cabinet, iron 500 1 500 Cupboard, wooden 200 1 200 Miscellaneous - - 1,000

Total 4.100

Laboratory Furniture Benches 500 2 1,000 Tables 500 2 1,000 Shelving - - 2,000 Sink and fittings 2,000 1 2,000

Total 6,ooo

Other Laboratory Equipment Grinder 500 1 500 Balance 1,000 1 1,000 Calculator 300 1 _ 00

Total 1,800

Miscellaneous Field Equipment Silo pits 500 2 1,000 Pitchforks 20 3 60 Shovels 20 3 60 Wooden feeding troughs 100 20 2,000 Spring ba1ances (assorted) 3,000 Molasses sprayer 1,000 1 1,000 Ear tags 4 200 800 Tagging clamps 150 2 300 Fodder Choppers 2,000 2 4,000 Miscellaneous 1,780 Total 14,000 Annual Office Expenses PRs per Year Heating 320 Stationery 1,200 Postage 50 Maintenance 1,030 Other, incl. sweeper ,00

Total 3,100 PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of PbMsical Rquirements and Co;st (YRs.000)

Units RequirementB (Years) Unit Costs Costs (Year.) ToW 1 2 3 PR,. 1 2 3 oa

LTVESTOCK Breed Inrrovement Capital Costs . 498 121 15 Operating Costs *V 634 108 138 135 381 Totals, Capital and Operating 606 259 150 1,015 Staff TraininR B.Sc. (Animal Husbandry) mn year 3 6 9 10,190 31 61 92 4-year course, Iyallpur University 184 Livestock Assistants man year 2.5 2.5 2.5 7,930 20 20 20 60 6-month course, Lyallpur University Sub Totals 51 81 112 2u4

Total for Livestock Component 983 463 381 1,827

/ See Schedule 6 / Unit costs per studdftt per year for each type of course derived as follows I Des=e Course Certificate Course 'Capitation FPea" teaohing expenses 4,000 3,000 Registration and Tuition ?e. 190 130 Hostel accommodation fee 3,600 2,400 Mvilng al2owance 2,4oo 2,400

Total 10,190 7,930 Living allowance2,400 2,400~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~L P A K I S T A N HILL FARMING TECHNICAL DEVELOPMENT PROJECT Livestock: Indicative Costs of Breed Improvement Subcouosnent Requirements by year Unit Cost Costs by year (PRatOOO) Breed Improvement Units 1 2 3 (PRs) 1 2 3 Total

Capital Costs Office, 260 sq.ft unit 1 100 per sq.t 26 26 Office furniture set 4,100 4 4 Jeep, S.B no. 1 92,500 92 92 Containers for semen and liquid N2 storage and transportation unit 4 4 6,000 24 24 48 Field liquid N2 containers unit 20 20 2,000 40 40 80 Field insemnination equipment sets 20 20 100 2 2 4 Imported semen straws 500 1,000 1,000 15 8 .15 15 38 Animal stalls sets 10 10 4,000 4o 4o 80 Miscellaneous equipment 10,000 10 10 Animal housing animals 6 2,000 12 12 Imported bulls unit 6 40,000 240 2_4Q Sub-total 498 121 15 634

Cperation Costs Staff salaries: Livestock Production Officer Gd no. 1 1 1 23,730 24 24 24 72 Livestock Assistant Gd 8 no. 2 2 2 11,440 23 23 23 69 Junior Clerk Gd 5 no. 1 1 1 5,930 6 6 6 18 Driver Gd 3 no. 1 1 1 8,760 9 9 9 27 Peon Gd l no. 1 1 1 4,620 5 5 5 15 Office expenses set 1 1 1 3,100 3 3 3 9 Liquid Nitrogen field set 10 20 20 1.000/set/yr. 10 20 20 50 Bull maintenance bull 6 6 6 800/year 5 5 5 15 Training of village inseminators man-months 30 30 100 .3 3 6 Vehicle operation '000 miles 10 20 20 2/mile 20 40 40 100 108 138 135 381 Total, Capital and Operati-, 606 259 150 1,015 W

> oi> TECHNICAL ANNEX 10 Page 1

PAKISTAS

HILL FN-PMING TECHNICAL DEVELOPMENT PROJECT Job Description a tdfieationJu Live toc otn cz (EdM2E)

SPecific Duties

1* The tveatock Officer (Fodder) would introduceo the Stat. appropri- ate t ehniques of fodder conservation and application, including improved hayiaking and storage, silage production, chaffing of crop residues, and feed supplementation. He will demonstrate and evaluate these techniques at the village level, working in villages in the vicinity of Musaffarabad. Once tecbniques have been locally adapted and tested, he would proaote their use in other areas in conjunction with other project-financed activities 0 2. Spelifically, he would implament the following activities with the cooperation and assistance of local farmers:

(i) harvesting of grass hay at the optimun time, followed by recoaended storage and feeding practices;

(ii) production of and feeding of silage using various methods (bunker and lit silos, and plastic bags) and combinations of different levels of grass,, miZe stover, green fodder, legume residue and supplementation with urea and molasses;

(iii) demonstration of improved feeding techniques, includiAg the adjustment of ratimn mixtures and quantities; the use of chaffers and simple feeding trougha; and provisio:i of water supply; and (iv) trial use of mineral supplements in block form. 3o For each technology, he would record the full costs (including pur- chased materials and labor inputs required) of providing a unit quantity of nutrient under typical vinlage conditions, and evaluate these in comparison to presently used ichniques. He would assess to the extent possible the pro- duction bonefits to be expected following adoption of improved techniques, in terms of reduced wastage of feed resources and the impact of improved nutrition. To assist this analysis, he would perform dry matter analyges of fodder sampleas in a laboratory supplied for thds purpose, and would arrange for crude protein analyses to be performed locally (in the sAls laboratory) or by outside laboratories.

4. He will liaise closly with the Department of Agriculture with respect to the fodder production trial work which would be performed on the four experiaental/demonstration tkrms finaced under the project.

5. He will assist in the preparation of a follow-up project by auppl:

6. The Ulwstock Offior (Pldd.r) votd be respondbl, to and subjeot to the directicn of the Livestock Developet Officer, aid throgh him ad the Direoctr of Animal uwblAry I the Projeot Director,--and render to him such reports, plans, discussion papers and ostimtes as the Project Yasager may require. lie would work closely with the Livestock Adviwor of the Dqprtasnt on t"ehnoal matters.

2s floaleeaI 7. (a) Tobaical Qualifications Caddatoe must be:

(1) eligible for GOade 17 eMplorment; (ii) gaduatos in Animal ubandry or v etwrnury medicinej and (iii) eperienod in the prqpration and feeding of anIml foedatff;

(b) gnrl Quglification. Candidates aunt bet

(i) in good health; (i) have demonstrated ability to work independently on their on initiative; (iii) proficient in both the Urdu and English languagoe; and (iv) able to work closely with _L famrers. TECHNICAL ANNEX 11

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Note to Technical Annex 11

1. The technical specification for the aerial photography and pro- duction of base maps are still under discussion and the description of these activities in this Annex is provisional.

