BY: Peter Huang
Commercial Officer
LTEC
Over the past decade, the China-Pakistan Economic Corridor (CPEC) collaboration has witnessed remarkable growth, with the China-Pakistan agricultural cooperation taking a significant leap forward.
LTEC International Agriculture Development Co., Ltd was established through the collaboration of Sichuan Litong Food Company and Sichuan Puji Agricultural Development Company, marking a significant step in the China-Pakistan agricultural partnership. This joint venture, a pioneer in the CPEC agricultural initiative, has achieved impressive milestones since its inception in 2019. Chairman Chen Changwei, a key figure in this collaboration, has provided valuable insights into the journey.
From the recent intention agreement between LTEC and the renowned Pakistani enterprise Guard Agricultural Services & Research Private Limited, it is evident that the China-Pakistan agricultural partnership has achieved remarkable success while simultaneously hinting at its immense potential. This success, rather than being isolated, has deeper implications within the context of Pakistan’s agricultural and food industry convergence.
Chairman of LTEC Chen Changwei emphasized the significance of localized agricultural research and breeding in reducing seed costs. This aspect holds paramount importance, particularly in the context of Pakistan’s chili industry. As the Pakistan chili export agreement with China unfolds, the involvement of more farmers in chili cultivation will stimulate the demand for chili seeds. This, in turn, will contribute to reducing breeding costs and encouraging larger participation from farmers and institutions, thereby propelling the development of Pakistan’s chili industry.
Chairman Chen Changwei further discussed the blueprint for internationalizing Pakistan’s chili industry. He revealed that the company’s export plan for the chili industry envisions a phased approach, including exporting 30,000 tons in the first phase, scaling up to 100,000 tons in the second phase, aiming for 200,000 tons in the third phase, and projecting 300,000 tons in the fourth phase.
This visionary plan not only contributes to narrowing the China-Pakistan trade deficit and capitalizing on complementary production capacities but also strengthens Pakistan’s foreign exchange reserves, fostering sustainable economic growth.
Simultaneously, the China-Pakistan agricultural partnership promises additional industry dividends for Pakistan.
With access to China’s vast market, the pricing of Pakistani chili transcends local markets to integrate into the broader Chinese food industry market. This not only mitigates the risk for farmers facing price fluctuations due to abundant harvests but also paves the way for the comprehensive development of Pakistan’s chili pepper industry. Through the collaborative efforts of LTEC and Guard in the China-Pakistan agricultural partnership, farmers’ earnings are set to flourish.
