Pakistan launches new agri-trade authority to promote modern farming

Fruit vendors wait for customers along a street in Karachi on June 18, 2025. (AFP/File)
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Updated 14 July 2025
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Pakistan launches new agri-trade authority to promote modern farming

  • NAFSA aims to modernize agriculture, reduce chemical use, and boost trade transparency
  • Initiative comes under Special Investment Facilitation Council overseeing economic reforms

ISLAMABAD: Pakistan has established a new regulatory body to reform its agriculture sector and bring domestic food safety standards in line with international requirements, state-run Associated Press of Pakistan (APP) reported on Monday.

The new National Agri-Trade and Food Safety Authority (NAFSA) has been set up under a reform drive led by the Special Investment Facilitation Council (SIFC), a civil-military hybrid body formed in 2023 to fast-track foreign investment and economic reform in strategic sectors, including agriculture, mining, IT and defense production.

NAFSA consolidates the Department of Plant Protection (DPP) and the Animal Quarantine Department into a single authority aimed at promoting modern agricultural practices, reducing excessive chemical use and facilitating trade in agricultural products.

“The establishment of the new body, by merging DPP and Animal Quarantine, is an important milestone toward development of agriculture sector,” the APP report stated.

The report did not provide further details on NAFSA’s governance, regulatory powers and rollout timeline.

Agriculture remains a cornerstone of Pakistan’s economy, employing nearly 38 percent of the workforce and contributing around 19 percent to the country’s GDP. However, the sector has long faced challenges, including outdated practices, poor regulatory oversight, low export competitiveness and barriers in meeting international sanitary and phytosanitary (SPS) standards.

By centralizing regulatory oversight and compliance, the government hopes NAFSA will address long-standing inefficiencies and support value-added agricultural exports.

“NAFSA is aimed at introducing modern agricultural systems according to global standards,” the APP said. “It will help reduce unnecessary use of Methyl Bromide, saving up to forty thousand rupees per container.”

Methyl Bromide, a fumigant used to control pests during export processing, has been heavily restricted under global environmental protocols due to its ozone-depleting properties. NAFSA’s efforts to limit its use are expected to improve both environmental sustainability and export cost efficiency.

The move aligns with broader reforms spearheaded by the SIFC, which was formed through a civil-military consensus to fast-track investment decisions, cut bureaucratic delays and attract foreign capital, especially from Gulf and Chinese partners, to priority sectors.

“Transparency and innovation is being promoted in the agriculture sector with the support of the SIFC,” the APP report said.


Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

Updated 25 December 2025
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Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

  • Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
  • Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone

KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.

The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said. 

The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim. 

“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said. 

Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.

The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs. 

Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said. 

“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said. 

The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital. 

To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.