2. Ideally, a scale of 1:5,000 would be used for base maps, with contour intervals of lm. up to not more than 3m., although a scale of 1:10,000 could be effective. The quality of aerial photography needed for both mapping scale, in terms of definition, accuracy of flight paths and overlap is of an exacting standard.

3. Survey of Pakistan are examining the capability for undertaking mapping photography at this standard, assessing the availability of carto- graphic equipment, and staff time for undertaking map production, review- ing the cost provisions for these activities, and, suggesting possible alternatives if present capacity is inadequate.

TECHNICAL ANNEX 11 Page 1

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Land Use and Development Planning

Background

1. The total area of Azad Kashmir is about 4,500 miles (2,880,000 acres), of which the cultivated area is approximately 510,000 acres. The remaining area is composed of some 1,440,000 acres of forests, 140,000 acres non-arable farm-land, 360,000 acres of non-arable shamlat (= joint ownership) land, 400,000 acres wasteland, including river beds, and 30,000 acres residential areas. These data, which are summarized in Tables 1 and 2, are approximate and should be regarded as indicative. They are largely derived from the 1972 Tehsil census, which provides a basis for tax assessment in cultivated lands, and may understate the areas actually under cultivation. Moreover, it is known that encroachment by cultivators has taken place in some forest areas. There is also the likelihood that some areas classified as cultivable have become waste lands because of the rapid soil erosion taking place over much of the area.

2. An assessment of land use and land capability was undertaken in 1959-61 by Hunting Technical Services Ltd., as part of the Mangla Watershed Mlanagement Study commissioned by WAPDA. Whilst this is now outdated, because of changes which have taken place in the last 20 years in human and livestock populations and land classifications, it provided a comprehensive assessment of the physical characteristics, cropping patterns, human and animal popula- tions of a large part of Azad Kashmir, and provides a preliminary basis for developing systematic land use activities which can arrest and subsequently diminish soil erosion, and at the same time achieve improved production in agriculture, livestock and forestry. A comparison of the data contained in the study with updated data indicates that human and animal populations have about doubled during the past 25 years; during the same period, the area under cultivation has increased by about 50%; see Table 3. The study emphasized the precarious balance between land capability and actual land use which then existed. The increased pressure on the land which has since taken place must have substantially worsened this position and a reassessment of land use and land capability, based on updated aerial photography is urgently needed. It should also be noted that the aerial photography used for the Hunting s study (now 20 years' old) only covered about half the land area of Azad Kashmir.

3. The primary objective of the study was the preparation of a plan for reducing the sediment load of the Jhelum river into the Mangla dam. To this extent, it is a macro study which attempts to assess and indicate treatments for the whole watershed. The study makes explicit the need TECHNICAL ANNEX 11 Page 2 to arrive at this objective through a series of sub-watershed plans. WAPDA has used this principle in their approach to the Mangla watershed Develop- ment Project.

4. Copies of the report are available with WAPDA and have been sent to the project manager (designate). Accompanying the original report were sets of land use and land capability maps at 1/50,000 scale. Master copies of these are with the Survey of Pakistan, Islamabad.

Work Program

5. The land use and development planning section would assess present land use, develop a land classification system and prepare sub-watershed development plans embracing food and fodder crops, tree crops, vegetables and livestock, with associated soil conservation works, roads, bridges and storage/marketing facilities. Plans would be developed in cooperation with the farmers and line departments and take into account the development of technical packages, extension programs for apples and vegetables production, etc., and the ownership and land holding patterns of the sub-watersheds. Initially, emphasis will need to be given to the assembly of base data, production of base maps and training of staff in methodology and approach. When fully operative, it is expected the section will produce development plans for sub-watersheds covering about 100,000 acres/year.

Detailed Features

6. (a) Updated Aerial Photography would be provided at 1/30,000 scale. Survey of Pakistan have indicated that proposals for aerial photography have been agreed with GOAK and this would be undertaken by the Pakistan Air Force, with Survey of Pakistan providing ground support. The photography would be of a standard for land use identification and also the production of accurate topographical maps at a scale of 1:5,000 or 1:10,000. It would also provide a basis for the future updating of the forest inventory.

(b) From initial examination of the photography, areas would be selected for the production of topographical base maps for detailed planning a scale of 1/5,000 or 1/10,000 is recommended, with not less than 3m. contour intervals.

(c) A Land Classification system would be developed taking account of systems currently in use and work previously carried out for the area (e.g., Hunting's Report Vol. 1, App. A).

(d) Present Land Use patterns would be recorded and assessment made of suitability of these within the framework of maintaining productivity and stabilization of soil.

(e) Land capability, in the sense of sustainable land use under various activities, would be assessed and development plans prepared for the sub-watersheds. The section would liaise with line Departments in developing cropping patterns and assessing suitability of specific areas TECHNICAL ANNEX Li Ca!ge 3 for implementation of the technical packages being develoeJd in food a.nd fodder crops, livestock feeding, apples, vegetables, fuelj2)(l, etc.

(f) Soils analysis, whichi would be undertaken by the DepartL&nt of Agriculture (see Technical Annex 5), and assessment of nuitrient r-ld trace element deficiencies, would also be incorporated in this asst:s,3mnent.

(g) Soil conservation techniques, both biological and phiysical, would be defined for maintaining productivity of the various cropping patterns prescribed for the sub-watersheds based on economic evaluation of the systems being developed.

(h) Areas would be selected for minor irrigation developierf: ind, in collaboration with Department of Agriculture and PIP, suitable systems for water delivery and drainage would be designed.

(i) In collaboration with PWD and PWP, road and feeder track densities to service planned production activities would be established and road traces selected.

(j) In collaboration with line departments siting of input dis- tribution/marketing centers to serve production areas.

Complementary Actions

7. Project management, in collaboration with the concerned line departments, would assemble additional data and activity proposals to be incorporated in the sub-watershed plans, (see Technical Annex 12). Com- plementary data would include:

(a) Land Holding Patterns, defining areas of holdings under the different categories of single joint and common ownership; single, joint and common tenancy.

(b) Land Usage Patterns, including rights, concessions and customary usage of State land.

(c) Economic analysis of present land holding and land usage patterns to demonstrate present position of farm-family incomes and changed position under proposed land use cropping pattern changes.

(d) Demographic data of permanent residents (age/sex distribution) and migratory population. Distribution of economic activities between farm-families. Assessment of present labor availability for specific job functions, indicating seasonal distribution. Assessment of additional labor inputs required to carry out proposed development activities and reconciliation of these with assessed labor availability. TiZCI:;T ,CAL AIPTEX 11 Page4

(e) Potable Wlater requirements; assessment of supply, poaendal: development of pr,posals [or inclusion in sub-watershied plan.

