CHINA-Pakistan Economic Corridor CPEC has entered into CPEC Phase 2.0. This time the focus shifts from large-scale infrastructure to fostering of agricultural modernization, industrialization and socio-economic development.
Phase 2.0 will further bolster Pakistan’s cooperation with China through trade expansion, Special Economic Zones (SEZs) and technology transfer in a bid to create jobs and reducing poverty. A question remains: What dividends will Balochistan obtain from CPEC Phase 2.0? Balochistan Assembly in October 2025 demanded inclusion of the province in CPEC Phase 2.0. The Assembly lawmakers maintained that Balochistan had to receive tangible dividends from the Phase 2.0 of mega project.
Agriculture modernization is the key component of CPEC Phase 2.0. Balochistan is called “fruit basket of Pakistan”. The province nearly shares 90 percent of the national production of cherries, grapes and almonds. Approximately 60 per cent of apricots, pomegranates and peaches while around 34 percent apples and 70 percent of dates are exported from Balochistan. The agriculture and livestock sectors alone have the strength to provide more than two-thirds of the province’s workforce. More than 11.77 million acres land of the province equal to Switzerland an area wise so far has remained uncultivated. Balochistan offers ideal agro-climatic conditions for olive cultivation. Cultivating above-mentioned areas particularly olive oil under CPEC Phase 2.0 will transform Balochistan. Once rural areas thrive, people will resist militancy prioritizing stability over confrontation. Developing crop-specific zones, modernizing irrigation systems and expanding agri-exports will generate enough job opportunities.
According to Food and Agriculture Organization Balochistan, nearly 70 percent people of the province directly and indirectly are dependent on agriculture and livestock sector. Against this backdrop, most part of the province is affected by the droughts. While, in 2022 floods, Balochistan was cut off from the rest of the country, disrupted transport, trade and market access. Agriculture sector is vulnerable to floods. The total losses of the province in 2022 floods were around $ 5 billion contributing environmental radicalization. The Phase 2.0 pays special attention to climate change, promoting green industrialization and maritime economy. Green Balochistan Initiative launched by the Government of Balochistan needs to be aligned with CPEC Phase 2.0 to mitigate the environmental challenges.
The excessive utilization of tube wells using solar decreases the water level. Nearly 81 percent of farmers are concerned about an increasing water scarcity in the province. Fostering climate diplomacy with China, applying the Chinese successful models of addressing climate change challenges will be instrumental for Pakistan in general and Balochistan in particular. Meanwhile, the non-availability of good quality seeds further intensifies farmers’ worries. Low quality seeds for crops causes around 40 percent germination failure. Formers lack lucrative markets to sell their products. The province is least populated and does not have the capacity to absorb the production. Farmers, thus, sell their products to other provinces. During monsoon season products are damaged due to poor road infrastructure. To modernize the agriculture sector, Phase 2.0 should provide farmers crops insurance, credits and subsidies on pesticides and fertilizers. Expensive products available locally cannot compete globally, forcing farmers to leave the agriculture sector. Without addressing the grievances of the formers, it is naïve to assume that the agriculture sector can be modernized.
As far as Sanaullah Khan Achakzai, former Deputy Director Agriculture Extension Department Killa Abdullah is concerned, the farmers have limited knowledge of post-harvest international standards for packaging and grading which influences the quality of the food. Quality maintains long-term market sustainability. Nearly 65 per cent of fruit production of the province is sold and consumed in other regions. The province has limited cold storage, these cold storage centers enable farmers to store their items for a long period of time and would sell products when markets prices are favorable.
Due to limited facilities, Pakistani processed food brands, by and large, are absent from international markets while farmers lack global exposure. Enhancing their exposure would help them secure better prices for production. Removing the role of middlemen in the supply chain and establishing purchasing centres in each district would enable them to sell their produce directly to consumers. Under CPEC Phase 2 special scholarships be announced for the students of Balochistan to study in China and learn from China how the country modernized its agriculture sector.
Replicating China’s One Village One Product OVOP modal in Balochistan will do miracle. Quetta, Pishin and Killa Abdullah are famous for the production of apples, grapes. Turbat and Panjgur are well-known for dates production while Ziarat and Kalat in apples and cherries. Building localized economic ecosystems will pave the way for each district to become a specialized, competitive market in national and global value chains. It is essential for the province to unite farmers into organizations and linking them with local traders, exporters and processing units enabling them to survive in the competitive era. Currently, Balochistan exports raw produce, the province should shift to dates packed, date syrup and export-grade dates and from apples to apple juice and dried apples.
Ostensibly, CPEC Phase 2.0. offers a great opportunity for Balochistan to modernize its agriculture sector. The modernization of the sector will also strengthen the livestock sector as both sectors are closely interdependent. The large portion of the province relies on these two sectors. Lastly, Phase 2 could also end the perception of the marginalization within the province emerged during the CPEC Phase-I.
