Reviving livelihoods: Regeneration of coastal fish stock required in Balochistan
Published: August 18, 2014
It is difficult for coastal fishermen to understand the long-term negative impacts and therefore they continue to fish. PHOTO: STOCK IMAGE
KARACHI: Depletion of the coastal fish stock of the Balochistan coast is like depletion of so many other resources from which the country and Balochistan in particular could benefit.
There are foreign agencies that are willing to come to the rescue but unfortunately there is no heed to this aspect. For absolute effectiveness, there has to be absolute transparency that is not possible without the involvement, support, help or advice of the international agencies.
The local fishermen should also be trained and allowed full participation in all aspects of reviving the fish stock within the coastal belt of Balochistan that could also be a deterrent to leakage of funds.
Under the International Fund for Agriculture Development (IFAD) project, there was to be a training centre for fishers at Gwadar, to provide instruction in seamanship navigation, safety at sea, and handling and stowing of fish at sea.
The Food and Agriculture Organisation (FAO) was also to provide training for fish inspectors and women fish handlers at each of the landing sites.
Guidelines used by the EU and UK fish inspectors were intended to be followed to achieve high standards of proficiency. But the Balochistan government decided they did not want FAO involved, as they needed all the IFAD funds for their operations and themselves for reasons best known.
Here IFAD’s attention is also drawn to enforce involvement of foreign agencies so that transparency is maintained and funding is dispensed in the right direction and fruitfully.
Due to ignorance and illiteracy, it is difficult for the coastal fishermen to understand the long-term negative impacts and therefore they continue to fish throughout the year. But then again, they cannot be blamed as they do not have any other source of income to stay alive during the off season and are forced to do what they should not be doing.
A chance to restore
There is still a chance and a possibility of the depleted coastal fish stocks to be restored to full health and productivity in four or five years, provided immediate transparent proper measures are undertaken and supported by professional implementation.
If proper action is taken, and well-managed, the Balochistan coast could return to its former abundance. If no remedial measures are initiated, then the marine inshore area will be depleted of fish, leaving only shrimp and some hardy shellfish and the local fishermen will eventually die of hunger with no other recourse available. This could also lead to further deterioration of the law and order situation of the coastal belt.
Similar trends in local fish populations, positive and negative, were seen in the Moray Firth, the Irish Sea, in Newfoundland Canada, in the Java Sea and the Bay of Bengal, as well as in some island fisheries in the North Atlantic but were revived with timely corrective measures taken by those governments.
The measures required are neither difficult nor expensive, but they do require determination on part of the Balochistan government, serious attention and strong management. Balochistan fishers can start with an advantage; they are small scale and would not of themselves cause serious fishing pressure.
What has to stop completely is trawl fishing and harvesting by large vessels in inshore and offshore parts of the sea of Balochistan. It is the responsibility of the Balochistan government to go for a fact-finding mission why this could not be enforced and who is responsible for this negligence.
Police areas fished by trawlers
There are a number of simple innovations that would assist the policy and expedite stock recovery that have been very successful in other parts of the world.
• To prevent illegal fishing and police areas being fished by trawlers would normally require several well-equipped patrol boats assisted by local fishermen.
• But innovations used successfully in Japan, Italy, the Caribbean and elsewhere can be adopted off Balochistan coast. The technology is to plant or drop heavy anchors or other seabed obstacles that will prevent trawl net operation.
• Local trap or gill net fishers can be informed of the location of these underwater obstacles, and set their nets or traps well clear.
• It would also be helpful to issue local fishermen binoculars and cellphones so they might report immediately any activity by trawlers or foreign fleets in the coastal area.
• Local fishermen should be part of the policing team so that underhand deals are deterred.
• A further measure to stimulate fish spawning or protect young fish and crustaceans is to provide habitats suitable for different species. This has been done in Japan, in the Mediterranean and off the coasts of South America and the Caribbean islands.