(f) Ilealth Center and School requirements; development of proposals for inclusion in suh-watersied plan.

(g) Fuelwood requirements; assessment of supply potential; development of proposals for fuelwood blocks for inclusion in sub-watershed plan.

(h) Rural Industries development; incorporation in the sub-water- shed plan of firm development proposals based on satisfactory feasibility assessment and provision for input supply, water, power, and other services.

Staffing

8. A land use planning specialist, (internationally recruited) re- sponsible to the project manager, would head the section and be assisted by a team including a socio/economist wlho would take prime responsibility for the activities discussed in para. 7, three surveyors, three cartographers and clerical staff. In developing sub-warershed plans, the section would work with line department officers of Agriculture, Animal Husbandry and Forestry and WAPDA field supervisors. Job descriptions and qualifications for the land use planning specialist and socio/economist are contained in Appendix IA and Appendix 1B respectively.

Equipment

9. A preiIminary list of equipment is included in Appendix . Tnis includes provision for photogrammetric eauiment for the reprod-ctcI o' 1/10,000 or 1/5,000 base maps from aeria' photography. Since the capacitv of this machine would he greatirr thp A-HSZ ' rcquArements, it is proposed to install this a, -Loirvev )L : heaGcuarters where its tulC capacity couid be u tii ized.

Aerial Photqgrapihy

10. It is presently proposed that aerial photography would be under- taken by the Pakistan Air Force, through arrangements withi Survey of Pakistan who would supply ground support. The scale proposed is 1/30,000. Estimated total costs are PRs. million, based on flying/photo cost of PRs. 160/mile (PRs. 720,000) plls ground support, and reproduction of prints. _ 1 _ , _ -. e _ 71,4 ------Ar----

