Pakistani companies have signed Memorandums of Understanding (MoUs) worth millions of dollars with Chinese firms to establish state-of-the-art silos, cold storage, and grain storage facilities across the country. This marks a significant step toward modernizing Pakistan’s grain storage infrastructure and strengthening its food security.
The agreements were signed during the recently held Pak-China Agri-Investment Conference, inaugurated by Prime Minister Shahbaz Sharif. The event attracted hundreds of Pakistani firms seeking Chinese investment and technical support to modernize the agricultural sector.
Muzzamil Chappal, Chairman of the Cereal Association of Pakistan (CAP), told Business Recorder that several Pakistani companies participated in the conference, a joint initiative of both governments. He said that five CAP member companies signed MoUs worth $100 million with Chinese firms for technology transfer and construction of modern grain storage facilities and silos nationwide. The companies include Chappal Traders, Mehmood Traders, Abdul Shakoor & Company, and Feroz Foods Industries (Pvt.) Ltd.
Chappal added that Chappal Traders and Mehmood Traders signed two MoUs with Chinese firm Dongying Fengtu Intelligent Storage Co Ltd (FTSILO), which specializes in cold chain systems and agricultural logistics. Under the agreements, the Chinese company will establish modern grain storage and silo facilities in various cities to ensure safe storage of rice paddy, maize, and wheat.
He noted that despite being an agricultural country, Pakistan lacks modern storage infrastructure, leading to significant post-harvest losses and spoilage. Millions of bags of wheat stored in government godowns are damaged each year due to outdated storage systems.
Chappal praised the Pak-China Agri-Investment Conference, saying it provided a valuable platform for Pakistan’s agricultural sector to gain exposure to modern technologies. He added that the event also strengthened linkages between Chinese enterprises and Pakistan’s industry, government institutions, and academia.
“The improved storage facilities will not only protect valuable crops but will also increase stock availability for exports in the long run, enabling the country to earn higher foreign exchange reserves,” Chappal said.
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