In spite of the ban on seafood exports to the European Union (EU), exports of fish and its products have increased by 25 per cent during nine months of 2010-11 as compared to values of the previous year. According to Federal Bureau of Statistics (FBS), during July-March, these exports were $197.300 million against $157.843 million of last year. The FBS said fish exports have expanded by 44.87 per cent during March this year as compared those of last month.
The EU ban
Four years ago in April 2007, the EU imposed a ban on import of frozen seafood and its products from Pakistan, because they failed to meet the EU’s requirements. It had issued several notices to concerned authorities for improving the standards of products exported to European markets.
The country is losing at least $300 million due to halting of seafood exports to EU markets. It seems that the ban will continue for an indefinite period.
Around the same time, the EU proposed a programme for improving the conditions of Karachi Fish Harbour (KFH) and fishing boats, alongside up gradation of seafood processing plants. The Sindh government’s programme for rehabilitation and renovation of KFH and the boat modification plan had started about four years back but both projects could not reach completion for political reasons.
“The EC detected serious shortcomings in the seafood production system and identified that absence of insufficient controls, lack of proper vessel inspection, landing of fish catch at non approved landing sites and critical defects in approved establishments put the health of EU consumers at risk given they used seafood products originating from Pakistan,” said EU mission.
According to EU regulations, verification of compliance of feed and food law, animal health, animal welfare rules should be ensured by equivalent Pakistani legislation and systems.
The rehabilitation and renovation plan of the KFH would lapse by the middle of this year, while none of the primary objectives could be achieved as top officials with practically no experience in the field, were appointed on a political basis.
Moreover, none of the institutions are ready to cooperate with each other to solve issues amicably and work for the betterment of the harbour and the removal of the EU ban, which is costing the country billions every year.
EU inspectors have many a times cancelled their visits to KFH for checking whether the facilities have met the requirements or not. Now, the EU team has no plans to visit Pakistan as officials have not yet sent to them any invitation for inspection of the harbour.
Challenges faced
Jeddah has also placed a ban on import of fresh seafood from Pakistan because Pakistani exporters had been sending undersized fish of poor quality. Jeddah and Riyadh are two major markets of fresh Pakistani seafood. Fresh fish include Surmai, Dama and tiger shrimp.
Saudi authorities continuously warned exporters and they also informed Pakistani government officials about the export of undersized and poor quality fish checked.
Exporters say that the reason of low quality was that they were using simple ice instead of dry ice, to lower costs, which damaged the quality of seafood during air transportation. But they did not give a reason for why the product was undersized. The Authority has also failed to implement the use of insulated plastic crates for handling seafood catch properly.
Jeddah is the only cash market while all other Middle East markets purchase seafood on credit. Dubai is also a huge market for Pakistani seafood but it purchases on credit. Many exporters are indebted of about Rs10 million to mole holders and after their consignments in Saudi Arabia were rejected, they were in a severe financial crisis.
The present system is that the mole holders finance the fishing trips for the boat owners and in return they auction seafood catch and deduct their agreed amount.
Interestingly, there was no definition of fishermen in the Fisheries Ordinance 1980, which encouraged outsiders and influential people to enter the fishing business. But now the Sindh Assembly has passed Sindh Fisheries (Amendment) Bill 2011 to abolish the lease and contract system of fishing to replace it with a new license system for fishing in the province.
The definition says, ‘a fisherman is a person who earns his livelihood by catching fish from public water bodies and whose primary source of income is money which he earns by selling that fish’.
The Provincial Assembly noted that the existing lease and contract system of fishing in Sindh had snatched economic rights of bona fide fishermen. They said at least 0.5 million fishermen’s economic conditions are deteriorating because influential people are exploiting them under the garb of present lease and contract system of fishing.
Apart from marine fisheries, inland fisheries, based in rivers, lakes, ponds, dams etc., is also a very important sector of the economy.
Pakistan can enhance seafood production by developing its aquatic resources. Seafood is an important part of diet, a major source of nutrition and contributes to food security and poverty alleviation.
In spite of having vast potential of aquaculture development, it has not been developed adequately in Pakistan.
Fish production and consumption patterns have changed over the last 3 to 4 decades and this has enhanced its consumption in developing countries. To meet the rising demand of fish, aquaculture is being encouraged and it has become the fastest growing food producing industry globally, which is contributing about 50 million tonnes of fish and shellfish annually. It is pertinent to note that Asia has been the leading producer.
China is the top producer with 47.3 million tonnes of total world production, of which, 99.8 per cent of cultured aquatic plants, 97.5 per cent of cyprinids, 87.4 per cent of penaeids and 93.4 per cent of oysters come from the Asia Pacific region.