MAP OF - THE 5ThTE OF AZA_D JAMPiMtJ ArJD 5HMAtH - -l S/ ' * -IGilgit-

Scale: 1: 1,000,lJ000 K, . 1" 16 ele

/ / z ~

U3~~~~~~~~~

A/_ > o T;A. A

a^Z w r.m -jA%& ~~~~~~~~~~~~ 3

Z W 'OA ,NA f P

~~~~~~~~~~~~~~~~~~~~~~~~~~5 tX4e~ t

I~~~~~~~~ aSrIu^..

\ISJ2+~:~---. WA: " PI Rlc~D,tt .uundrv

,1L*{t Wt}X O'' ASXSA K t 2~~~~~~~~~~~~~,1

_ C." tAj C,- 1u .

x~~~~~~~~~~~~~~~~~~~~~~ -A

Prepaired (r:- -_IA

Choudhry ) ALrchitect, PAD, P.WZ..D,* Muzaffort'bori \t-j) -'AK - n' E G _ _

\, PAKIISAII

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

£iABLE SHOWI1G ESTIMATES CF TOTAL AREA, CULTIVATED AREA AND CROPPED AREA BY DISTRICTS (Indicative data only; there are sirnificant discrepancies between these and other source data)

Administrative Total Arqa Cultivated % of Total % of District Cropped Wheat Maize Bajra Rice Other Crop-; Unit Acres Area Area A.K. Area Area Acres Cultivated Cultivated Acres Acres Acres Acres Acres Acres _ (7a$,0Oo)_ (150,000) -(350,000) (41 ,000) - (25, o-oo) - r,9, obo) AZAD KASHIMIR 1,866,049 507,773 27.21% 583,900 149,3S5 281,018 47,663 17,472 88,382

Muzaffarabad 330,40o 1,145 S.1 23 3.5 7% 121,390 10,004 92,089 oo0 5,590 12,70,

Mirpur 491,550 145,781 7.0 3 29.35% 178,399 1 39, 0o5 47,551 22,l]O 2,378 30,3,r

Ketli 482,062 95,775 5.13% l9.87?0' a 116,9,8 1 45,,35 31,1W7 8, 92 1,;3 '3 19,902

Poonch 562,031 152,012 2.9,7,712 26,12? >0,202 |,930 25,419

______I I _ _ _

NOTES:- I. The CROPPED AREA is a multiole of the CULTIVATED AREA because some crops follow other crops in the same year on the same land. 2. Data abstracted from the 1972 Census returns. Only the column "Other sources" in those returns is acceptable because of gross variation in the amount of land shown as cultivated. 3. Information regardin; the subsequent division of Mirpur and Ketli and the consequent division of land is supplied by Munawar A. Qureshi 14.Sc. of the Muzaffarabad District Office of the Department of Agriculture.

1/ This is the total area within Telisil administraVo-)n and excludes part of the State forest areas (see Tabhl 2). The total areas o; the State is -ec.rdeu at 2,8 0,000 acres.

Source : Department of Animal Husbandr-, Muzaf arabad 1977.

2/ Bracketed fibrures are those provided b. Department of Agriculture (see Technical Annex 1oaDle ). These are part DC- a time series of production and are reFarded as more reliable. PAKIMAN HILLPA AKMINGNTECHNICAL ANNE 32 HILL_FIR G TECINICAL DEVELOPMENT PROJECT -

OUTSIDS IS TMWL ~ 3ILSUB- LAND CATO=E AZUDamTION AS4MIIS!q.ATI0N TOTAL T01fAL

322,000 - 322,000 1/ 1,120,925 1,4&2,925 nn-_corial 6s 1 432,811

Farm Area cultivated - 1497,773 1497,773

short-term falow - 10,000 10,000

log-taz fall - 60,000 60,000 137,937 137,937 705,710 non-arable

Non-Farm Area "shamlat" - 324,325 324,325 residential 30,000 30,000 6/ waste area 373,200 373,200 727,525 (ic. rlvo beds, etc.)

TOWAL AB3A (acres) 1,010,111 1,866,049 2,876,160

ft1z7 asource 1972 Aesd Kah&.r Tehidl Cenaus.

1/ National, arrived at by difference between total area reported under control of Forest Department (1,42,925 acres) and area of State outaide tehisl adminiatra- tion (1,010,111 acres).. 2/ Land in fallow for up to 2 years, estimated at 2% of cultivated area (baaed on 1972 Pakistan censua data).

3/ Land in fallow for more than 2 years ("culturable wastaland"), estimated at 19% of cultivated area (based on 1972 Pakistan census data).

W Land, generally uncultivated, owned jointly by a number of families; area shown is notional, arrived at by difference between total area under tehs4l administration and other categories. - Amproximation based on estimate of 10 fanilie3 per acre for residmntial pu; 03ac- 6/ Satimated at a notional 20% of area under tehail administration.

Source: Compiled by World Bank preparation mission, April, 2977 from data supplied by GCAK. TECHiICAL ANNEX II Table

PAKIS TA.

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Sum-ary and Comparison of Nain Data

197S 1952 Difference

Land Area Miles 4,500 3,840 ? Boundaries E evation Ran-,e J,000' to 15,000 Cultivated Area Acres 510,000 330,000 + 50% Grazing Area 500,000 Forest Lands ],440 ,000 Wastelands 400,000 Towns and Residential AreaE 30,000 Towns and Villages 1,500 Population i]ilIion 1.7 0.7s o0.8 + 100% Growth Rate % 2/ 3 3 Density No/mile 380 197 + 100% Farm Population iillion I.53 Number of Farm Families 206,000 Farm Sizes 10 acres + 2.6% 0 to 5 90% Oto I 50% average 2.4 1.5 + 50% Cattle Population 400,000 207,000 + 95% Buffalo i 200,000 112,000 +123% Goat 390,000 102,000 +282% Sheep 190,000 87,000 +118% Other Arnimals ? 7,000 Poul t-r 750,000 ? Maize Production tons/year 4],000 Wheat t' it 38,000 Millet ftf15,000 Rice 12,000 Pulses, Vegetables, Fruit ? Arnnual Food Grain NTeeds 250,000 Imported Deficit Ioo,ooo

1/ Bank Preparation Report, 1976

2/ Hunting Teclnica] Services Report, 1961. TBCHNICAL ANNEX 11 Avpendix IA

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Job Description and Qualifications

Land Use P2anring Specialist

Genera]

1. The project aims at developing improved technologies in food and fodder crops through a series of experimental and replication trials; finance pilot programs in apples, vegetable seed and vegetable production and fuelwood plantations; fodder utilization and cattle breed improvement; and through a coordinating land use planning section, combine these activities in the preparation of a follow-up project to increase productivity of the agricultural sector and the 1iving standards of small scale farmers. The land use planning specialist will head the land use planning section, which would prepare sub-watershed development plans for selected areas which would be progressively expanded to cover the main agricultural areas of Azad Kashmir.

Specific Duties

2. (a) Initially set up a land use planning section; assist with the selection, ordering and installation of equipment; staff selection and in-service training; initiate aerial photography operations;

(b) in collaboration with project management, draw up work program of the areas for which sub-watershed development plans will be prepared on the basis of local knowledge of development potential, related activities of line departments and preliminary selection based on aerial photo-interpretation;

(c) in collaboration with Survey of Pakistan (or other selected agency), obtain base maps (1:5000) of areas selected for inclusion in the work program.

(d) carry out an assessment of present land use in these areas, with supporting data (provided by project management) of population, land ownership, land holding patterns, farm-family economic activity and income schedules; TBCHNICAL ANNEX II Appendix 1A Page 2

(e) develop a land classification system which is related to existing systems and can be applied for develop- ment planning in the various geographic/ecological zones;

(f) assemble basic data on climate, soils, hydroloVr, vegetation, topography and existing infrastructure; (g) in collaboration with line departments, prepare sub-watershed development plans for food and fodder crops, tree crops, (including apples and firewood/ poles), vegetables, livestock development, and minor irrigation; (h) in collaboration with line departments and WAPDA, assess alternative soil conservation systems designed to complement the proposed land use activities by subjecting the alternative systems to economic analysis and criteria of social feasibility; prepare plans of recommended systems for each sub-watershed;

(i) in collaboration with PWD and PWP, determine road densities and select road traces to service production and population centers;

(j) incorporate in the sub-watershed plans proposals for input distribution/marketing centers, potable water, health and schooling services;

(k) prepare overlays, with supporting schedules, describing the proposed land use activities for the sub-watersheds; and,

(]) assemble the foregoing data and proposed activityr schedules in a form suitable for the formulation of a project or projects for follow-up financing.

Reporting

3. The land use planning specialist will be responsible to and subject to the direction of the project directorand will render to him such reports, plans, discussion papers and financial estimates as he, the project manager, may require.

Qualifications

4. (a) Technical Qualifications

( i) Age preferably between 35 and 50 years; ikUriDLUAI, ANNU& 1± Appendix IA :-.e 3

( 1.) a degree in agriculture (or equiva.lent)

with pre or nost- raduate 'Erainin! in soil conservation;

(iii) at least five years ex-perience in and -..se and 'land capability assessmens, preferably in upland areas of high rainfall intensity, includin- :

* Practical use of soil classification systems for land use pl aning;

* establishing criteria of land capabi'itvy in relation to soils, climate, botanical composition, hydrolo ir, soil erodibility;

