Pakistan Economy - News & Updates - Archive

[EagleEyes]

Good to see a lot of Pakistani companies exporting cement to India. Overall, the economy looks strong and hopefully will maintain it's 6%+ growth in the coming years.

Presidents says it will likely to grow because of the policies of the current government, it will continue to grow AS LONG AS corrupt leaders dont come in power.

 

[solid snake]

Presidents says it will likely to grow because of the policies of the current government, it will continue to grow AS LONG AS corrupt leaders dont come in power.

The corrupt and incompetent you mean

I don't understand the Pakistani habit of backtracking on almost every policy of the previous government by those that are newly elected. Things are going great the way they are, Shaukat and Pervez have done a great job in finally putting Pakistan on the tracks towards prosperity. Let us hope self-proclaimed champions of democracy don't get to derail our train

 

[Contrarian]

Good to see a lot of Pakistani companies exporting cement to India. Overall, the economy looks strong and hopefully will maintain it's 6%+ growth in the coming years.

Mate, India needed to import cement because Indian cement industry has not gone for capacity expansion for like the last 5 years at the very least. And the growth was calling for more and more cement. Now for the first time, because of the rise of cost of cement and the need for import, Indian companies have gone for capacity expansion, and some estimates put that there would be surplus cement within 2-3 years time because of that. The supply would exceed the demand around that time.

 

[Introvert]

Strategy unveiled to boost Pak-Italy trade

Saturday, September 15, 2007
By our correspondent

LAHORE: Realising the low volume of trade between Pakistan and Italy, the Lahore Chamber of Commerce and Industry (LCCI) on Friday unveiled a strategy to boost bilateral trade between the two countries.

The strategy includes active engagement of the business community and diplomatic missions of the two countries, frequent exchange of economic and trade delegations to identify areas of mutual interest and arranging of single country exhibitions and socio-cultural programmes in each other’s country.

Participation of Pakistani exporters in international trade fairs in Italy and vice versa could also expand trade between the two countries.

The LCCI president Shahid Hassan Sheikh to briefed Tasneem Aslam, Ambassador-designate to Italy during a meeting at the LCCI.

The LCCI president informed the ambassador-designate that non-availability of required trade-related data is the biggest hurdle in the way of expansion of trade between the two countries and Pakistan embassy through its commerce section needs to play a proactive role.

The Embassy should also try to arrange sector-specific delegations of Italian businessmen to visit Pakistan to gain first hand knowledge about the opportunities of trade and investment in Pakistan.

He said that keeping in view the market potential of the two countries a lot of progress could be made on the trade front through boosting up the existing trade and identification of new tradable items between the two countries.

To cater to the requirements of Pakistani market, chemicals, dairy products, electronic equipments, machinery, automobiles can be exported from Italy, whereas Pakistan has a competitive advantage in textiles, surgical instruments, leather products, sports goods, fruits & vegetables and rice etc., which can be exported to Italy on a larger scale.

The LCCI president suggested that Italy could make direct investment in the marble sector, electrical & industrial machinery, IT, pharmaceuticals, engineering, automobiles & agro-based industries, oil & gas exploration and financial sector.

Italian industrialists can also enter into joint ventures with Pakistani counterparts. Pakistan occupies a strategic position in the region. It is a key market populated with 150 million people and its manpower is highly capable. Labour is comparatively cheap.

Investment operations based in Pakistan would not be restricted to the Pakistani market alone but would find their way to India and Central Asian States.

The Ambassador-designate to Italy promised to take all possible measures to take the graph of two-way trade between Pakistan and Turkey to the desired levels.

Strategy unveiled to boost Pak-Italy trade

 

[Neo]

ISP projects: three Gulf companies want to invest $60 million ​

KARACHI (September 15 2007): Three international companies from Gulf countries are currently engaged in negotiations with at least 10 Pakistani internet service providers (ISPs) for acquiring their stakes and management control with an approximate investment of around 60 million dollars.

According to sources in the information technology (IT) industry here on Friday, three potential United Arab Emirates (UAE) and Qatar-based parties are in the negotiation phase with the local ISPs for last few weeks, They said these parties intended to invest 20 million dollars each in three separate project.

With the 60 million-dollar investment in the IT sector by these parties, the total investment in the IT sector would be increased up to 150 million dollars during next five years, said the sources.

Of the 10 ISPs, three would be shortlisted, they said, adding two of them would start work by the end of current year, while third would be active in the beginning of the next year.

They said that one company would use fibre-to-the-home (FTTH) technology, while the other company would use metro WiFi technology, and added that these companies would provide 512 KVPS as the current speed of ISPs in Pakistan was 128 KVPS to 256 KVPS. The sources said that beside the GSM and LDI sectors, the broadband internet had a vast potential to growth in the country.

