May 3, 2013

 

 

Despite EU's prohibition, Pakistan's global seafood exports have increased to US$339 million in the fiscal year 2011-12, up 13% over the previous year and 54% higher as compared to the fiscal year 2009-10.

 

This is according to the State Bank of Pakistan (SBP).

 

The EU had imposed the ban in 2007 following the inspection to few countries including Pakistan. "We had eight exporters registered with EU then. All of them were delisted," said Abdul Ghani Jokhio, the director general of Karachi Fisheries Harbour Authority (KFHA).

 

"They had issues with our boats and the way the fish were handled. But the main problem was absence of any mechanism to trace the source of the product. We have addressed all those concerns," he said.

 

Since then the government has spent PKR555 million (US$5.6 million) for revamping the auction hall, helping fishermen build fibre panelled storage tanks in 539 boats and distributed thousands of plastic crates.

 

"Right now two companies have been relisted. Requests from five more companies are under process," said Jokhio, adding that the ban was formally lifted last month.

 

Contrary to the expectations, there has not been a rush of seafood exporters to start supplies to EU as only two of the companies have revamped operations to meet the standards.

 

"It is good for us but I will not say I am very excited. Things have changed in the past couple of years," said Akhlaq Enterprises' Hussain about resuming supplies to the EU.

 

"China and countries in the far east have emerged as very good buyers. And they are easy to deal with," he said, explaining that exporters do not have to worry about strict quality assurance standards.

 

However, there are also economic and financial reasons behind preference to look east. "After the financial crisis, spending power of the Europeans has gone down. We can see that in the low flow of orders," said Hussain.

 

The difference between prices of some products that exporters get from far eastern and European buyers has shrunk. "In the case of shrimps, we are talking about a price difference of about US$0.25-0.40 a kilogramme when exported to Europe. Not much to cheer about. But there can be seasonal benefits as demand for shrimps from EU rise after August."

 

Despite hygiene-related concerns at the harbour, Pakistan has a good track record when it comes to quality of seafood products. Only four export consignments have been rejected in past 15 years.

 

"In the end it all comes down to price," said Faisal Iftikhar, former president of the Pakistan Seafood Processors and Exporters Association. "For instance, Chinese buyers are paying us as much as US$4.80/kg for cuttlefish. Spain has not been able to offer more than US$3.20."