Diplomatic relations between Pakistan and China were officially established in 1951, marking the formal beginning of their modern-day friendship. Since then, the relationship between the two countries has strengthened and evolved in various ways, including economic, political, and strategic cooperation.
Over the years, both nations have collaborated on numerous projects and initiatives, such as the China-Pakistan Economic Corridor (CPEC), which aims to enhance connectivity, trade, and economic development between the two countries. This enduring friendship has been characterized by shared interests, mutual support on various international issues, and a commitment to deepening their ties for the benefit of both nations.
Celebrating a decade of transformative partnership is a significant milestone, reflecting the enduring and growing friendship between the two countries. Under the international initiatives of the “Belt and Road” and the “China-Pakistan Economic Corridor,” there has been a historic development opportunity for agricultural cooperation between China and Pakistan.
The first phase of the China-Pakistan Economic Corridor (CPEC) has indeed focused on infrastructure development and the expansion of the motorway network, which is critical for improving transportation efficiency, reducing travel times, and promoting economic development in Pakistan by connecting different regions of the country and facilitating international trade through the China-Pakistan Economic Corridor (CPEC).
Before this initiative, only M-1 (Islamabad to Peshawar) & M-2 (Lahore to Islamabad) were operational, covering a 375 km area. Currently, Pakistan has developed a total of 16 motorways planned or under CPEC development. At present, 2567 km of motorways are operational, while an additional 1191 km are under construction.
Motorways are a vital part of Pakistan’s National Trade. This road infrastructure facilitates trade and transportation between the two countries, providing Pakistan with improved connectivity to international markets. Another major challenge in Pakistan is energy shortfall. Before CPEC, Pakistan’s energy shortfall was 7000 MW in 2011-2013, which remains unchanged after ten years.
According to Power Division sources, the total electricity production in the country was 20,795 MW, while the demand was 27,500 MW. Power generation projects within the China-Pakistan Economic Corridor (CPEC) play a vital role in addressing Pakistan’s energy shortfall and improving its energy infrastructure by adding more than 10,000 MW of electricity in the near future.
The Dasu Hydal Project has a capacity of 4,320 MW, the Diamer Bhasha Dam has 4,500 Mega Watts, and the Bunji Dam is expected to produce up to 7,100 Megawatts. Additionally, the Chashma Nuclear Power Plant (5th Unit) has a capacity of 1,200 MW. These projects represent a substantial investment in Pakistan’s energy infrastructure and are expected to alleviate energy shortages, drive economic growth, and enhance energy security.
Overall, the development of special economic zones under CPEC is a significant step toward promoting economic growth and enhancing trade relations between China and Pakistan. These zones are expected to play a pivotal role in boosting industrialization, job creation, and providing benefits to the local community in Pakistan, generating better income.
CPEC has already entered its second phase with the establishment of the LTEC International Agriculture Development Company Limited in 2019. It is the first private sector limited company with its chili research and Development (R&D) facility.
LTEC is committed to providing high-quality, safe, and sustainable agricultural products to global consumers while supporting the development and economic prosperity of local communities in Pakistan. Through technological innovation and strategic partnerships, LTEC aims to improve agricultural productivity and sustainability and create employment opportunities and support for rural areas in Pakistan.
LTEC has emerged as an agriculture development company that focuses on chili farming and places a strong emphasis on research and development, soil analysis, and collaboration with research institutions.
The goal is to improve chili production, support farmers, and promote the adoption of innovative agricultural technologies in Pakistan’s agricultural sector. India has experienced a surge in the export of red chilies, with China being a major buyer. India has become the largest producer of chili, with 1,786,000 tonnes of chilies in the year 2021-22, contributing 36% of global chili production and planning to expand its share to 43%, followed by China, Thailand, and Pakistan. The record business of $1 billion in chili exports reflects the strong demand for this spice in international markets, particularly in China. Pakistan is ranked fourth in the world for chili production, with 150,000 acres (60,700 hectares) of farms producing 143,000 tonnes annually.
Efforts are required to modernize Pakistan’s agricultural sector to increase chili production to 500,000 tonnes by expanding the agricultural area to 200,000 acres. Additionally, upgrading food processing capabilities can help add value to agricultural products and increase their marketability.
Between 2022 and 2024, an investment of $25 million will be allocated to establish five chili processing plants in regions including Multan, Hyderabad, Lahore, and others. These plants will have a combined annual production capacity of 100,000 tons. By 2025, a plant extraction facility capable of processing 300 tons of dry chili per day will be constructed. This breakthrough will mark the initial realization of the integration goal for Pakistan’s chili industry.
Overall, CPEC has played a pivotal role in transferring socioeconomic benefits to ordinary people in Pakistan through skill development, the creation of 2 million new jobs, and increased participation of private investors in economic development.
Projects related to the “China-Pakistan Economic Corridor” (CPEC), especially in agricultural foreign cooperation, have received significant support and guidance from various stakeholders, including Pakistani government departments, the Chinese Embassy in Pakistan, and the Ministry of Agriculture of China.
In 2021-2022, hundreds of agricultural technicians from Pakistan received training, leading to the creation of 6,000 employment opportunities. It is projected that by 2026, this number will steadily increase, providing employment for over 500,000 individuals involved in the agriculture sector annually.
CPEC represents a significant commitment to regional development and cooperation. It has the potential to transform the economic landscape of the region by improving infrastructure, trade, and connectivity. This collaborative effort between China and Pakistan aims to bring about positive economic and social changes and promote closer ties between the two nations and the broader South Asian region.
The aspiration to continue this journey of growth and celebration for many more years underscores the long-term vision and commitment to realizing the full potential of CPEC. Such collaborative efforts hold the promise of creating lasting benefits for the nations involved, contributing to economic prosperity and stability in the region.
*The author is the Commercial Head of LTEC International Agriculture Development Co.,Ltd
**The views expressed in this article are those of the author and do not necessarily reflect the opinions of The Diplomatic Insight. The organization neither endorses nor assumes any responsibility for the content of this article.
The Diplomatic Insight is a digital and print magazine focusing on diplomacy, defense, and development publishing since 2009.
