Pakistan Deepens China Ties, Expects Major Agricultural Investments Across 10 Sectors

Pakistan has reaffirmed its commitment to deepening economic cooperation with China, with a strong focus on agriculture, food security and allied sectors, as the country positions itself as a more open and investor-friendly destination for Chinese businesses.

Addressing the Pakistan–China Investment Conference on Monday, Minister for National Food Security and Research Rana Tanveer Hussain said the government is fully committed to providing a transparent, supportive and facilitative environment for Chinese investors, particularly in agriculture and agri-based industries.

He said the Ministry of National Food Security and Research is working closely with all relevant departments to streamline regulatory processes and ensure smooth coordination for incoming investments. The government’s approach, he added, goes beyond attracting capital and aims to create conditions where Chinese enterprises can expand, innovate and succeed in partnership with local stakeholders.

The minister described the conference as a reaffirmation of the long-standing Pakistan–China friendship, calling the two countries “iron brothers” and stressing the importance of advancing cooperation with ambition and mutual trust. He said joint efforts could accelerate agri-technology development, strengthen food security and reshape the region’s economic landscape.

Highlighting bilateral trade, Rana Tanveer noted that Pakistan’s exports to China reached around $2.38 billion in FY2024–25, while imports stood at $16.3 billion, reflecting steady demand despite global economic challenges. He said the figures demonstrate growing opportunities under the China–Pakistan Free Trade Agreement framework.

He added that the transition from CPEC Phase I to Phase II marks a strategic shift toward industrial growth, technology transfer, renewable energy and people-focused development. As part of this phase, 41 memoranda of understanding were signed in September 2025, covering modern farming, livestock, fisheries, mechanization and advanced technology cooperation.

According to the minister, the conference saw participation from 119 Chinese and 191 Pakistani companies, indicating strong private-sector interest. He said investment commitments worth millions of dollars are expected, with several MoUs likely to be finalized across 10 key sectors, including agriculture, food processing, livestock, fisheries, agri-inputs, farm machinery, renewable energy, logistics, technology and value-added exports.

Speaking at the event, Secretary Ministry of National Food Security and Research Saif Anjum said Pakistan’s agriculture sector offers vast potential for Chinese investment under CPEC Phase II. He acknowledged challenges such as low productivity, weak infrastructure and post-harvest losses, but said these gaps also present opportunities for technology transfer, value addition and joint ventures.

Additional Secretary Board of Investment Arfa Iqbal said Pakistan is strengthening its appeal for foreign investors through investor-focused reforms and coordinated policies. She highlighted the country’s liberal investment regime, allowing full profit repatriation and access to both local and international financing.

She added that reforms under the Asaan Karobar framework, in coordination with the Special Investment Facilitation Council, are reducing procedural barriers, with agriculture identified as a priority sector. The Board of Investment is providing comprehensive facilitation to foreign investors, including visa support, approvals and security clearances.

An official from the Federal Board of Revenue said the authority is supporting agricultural trade through digital customs systems, which have reduced clearance times and improved transparency. He added that zero-duty incentives on agricultural inputs and machinery, along with export facilitation measures, are helping boost productivity and competitiveness in agri-exports.