By Muhammad Luqman

The Punjab government will invest Rs60 billion under the three-year (2026/27–2027/28) Punjab Economic Transformation Plan to establish four agro-processing park clusters in Sargodha, Okara, Khanewal and Bhakkar, according to official documents available with Wealth Pakistan.

The four clusters will provide shared cold chain facilities, certification services, and business infrastructure, enabling more than 500 firms to invest and creating around 20,000 direct and indirect jobs.

Each agro-processing park will span 250 acres and receive a government investment of Rs15 billion.

The parks will be developed near key crop-producing regions, including citrus-growing Sargodha, potato-producing Okara, and mango-growing areas of southern Punjab, particularly around Multan. They will feature specialized pre- and post-harvest processing facilities, including sorting and grading units, laboratories and certification services, cold storage and logistics infrastructure, capacity-building and information centres, and business support services.

To encourage private sector participation, the government will offer a range of manufacturing incentives, including reimbursement of duties on imported plant, machinery and equipment through a dedicated Rs50 billion fund.

The parks will support the complete processing chain for citrus and mangoes from farm-gate collection to sorting, grading, packing, polishing, and waxing, as well as the production of pulp, puree, and jams.

Potato processing facilities will cover the entire value chain, from farm-gate procurement and grading to cold storage and the production of dehydrated potato flakes, frozen fries and potato chips.

Government estimates show the initiative is expected to catalyze more than Rs20 billion in private investment while enabling over 500 firms to benefit from the incentives offered under the program.

The agro-processing parks are expected to facilitate exports of 40,000 tonnes of value-added citrus and mango products and 50,000 tonnes of value-added potato products. The initiative will establish 20 value-addition units, generate an estimated additional US$200 million in export earnings, and increase raw agricultural exports by 5%.

Punjab produces more than one million tonnes of mangoes annually, mainly in the districts of Multan and Rahim Yar Khan, while citrus production stands at around 2.26 million tonnes, largely concentrated in Sargodha, Toba Tek Singh and Mandi Bahauddin.

The province also accounts for more than 96 percent of Pakistan's potato production and last year harvested a record 12 million metric tons, mainly from Okara district.

However, post-harvest losses for fruits and vegetables in Punjab range between 35 percent and over 40 percent, costing billions of rupees annually. These losses are mainly attributed to poor handling at the farm level, inadequate transportation, and the lack of modern cold chain infrastructure, reducing farmers' incomes and limiting export potential.

Credit: INP-WealthPk