Pakistan and Italy have strengthened their friendship with a new financial agreement. Italy has signed a concessional loan worth €20 million (about Rs6.3 billion) to support key development projects in Pakistan. The deal was signed on June 29, 2026, by Economic Affairs Secretary Muhammad Humair Karim and Italian Ambassador Marilina Armellin.
This loan will help the “Professional Capacity Building and Extension in Agriculture” project. It is part of Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme. The focus is on improving skills for farmers and workers in the agriculture sector. This includes training on modern techniques for high-value crops, better farming practices, and professional development.
Agriculture is very important for Pakistan’s economy. It provides jobs to millions of people and contributes a large share to the country’s growth. This Italian support will help modernize training programs, boost productivity, and improve livelihoods in rural areas. Officials believe it will lead to long-term economic benefits and stronger bilateral ties between the two countries.
Italy has been a good partner for Pakistan in development and cooperation. This concessional loan comes with easy repayment terms, making it helpful for sustainable growth. Both sides hope the project will create better opportunities for young people and support food security.
This agreement shows growing international support for Pakistan’s efforts to build a skilled workforce and develop its key sectors.