It is, therefore, expressed upon the Balochistan government to include the participation of FAO so that transparency can be maintained and involve the local fishermen as partners in enforcement of the law, rules and directives of the government for the revival of fish wealth. The province gets enough funding that could support the livelihood of the fishermen during off seasons.
The writer is the former project director and deputy managing director of Saindak Copper Gold Project, Chagai district, Balochistan
Published in The Express Tribune, August 18th, 2014
Board of Investment approves two economic zones in Sindh
The project is aimed at providing all facilities at one place for promoting investment. PHOTO: FI LE
ISLAMABAD: The Board of Investment approved establishment of two special economic zones in Sindh aimed at providing all facilities to the investors at one place for promoting investment in the country.
The approval was given during a meeting of the Approvals Committee, headed by BOI chairman Dr Miftah Ismail. These zones will be established at Bin Qasim and Korangi Creek.
The Bin Qasim Industrial Park will be spread over an area of 930 acres near Port Qasim, adjacent to the Arabian Sea Country Club. The estimated project cost is Rs9.8 billion. “The government expects Rs50 billion direct investments in the special economic zone that will contribute Rs100 billion to the overall size of the economy and generate direct employment for 50,000 individuals,” said the BOI.
The project has been designed to cater to the needs of medium and large entrepreneurs aspiring to invest in the engineering and steel industry of Pakistan. The proposed industrial clusters under the SEZ will include engineering and equipment units, foundries and steel fabricating units, light engineering units and furniture and woodworks units. It will also host chemicals, food, pharmaceuticals and beverage industries.
Meanwhile, the Korangi Creek Industrial Park will be developed on 240 acres of land and is to be located in the Korangi Industrial area, Karachi and will cost Rs3.8 billion. “The project is envisioned to bring Rs20 billion direct investment and contribute Rs40 billion to the GDP and generate direct employment for 30,000 individuals,” according to the BOI.
This park will be divided into two zones, namely, Low Density Zone (Industrial) and High Density Zone (Commercial). The Low Density Zone is strategically clustered to cater consumer food and pharmaceuticals, garments and value-added textiles, light engineering, packaging, printing and warehouse logistics. The high density zone is envisioned to promote the information technology, gems and jewelry and other ancillary sectors.
In 2012, the Parliament enacted Special Economic Zones (SEZ) Act aimed at giving assurance to the investors that the incentives once given cannot be withdrawn. The incentives include corporate income tax holiday of 10 years for investors and 10 years for developers of the zone. The Act promises duty-free import of capital goods for developers and zone enterprises. The incentives for exports available to projects anywhere in the country (outside the zone) are also applicable to exports from the projects in the Zone.
For getting benefits the investors are required to start construction within six months and production within two years of project approval.
Innovative concepts: Setting up Pakistan’s first rice bran oil plant
Rice bran oil is extracted from the hard outer brown layer of rice after chaff and is less sticky. STOCK IMAGE
KARACHI:
When thinking of a business venture, some like to do it the old-fashioned way and invest in a tried and tested sector. But, there are those who like stepping into unexplored territory in hopes of becoming trend-setters.
With this in mind, e2e Supply Chain Management Chief Executive Abid Butt belongs to the latter category. He has entered into a new joint venture to establish Pakistan’s first rice bran oil plant, which is going to start operating from November this year.
He set up e2e Supply Chain Management in 2006, making it one of the top logistics companies in Pakistan, Bangladesh and Afghanistan. The company launched with only $20,000 of seed capital and eventually generated revenues of around $75 million in 2011. It was ranked number one in ‘All World’ fastest growing companies of Pakistan and number three in ‘Arabia 500’ survey (including North Africa and Turkey).
The company has recently entered into the rice bran oil business, popular for its high spoke point of 232 °C (450 °F). It is extracted from the hard outer brown layer of rice after chaff (rice husk), is less sticky and due to its mild flavor, is used for high-temperature cooking methods like deep-frying.