They said that the internet penetration growth rate target had been set up at 20 percent from the existing 1.2 percent, which would attract heavy foreign investment. Pakistan Telecommunication Company Limited (PTCL) had also reduced its internet broadband tariff, which was a good sign to create a trend of competition among various companies they said, and added that the use of internet would be increased as banking sector in Pakistan was gradually switching over to e-banking.

They said that banking sector would install 5,000 more ATMs all over the country, which would increase the use of internet and would facilitate the public in withdrawing cash.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan’s cotton outclasses other countries’ produce: First lint shipment of 2007-08 to Far East next week​

By Razi Syed

KARACHI: The international cotton buyers seem interested in making deals for Pakistan’s cotton, as the local produce is available at the lowest price in the global market, dealers said on Friday.

“First shipment of the cotton season 2007-08 would be ready in the next week to the Far East as Pakistani cotton has become the most favourite in the international market these days, a senior trader Ghulam Rabbani said.

In the international market, Pakistani lint was getting more attraction from the several traditional and non-traditional cotton importing countries.

Mr Rabbani said with a small inching up in the cotton rates, the Indian cotton quotes are very common to be in the table of every one in the globe. The international buyers could wait until the rates become lower.

He said still the rates in domestic market are cheaper than the world’s cotton rates for the same specification as Indian type J-34 offered at 64 cents per pound which accumulated to Rs 3,200 per maund.

Pakistan’s millers agreed to buy cotton on a little bit higher price paying small premiums, as they feel better not going for imported cotton on higher rates than the domestic available stuff. Besides millers, the private sector commercial exporters were also in the market and they were purchasing lint in reasonable quantities.

He said, “A sizeable export will not affect the domestic market’s requirements as the country’s import of PIMA grade and other qualities cotton are still a regular feature, as we are facing a shortfall of around 3 million bales.”

He said world’s mill consumption of cotton is forecast at a record of 25.7 million tonnes in 2006-07, which is up around three percent from the previous season, according to a report released by the International Cotton Advisory Committee (ICAC).

He said Mainland China’s textile industry, according to the ICAC, would continue to drive world cotton use in 2006-07. Chinese cotton use is projected at a record 10.5 million tonnes, up 600,000 tonnes from 2005-06.

He said world cotton production is expected to remain stable at 24.7 million tonnes in 2006-07 and the production is forecast up in Mainland China, India and Pakistan, but significantly down in the US.

He said with the world cotton consumption is expected to exceed production by 1.1 million tones and the world cotton stocks are expected to decline to 9.8 million tonnes by the end of 2006-07, according to the ICAC.

He said rising imports by Mainland China are expected to boost world cotton trade to a record 9.7 million tonnes in 2006-07.

The world cotton production in year 2005-06 was around 24.75 million tonnes, (113.7 million bales), 24.7 million tonnes (113 million bales) in 2006-07 and 26.4 million tonnes (121 million bales) expected in 2007-08.

Similarly the consumption remained at 24.88 million tonnes (114.4 million bales) in 2005-06, 25.7 million tonnes (118 million bales) in 2006.07 and 26.2 million tonnes (121 million bales) expected in 2007-08.

During the same period, the export remained at 9.63 million tonnes (44.2 million bales), 9.7 million tonnes (45 million bales) and 9.6 million tonnes (44 million bales) respectively.

The ending stocks remained at 10.84 million tonnes (49.8 million bales), 9.8 million tonnes (45 million bales) and 9.9 million bales (46 million bales).

Daily Times - Leading News Resource of Pakistan

 

[Ababeel]

If the environment becomes more and more peaceful as against the ongoing voilence, there are very bright chances that the economy will surge ahead with fast pace.

 

[AgNoStiC MuSliM]

China agrees to import Pak products at zero duty​

Pakistan to set up China-specific economic zones in various cities

By Khalid Mustafa

ISLAMABAD: In a major development, Beijing has agreed to import Pakistani products at zero duty, which are to be manufactured in China-specific Special Economic Zones (SEZs) in Pakistan, a senior government official told The News.

China-specific Special Economic Zones will be established in various parts of the country and the Economic Coordination Committee has already approved the establishment of SEZs for China in Kalashah Kaku near Lahore. The Punjab government has acquired land for this ambitious project.

About 250 companies are ready to invest in the China-specific Economic Zones for trade with China. "The Pakistan government would, in return, permit Chinese companies which would make 40 per cent investment in the China-specific Special Economic Zone to import the machinery at zero duty to be installed at the said zone."

Pakistan will be able to have the biggest market of one billion people of China by exporting the products to be manufactured in the SEZs at zero duty. Beijing has also extended a special incentive under which Islamabad can initiate banking services in China just with the deposit of $250 million with sovereign guarantee. "In China there is a rule which is strictly adhered to, according to which it is mandatory for the party (country) to deposit first $ 10 billion prior to opening any bank, but the authorities concerned have allowed Pakistan to open bank in China with deposit of only $ 250 million.

