Termed as 'CPEC phase 2 Pakistan' the China agricultural cooperation is taking four months since the start of contract farming or commercial farming in Pakistan with the cooperation of China. 

With this new type of agricultural system, a contract model farm is being formed, which is increasing Pakistan's agriculture-related exports many times. Moreover, through such innovative agricultural projects, China is training Pakistan's small farmers on modern lines, transferring technology related to modern agriculture to Pakistan.

The price of the crop is fixed before sowing and the money is paid on delivery of the crop. With this Pak-China agricultural cooperation, the infrastructure of agriculture, which includes agricultural input-output, is being developed on a modern basis, and above all, the eradication of poverty through the Pakistan-China agricultural cooperation, which includes contract farming or commercial farming.  The credit of contract farming or commercial farming in Pakistan goes to Chinese companies, especially China Machinery Engineering Corporation Pakistan. China Machinery Engineering Corporation, Pakistan is the first Chinese company to introduce contract farming in Pakistan.  It formally started contract farming of 500 acres of chillies in 2020. After that, the contract farming of sesame seed crop was done and in 2023, Pakistan's export of sesame seed to China reached 400 million dollars.  It is expected that the export of sesame seed crop to China will be about one billion dollars in the coming time. Pakistan's agricultural export had a bad situation in the past.

According to the 2017-18 report of the State Bank of Pakistan, China's food and drink imports from around the world, which were up to 99 billion dollars in 2018, Pakistan's share was only 0.37%, that is, Pakistan's agricultural exports to China were only 0.37%.  In this way, the CPEC long-term plan, especially Pakistan-China agricultural cooperation, started to be implemented in a bad situation, and finally, in the first half of 2022, the total export of Pakistan to China reached 610 million dollars and in 2023, its total volume reached one billion dollars.  According to experts, Pakistan's total exports to China will reach about 20 billion dollars in the coming years. In all this scenario, China Machinery Engineering Corporation Pakistan has got a key position to boost the production of chilli crop and sesame seed crop through contract farming. Through contract farming in the short term, China Machinery Engineering Corporation is providing agricultural inputs to smallholder farmers in Pakistan and providing good prices for off-market crops and providing farmers with access to modern agricultural equipment and training. Recently, on May 6, to further strengthen the CPEC Phase 2 Pakistan-China agricultural cooperation, China Machinery Engineering Corporation, Pakistan signed an agreement for contract farming of the first sesame crop of 2024 with Joya Agricultural Farm of Faisalabad (Tandlianwala).  The agreement was unveiled at Joya Agricultural Farm in which China Machinery Engineering Corporation, Pakistan Deputy General Manager Mr. Dai Bao, Senior Commercial Manager Mr. Alan Xi, Commercial Manager Mr. Jerry Liu, Professor Dr. Zhang Lixin of China Northwest University, officers and agricultural scientists of Ayub Agriculture Research Institute Faisalabad, officers of Oilseed Research Institute, officials of Pakistan Trade Development Authority and State Bank of Pakistan participated.  The most important thing about China's revolutionary contract farming is that the Chinese company fixes the price of the crop with the Pakistani farmer before the crop is sown and according to the contract, even if the market suffers from downturn or some other problems. However, the farmer gets the fixed price of the crop in all cases.

The recent wheat crisis has put farmers' lives in dire financial straits, but China's contract farming projects have given new hope to farmers. The Pak-China friendship is also exceptional and the same has started reflecting in business ties as well with the recent endevaouars.  Recently economic and financial experts gave a similar talk in the symposium organized in connection with the Third Belt and Road Forum, which was organized by the Chairman of the Institute of International Relations and Media Research.  Speaking on the occasion, the Chairman of Institute of International Relations and Media Research,  submitted that there is no doubt that the friendship between Pakistan and China is higher than mountains, deeper than seas and sweeter than honey, but it is yet to be even higher. There is scope for deepening and steps have been taken towards this in the Third BRF Forum. And along with this, more such measures have been taken in Pakistan which will further strengthen the economic relations between the two countries. For the development of these economic relations, it is necessary to increase the cultural ties between the two countries, to make Urdu and Chinese language common in both countries, and especially for those people who are connected with each other in matters of trade, education, etc.  

Similarly, the Chinese in Pakistan are facing difficulties in terms of food, supply of their authentic Chinese spices and this is a problem that needs to be solved immediately. The security issue of the Chinese in Pakistan should also be taken notice of. There should not be any delay because the protection of the foreigners in the country is the most important part of the national dignity. The good thing is that the revolutionary nature project ML-1 in Pakistan Railways, which unfortunately could not be started yet, is set to see the light of day as work to start on this project.  Consensus between the two countries on the upgradation of the port is also of great importance and now it is necessary to remove every obstacle in the way of these two projects. Along with this, the twenty MoUs which have been signed regarding BRI, mining, industry green projects, infrastructure, increasing exports of agricultural commodities to China should also be worked on very vigorously. In Pakistan, only recently a major step has been taken to increase trade with China, which was much needed for a long time and especially after the inauguration of CPEC.  The People's Bank of China has appointed the Industrial and Commercial Bank of China as the clearing agent of the Chinese currency RMB in Pakistan and the RMB Clearing Bank has been established. 

It was a long-standing wish of the businessmen of both the countries that there should be a facility to conduct mutual trade in Chinese currency.  It should be kept in mind that Pakistan before taking this step saw that the Chinese currency stands in the same position as the US dollar or other major currencies in Pakistan's currency regulatory landscape.  For this reason, State Bank of Pakistan has established a regulatory framework to facilitate the use of Chinese currency.