The launch of the China Pakistan Economic Corridor (CPEC) almost a decade ago had prompted some people to raise apprehensions of economic imperialism. This was mainly due to the fact that details about the terms and conditions of CPEC agreements were inaccessible to parliamentarians, academicians and journalists. Comparisons were made to East India Company and British imperialism.

On March 1, the Punjab cabinet was reported to have approved leasing state land to China for corporate farming under the CPEC. The report has revived some of the concerns.

Critics of the decision point out that one, it is unclear whether the CPEC agreements represent investment or loan; and two, the government has failed to establish the effectiveness of CPEC projects on official forums.

The CPEC enthusiasts have called it a game changer, saying one, that China’s economic assistance philosophy, unlike Great Britain, is not based on mercantilism; it is based on economic development and prosperity rather than the military might. Two, that contemporary Pakistan, unlike medieval India, is no ‘golden sparrow.’ And three, that checks and balances provided by formal institutions, such as judiciary and regulatory bodies, are adequate.

According to media reports, the Punjab cabinet, headed by Chief Minister Usman Buzdar, has directed a ministerial committee to devise the lease rules. It has approved leasing of 500 to 5,000 acres of land for corporate farming. The cabinet members are reported to have acted in the belief that this action will help modernise the agriculture, ensure food security and create job opportunities. The critics think otherwise.

“Leasing land to foreign companies will not benefit Pakistan in any way. It will only aggravate the agricultural crisis. It will further deprive the peasantry of the right to land and it will bring no improvement to agriculture. Food sovereignty will be compromised,” says Farooq Tariq, secretary of the Pakistan Kissan Rabita Committee.

The idea of leasing out land to Chinese companies for corporate farming was first thrown up under the Pakistan Muslim League (Nawaz) government. Seven agro-economic zones along the CPEC route were planned to take full advantage of the development opportunity coming its way by promoting high-value agriculture and related businesses.

Leasing land to Chinese companies for industrial, business and other corporate uses is not new. In December 2021, media reports had revealed that the Punjab government had already approved allotment of 1.5 million acres of government land to the Chinese companies under the CPEC. The stated objectives of the decision were to: a) increase revenue by utilising government land; b) enlisting Chinese help to bring non-cultivated government lands under plough; and c) establishing new research centres and improving the already existing ones.

China is not the only country to which farmland is being offered for lease or sale. Lease and sale offers have also been made to businesses from other countries, mainly the Gulf countries which are reliant on food imports and have been looking for farmland in developing nations to secure their supplies. The dividend policy makers in Pakistan have sought for the national economy is the development of a corporate style.

It is not easy to find out how much land is available to the investors or how many hectares have been sold or leased so far.

According to official sources, the United Arab Emirates (UAE), which imports about 85 percent of its food, acquired 12,140 hectares on lease in Sindh in 2008 and 16,187 hectares in Balochistan in 2009 for mechanised farming as part of a strategy to lower its food import costs. Pakistan also leased around 500,000 acres of agricultural land to Saudi Arabia in April 2008.

The rush for farmland was triggered by the food crisis of 2008, which created an alarming situation for the countries that rely on food imports. Gulf interest in Pakistan gained significant momentum in 2008 because: a) the potential for agricultural expansion in the Gulf is quite limited; and b) Pakistan has a comparative advantage in crop production, especially wheat and rice.

Unlike many European economies of the 19^th and 20^th Centuries, the emerging economies of 21st Century are building on their own resources rather than resources of some colonies. However, they still face food insecurity. That is why they are trying to make cheap deals in developing and poor countries to produce food for their own population.

So, producing food elsewhere is a popular trend. It has come under severe criticism from several quarters. Both Financial Times and Jacques Diouf, the head of the UN FAO (1994–2011), have described this phenomenon as ‘neo-colonialism’. GRAIN, a pro-farmer organisation, had called it ‘an international land grab’. By seeking to solve their food shortage problem in this way, the rich economies may in the long-term be exporting their food insecurity to other nations. In other words, poor states would be producing food for the rich at the expense of their own hungry people.

Pakistan must be careful not to lease too much of its agricultural land to foreign investors or companies. Otherwise, it may end up as a modern day colony and face a severe food crisis of its own.

The writer has a PhD in history from Shanghai University and is a lecturer at GCU, Faisalabad. He can be contacted at mazharabbasgondal87@gmail.com. He tweets at @MazharGondal87