“It all began when I saw a rice field video, in which a powdery substance was being separated from the rice,” said Butt. “I was amazed to see the process, which I later learned produced very healthy cooking oil.”
“The plant machinery cost me a little over Rs1 billion and has been imported from India — a leading country in rice bran oil technology. The production capacity of the plant is 10,000 tons.”
Butt, who has majority stake in the project, intends selling the oil to edible oil companies which will blend it with their products.
Rice bran oil is blended in many countries including India. According to American Heart Association, rice bran oil is the healthiest edible oil in the world. Its per litre cost is close to sunflower oil but it is comparatively healthier.
“Pakistan can gradually improve the efficiency of rice bran oil technology. We would like to get the support of Pakistani universities to improve the efficiency of this technology,” Butt said.
“Rice bran oil production is commercially viable. Even if we face problems in selling rice bran oil to edible oil companies, we have an alternative to brand the oil ourselves and sell it at premium. This way we will recover our investment in four to five years, which is viable by any world standard,” he stressed.
Speaking on the advantages of rice bran oil production in Pakistan, he said Pakistan is a country that produces millions of tons of rice annually. Since the raw material is produced in the country in abundance, the government can easily reduce its edible oil import bills by millions of dollars, he said.
Despite all the problems like energy crisis and security issues, Butt believes that Pakistan has huge potential to grow and improve its economy. “Pakistan can grow faster in coming years. But for that its business people have to continuously looking for new business ideas to diversify the country economy.”
Economic progress: Wan Miana – a model of rural development
The village mosque and a primary school partially benefit from solar energy and there is also a biogas plant that is aimed at providing the required heat to run a citrus pulp plant. PHOTO: AFP
LONDON: Wan Miana is a village in the district of Sargodha in central Punjab. For many reasons, it is not a typical rural locality.
Although primarily an agrarian economy, the village houses a number of interesting non-farming businesses. Furthermore, a number of development projects in the village are very progressive in their nature and methodology.
Akhuwat – a non-profit organisation – offers the poor access to finance by offering interest-free loans to those who would like to start small businesses. The village also houses a tele-medicine centre that uses an online system to connect village patients to medical doctors at Gulab Devi Hospital in Lahore (about 200 kilometres in the south).
Kawish – a nationwide charity – has donated an ambulance that is used for everyone in the catchment area, and is free for those who cannot afford to pay for the service. The village mosque and a primary school run by a charitable organisation partially benefit from solar energy. There is a biogas plant that is aimed at providing the required heat to run a citrus pulp plant.
There are a few ponds around the village, which produce bio-fertilisers for a number of crops, mainly wheat and rice.
Saleem Ranjha – a civil servant who hails from a farming family from the village – served as an agent of change. He is a founding member of the board of directors of Akhuwat and is indeed very well connected and respected in the social sector of the country. His family owns substantial landholding in the area with citrus fruit orchards, dairy farms, an ice factory and a citrus pulp plant.
Model of change
Today, Wan Miana presents an interesting model of rural development, which is spearheaded by an individual who has successfully negotiated with a number of charitable organisations to bring economic prosperity to the village through an integrated model of change.
The Wan Miana Rural Development Project benefits from close cooperation between government bodies and a number of charitable organisations. The end result is an inclusive development model that offers inclusive financial services, remote medical facilities, employs modern technology and promotes progressive farming.
“The model has generated interest internationally and I have been asked to share the Wan Miana Rural Development Project at an international conference to be held in Nepal towards the end of this year,” says Saleem Ranjha.
The real outcome of the pilot project is immense increase in entrepreneurial activity in the village, with near 100% employment.
The model is portable and easily replicable in a cost-effective way. It only takes Rs500,000 to initiate the project, which can significantly increase welfare of about 500 households.
The expected increase in income of the targeted families is Rs5,000 per month. Thus, with a cost of Rs1,000 per family, the model is capable of generating Rs5,000 per family per month on a sustainable basis.
