Pakistan, Italy sign €20m concessional loan agreement for agriculture skills project

Pakistan and Italy on Monday signed a concessional loan agreement worth approximately Rs6.3 billion to support a project aimed at strengthening agricultural skills development and vocational education in the country.

The agreement was signed by Economic Affairs Secretary Muhammad Humair Karim and Ambassador of Italy 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 departments for the Professional Capacity Building and Extension in Agriculture project under Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme.

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

The initiative was designed to build the capacity of farmers, extension workers, trainers, and other stakeholders through modern, demand-driven training programmes that contributed to increased productivity, sustainable agricultural practices, and improved livelihoods.

Under the programme, emphasis would be placed on the development of high-value crops and the strengthening of agro-food value chains. Dedicated training facilities would support stakeholders engaged in horticulture production, processing, and marketing, while fostering product diversification and value addition.

The project would focus on crops including olives, pistachios, dates, mushrooms, cherries, grapes, peaches, and almonds, drawing upon Italian expertise in modern agronomic practices and Pakistan’s significant agricultural potential.

Over a period of 42 months, the programme would deliver 720 training courses benefiting an estimated 18,398 participants, including farmers, women, youth, and trainers, supported by the development of 11 standardised training curricula.

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Infrastructure investments would include the establishment of 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 in Sargodha and Turbat.

The project would be implemented by the Pakistan Oilseed Department in coordination with Provincial Agriculture Departments and was expected to generate rural employment, enhance producer incomes, reduce post-harvest losses, strengthen farmer cooperatives, and improve the competitiveness of Pakistan’s agriculture sector.

A press release said the signing of the agreement reflected the strong and longstanding development partnership between Pakistan and Italy and underscored their shared commitment to promoting sustainable agricultural development, skills enhancement, and inclusive economic growth through strengthened bilateral cooperation.