ISLAMABAD, Jan. 26 (INP-WealthPK): Pakistan’s rural areas hold strategic importance in the China-Pakistan Economic Corridor (CPEC) as the major routes of the multi-billion-dollar project pass through them.
The CPEC’s Long-Term Plan (2017-30) focuses on the development and remediation of the poor and medium-yielding land, the construction of water-saving contemporary agricultural zones, resource efficiency maximisation, and drip irrigation technology efficiency in agriculture. This will automatically bring improvement and positive changes in the lives of people.
The CPEC is a multi-sectoral project located on the western coast of Gwadar, Balochistan, which connects all provinces of Pakistan with roads, pipelines, railway tracks, energy infrastructure, and industrial developments.
The project, which is being expanded to include Afghanistan and Central Asian countries , is also assisting Pakistan in developing its energy resources.
The eastern route of the CPEC mostly runs through Punjab and Sindh provinces, while the central route criss-crosses Khyber Pakhtunkhwa and some impoverished districts of Punjab and Sindh. Balochistan's rural parts are also connected to the KP province via the third western route.
Though the CPEC mainly aims to develop industrial zones and help Pakistan overcome economic issues such as energy crisis, it is also benefiting the country’s agriculture sector in many ways. Agriculture is an essential pillar of Pakistan’s economy and an important indicator of rural development. The agriculture sector’s share in GDP in financial year 2020 was 22.69% as it engages over half of the population.
The development of the agriculture sector means an improvement in the living standards of half of the country's population, thus helping Pakistan regain its status as a food exporter, which it used to be until 2013, but has since become a food importer.
According to the Economic Survey of Pakistan 2020-21, the agriculture sector’s performance during financial year 2020-21 broadly remains encouraging as it grows by 2.77% against the target of 2.8%. During FY2020, agriculture sector accounted for 22.69% of Pakistan’s GDP and employed 35.89% of the country’s labour force.
The CPEC opens up several opportunities for Pakistan to increase its agricultural exports to China, which reached $630 million during the period from January to September 2021 of the total $860 million agriculture trade that took place between the two countries during the period, showing a twofold increase year-on-year, according to the Chinese ambassador.
Pakistan has been suffering from an energy crisis for a long time, which has adversely affected agriculture sector’s output. However, the energy projects being undertaken as part of the CPEC will provide cheap electricity to farmers, thus expanding irrigated and cultivated areas.
Also, through the projects under the CPEC, available water will be stored through scientific methods to ensure enough irrigation water for large tracts of barren land, particularly in Balochistan. The projects also aim at modernising the irrigation system.
The CPEC also focuses on improving the cold chain logistics and processing centres in Pakistan as more than 50% of agricultural produce gets lost due to a lack of cold chain logistics and processing centres.
Cooperation in crop cultivation, animal-breeding, forestry, food production, and aquatic and fisheries would be expanded in regions located along the CPEC routes. Improved post-harvest handling of agricultural products, storage and transportation, as well as marketing and sales strategies will be ensured. Besides, improving water resource management and operation, pastoral and desert development, and promoting remote sensing technologies are some of the interventions being undertaken under the CPEC.
The agriculture sector in Pakistan has the potential to attract Chinese investors in food processing, cropping, fertiliser, pesticides and livestock industries.
Infrastructure development and the resulting increase in agricultural production will create job possibilities in rural regions, aiding in the development of rural economy.
Development of fisheries under the CPEC will greatly benefit the residents of Gwadar, as they mostly depend upon fishing for their sustenance.
The government has also announced a broad incentive package to entice foreign investors to participate in CPEC projects. Particularly noteworthy is its sizable stimulus package for the countries with which Pakistan has free trade agreements.
