China-Pakistan joint venture boosts chilli growth and trade under CPEC

One of the top Chinese companies, Litong Food, has selected Pakistani company Guard Agricultural Research and Services under CPEC framework for import of red chilli cultivated in Pakistan with Chinese collaboration on buyback policy.

Shahzad Ali Malik, Chairman Pakistan Hitech Hybrid Seed Association (PHHSA) and CEO Guard Agricultural Research and Services, said both the countries would join hands to encourage the cultivation of high-yielding hybrid chilli in South Punjab and interior Sindh.

He said both the companies would sign a deal to have technical collaboration on hybrid chilli and subsequent export of chilli to China under the China-Pakistan Economic Corridor (CPEC) in coming international food and agriculture expo being held in Karachi from August 10-12 where Guard is exhibiting along with Longping and Litong Food.

Echoing similar views, an expert on China-Pakistan relations observed, being one of the most populous nations with expanding affluent class, China offers massive trade potential to neighbouring Pakistan.

By capitalising such business deals, Pakistan can potentially stabilise its economy by leveraging its strategic location and strengthening its longstanding friendship with China, said Dr. Liaqat Ali Shah, Executive Director and Head of Policy Division at the Centre of Excellence for CPEC. “China’s shift towards consumption and service-led growth in the ‘new normal’ presents a promising opportunity for Pakistan,” he said.

“To capitalise on this potential, Pakistan needs to focus on its comparative advantages in specific product lines compared to China and other regional competitors.

According to the WealthPK research, a better understanding of this “new normal” is that the economy is shifting from a high to a medium-high rate of growth, from a growth model that emphasises scale and rate to one that emphasizes quality and efficiency. Such changes are essential for China’s economy to upgrade to a more advanced level, with a better division of labour and a more rational structure.

Furthermore, Dr Liaqat Ali said, the Pakistani authorities should collaborate with their Chinese counterparts to navigate regulatory challenges, simplify trade procedures, and promote cultural exchanges.

Understanding Chinese consumer preferences and market trends will be crucial in tailoring Pakistani products to the demands of the Chinese market successfully,” he suggested.