Pakistan, Italy sign €20m loan agreement to strengthen agricultural skills

Pakistan and Italy on Monday signed a concessional loan agreement worth €20 million (around Rs6.3 billion) to support professional capacity building in agriculture under Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme.

The agreement was signed by Secretary, Ministry of Economic Affairs, Muhammad Humair Karim, and Italian Ambassador Marilina Armellin in the presence of senior officials from the Italian Agency for Development Cooperation, the Ministry of National Food Security and Research, and provincial agriculture departments, according to an official statement.

The project aims to strengthen Pakistan’s TVET system with a focus on the agriculture sector by improving professional skills, technical certification and innovation across agricultural value chains.

Under the 42-month programme, farmers, extension workers, trainers and other stakeholders will receive modern, demand-driven training designed to enhance productivity, promote sustainable farming practices and improve rural livelihoods.

The initiative will prioritise the development of high-value crops and agro-food value chains, with training covering horticulture production, processing and marketing. Targeted crops include olives, pistachios, dates, mushrooms, cherries, grapes, peaches and almonds, drawing on Italian expertise in modern agronomic practices.

According to the Ministry of Economic Affairs, the programme will deliver 720 training courses for an estimated 18,398 beneficiaries, including farmers, women, youth and trainers. It will also develop 11 standardised training curricula.

Infrastructure planned under the project includes 12 model orchards and nurseries, eight eco-villages equipped with climate-resilient technologies, five agro-food processing units, and two National Centres of Excellence for citrus and date crops to be established in Sargodha, Punjab, and Turbat, Balochistan.

The project will be implemented by the Pakistan Oilseed Department in coordination with provincial agriculture departments.

The government said the initiative is expected to generate rural employment, increase farmers’ incomes, reduce post-harvest losses, strengthen farmer cooperatives and improve the competitiveness of Pakistan’s agriculture sector.

The agreement reflects the longstanding development partnership between Pakistan and Italy and their commitment to promoting sustainable agricultural development, skills enhancement and inclusive economic growth through bilateral cooperation.