ISLAMABAD: Pakistan is seeking Canadian investment to process its agricultural produce for export to the Middle East and other markets, its commerce ministry said on Tuesday, as Islamabad looks to extract greater value from one of its largest economic sectors and boost foreign exchange earnings.

Pakistan has made higher-value agricultural exports part of a broader drive to shift toward export-led growth, seeking investment in processing, packaging, cold storage and certification rather than relying heavily on sales of raw commodities. The government sees the nearby Gulf, which imports much of its food, as a potentially lucrative market for Pakistani producers.

Commerce Minister Jam Kamal Khan and Canadian High Commissioner Tarik Ali Khan discussed expanding bilateral trade and investment cooperation at a meeting in Islamabad, including in dairy development, animal genetics, edible oils, fruit concentrates and food processing.

“The Minister stressed the need to move beyond commodity trade by establishing joint ventures capable of processing Pakistani agricultural products and exporting them to markets in the Middle East and other regions,” the commerce ministry said in a statement after the meeting.

Khan said Pakistan’s strategic location, expanding market and connectivity with China, Central Asia and the Middle East offered significant opportunities to Canadian companies.

Pakistan and Canada also expect to hold a new round of negotiations on a long-running investment protection agreement in the first week of October, with officials seeking to resolve outstanding issues that have held up its conclusion.

The proposed Foreign Investment Promotion and Protection Agreement, or FIPA, is intended to give investors greater certainty through legal protections and mechanisms for arbitration and dispute resolution.

Canada and Pakistan began the latest series of formal negotiations on the agreement in Islamabad in October 2025 and held a second round in Ottawa in June this year. Canadian Foreign Minister Anita Anand and Pakistani officials agreed during her visit to Islamabad in July to work toward concluding negotiations at the earliest opportunity.

“We are as ambitious as Canada in taking this process forward,” Khan said. “Our objective is to resolve outstanding matters and establish a strong, mutually beneficial framework for long-term economic cooperation.”

The Canadian high commissioner described FIPA as a foundation for increasing Canadian investment in Pakistan, saying a predictable and secure investment framework was essential to encourage greater participation by Canadian companies, according to the ministry.

Pakistan is seeking to increase exports after years of recurring balance-of-payments pressures that have forced it to seek financial support from international lenders and partners.

The government has increasingly emphasized moving from raw or minimally processed products toward higher-value, branded goods as it tries to generate more sustainable foreign exchange earnings.

Tuesday’s talks also covered Canadian investment opportunities in mining, renewable energy and aviation. A Canadian business delegation involved in mineral exploration, equipment and mining services is expected to participate in an upcoming investment forum in Pakistan, the commerce ministry said.

The two sides also discussed a proposed hybrid renewable-energy project in Jhimpir in the southern Sindh province and potential cooperation with Canadian aviation companies, including aircraft leasing.