Impressed by the success of the model, a number of commercial organisations are considering investing in replication of the model. One such organisation is HD Mudaraba, which is expected to be launched towards the end of August.
Nudge theory
“The Wan Miana Rural Development Project is based on the nudge theory,” explains Saleem Ranjha. Social sector organisations – the likes of Akhuwat and Kawish – have given the required impetus to initiate a development process that have now made it attractive for commercial organisations like HD Mudaraba to do socially responsible business with the rural community.
“After necessary approvals from the regulatory bodies, we aim to benefit from this integrated model of development by investing heavily in trading in farm inputs and equipments,” says Khuram Shehzad, who serves as Head of Business Development with HD Management (Private) Limited.
The Wan Miana Rural Development Project has some parallels with the Orangi Town Pilot Project – initiated by Akhtar Hameed Khan – in the 1980s and is now considered as one of the successful models of development through social sector organisations.
If successful, Saleem Ranjha believes, the Wan Mian project will emerge as an extremely cost-effective way of initiating rural development in Pakistan and possibly in other countries.
The writer is an economist with a PhD from the University of Cambridge
Construction sector: Rising hope with raising buildings
The question is whether the promised housing revolution can actually be brought about without active engagement from mortgage providers. PHOTO: STOCK IMAGE
KARACHI:
Far from being a PR stunt that most trade bodies are prone to hold in the name of exhibition, the Association of Builders and Developers (ABAD) recently organised a grand expo that brought a number of stakeholders on a single platform for three days.
With active participation from foreign delegates, the expo has resulted in many international construction companies signing memoranda of understanding with local partners.
The overwhelmingly positive response to the exhibition has raised people’s expectations about foreign investment. For example, ABAD representatives say they expect investment agreements valuing $800 million in the next few months.
While the expo’s success justifies optimism, many observers believe citing such figures give rise to scepticism and dilute the effectiveness of the message.
After all, the expected investment of $800 million is almost half of the total foreign direct investment of $1.6 billion that the country received in the last fiscal year. Understandably, many people find it difficult to believe that a three-day exhibition – however effective it may have been – can attract that kind of investment within a few months.
Similarly, the claim that the country’s construction industry will initiate housing projects valuing Rs600 billion by the end of 2014 also needs substantiation.
Data compiled by the State Bank of Pakistan shows the outstanding position of credit by the country’s construction industry at the end of June was only Rs52.3 billion. This leaves one wondering how the construction industry will fund its upcoming projects of Rs600 billion in the next four and a half months.
While the stakeholders’ participation in the three-day expo was huge, mortgage providers were conspicuously absent. Only one bank set up its stall at the expo while the rest of the banks that have footprints in the mortgage market stayed away from the mega event. Similarly, House Building Finance Company, along with other development financial institutions (DFIs), did not bother to set up stalls at the expo.
This leads to the question whether the promised housing revolution can actually be brought about without active engagement from mortgage providers. New housing projects of Rs600 billion cannot take off with the current level of housing finance in Pakistan, which amounted to just Rs51.6 billion as of March 31.
With the current shortage of eight million residential units in the country, the role of ABAD is most critical in meeting the housing challenge. Admittedly, ABAD has successfully revived the debate on housing of late.
Yet there are key issues that ABAD cannot do much about despite its muscle and sincerity. According to town planner Arif Hasan, the housing shortage has a lot to do with issues that are beyond the control and ambit of ABAD, particularly in the case of Karachi.
For example, he believes Karachi has been unable to foster commercial growth or provide adequate low-income housing partly due to the presence of numerous land-owning agencies with no shared plan or coordinating mechanism.
Similarly, he believes the finance systems in Karachi do not reflect the economic conditions of most of its inhabitants, as houses are usually available for outright purchase rather than through easy financing or mortgage options. Evidently, land and financing are macro issues that ABAD cannot resolve by itself.
It is time the government joined hands with ABAD and addressed key issues by streamlining land-owning agencies, computerising property records and encouraging banks and DFIs to expand their housing finance operations.