* developmenti ot' land use plans, including croppin-; patterns and soil conservation systems;

* reproduction of detailed field maps and work; schedul es for implementation/monitoring of land activities;

* recording of farm boundaries on manag-3ment maps and preparation of farnm pians and farm budgets;

* assembly of inpuit requirements and costs, and yields and benefits, for various land use activities proposed;

* coordination of work program with other agencies concerned with agriculture development, and

* a working knowledge of the principles involved in preparation of base maps from aerial photography.

(b) Genera] Qual.ifications

( i) Candidates must be in good health;

( ii) candidates must have demonstrated ability to fona sound judgements and to work independently on their own initiative;

(iii) candidates must be proficient in the English language; and,

( iv) because activities will be mainly concerned with developin- sub-watershed plans in collaboration with small.-scale farmers, a pre-disposition to this aspect of the work would be needed and practical experience in this field would be an added advantage. TEHNICAL ANNEX 11 Appendix 1B

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Job Description and Qua]ifications

Socio-Economist

Duties

1. The socio-economist would assist the project manager in the social and economic aspects of the project and be responsible for the activities associated with social engineering of the project and follow- up project preparation work, as a member of the Iand Use Development section.

2. Specifically, he would undertake the following activities in the relevant areas of project activities:

(a) Assemble, tabulate and analyse demographic data, supplement existing data with additional data as needed;

(b) assemble and interpret information on land holding patteims, including formal legal and customary usage rights;

(c) assess the current employment structure, including on-farm and off-farm employment;

(d) assess income sources and income distribution;

(e) conduct an economic analysis of present farming systems and demonstrate changed positions under proposed land use cropping patterns;

(f) study the traditional authority and power structure and customary self-management institutions and bodies to evaluate authority mechanisms for farmer participa- tion in development proposals; and work out with project staff, an appropriate strategy for extension activities;

(g) assist the project manager in evaluating present social services and infrastructure, small industries and handicraft, and in preparing follow-up development proposals. TECHNICAL ANNEX 1i Appendix 1B Page 2

Reporting 3. The socio-economist would be responsible to the project manager and render him such reports, plans, discussion papers and financial estimates as he, the project director,may require. He will work in close collaboration and plan his work schedule with the head of the Land Use Development section.

Qua)ifications h1. (a) Technical Qualifications

(i) Age preferably between 30 and 45 years;

(ii) eligible for grade 18 employment;

(iii) graduate in sociology with economics or agricultural economics;

(iv) trained in sampling method, questionnaire design and statistical analysis; and,

(v) experienced in social and economic analysis and preferably, with practical involvement in developing agricultural extension schemes.

(b) General Qualifications

(i) Candidates must be in good health;

(ii) candidates must have demonstrated ability to form sound judgements and to work independently on their own initiative;

(iii) candidates must be proficient in both the Urdu and English languages. TECHNIC ANN EX ADDendix 2

photograzmetry, Survey and Map Printing Equipment

(US$)

Filing and Map Cabinets 22,000

I1ght Table and Table Lights 5,000

Planimeters, Stereoscopes and Pantograph 10,000 Calculators and Typewriter 1,000

Oi]ine Printer 12,000

Small Instruments, Scales, etc. 2,000 Initial Ink Felt 4,000

Layout Ievels, Chains, Staves 10,000

Compasses, Abney Levels, Small Instruments 3,000

Small Tools 2,000 Photogrammetric Equipment (e.g., Wild IV 13 plus ancillary equipment) 210,000

2] ,000 TECHNICAL ANNEX 12

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

ProJect Management and Follow-Up Project Preparation

Introduction

1. The various activities of the Project would require monitoring, coordinating, and, several complementary actions by project management. For example, whilst the technical departments can be expected to address wholly technical problems, they would need assistance in securing farmer responses, arranging credit facilities, preparing itineraries for consultants and arranging training programs.

2. Project activities would generate a substantial part of the data required for the preparation of a follow-up project. These data will however need to be complemented by additional information including data on population, farm size and tenure systems, employment patterns, marketing and storage, credit, roads, rural industries and handicrafts, health and education. The project management would be responsible for collating this additional information, combining this with the results of the Project and preparing the follow-up project. The approach to project preparation would be on the basis of the aggregation of individual. sub-watershed/village development plans, as outlined in Technical Annex l1.

Project Management

3. The Project would be under the management of a project director of secretary rank, who would be responsible to a Project Development Committee composed of the Chief Secretary as Chairman, the Development Commissioner and Secretary for Finance. A new post for the project director would be created of Secretary for Agriculture, Animal Husbandry and Special Project (the Project). The proposed management structure closely follows the present organization of Government. A13 deve]opment proposals a.e current]y submitted by departmental secretaries to the Development Commissioner whose function is to coordinate departmental proposals, review these with heads of departments and Secretary for Finance, and submit to the Chief Secretary for presentation to Government. Accordingly, the project director as Secretary for Agriculture and Animal Husbandry would be following existing procedure with respect to these sectors.

4. For coordinating and monitoring the forestry activities financed by the Project, and the various tasks for follow-up project preparation involving other departments (see below), the Project Development Committee would direct the project directorin setting up the necessary working relation- ships with the departments concerned. Project funds would be channelled through the project directorwho would maintain accounts in line with the practices of the Association. TECHNICAL ANNEX 12 Page 2

5. In coordinating and monitoring the various activities of the Project, the uroject director would, in consultation with departmental heads and project staff, prepare work plans for each activity, institute a monitoring system of physical progress and financial disbursement for these plans, and prepare quarterJy progress reports for the Project Development Committee and IDA. 6. The project directorwould be assisted by; a land use specialist, with supporting staff, (see Technical Annex l]), who would coordinate with line departments in the production of sub-watershed development plans for preparing a follow-up project; an agricultural specialist, who would be seconded to the Department of Agriculture with special responsibility for technical development; a procurement and costings officer; an assistant accounts officer; and, supporting clerical staff. The land use and agricultural specialists would be internationally recruited; a draft job description and qualifications for the agricultural specialist is attached at Appendix 1. It is expected that the Project staff would be increased in year 2 of the Project when follow-up project preparation commences, see para. 29. 7. The Project would include the construction of a project headquarters office in Muzaffarabad, which would also contain the drawing/mapping office of the land use and planning section, office equipment and furniture, supervision vehicles, staff salaries and office operating expenses. Special provision is also included for the estimated cost of aerial photography and a follow-up project preparation fund. Detailed physical requirements and costs are contained in Table 1.

Coordination of Project Activities

8. Besides the general need for close monitoring and coordination of all activities financed by the Project, the following actions would be given specific attention by project management :- (a) Operational Areas and Sites. Assisting with the siting of Experimental farms and Apple Extension buildings; selecting development areas for maize trials, apple and vegetable schemes, fuelwood plantations, livestock feeding unit; (b) testing farmer responses to proposed activities;

