What's Happening?
Pakistan and China have signed 78 memoranda of understanding (MoUs) worth $4.5 billion at the Pak-China Agriculture Investment Conference. This initiative marks agriculture as a priority sector under the second phase of the China-Pakistan Economic Corridor
(CPEC). The agreements aim to enhance bilateral agricultural trade, modernize production and processing systems, and establish commercial partnerships between private sector entities from both countries. The cooperation spans 10 priority sub-sectors, including seed production technology, dairy products, and food processing. The conference was designed to facilitate direct private sector engagement and investment matchmaking, aligning with Pakistan's national priorities for agricultural modernization and export-led growth. Dedicated units are being established in the Ministry of National Food Security and Research and the Pakistan Embassy in Beijing to oversee the implementation of these MoUs.
Why It's Important?
The signing of these MoUs is significant as it represents a strategic move to elevate agriculture as a key sector in Pakistan's economic development. By focusing on agricultural modernization and export-led growth, Pakistan aims to double its agricultural exports, currently valued at $8 billion, over the next three years. This initiative is expected to strengthen Pakistan's economic ties with China, enhance its agricultural productivity, and create new opportunities for private sector investment. The collaboration also includes plans to introduce new seed policies and biotechnology pathways, which could lead to increased agricultural efficiency and sustainability. The focus on modernizing agriculture aligns with global trends towards sustainable food production and security.
What's Next?
To ensure the successful implementation of the MoUs, Pakistan is setting up dedicated units to monitor progress and facilitate ongoing cooperation. The country plans to sign more than 25 sanitary and phytosanitary (SPS) and export protocols with key partners, including China, in 2026. Additionally, proposals are under consideration to allow the export of pesticides and fertilizers under specific conditions, targeting regional and African markets. These steps are expected to further enhance Pakistan's agricultural export capabilities and contribute to its economic growth.
