CPEC bolsters chili industry in Pakistan

Boosting agricultural collaboration and trade links between Pakistan and China, and improving food security serve as significant components of the China-Pakistan Economic Corridor, officials and experts say.

Pakistan, one of the leading chili producers in the world, has the potential to become a major player in chili cultivation. In one of the first batch of CPEC agricultural projects, Chinese technical teams are collaborating with Pakistani farmers, landowners and universities to help the South Asian country reach its full potential as a chili exporter.

Pakistan recently made its first shipment of dry red chilies to China as part of enhanced agricultural cooperation between the two countries under the framework.

"Agriculture cooperation is getting momentum between the two countries," said Mehmood Ul Hassan Khan, executive director of the Center for South Asia and International Studies in Islamabad, Pakistan.

Chinese company Litong Food has played an important role in the shipment, he said, adding that it has started a new era in the trade relations between Pakistan and China.

According to the Pakistan Bureau of Statistics, between 2020 and 2021, the agricultural sector contributed about 24 percent of the country's GDP, accounting for half of the employed labor force. It was the largest source of foreign exchange earnings.

"On its part, China has made 'rural vitalization' a priority to promote growth in the countryside over the next five years," Khan said. "Initiatives in science and technology are being introduced in less-developed rural areas to promote modern agriculture, and the same may be replicated in Pakistan under CPEC phase II in the country."

The second phase of CPEC aims to diversify the economic impact of the project by venturing into new sectors such as agricultural modernization, industrial development and socioeconomic projects, said Maarij Farooq, deputy editor-in-chief of Pakistan Economic Net and Daily Ittehad Media Group.

"This phase emphasizes agricultural development and technology transfer, aiming to modernize Pakistan's agricultural sector, which is a backbone of its economy."

At a ceremony marking the chili shipment in the southern port city of Karachi, Kausar Abdullah Malik, minister for national food security and research, said the agriculture sector is crucial for Pakistan, and China has been aiding his country in modernizing the industry and ensuring food security under CPEC.

Chinese companies are providing local farmers with technology and training to increase production immensely and cultivate chilies and other high-quality crops, he said.

Demonstration effect

Chinese Ambassador to Pakistan Jiang Zaidong said via video link that the red chili contract farming project has a demonstration effect, and it has effectively promoted the local agricultural development and helped improve the lives of local farmers.

China has attached great importance to promoting agricultural cooperation with Pakistan and will continue to promote trade facilitation measures, expand contract farming and push intensive processing of Pakistani agricultural products, Jiang said.

Zheng Xiaohui, project manager at Litong Food Group in Sichuan province, said the goal of the company is to promote healthy and steady development of Pakistan's chili industry.

"We have trained over 1,500 Pakistani agricultural technicians and provided 6,000 temporary employment opportunities, significantly boosting economic benefits for local farmers," Zheng said.