(c) arranging credit facilities for growers under the apple scheme;

(d) selection and appointment of senior project staff;

(e) selection and gppointment of consultants and arranging their itineraries;

(f) finalizing of arrangements with training institutions for training program and selection of candidates for specific courses; TECHNICAL ANNEX 12 Page 3

(g) liaising with GOP for the Apple Market Study;

(h) instituting a system of cost accounting for project activities which would assist with monitoring and also provide data for follow-up project preparation;

(i) arranging for aerial photography and support services of Survey of Pakistan for base map production;

(j) setting up farmer groups and coordinating activities of technical departments and land use planning section in preparation of sub-watershed/village development pl ans .

Fol low-U Project Preparation

9. A major task of Project management would be the preparation of a follow-up project with the objective of preparation being completed in the early part of year 3 of the project in readiness for appraisal and subsequent implementation in year 4. Besides the information, which would be generated by project activities, some additional data is available, but would require processing to be useful for follow-up project formulation; for example, population statistics, farm holding patterns, existing health and education services, rural handicrafts and industries. Other aspects of a follow-up project preparation would require special study and eva2uation to assemble and process the relevant data.

10. The Project would include a follow-up project preparation fund of PRs 2.5 million to meet the costs of processing existing data and carrying out further studies needed. The fund would also be available to meet any short-fall in the estimated provisions made for preparation studies in the Project components, e.g., apple and vegetable pilot schemes and land use development plans. Studies and other expenditure items exceeding PRs 50,000 (US$5,000) would requi.e prior agreement with the Association.

II. General Approach. As an initial step, a preliminary overall assessment of the distribution of human and livestock populations and economic activities would be made and co-related with the overall land use assessment. (See Technical Annex 11). From this, areas would be selected for inclusion in a follow-up project. These areas would then form the subject areas for the necessary studies; study areas would be further subdivided for the presentation of data (e.g., sub-watershed/villages). This should minimize the collection of data which may be of some general interest, but would have no relevance to project formulation.

12. Details of Preparation. A number of information gaps and studies, which are not being specifically addressed in the Project activities, have been identified and these are briefly described in the following paragraphs. This list is not exhaustive and it would be within the discretion of the project management, in close collaboration with the Association, to expand on these as experience is gained under the project. TBHNICAL ANNEX 12 Page 1i

13. Demographic Data.

(a) Population distribution and density.

(b) Age/sex distribution; fertility and mortality indicators;

(c) Educationsa and craft level distribution by age/sex.

(d) For persons in out-of-state employment, timings of absence from home, types of employment, levels of repatriated remittances, indicating age/sex distribution.

(e) Distribution of farm-family labor activities in terms of age/sex; assessment of "norms" for work-hour performance for different age/ sex groups; assessment of labor availability (within accepted age/sex job functions) compared with labor requirements for present patterns and activities; assessment of peaks and troughs ' in labor availability; incidence and income from inter-farm employment and off-farm employment.

(f) Determination of labor availability for additional economic activities indicating seasonal distribu- tion, age/sex distribution, craft distribution.

14. Industrial Employment Opportunities.

(a) Assessment of employment opportunities, which are likely to be created over the next 10 years, which would affect farm-family labor availability; through

(i) industrial development within AK;

(ii) known out-of--tate development programs.

(b) Assemble estimates of expected personal incomes from this alternative employment.

15. Rural Industries and Handicrafts.

(a) Assessment of present industries by type,(e.g., sericulture, wood handicrafts, weaving), to determine; age/sex and seasonal labor employment; farm-family income derived; input supply; marketing methods.

(b) Assessment of employment opportunities which are likely to be created over the next 10 years.

(c) Detailed preparation, in conjunction with the relevant Department of GQAK, of components for specific industries/handicrafts which are proposed for follow-up project financing. TECHNICAL ANNEX 12 Page 5

16. Labor Availability for Development Activities

(a) On the basis of paras. 8 to 10, assemble age/sex! craft distribution of estimated labor available for development activities for the selected sub- watershed/village units.

17. Land Holding Patterns

(a) Distribution of farm ownership by size, including extent of fragnentation; classification of holdings into main land use types. (See Technical Annex 11).

(b) Distribution of owner/fanmer, tenant/farmer and joint tenants, by size of holdings; details of tenancy agreements to include different forms of rent payment, (cash, kind, share cropping, etc.).

(c) Distribution of Shamlat and other common land with details of numbers of beneficiary owners.

(d) Distribution of landless rural population.

18. Income Distribution

(a) Within the methidolc,r selected for da+- gat he-in? Jnd processing provide for the assessment of family; in'rcme indicating sources of income.: include ^ t'!ter !-nrces ofP income (e.g.. cr ns, l -.-Y-¢k re: state, sub;-4d.zed -ood) .o ir t-re1- -Lt.

(b) AnAlyse income distribution to indicate 2

(i) range of representative income groupings;

(ii) the effe-t,s on income of: farsm-ize;

livestock ownership; nd rarr ersfai:

payLng -a.-ticoJar a" st,rktn4 t~,'n t-: ¢,- rr

ren-t in the dint-' -i-h ^a-- 4 A -,

land] ess fa2ieiies r,°are Wi. ''farm' -

19. Credit

(a) Assessment of existing arrangements for small farmer credit with particular reference to criteria for making loans, minimum and maximum amounts of credit, terms of credit. TECHNICAL ANNEX 12 Page 6

(b) In conjunction with Iwirne departments, assessment of credit requirements for proposed follow-up programs, reiating requ.rements to "credit-worthiness" of proposed borrowers on basis of existing criteria.

(c} Determinati ln suiLaole arrangements for servic- ir.g credit requIrements. and prenaration cf credit component for proposed follow-up project financing.

20. Marketing and Storage

(a) In conjunction with line departments, assessment of existing market arrangements for the main traded products; special provision is included for apples and vegetables. (Technical Annexes 3 and 4).

(b) Assessment of additional requirements needed for follow-up expansions with respect to organization structure (e.g., cooperatives) and physical installations (e.g., collection Doints and stores).

(c) In conjunction with relevant departments, preparation of organizationa2 structure, physical1 requirements and costs for proposed follow-up project.

?I1. Fuelwood/Poles.

(a) In conjunction with relevant departments, assessment of future requirements of selected villages taking account of use of wood substitutes and economies in fuelwood usage.(See Technical Annex 8 para. 7 and para. 19 below).

(b) Determining locations for establishing new plantations and suitable arrangements for participation of the beneficiaries in their establishment and maintenance.

(c) Detailed preparation, in conjunction with relevant departments, of component for follow-up project financing.

2?. Roads.

(a) In conjunction with relevant departments, assessment of existing road communications in areas proposed for follow-up project.

(b) Determination of roads improvement program needed to support proposed activities.

(cJ Detailed preparation in conjunction with relevant departments, of component for fol ow-up project financing. Thi s would indicate the extent of People's Works Program involvement (but see para. 11l and include an.yreinforcement of PWP which may c'e neoeded . TSECNICAL ANNEX 12 Page 7

'3. Training Programs.

(a) In conjunction with line departments, assess manpower needs for nrograms to be implemented in follow-up project. (See Technical Annex 6).

