Pakistan and Italy inked a concessional loan agreement worth €20 million (approximately Rs 6.3 billion) on Monday to back the Professional Capacity Building and Extension in Agriculture project of Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme, aiming to enhance agricultural skills development and vocational education in the country.

The agreement was signed by Secretary, Ministry of Economic Affairs, Muhammad Humair Karim and Ambassador of Italy, Marilina Armellin in the presence of senior officials from Italian Agency for Development Cooperation, Ministry of National Food Security and Research and provincial departments.

The project was designed to improve the quality and relevance of Pakistan Technical and Vocational Education and Training (TVET) system with a special emphasis on the agriculture sector through improved professional skills, better technical certification and promotion of innovation across agricultural value chains.

The effort aimed to develop the ability of farmers, extension workers, trainers and other stakeholders through contemporary, demand-driven training programmes that contributed towards better production, sustainable agricultural practices and improved livelihoods.

The initiative would focus on the development of high-value crops and the enhancement of agro-food value chains. Dedicated training facilities would benefit players in horticulture production, processing and marketing and promote product diversification and value addition.

The project would concentrate on crops such as olives, pistachios, dates, mushrooms, cherries, grapes, peaches and almonds, drawing upon Italian experience in current agronomic approaches and Pakistan’s vast agricultural potential.

The plan would also produce 11 standardized training curricula to assist the delivery of 720 training sessions over a period of 42 months, benefiting an estimated 18,398 participants, including farmers, women, youth and trainers.

The infrastructure investments will include setting up of 12 Model Orchards and Nurseries, 8 Eco-Villages with Climate Resilient Technologies, 5 Agro-Food Processing Units and 2 National Centres of Excellence for Citrus and Date Crops at Sargodha (Punjab) and Turbat (Balochistan).

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

The signing of this agreement was a reflection of the strong and long-standing development partnership between Pakistan and Italy and underscored their shared commitment towards the promotion of sustainable agricultural development, skills enhancement and inclusive economic growth through strengthened bilateral cooperation.