Pakistan's seafood exports could touch an incredible figure of 1,225 million dollars annually, provided shrimp farming and production of value-added products are promoted. Shrimp farming alone could fetch 800 million dollars and value added products another 425 million dollars. Presently, shrimp farming is not being done.
Pakistan Seafood Industries Association (PSIA) Chairman Muhammad Hanif Khan told the Business Recorder here on Wednesday that although seafood exports had great potential, it remained the most neglected sector.
He regretted that peeled and cooked shrimp processing, which alone could fetch 100 million dollars, had remained neglected so far. Only one factory was now under construction to undertake the job, he added.
He said he had drawn the attention of the Prime Minister, Advisor to the Prime Minister on Finance and other government functionaries through letters and fax messages towards the deteriorating conditions in fisheries sector, which needed due consideration or else "our industry will be in deep trouble."
The PSIA Chairman said the following measures be taken immediately to enable the seafood industry achieve the magic export figure of 1225 million dollars:
-- Availability of quality raw material is ensured.
-- Hundred percent duty and tax free status to import any plant/machinery/equipment for fish industry.
-- Project financing by the bank should be made available without hurdles. Mark-up rates should be nominal. Banks are reluctant to give loans.
Last week, a delegation of stakeholders of fishing industry had apprised the Export Promotion Bureau (EPB) Chairman Tariq Ikram of the crisis faced by the industry.
The EPB Chairman informed him that to en-cash the tuna fish potential of 500 million dollars, a pilot project "Tuna corridor" had been planned with the objective of bringing long liner fishing technology through Foreign Direct Investment (FDI) to Pakistan.
Hanif Khan said that the biggest issue of fishing industry was shortage of raw material.
He said that seafood stocks were depleting continuously and trawlers were not getting sufficient catch. As a result, 90 percent of the trawlers had stopped operation with the result that processing industry was not getting sufficient raw material that was making their cost of production high, he added.
General opinion of fishermen, he said, was that none of them would be able to go into the sea for fish catching as they were suffering heavy losses.
The price of diesel had gone sky high in the last one year whereas the price of fish/shrimp remained the same as it was last year, he said, adding that a 15-20-day trawler trip cost around Rs 450,000 with 70 percent component of diesel.
As a result, the processing plants were getting 10 percent raw material of their capacity, he said, and added there was possibility of closure of all the processing plants.
The following steps have been suggested to retrieve the situation:
-- Prohibition of catching in creeks (natural hatcheries) and use of illegal nets.
-- Development of shrimp farming.
-- Relief in diesel price.
-- Mark-up rates on export re-finance to be reduced to three percent per annum.
Hanif Khan said that in the meeting with Prime Minister's Advisor on Finance Dr Salman Shah, he suggested that the Federal and provincial governments set up an independent authority or board.
It should have an initial funding of Rs 200 million to invite foreign experts to prepare feasibility and develop shrimp farming on 50,000 acres of land in Sindh and Balochistan, which would give a production of 200,000 metric tonnes of shrimps valued at 800 million dollars per annum.
The seafood industry could also increase exports from the existing set up to the tune of 400 million dollars per year if the production of value-added products were started, he said.