ISLAMABAD: Pakistan and China have signed 79 memoranda of understandingworth approximately $4.5 billion in the agriculture and food sectors duringthe Pakistan-China Agri Investment Conference held in Islamabad. FederalMinister for National Food Security and Research Rana Tanveer Hussainannounced the development, describing it as a major milestone that reflectsstrong Chinese investor confidence in Pakistan’s agricultural potential.The agreements span ten high-impact sub-sectors and aim to modernize valuechains, generate rural employment opportunities, and strengthenfarm-to-market linkages for sustainable growth.
The conference, which concluded recently, brought together over 300companies from both nations, including 116 Chinese and 165 Pakistanienterprises. Participants engaged in business-to-business discussionsfocused on advanced agricultural techniques, technology transfer, and jointventures. Minister Rana Tanveer Hussain emphasized that these MoUsrepresent private-sector commitments rather than government-to-governmentdeals, highlighting a shift toward market-driven investments under theevolving framework of bilateral cooperation.
Agriculture remains a cornerstone of Pakistan’s economy, employing nearly40 percent of the workforce and contributing around 19 percent to grossdomestic product. Despite this significance, the sector faces challengessuch as outdated farming practices, limited mechanization, water scarcity,and inefficient supply chains. The influx of Chinese investment is expectedto address these issues by introducing modern machinery, improved seeds,precision farming tools, and enhanced processing facilities to increaseproductivity and reduce post-harvest losses.
The signed agreements cover critical areas including food processing andvalue addition, livestock and dairy development, fisheries and aquaculture,agri-inputs such as fertilizers and pesticides, farm machinery solutions,renewable energy applications in agriculture, cold chain logistics, andpackaging technologies. Officials noted that these sectors were carefullyselected to align with Pakistan’s needs for export diversification anddomestic food security while tapping into China’s expertise in large-scaleagricultural modernization.
Minister Hussain stated that the investments would modernize agriculturalvalue chains, create thousands of rural jobs, and improve linkages betweenfarms and markets. Enhanced connectivity is anticipated to help smallholderfarmers access better prices and reduce dependency on middlemen.Furthermore, technology transfer from Chinese partners is expected tointroduce climate-resilient practices and digital tools, enabling Pakistanto boost yields in key crops like wheat, rice, cotton, and fruits.
This development builds on previous bilateral engagements in agriculture.In recent years, cooperation under the China-Pakistan Economic Corridorframework has prioritized agriculture as a key pillar in its second phase.Earlier agreements, including those signed in 2025, focused on similarareas such as mechanization and livestock. The latest MoUs mark asignificant escalation in scale and ambition, with potential to elevatebilateral agricultural trade toward ambitious targets set by Chineseofficials.
Chinese Ambassador to Pakistan has previously expressed interest inexpanding trade volume to $1 billion in agriculture, aiming for a surplusbenefiting Pakistan. Such goals align with China’s massive import marketfor food products, valued at hundreds of billions annually. Pakistaniauthorities have pitched opportunities for exports of tropical andtemperate produce to meet Chinese demand, positioning the country as areliable supplier.
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Economic analysts view these investments as timely amid Pakistan’s effortsto stabilize its economy and attract foreign direct investment.Agriculture’s modernization could contribute to GDP growth, reduce importbills for edible oils and pulses, and enhance export earnings fromprocessed foods and value-added products. Job creation in rural areas isparticularly crucial to curb urban migration and alleviate poverty inagrarian regions.
The government has assured an investor-friendly environment, includingstreamlined regulatory processes and coordination across departments tofacilitate implementation. Minister Hussain reiterated Pakistan’scommitment to supporting Chinese enterprises through policy consistency andinfrastructure support. Successful execution of these MoUs could set aprecedent for similar collaborations in other sectors, strengtheningoverall economic ties between the two countries.
While the MoUs signal intent and potential investment flows, actualrealization will depend on follow-up actions, feasibility studies, andground-level execution. Stakeholders remain optimistic that thispartnership will accelerate transformation in Pakistan’s agriculture,fostering long-term food security and economic resilience through sustainedSino-Pak cooperation.
Source:https://www.app.com.pk/business/79-mous-worth-4-5bn-signed-at-pak-china-agri-investment-conference-rana-tanveer-2
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