MoU signed to facilitate Pakistani chili export to China

By Staff Reporter | China Economic Net Aug 13, 2023

KARACHI, Aug 13 (China Economic Net)- In a development for Sino-Pak trade and agricultural cooperation, Pakistan’s Dynamic Engineering & Automation and China’s Qingdao Lulu Agri. Equip. Co., Ltd signed an MoU today to carry out a project to processing chilies in Pakistan for export to China.

MoU signed to facilitate Pakistani chili export to China

The signing ceremony was witnessed by Ghulam Qadir, Commercial Counsellor, Pakistani Embassy in China, Qamar Zaman, Joint Secretary, Pakistani Ministry of Commerce (Agri Division) and Wang Zihai, Pakistan’s Honorable Investment Counsellor to China.

With China currently being the world’s largest pepper producing and trading country, the MoU opens up new avenues for Pakistani enterprises to tap into the vast Chinese market. It also provides a platform for research collaboration and exchange programs between the two companies, fostering mutual learning and growth.

Under the terms of the MoU, the two companies will jointly develop and coordinate work plans for the establishment of chilli production workshops, personnel management and technology transfer.

At the end of last month, Chinese Vice Premier He Lifeng and former Pakistani Prime Minister Shehbaz Sharif jointly witnessed the signing of a protocol on phytosanitary requirements for the export of dried chilies, showing the huge potential of Pakistan chili and provides a broader market opportunity for chili-related enterprises in the two countries.

Li Zhimin, Chairman of Qingdao Lulu Equip, who participated in the first FoodAg held in Karachi from August 10 to 12, exchanged views with various chilli companies from Pakistan's major chilli growing cities, including Karachi and Lahore, and reached cooperation intentions with six Pakistani companies.

Founded in 2015, Qingdao Lulu Agricultural Equipment Co Ltd is a diversified enterprise that integrates research and development, manufacturing and import and export of agricultural machinery and equipment. The company, which created the first chilli handle removal machine and sells well in China, exports its products mainly to India, and began exporting chilli processing equipment to Pakistan four years ago.

India has been China’s largest source of imports for four consecutive years. Li pointed out that, “Pakistan has similar geographical advantages of growing chilies as India, but the quality and yield of Pakistani chilies have relatively fallen behind due to the aging of the varieties and backward technology.”

“As more and more Chinese enterprises like Lulu Equip invest in the variety improvement, mechanical planting and scientific processing of Pakistani chilli, it will provide a more stable and convenient trade environment for Pakistani chili export to China and promote the growth of bilateral trade,” Li concluded.

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