Pakistan, Italy Sign Rs6.3 Billion Concessional Loan Agreement to Boost Agricultural Skills and Vocational Training
ISLAMABAD: Pakistan and Italy have strengthened their long-standing development partnership by signing a concessional loan agreement worth approximately Rs6.3 billion to improve agricultural skills development and vocational education across Pakistan. The agreement aims to modernize the country’s agricultural sector by enhancing technical education, promoting innovation, and equipping farmers and agricultural professionals with modern skills.
The agreement was signed on Monday by Economic Affairs Secretary Muhammad Humair Karim and Italian Ambassador Marilina Armellin. The signing ceremony was attended by senior representatives from the Italian Agency for Development Cooperation (AICS), the Ministry of National Food Security and Research, as well as officials from provincial agriculture departments.
The funding will support the Professional Capacity Building and Extension in Agriculture Project, which forms part of Pakistan’s broader Technical and Vocational Education and Training (TVET) National Reform Programme. The initiative is designed to strengthen the country’s vocational education system while placing particular emphasis on the agriculture sector, which remains one of the largest contributors to Pakistan’s economy and employment.
Strengthening Agricultural Skills
The project seeks to enhance the professional capacity of farmers, agricultural extension workers, trainers, and other stakeholders by providing modern, demand-driven training programmes. Through improved technical education and internationally recognized certification systems, the initiative aims to increase agricultural productivity, encourage sustainable farming practices, and improve rural livelihoods.
Officials said the programme will also promote innovation throughout Pakistan’s agricultural value chains, helping farmers adopt modern production methods while improving the quality and market competitiveness of agricultural products.
Focus on High-Value Crops
A major component of the project will focus on developing high-value crops and strengthening agro-food value chains. Dedicated training centres will provide technical support for horticulture production, processing, and marketing while encouraging product diversification and value addition.
The programme will cover a range of commercially important crops, including olives, pistachios, dates, mushrooms, cherries, grapes, peaches, and almonds. Italian expertise in advanced farming techniques, orchard management, and agronomic practices will be utilized to help Pakistan unlock the full potential of these high-value agricultural products.
Training Nearly 18,400 Participants
The programme will run for 42 months, during which approximately 720 specialized training courses will be conducted. These courses are expected to benefit around 18,398 participants, including farmers, women, young professionals, trainers, and other stakeholders involved in the agriculture sector.
To ensure consistent and high-quality instruction, the project will also develop 11 standardized training curricula tailored to the needs of Pakistan’s agricultural industry.
Major Infrastructure Development
In addition to skills training, the initiative includes significant investments in agricultural infrastructure. Plans include the establishment of:
12 model orchards and nurseries showcasing modern cultivation techniques.
Eight eco-villages equipped with climate-resilient technologies to promote sustainable farming.
Five agro-food processing units aimed at reducing post-harvest losses and increasing product value.
Two National Centres of Excellence, one dedicated to citrus production in Sargodha and another specializing in date cultivation in Turbat.
These facilities are expected to serve as demonstration and training centres for farmers while encouraging the adoption of modern agricultural technologies across the country.
Economic and Rural Development
The project will be implemented by Pakistan’s Oilseed Department in collaboration with provincial agriculture departments. Authorities expect the initiative to generate new employment opportunities in rural areas, improve farmers’ incomes, strengthen agricultural cooperatives, reduce post-harvest losses, and enhance the international competitiveness of Pakistan’s agriculture sector.
Officials believe that better vocational training and improved agricultural practices will contribute to long-term food security and sustainable economic development while creating opportunities for women and youth in rural communities.
Strengthening Pakistan-Italy Cooperation
According to an official press release, the agreement reflects the strong and enduring development partnership between Pakistan and Italy. Both countries reaffirmed their commitment to supporting sustainable agriculture, improving technical education, enhancing professional skills, and promoting inclusive economic growth through continued bilateral cooperation.
The initiative is expected to play a significant role in modernizing Pakistan’s agricultural sector by combining international expertise with local potential, ultimately helping farmers increase productivity and improve their livelihoods.