Production
During July-March 2010-11, total marine and inland fish production was estimated at 936,882 million tonnes out of which 672,602 million tonnes was marine production and the remaining catch came from inland waters.
The growth rate was about 3.94 per cent per annum. Annual per capita fish consumption has increased from 1 kg to 2.3 kg during 1961 to 2010, as compared to a world average of 917kg. Along with that of the public sector, private sector progress was significant and the numbers of fish farms have increased to 6,628, comprising an area of 11,400 hectares.
Fish is a rich source of protein and can solve the problem of malnutrition. It provides 26.2 per cent of animal meat and is a growing food source in Asia along with other developing countries.
All over the world, production from marine capture fisheries has decreased because of over fishing and rising demand, mainly due to increases in population. Hence, aquaculture development would be the best source to meet increasing demand of fish and its future supply.
About 8 million tonnes of fish comes through semi intensive or intensive systems using mixed or manufactured artificial feeds. In Pakistanm the development of appropriate artificial feed is needed to convert our conventional fish culture and improve per unit fish production.
Pakistan is producing a number of feed ingredients which can be used to formulate fish diet. However, presently no formulated aqua feed is available in the country. Public and private investments to manufacture formulated aqua feed are required to increase per acre production.
Major Indian carps known as Rohu, Thaila and Mori are indigenous species of South Asia especially those of India, Bangladesh and Pakistan. The production of carp has significantly increased in Asia for local or regional consumption by relatively low income people.
Exports
During July-March 2010-11, Pakistan earned $197.3 million through seafood exports. During 2008-09, a total of 134,000 metric tonnes of seafood fetched $236 million for the country. Exports of fish in 2009-10 were 113,219 tonnes and earned $227 million. Pakistan’s major buyers are China, Thailand, Malaysia, Middle East, Sri Lanka and Japan.
Although Pakistan has lost the European market but that was soon compensated as exporters found new destinations. Egypt was a potential market. Even low price fish such as Lizard Fish was fetching a good price in Egypt. The average unit price for the first time has crossed $2 per kg in new markets. Exporters are getting a 30 per cent higher price for squids and cuttle fish in world markets, especially in China.
The government had set a fish export target of $300 million for this fiscal year and if exporters continue to get high prices, exports may reach a level beyond the target. It is estimated that Pakistan’s seafood industry has a potential to export up to $1.2 billion.
The latest Economic Survey claims that various initiatives are being taken by federal and provincial fisheries departments that include strengthening of extension services, introduction of new fishing methodologies, development of value added products, enhancement of per capita consumption of fish and up-gradation of socio-economic conditions of the fishermen’s community.
On the contrary, people related to seafood industry say that they are facing many problems. Two major problems are that of depleting fish stock and poor quality controls and inadequate hygiene measures, which result in a low value of the catch and high levels of wastage.
It was demanded that the government should invest in expansion of the existing laboratory to provide testing and certification facilities acceptable to export markets, provide financial support to revamp fish jetties at Gaddani, Dams, Pasni and Jewani, ensure provision of facilities such as landing stations or jetties along Makran coast in partnership with the provincial government of Balochistan and support Korangi seafood processing companies in developing traceability system for smoked, canned, fresh and frozen fish products.
Owners of boats have also complained that the government has not completed the modification of their long standing idle fishing boats at Karachi Harbour. They said that the government had been holding their boats for modification since a long time but has no renovation work had been done so far due to the lack of funds.
They demanded that either the government should return the boats to their owners or rebuild them as per its modification plan. Many boat owners grounded them for the government’s compulsory modification process which the EU had specified for Pakistan. Moreover, the condition of boats is deteriorating as they spent millions of rupees, without fulfilling their main purpose, the boat owners said.
Further, equipment of millions of rupees was imported as per EU requirements, which was not being used and was faced rust at the harbour.
Sindh government officials said rehabilitation process in the province after the floods of last year consumed all funds allocated for boat modification and uplift of Karachi Fish Harbour. The affected people requested the government to release funds to the concerned department so that the boat modification process could be started.
The exporters complained that the Sindh government is not serious in solving problems of the industry. Corruption in Karachi Fish Harbour Authority and Fishermen Cooperative Society is another obstacle that has hindered to remove EU objections.
The Economic Survey indicated that Marine Fishing vessel Census-2010 had begun in July 2010 in Sindh and Balochistan, with the collaboration of WWF and FAO. About 80 per cent of fishing boats in Balochistan have been covered and the census work in Sindh, which was delayed due to floods in the coastal areas, is now under way.
A hatchery complex was established through a project entitled “Establishment of hatchery complex for production of seeds of fish and shrimps.” The renovation work has been completed and handed over to Pak PWD in March 2011, the Survey says.
