CPEC may boost agriculture prospects in Pakistan

Subject

The China-Pakistan Economic Corridor's impact on agriculture.

Significance

Agriculture accounts for more than 20% of Pakistan's economy and 45% of employment but has stagnated over the last two decades. Most recently, it has been growing at half the pace of the economy overall. The China-Pakistan Economic Corridor (CPEC), despite a focus on transport and energy infrastructure, is seen as the best immediate hope to revitalise the sector.

Impacts

• Pakistan is already seeking donor assistance in areas such as agricultural infrastructure, technological exchange and post-harvest handling.
• However, Pakistan has yet to develop a systematic federal strategy to turn CPEC to the benefit of its farmers.
• Imports of agriculture machinery from China may contribute to farm mechanisation in Pakistan.
• That will have limited effect while sectoral structural weaknesses remain unaddressed.