Pakistan, Italy Sign €20 Million Concessional Loan Agreement to Boost Agricultural Skills Development

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ISLAMABAD, The Government of the Islamic Republic of Pakistan and the Government of the Republic of Italy have signed a concessional loan agreement amounting to EUR 20 million (approximately PKR 6.3 billion) to support the Professional Capacity Building and Extension in Agriculture project under Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme.

The Government of Pakistan was represented by Mr. Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, while the Government of Italy was represented by H.E. Marilina Armellin, Ambassador of Italy, in the presence of senior officials from the Italian Agency for Development Cooperation, the Ministry of National Food Security and Research, and provincial departments.

The project aims to strengthen Pakistan’s Technical and Vocational Education and Training (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 is designed to build the capacity of farmers, extension workers, trainers, and other stakeholders through modern, demand-driven training programmes that contribute to increased productivity, sustainable agricultural practices, and improved livelihoods.

Under the programme, emphasis will be placed on the development of high-value crops and the strengthening of agro-food value chains. Dedicated training facilities will support stakeholders engaged in horticulture production, processing, and marketing, while fostering product diversification and value addition. The project will 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 will deliver 720 training courses benefiting an estimated 18,398 participants, including farmers, women, youth, and trainers, supported by the development of 11 standardized training curricula. Infrastructure investments will include the establishment of 12 model orchards and nurseries, 8 eco-villages equipped with climate-resilient technologies, 5 agro-food processing units, and 2 National Centres of Excellence for citrus and date crops in Sargodha (Punjab) and Turbat (Balochistan).

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

The signing of this agreement reflects the strong and longstanding development partnership between Pakistan and Italy and underscores their shared commitment to promoting sustainable agricultural development, skills enhancement, and inclusive economic growth through strengthened bilateral cooperation.

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