CPEC: A big opportunity emerges for Pakistan agriculture sector

[Ali Tariq]

29 Oct, 2018

ISLAMABAD - Recent inclusion of the agriculture sector in the long term plan of China Pakistan Economic Corridor provides Pakistan an opportunity to export more value added agriculture products to tap China’s growing demand of food commodities.

According to a report launched by State Bank of Pakistan titled “State of Economy 2017-18” Pakistan`s agriculture sector would witness significant development under the CPEC.

Through the project, China would transfer its technology to Pakistan to increase per acre yield of various crops and to add more value to the agriculture products.

Currently, in agriculture sector, out of China’s global food imports of around 99.6 billion dollars, Pakistan’s share is only around 0.4 billion dollars which makes only 0.37 percent.

According to the report, the Ministry of National Food Security and Research, in its 2018 Food Security Policy, envisages the development of nine agricultural development zones along the CPEC .

By encouraging innovation, entrepreneurship, and collaboration, these zones could serve as platforms to develop clusters and infrastructure to nurture emerging rural businesses to produce commodities deemed exportable to China.

These commodities include cereals, dairy, eggs, meat, honey, tobacco, seafood and fruits, and others.

The report further added that in the crop sector, focus is emphasized on increasing the use of modern machinery and synthetic fertilizers to enhance yields, while food storage and processing zones would be constructed to reduce significant post-harvest losses.

 

[Hakikat ve Hikmet]

Since China is a leader in the wind/solar energy and growing rice even with saline water (demoed in the UAE), and Pak coast is great for these alternative energies and has tons of arid land, I hope it's a win/win for all!!! This CPEC is unlocking a new opportunity with every turn....

 

[khansaheeb]

Great development. But it is important to ensure that the Pakistani populace has cheap products for consumption and that only surplus is exported.

 

[GeraltofRivia]

Great development. But it is important to ensure that the Pakistani populace has cheap products for consumption and that only surplus is exported.

A possible outlook is that the food price will go up as farmers find it more economical to export to the overseas market at higher price than to domestic markets. This may look undesirable from a domestic consumer perspective but may be a better outcome for the nation. The reason is that selling produces at high price means farmers as a class become richer and they are key part of Pakistani economy in terms of size and employment. Increased economical value will have flow on effect to other segments of the economy and they will lead to wider scale economical growth. This will be reflected in better employment opportunities and income for the general population.
The increase price of food will enable and encourage further investment in the sector, which means increase in agri productivity and production volume.

Back in the 90’s in China, food was extremely cheap and vegetables were priced next to nothing. It may be good for city dwellers but the consequence was that farmers were really poor as they received very little for their produce. They could barely survive, let alone upgrade their production. These days, food is much more expensive in China and may have gone up by 10 times. But average salary has gone up by 100 times and average people can actually consume more and better food.

That being said, the food is basic life item and the increase in price needs to be monitored and managed carefully. Frequent and sudden food price spikes are deconstructive to economy growth and may lead to social unrest.

 

[Pakistansdefender]

Since China is a leader in the wind/solar energy and growing rice even with saline water (demoed in the UAE), and Pak coast is great for these alternative energies and has tons of arid land, I hope it's a win/win for all!!! This CPEC is unlocking a new opportunity with every turn....

People from decent countries learn.
Not failed countries like Pakistan.
They have been given this new freedom. And they don't know what to do with it.
They want their masters back.