(b) Review availability of existing staff and staff in training in relation to projected needs.

(c) Assess the role of local (AK) institutions in meeting the future training needs.

(d) Prepare detailed training program for the various job functions to be generated by the development activities. 24. Health and Education.

(a) In conjunction with the relevant departments assess the present facilities for health and education for the selected areas for follow-uv prolects.

(b) Determine the general standards for health and education for the State's development programs and assess any deficiencies for the selected areas.

(c) In conjunction with relevant departments, prepare detailed components for follow-up project financing.

25. Improved Wood Stoves (See Appendix 1 for detailed description).

(a) Selection of households for study.

(b) In collaboration with relevant departments and with the advice of Pakistan Forest Institute, selection of stove designs for study, format of study and appointment of study team.

(c) Evaluation of study results.

(d) Assessment of user responses, stove supply arrange- ments and program of introduction of new stove design.

(e) Preparation of supply plan for new stove design with details of credit requirements.

Wood Preservation. (See Appendix 2 for detailed description).

(a) Selection of site and cooperating user groups in collaboration with Forest Department.

(b) In collaboration with FD, PFI and other related agencies, selection of equipment. TECHNICAL ANNEX 12 Page 8

(c) General supervision of plant operation and assessment of results.

(d) Preparation of supply plan for dissemination of improved technology.

Execution of Project Preparation Work

27. The project directorwould take primary responsibility for follow-up project preparation. Under his direction, these tasks would be carried out by (i) regular staff employed on project activities; (ii) staffs of the various departments of GOAK, or (iii) specialized agencies which would be employed by the Project. In certain fields, e.g., Demographic, Land Use Studies, Manpower and Training, Lyallpur University have the expertize and have indicated willingiess to provide these services.

28. The project director would assemble a work-plan for the execution of studies, prepare detailed descriptions and terms of reference for the specific studies to be undertaken, and, compile a roster of suitable agencies to undertake these tasks. By April, 1978, a timetable for follow-up project preparation woul'd be agreed with the Association and kept under review during visits of Supervision missions.

29. It is expected that these activities wil] increase in volume as the project progresses and project financing should be sufficiently flexible to permit reinforcement of project staff to meet this need. A further possibility is arranging at a suitable time during project preparation, for the project directorand senior project staff to visit an ongoing IDA assisted project of relevance, e.g., Nepal. P A K I S TA N HILL FARMING TECHNICAL DEVELOPMENr PROJECT Details of Physical Requirements and Costs (PRs'OOO)

Activity and Item Units Requirements (Years) Unit Costs Costs (Years) PROJECT HPkNAGEII T 1 2 3 (PRs) 1 2 3 Total Capital Costs 2 Prooject HQ, Olffice, 2,700 ft , ince 2 51/ 2 drawing/mapping office, 1,000 ft ./ no. 1 125/ft 338 338 Photogra etry, survey & map printing equipment/ 2,000 2,000 Cffice Equipmentq,/ 68 68 Jeeps, S;B no. 2 82,500/unit 165 165 Jeeps, I119 no. 1 125,000/unit 125 125 Sub-total ;WiF 2,696 Ooerating Costs Staff: Project Director Gd 20#J 1 1 1 56,500/year 56 56 56 168 Land Use Planning SpecialLst 21 1 1 500,000/year 500 500 500 500 Agricultural Crop Develop.Spec. kg 1 1 1 5oo.000/vear 500 500 500 1 °°

r:or'_t rf lB/19 I 1 1 39,000/year 39 39 39 117 Surveyor Gd 17 1 1 1 23,730/year 24 24 24 72 Assistant Surveyor Gd 16 2 2 2 19,000/year 38 38 38 114 Cartogranher Gd 16 1 1 1 15,000/year 15 15 15 45 Assistant Cartographer Gd 11 2 2 2 9,760/year 20 20 20 60 Assistant Accounts Officer Gd 17 1 1 1 19,230/year 19 19 19 57 Procurement &: Costing " Gd 17 1 1 1 23,730/year 24 24 24 72 Accountant Gd 31 1 1 1 9,760/year 10 10 10 30 Head Clerk Gd 11 1 1 1 9,760/year 10 10 10 30 Stenographer Gd 11 1 1 1 12,200/year 12 12 12 36 Clerk/Typist Gd 5 2 2 2 5,930/year 12 12 12 36 Drivers Gd 3 3 3 3 8,760/year 26 26 26 78 Chowkidars and Peons Gd 1 4 4 4 4,520/year 18 18 18 54 Jeep Running Costs at l5000miles/year 000 miles 45 45 45 2/mile 90 90 90 270 Mapping Supplies and Stationery 20 20 20 60 Heating and Lighting 10 10 10 30 Telephones, Postage and Cables 12 12 12 36 Cffice I entr.9/ 25 - - 25 , q -3 Hotel expense for out-of-state travel 50 50 50 150 p Maintenance of Puildings - 7 7 14 !Aaintenance of 30) 0quirnent Miscellaneonis _ures and Sundries 30 30 30 90 Audit Fees 25 25 25 75 Sul-totil. _ 1,595 1,577 1,577 4,749 146/ Schedule to be mutually prepared with Survey of Pakistan 1 1i,/ See details in 2c¾edule 7. z 40/ Inclndes resnonsihility allo ance. x 0/ Internationally recruited posts - see Job descriptions in Technical Annexes 11 and 12. §0J For Year 1, hile psolect IIQ inder constriction. 51/ Includes PRs. 25/ft for land levelling and connections for water and sewerage and electricity. P A K I S T A N

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Details of Physical Requirements and Costs (PRs'OOO)

Activity and Item Units Requirements (Years) Unit Costs Costs (Years) ______1 2 3 (P Rs ) 1 2 3 To t al

?rzSectFretynration: 52/ Pro,)ect S:pecial Fund for Studie&, Con.lq'tancies and other costs of prenaration of fol.lo0-up nre,,ects 1,250 1,250 2,500

Aerial Photoafraph:, and Production of Rase !'aps 53/ 1,500 -- 500

Sub-total 1,500 1,250 l,250 I,000

Total Canital + Operating + Proiect Preparation 5,791 2,827 2,827 11,445

52/ 5ee Technical Annex 12 for details of studies, consultancies and proJect preparation activities. 53/ GlOAK and 'urvey of Pakistan have set up provisional arranigement for aerial photography r at their meetinC of '1ovember 18, 1976.

tTD N I-.. N,i TECHNICAL ANNEX 12 Table 1 Schedule 7

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

PROJCECT !iANAIEMENT,

Office Furniture and Ecuipment

PRs '000

Desks, Trbles, Ch-irs, Cabinets, Cupbo.^rds 25

2 Typewriters 12

Calculntors 3

Furnishings 10

Telephone Install2tions:

3 in main office 2 in residence of specialists =

5 $ PRs 2,500 13

Sundry 5

Total 68 DRAFT .TSC.iNICAL ANNEX 1I 2oe.ndix

PAKIS TAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Job Description and Qualifications

Agricultural Specialist

General

1. The project aims at developing improved technologies in food and fodder crops through a series of experimental activities and replicated trials; finance pilot programs in apples, vegetable seed and veget.aoie production and fuelwood plantations; finance fodder utili7ation trials and cattle breed improvement; and through a coordinating land use plarning section, combine these activities in the preparation of a follow-up project to increase productivity of the agricultural sector and the living standards of small-scale farmers. The Agricultural Specialist. would supervise and coordinate the agronomic trials to be undertaken on the four experimental/demonstration farms, and assist the Director of Agriculture and Project staff in the preparation of sub-watershed plans and investment programs for inclusion in a follow-up project.

Specific Duties

2. (a) To advise the Department of Agriculture (DCA) in the site selection, on-farm development, equipping and staffing of the four proposed experimental/ demonstration farms;

(b) in collaboration with the Agriculture Research Council, prepare initial programs of maize, puLse and fodder trial work for each experimental/demonstration farns, modify these in successive years in the lipgh of experience gained, and supervise implementr'rL;on.

(c) assist the DOA in the in-service training and supervision of all DOA staff engaged in project activities;

(d) assist the land-use planning section in developing a land classification system, assembling basic data in the agriculture sector, and in preparing sub-watershed development plans;

(e) in collaboration with the DOA, assess the availability and likely impact of specific proven technical recommendations available for promotion by the DQA extension service;

(f) in collaboration with the line departments, assess the future manpower training and organizational changes which would be required for an effective, coordinnted extension service; TECHNICAL ANNEX 12 Appyendix I Page 2

(g) assist the project manager in the monitoring and assessment of all project activities, and in the formulation of a project or projects for follow- up financing.

Re-porting,

3. The Agricultural Specialist will be responsible to and subject to the direction of the project director and will render to him such reports, plans, discussion papers and financial estimates as he, the project manager, may require.

