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Pakistan Signs Rs6.3 Billion Italy Loan For Agriculture Modernization

  • June 30, 2026
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Pakistan has secured a €20 million (approximately Rs6.3 billion) concessional loan from Italy to modernize its agriculture sector through skills development, vocational education and advanced farming practices. The agreement marks another step in the long-standing development partnership between the two countries and aims to improve agricultural productivity while strengthening Pakistan’s technical workforce.

The financing will support the Professional Capacity Building and Extension in Agriculture project under Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme. The agreement was signed by Secretary of the Ministry of Economic Affairs Muhammad Humair Karim and Italian Ambassador Marilina Armellin in Islamabad in the presence of senior officials from both governments and the Italian Agency for Development Cooperation.

The 42-month programme is designed to strengthen Pakistan’s agricultural workforce by providing modern, demand-driven technical training to farmers, extension workers, trainers, women and young professionals. Authorities plan to conduct 720 specialized training courses benefiting nearly 18,400 participants, while also developing 11 standardized training curricula to improve vocational education across the agriculture sector.

A major focus of the initiative will be the development of high-value crops with strong export potential. Training programmes will cover crops including olives, pistachios, dates, mushrooms, cherries, grapes, peaches and almonds, utilizing Italian expertise in modern agronomic practices. Participants will also receive instruction in horticulture production, post-harvest processing, marketing and value addition to improve competitiveness across agricultural value chains.

Beyond training, the project includes significant investments in agricultural infrastructure. Plans include the establishment of 12 model orchards and nurseries, eight climate-resilient eco-villages, five agro-food processing units, and two National Centres of Excellence dedicated to citrus and date production in Sargodha and Turbat respectively. These facilities are expected to serve as demonstration and training centers for modern agricultural technologies and sustainable farming practices.

The project will be implemented by the Pakistan Oilseed Department in collaboration with provincial agriculture departments. Officials expect the initiative to create rural employment opportunities, increase farmers’ incomes, reduce post-harvest losses, strengthen farmer cooperatives and improve the overall competitiveness of Pakistan’s agriculture sector. By combining international expertise with local capacity building, the programme aims to support long-term agricultural development while contributing to food security and inclusive economic growth across the country.

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Related Topics
  • agriculture
  • agriculture modernization
  • economic cooperation
  • farming
  • Italy
  • Ministry of Economic Affairs
  • Pakistan
  • rural development
  • TVET
  • vocational training
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