CPEC Phase 2.0 and Agricultural Development

Articles , Snippets , / Monday, April 21st, 2025

rki.news

Naz Pervin

For a country’s development, industry and agriculture are inseparable. Pakistan is an agricultural country, and agriculture forms the backbone of its economy. Industries such as edible oils, rice, flour mills, textiles, sugar, fisheries, dry fruits, and leather rely heavily on agriculture. Pakistan is rich in natural resources, with a climate and environment highly conducive to agriculture. It possesses the capacity to produce all types of food commodities.

Agriculture constitutes approximately 21% of Pakistan’s GDP, supports the livelihoods of 64% of the rural population, and employs 43% of the national labor force. Pakistan ranks among the top 11 countries globally with vast and fertile agricultural land. It also boasts the world’s largest canal irrigation system. The country’s four distinct seasons—hot, cold, and temperate—enable the successful cultivation of diverse crops. Lush forests, water resources, mineral-rich mountains, and natural assets are vital to the economy. Pakistan’s total land area is 79.6 million acres, of which 23.77 million acres (28%) is agricultural land. Crops serve as a critical source of foreign exchange.

Pakistan is one of the world’s largest producers and suppliers of food and crops. Globally, it ranks 3rd in chickpeas, 6th in apricots, 4th in milk, 5th in dates, 5th in sugarcane, 7th in onions, 6th in citrus, 4th in mangoes, 7th in wheat, 11th in rice, and 8th in farm output based on GDP sector composition.

Challenges in Agriculture
Despite abundant agricultural resources, Pakistan is compelled to import agricultural commodities—a concerning trend. Annual agricultural imports now exceed $8 billion, nearing petroleum imports. Key imports include edible oils, cotton, wheat, sugar, tea, and pulses. Despite its agricultural potential, Pakistan lags behind regional and global counterparts in modernizing this sector due to historical neglect and apathy by past governments.

Agricultural growth has been sluggish. Global crop yields are rising, but Pakistan’s productivity remains low. Farmer illiteracy is a major barrier to adopting modern practices. Outdated cultivation methods, unaffordable machinery, and inadequate crop prices leave farmers struggling to cover daily expenses. Small landholdings hinder mechanization, while substandard seeds reduce yields. High per-acre costs, erratic tube well/electricity rates, expensive diesel and fertilizers, and water scarcity exacerbate challenges. Farmers are selling agricultural land to migrate to cities, and housing societies are encroaching on fertile areas.

The Path Forward
To revive the economy, a robust, modern agricultural system is essential. Increasing per-acre yields will boost national income. Mechanized farming—using pesticides, synthetic fertilizers, tractors, and threshers—is now global standard. Punjab, once India’s wheat supplier, now imports wheat. Farmers must access modern machinery, and the government must facilitate resource acquisition to achieve food self-sufficiency through advanced agricultural practices.

The current government is prioritizing agricultural infrastructure. Success now hinges on adopting modern technology. High-yield farming on limited land is more profitable. Pakistani agricultural universities are researching these methods. With a growing population, advancing agriculture is critical to meet food demands.

CPEC Phase 2.0 and Agricultural Transformation
The benefits of CPEC’s first phase—energy and infrastructure projects—are now reaching the public. Phase two focuses on industrial growth and agriculture. Pakistan is prioritizing measures under CPEC to modernize agriculture, improve farmers’ livelihoods, and amplify its economic impact. A joint Pakistan-China committee has been formed for agricultural collaboration.

Though CPEC’s primary goals are industrial growth and resolving energy crises, agriculture stands to gain the most. Contributing 21% to GDP, agriculture remains pivotal to Pakistan’s development. Detailed CPEC plans are underway, including seed improvement, agricultural mechanization, technology transfer, Chinese investment, and capacity-building for agricultural scientists.

New techniques will be introduced in Balochistan, Cholistan, D.I. Khan, and former tribal areas, including olive cultivation. Chinese experts are training locals. Phase two emphasizes technology transfer, collaborative research, sustainable pest control, livestock/fisheries centers, commercial cherry farming in Gilgit-Baltistan, and cotton production/research with China. Advanced technology will also boost cotton yields.

The National Institute for Genomics and Advanced Technology is collaborating with Chinese scientists to develop long-grain “Green Super Rice” and high-yield sugarcane and cotton. These crops will soon be available locally, revolutionizing agriculture. Chinese institutions will help establish storage systems—procurement warehouses, transit hubs, and port facilities—to safeguard produce. Vegetable processing plants will also be set up.

Interest-free loans from Chinese development banks and ministries will fund tractors, crop storage machinery, energy-saving pumps, fertilizers, and planting/harvesting equipment.

Pilot Projects and Future Prospects
A 100-acre chili pilot project has been completed, with plans to expand to 3,000 acres in Marala. Phase two targets 30,000 acres in Khyber Pakhtunkhwa (KP) and Sindh, promising over PKR 100,000 per acre for local farmers and processing 8,000+ tons of dried chilies. High-quality chili cultivation is also underway in South Punjab. Similar efforts are ongoing for tea and other crops.

CPEC Phase 2.0 Seminar in Peshawar
A seminar on CPEC Phase 2.0, organized by the China Window Cultural Center, saw participation from Governor KP Faisal karim Kundi , politicians, former diplomats, policymakers, federal/provincial ministers, and business leaders. Agricultural initiatives were highlighted alongside other projects. A Chinese investor expressed interest in large-scale investments in KP, relocating industries from China to KP including precious stone mining, fisheries, agricultural/dairy/poultry farms, and fruit/vegetable processing. These projects promise thousands of jobs for locals and advanced agricultural technology. Chinese experts will train local farmers. The investor urged the government to facilitate Chinese ventures, which could spark an agricultural revolution and public prosperity.

The seminar educated students, the public, and stakeholders on CPEC Phase 2.0’s scope. CPEC is poised to uplift Pakistani society and strengthen Pakistan-China friendship.