The federal government has released funds for reactivation of the date processing plant at Turbat, in Balochistan, which is expected to be operational by next season. "The reactivation of the plant at a cost of Rs 20 million will tap huge potential of dates, produced in Makran Division," an official of Pakistan Horticulture Development & Export Board (PHDEB) told Business Recorder here on Wednesday.
He said that process for implementation of the project has started with shortlisting of contractors and purchasing the required equipment, and expressed hope that work would start by the end of this month.
The said plant was installed in early 1960s through a grant under the 'V-Aid Program'. Since its installation, the plant has mostly remained idle due to management issue and lack of access to market. The civil structure of the plant was damaged by a cyclone in 1995.
PHDEB Chief Operating Officer (COO) Mohammad Iqbal said that the government had approved reactivation of the plant in last year's trade policy.
Export Promotion Bureau (EPB) had also funded a feasibility study for reactivation of the plant in December 2002.
The plant has been updated by adding cold storage facilities.
The working paper of the project envisages revised cost of renovation of the plant and addition of 500 tons capacity compartmentalised cold storage at Rs 20.26 million.
Under the plan, most of the plant machinery and equipment would be replaced while for water sources, a tube-well has also been planned at the plant.
Regarding financing of the project, apart from Rs 325,000 spent on the existing infrastructure, the addition would cost Rs 19.738 million, of which Rs 15 million would come from Export Development Fund (EDF) and the remaining million from private sector investor.
The financial and economic analysis of project shows that total investment will be recovered in eight years.
Iqbal said that the project is financially viable, which would benefit a large number of farmers, traders and service providers associated with dates business and employing the local population.
He said that a private limited company, comprising representatives of provincial government, PHDEB, EPB, growers, exporters and private investors has been formed to manage the project.
Iqbal said that dates are among the three leading horticulture exports of the country, but its huge potential is still to be fully utilised.
Pakistan ranks fourth in dates production and fifth in its export in the world. The annual date production in the country is estimated at 630,300 tons. Sindh leads with annual production of 288,900 tons, followed by Balochistan 240,600 tons, and Punjab and NWFP 94,100 tons each.
Makran Division, which comprises Turbat and Panjgur, represents the main date producing area in Balochistan, having various date varieties.
Pakistan's annual date exports amount to about 70,000 tons, of which fresh dates account for 7 percent and 93 percent dried dates. However, the exports of dates at present are mainly sourced from Khairpur (Sindh) and alternatively from Turbat.
The official expressed hope that the ongoing development activities in roads network would promote commercial activity and hence the opportunities for improving dates marketing, including exports.