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CPEC Phase II: Revamping Pakistan’s Agricultural landscape

Samia Zafar
At the time China Pakistan Economic Corridor (CPEC) was inked in 2015, it was conceived as a modern transportation network (motorways and railways). It was termed as a connectivity project linking the seaport of Gwadar with China’s northwestern region Xinjiang. The project committed to the development of Balochistan and Xinjiang, considered as underdeveloped regions on both sides of border. But later on, China and Pakistan spanned their cooperation by establishing Industrial Parks, technological connectivity and above all, agricultural development, accounting for Pakistan’s biggest sector in economic terms, contributing significantly to Pakistan’s national purse. China’s prioritizing of hybrid agriculture via CPEC marks a transforming initiative for Pakistan’s agricultural sector. China is investing in foreign agricultural sides under BRI, to address its food security scarcity, while Pakistan stands to gain notably. The gains include improved yields via superior seeds, mechanization of farms, and implementation of drip irrigation technology at a wider level. These innovative steps promised a boost in the rural economy documentation, hence modernizing Pakistan’s agricultural sector.
CPEC phase-II inaugurated hybrid agriculture and cultivation of cashable crops (Mushrooms, Rice) as its focal point. Pakistan’s agricultural sector employs nearly 62 to 64% of the entire Population, parallel to 99 million to 1013 million people, and contributes about 18.5 to 22.35% of the GDP. With agricultural boost under CPEC phase-II, efficiency and productivity could double to 37% to 44.7%, strengthening the national exchequer by means of increased output, reduced waste, generating employment opportunities, and by exporting growth. Mushroom cultivation best represents this diversification, with high nutritional value and economic promise.
Mushroom farming is picking up steam, driven by surging demand due to its nutritional benefits and culinary appeal. Therefore, entrepreneurs and farmers are investing in this sector progressively aided by CPEC initiatives in the agricultural sector. Sungold farms in Bhalwal and Sargodha represent this transformation, encouraging smart food security, crop diversity, organic cultivation, and hybrid orientation. Mushroom ranked as the largest crop of this farm due to its annual production capacity of 2000-2500 tons in the country, spawning jobs, assisting rural progression, and mitigating poverty. Shahid Sultan, owner of Sungold farms, highlights the strategic significance of mushroom crops while also shed light on hurdles like limited awareness, lack of training, spawn production facilities, and storage infrastructure. He recommended government incentives, credit availability, and training programs to address these challenges. Sultan predicted immense export potential of mushroom cultivation, positioning Pakistan as a key player, with the help of proper channels and incentives. Tax should be reduced, and infrastructural adjustments should be made.
Mushroom cultivation also empowers women and rural communities by generating entrepreneurial avenues. Private organizations and corporate sectors are already offering training programs to indigenous people, yielding positive results by attracting people to this sustainable source of livelihood. China and Pakistan strengthened agricultural cooperation through a Joint Working Group subject to a Memorandum of Understanding (MoU) signed in November 2018. This collaboration advances productivity, technology adoption, and value addition, thereby ensuring food security and economic prosperity. Juncao technology, initiated by China, provides an eco-friendly procedure for mushroom cultivation utilizing dried grasses instead of wood, with advantages spanning across 100 countries globally. Pakistan can enhance mushroom cultivation with this technology.
CPEC Phase-II also advocates water-efficient, high-value crops like fruits, vegetables, and nuts, with the target to reach regional markets in the Middle East, Southeast Asia, and Europe. Hybrid rice cultivation is a successful project with the first export shipment sent to the Philippines. It is also put to test in regions like Mansehra, Swat, Sahiwal, and Larkana which demonstrates its adaptability to diverse climates. Furthermore, its export capacity is also bolstered with infrastructural projects like Cold storage stations in Khunjerab and planned expansions in Karachi, Gwadar, Lahore, and Peshawar. Nevertheless, few challenges need to be tackled well as structural hurdles must be addressed like low farmer literacy, limited credit access, small land holdings, outdated land records, and outdated water management. Water-intensive crops like hybrid rice and rising exports in the agricultural sector poses significant questions on Pakistan’s local food security. Policymakers must make sure food security remains a priority alongside export growth. What the government can do on its part is to discourage mushroom imports along with high tariffs while incentivizing local farmers through subsidies, tax cuts, and credit facilities. Partnership with China’s National Engineering Research Centre for Juncao Technology can advance the progress of this sector. Pakistan’s economic motives align with export-oriented agriculture and hybrid agriculture, including water-efficient crops, but food security protection is a priority.
Pakistan’s agriculture is the backbone of its state treasury, and it entails modernization and support to tap its full potential. CPEC offers numerous avenues to bolster progress and prosperity, however meticulous planning is required to balance export ambitions with Pakistan’s food security. Pakistan can achieve sustainable and resilient agricultural growth, economic boom through diversity, and ameliorate livelihoods for millions by leveraging Chinese expertise and addressing structural inefficiencies.
Dahqaan Pakistan reaffirms the words of M. S. Swaminathan;
“The future belongs to nations with grains and not guns.”
Samia Zafar is doing Masters at Government College University Lahore and a distinguished member of a grassroot organization, Dahqaan Pakistan.