Qualifications

4. (a) Technical Qualifications

(i) Age preferably between 35 and 50 years;

(ii) a degree in agriculture (or equivalent) with post-graduate training in field crop agronomy;

(iii) at least five years experience in agricultural development programs, preferably in upland areas with small-scale farmers, including :

* practical involvement in the design and execution of applied research in maize, pulse, and fodder crops;

* a working knowledge of the preparation of investment proposals for agricultural development;

* coordination of work programs with other agencies concerned with agricultural development;

* a working knowledge of principles of rural sociology, extension techniques, and farm management economics.

(b) General Qualifications

(i) Candidates must be in good health;

(ii) candidates must have demonstrated ability to form sound judgments and to work independently on their own initiative; TECHNICAL ANNEX 12 Appendix 1 Page 3

(iii) candidates must be proficient in the English language; and,

(iv) because activities will be mainly concerned with developing technical packages for small-scale farmers, a pre-disposition to this aspect of the work wou2d be needed and practical experience in this field would be an added advantage. TECHNICAL ANNt .id Appeadix 2

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Improved Wood Stoves Study

1.. The present levels of domestic wood consumption are very high, ranging from around 4 tons/year per family unit to as much as 12 tons/year or more in the colder areas. (See Technical Annex 8 Table 2). A main reason for the high consumption levels is the type of cooking and heating systems commonly used, which result in excessive heat loss. Properly designed wood-burning stoves (for cooking and heating) obtain about 60% usage of the energy potential of wood fuel. Compared with this, it is probable that the energy efficiency of the customary systems in use in AK is around 10%. Improvement in the system to increase efficiency to, say, 50%, could have the effect of reducing household fuel usage to one-fifth of the present level. Even allowing for a higher consumption level as an immediate consumer response to an improved stove, there would still remain a dramatic reduction in the demand for fuelwood. This could significantly assist in resolving the present crisis of fuelwood shortage and form an integral part in the design of a fuelwood supply program. In addition, the substantial reduction in volume of domestic fuel used, would release farm-family labor for more productive activities.

2. The project would include a study in the use of improved wood stoves and evaluate their performance with the objective of assessing the practicability of their wide adoption by households. For this purpose, a number of selected households would be provided with stoves and accurate measurements kept of wood consumption which would be related to other "control" households using the traditional heating/cooking system. The Pakistan Forest Institute have undertaken to provide the technical support of their wood utilization section and advise on possible cooperating agencies.

3. A type of wood stove is produced in Pakistan at Quetta. Although the merits of this type of stove have not been assessed, it could probably fonm the basis for comparative studies in design and suitability and be compared with other imported wood stoves of known efficiency.

4. Provision would be included in the study for :

(a) Purchase and installation of some 40 wood burning stoves.

(b) A study team leader with supporting interviewing and recording staff.

(c) Data tabulation and analysis.

(d) Developing local improved stove design. TCHEICAL ANNEX 12 Appendix 2 Page 2

5. Preliminary cost estimates are summarized below :-

PRs.

Purchase of 40 wood burning stoves S PRs.1500/stove 60,000

Transport and installation of stoves S PRs.500/stove 20,000

Study Team Leader : 2/ 12 months S PRs.4000/month 48,000

Interviewers and Recorders 30,000

Questionnaire production, tabulation, analysis and report preparation 5,000

Travel]ing expenses 15,000

Local Store Design Development 15,000

Contingencies 7.000

200,000

6. The study would be under the responsibility of the project director who would prepare detailed proposals, and cost estimates, and obtain the concurrence of the Association.

2/ Estimate average stove price; several types of stoves would be tested, including imported and locally manufactured, with the objective of determining the most economical type for local fabrication. g/ It is expected the services of the Study Team Leader would be spread over a number of one or two month consultancies to prepare, initiate, and monitor the study and assemble and evaluate data. TECHNICAL ANNEX 12 Appendix 3

PAKISTAN

HILL FARMING TECHNICAL DEVELOPMENT PROJECT

Wood Preservation Study Outline

I. The present levels of timber consumption used in local household construction represent a serious drain on the forest resources. Present usage for this purpose coul d be equal to the annual production of commercial timber - see Technical Annex 7, paras. 8 and 47. At present, all timber used in local construction is untreated. A large proportion of the timber so used is in roof construction. Most dwellings (and shops) have a flat- roof construction, which results in a continual dampening of the roof timbers. This accelerates wood rot. Simple wood preservative treatments (e.g., hot and cold creosote treatment) would extend the useful life of such timber by three or four times. This would have a significant impact on the demand for local construction timber and provide a sizeable savings in labor required for buil dings maintenance.

2. The project would include a study in the use of simple wood preservation systems with the objective of assessing the practicability of the wide adoption of these practices. Whilst the study would be primarily directed to households, it could also have application in other uses, e.g., Government and Army buildings and would make a significant contribution to developing the production of durable poles and fencing posts. For purposes of the study, a small-scale wood preservation plant would be set up, in conjunction with the Forest Department and other related departments (e.g., Ministry of Works), who will provide supervision of the operation, from existing staff capacity with advice on equipment being obtained from the Pakistan Forest Institute and other relevant agencies (e.g., Railways and Posts and Telegraphs). The plant would be operated on the basis of providing treated timber to selected households (and other relevant users) and detailed records maintained of operating costs and user responses. Comparative studies would al so be initiated of treated versus untreated timber for future analyses.

3. Provision would be included in the study for :

(a) Purchase and installation of the plant.

(b) Operating costs of the plant, including plant operator and helpers for two years.

(c) Study tour of four weeks (in Pakistan) for Supervisor.

(d) Data tabulation and analysis.

The study is expected to be conducted in years 2 and 3 of the project. TECHNICAL ANNEX 12 Appendix 3 Page 2

4. Preliminary cost estimates are as follows :-

2 Open-sided process shed, 301 x 16" (500 ft. ) 25,000

4 Treatment Tanks, 10' x 3' * PRs. 10,000 40,000

2 Sets: Block and Tackle, Overhead Pulleys and Immersion Cradles 0 PBs. 10,000 20,000

Installation Costs including tank foundations, fireplaces and flues 10,000

Operating costs, including fuelwood, preservative (creosote) and minor tools. 2 years @ PRs. 20,000/year 40o,000

Plant Overseer (Grade 9 6 PRs. 8,500 /year 17,000

2 Plant Helpers@ PRs. 3,250 /year 13,000

One month Study Tour for Supervisor 1,000

Data tabulation, analysis and report preparation 4,000

170,000

5. The project directorwould be responsible for detailed preparation of the study, including firm cost estimates, and overall assesment of the application of the technology in future programs. In this respect, he would review with the relevant authorities, the present position of concessionary tinber issues and related forest legislation (see Technical Annex 7, paras. 8, 41 and 47) with the objective of introducing changes which would reduce the volume of timber consumed by concessionary issues on the basis of providing treated timber with enhanced durability; and, evaluate alternative methods of cost recovery or cost sharing to off-set treatment costs.

i/ Tank size would be determined oy the length of timber to be treated. A combination of two 8' and two 12' tanks may be more appropriate or one ]arger tank to deal with pole material. V~ ~ 30 03,4

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