What's Happening?
Private sector entities from Pakistan and China have signed 78 memoranda of understanding (MoUs) valued at $4.5 billion during the Pak-China Agriculture Investment Conference. This initiative marks the elevation
of 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. The collaboration spans 10 priority sub-sectors, including seed production technology, beef export, grain storage construction, cheese production, milk processing, poultry machinery, and renewable irrigation technologies. The conference was designed to facilitate direct private sector engagement and investment matchmaking, with 116 Chinese and 165 Pakistani companies participating. The event also showcased investable projects and policy reforms, with plans to sign additional sanitary and phytosanitary protocols with key partners, including China.
Why It's Important?
The signing of these MoUs is significant as it represents a strategic move to boost Pakistan's agricultural exports, which currently stand at $8 billion, with a goal to double this figure in the next three years. The agreements are expected to modernize Pakistan's agricultural sector, enhance productivity, and create new export opportunities. This development is crucial for Pakistan's economy, as agriculture is a major contributor to its GDP and employment. The collaboration with China, a major global economic player, could lead to increased foreign investment and technological advancements in Pakistan's agricultural sector. Additionally, the focus on export-led growth aligns with national priorities and could help Pakistan address its trade deficit.
What's Next?
To ensure the successful implementation of the MoUs, dedicated units will be established within Pakistan's Ministry of National Food Security and Research and at the Pakistan Embassy in Beijing. These units will oversee follow-up actions and facilitate ongoing cooperation. The government plans to introduce a new seed policy and a national agricultural biotechnology policy to support the use of GMO seeds. Proposals are also 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 capabilities and export potential.
