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Partnership with China could be productive to meet domestic tea demand: PTA

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KARACHI, Feb. 14 (INP): Zeeshan Maqsood, Executive Member and Former Senior Vice Chairman of the Pakistan Tea Association (PTA) called for stronger collaboration with China to meet the country’s surging domestic demand for tea, as imports continue to increase.

Tea imports into Pakistan experienced a 5.53% jump during the first six months of the current fiscal year, indicating a continued love affair with the brew, data from the Pakistan Bureau of Statistics (PBS) showed. 

Tea imports into the country increased to $336.423 million during July-December (2023-24) while the imports in July-December (2022-23) was $318.798 million.

Pakistan is one of the world’s largest tea consumers and importers, with 1.1 kg per capita consumption. Strengthening the competitiveness of Pakistani tea is essential to boost domestic production, foreign exchange earnings and consumer welfare. 

It will also encourage innovation, technology adoption and attract foreign investment to further diversify and strengthen the Pakistani economy.

Current challenges facing the Pakistani tea industry include competition from imports, limited marketing efforts and weak brand image, environmental and sustainability threats, and inadequate policy and regulatory frameworks.

In an interview with Gwadar Pro, Zeeshan Maqsood highlighted the need to explore cooperation opportunities with China, the world’s largest tea producer. “China, as the leading producer of tea, offers immense potential and opportunities for collaboration,” he added.

Pakistan has limited tea production and relies heavily on imports to meet its domestic demand, while China produces a wide variety of tea, including green, black, and oolong tea and has a long history of tea cultivation and processing, providing Pakistan with some reference in technology, investment and trade. 

China has also set a highly successful example of how tea can help fight poverty.

Tea, as a medium of friendship traced back to the ancient Silk Road times, has lasted for centuries. In cooperation with China, Pakistan has built its first modern tea plantation and achieved large-scale production. China and Pakistan have also set up tea cooperation centers for tea research and cultivation.

The current state of this collaboration is also positive and progressing. Both countries have recognized the potential for mutual benefit in this area, leading to several key projects and agreements. 

Over the years, the two countries have continued to cooperate in technology, investment and trade. It is worth mentioning that as an important part of the activities of the China-Pakistan Tourism Year 2023, the China Cultural Center of Pakistan launched an online exhibition on Chinese tea culture on international platforms, demonstrating Pakistan’s recognition of Chinese tea and tea culture and the cooperation efforts of both sides.

He highlighted the potential for China and Pakistan to increase the number of cooperative varieties. “Pakistanis prefer CTC tea from Africa and the two sides can work together to develop CTC flavors and liquid that are closest to what Pakistanis like,” he said.

“With companies from both countries catering to the tastes and needs of Pakistanis, we need to establish a strong regulatory framework and quality control measures to ensure the tea meets international standards, harmonize taxation and give Chinese and Pakistani companies more opportunities to establish joint ventures in agriculture and packaging plants in the northern regions of Pakistan,” he added.

INP/javed 

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  • FD News

    Financial Daily (FD) is an emerging media outlet providing news reports, analysis and features especially related to politics and economy. FD is currently one of the largest and most comprehensive private-sector information portals in Pakistan, providing its readers with apolitical, unbiased and fact-based news reports and analyses.

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