"This is a landmark achievement in services sector between both the countries. China has extended this huge incentive to bank in Pakistan in a recent meeting held in Beijing on August 14-16. In the meeting both the countries have also made remarkable progress on talks about services sector," the official siad.

According to the official, Pakistan and China have also agreed to initiate trade under an FTA on services from January 1, 2008, and to this effect both sides have made reasonable progress to materialise the agreement on the services sector. Both the friendly countries decided to initiate trade in the services sector from January 1, 2008, in a meeting held in Beijing from August 14 to 16.

"Both the sides are currently in trade with each other under Free Trade Agreement (FTA) on goods and investment and are not in trade in services sector." The official said Pakistan and China have started negotiations on trade in the services sector under Article 83 of the FTA.

Under the services agreement, if successfully concluded, both countries would enter into a recognition agreement about doctors, engineers, banks and professors of each country. Under the agreement, Pakistan doctors, engineers, professors would be able to offer their services in China and in the same way Chinese would offer their services in Pakistan.

China agrees to import Pak products at zero duty

If this is true, this will be a huge development. I'm interested in the identity of those 250 companies - all Pakistani or some multinationals as well? Some major investment could be coming in if it is the latter.

 

[AgNoStiC MuSliM]

Centre releases Rs 3.87bn to acquire land for Gwadar oil city
$40 billion investment to be made in biggest oil storage in region​

Sunday, September 16, 2007
By Khalid Mustafa

ISLAMABAD: The government has released Rs 3.87 billion to acquire 12,500 acres of land in Gwadar to establish an oil city, the biggest oil storage base in the region.

"About $40 billion investment will be made in the oil city that will make the port different from other ports," a senior official told The News. The Ministry of Petroleum and Natural Resources has been asked to prepare the PC-1 of the project.

After acquiring the land, construction work would kick off. In the days to come, the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC) will accord formal approval to the project.

The land that is to be acquired will be made available on lease at nominal rates to interested parties for setting up refineries or making investment in oil logistics and storage facilities. The official said the project would be completed in two phases. In phase-1, a 'petrochemical city' will be set up with an initial investment of $12.5 billion. In this city, a big refinery, along with petrochemical, oil logistics and storage complexes, will be set up.

In the first three years, the refinery will be able to refine 10.5 million tonnes of oil annually. The capacity of this refinery will be increased up to 21 million tonnes in seven to nine years. The official said the Chinese Petroleum Chamber would come up with $12.5 billion investment plan for the project.

In addition, some companies from the Middle East have also shown interest to set up refineries at Gwadar Port. Under the second phase of the plan, the capacity of refineries in the Oil City will be enhanced to 63 million tonnes in 15 years, the official said. "We have allowed a Chinese company to initiate the project for power generation and water desalination prior to initiating the construction of the Oil City," he added.

Centre releases Rs 87bn to acquire land for Gwadar oil city

 

[Neo]

'Pakistan in top 10 in trade dynamism, market flexibility' ​

ISLAMABAD (September 16 2007): Pakistan has been listed among top 10 countries in the world business dynamism and market flexibility, according to a 'Competitiveness Support Fund' (CSF) report, issued here on Saturday. The report says that Pakistan has shown serious efforts in improving competitiveness ranking which the World Economic Forum measures on performance basis of any country.

It said that Pakistan's private sector played a pivotal role in making Pakistan competitive in the world market. The report said that CSF undertook a number of initiatives during the last over one year to help Pakistan get fit in global market. It engaged public and private sector leaders to address the economic issues jointly.

CSF is an independent body established in 2006 to reposition Pakistan's economy on a more competitive global footing. It is a joint initiative of Ministry of Finance and the United States Agency for International Development (USAID)1.

The precursor work identified several gaps in important sectors of the economy. CSF proposed a series of interventions to accelerate the adoption of practical competitiveness-building initiatives in Pakistan. The gaps lack innovative approaches, linkages between academic community and industry, poor dialogue on policy and reform issues, slow commercialisation of innovation and weakness in the legal framework for a viable economic environment.

CSF is meant to help Pakistan achieve the goal of a competitive economy by providing input into policy decisions, improve regulatory and administrative frameworks and enhancing public-private partnerships. It will also provide technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector led initiatives with research institutes and universities that contribute to creating a knowledge-driven economy.

CSF activities will help the producers to ultimate product quality. By obtaining better value and better prices for quality products, and improving co-operation throughout the Pakistani economy, CSF will contribute to poverty alleviation by providing more income for producers and better employment prospects for employees.

The government has included, for the first time, competitiveness into poverty reduction strategy. Its salient features were private sector development, intensifying deregulation, privatisation and liberalisation, enhancing competitiveness and productivity, special economic zones, value-addition in agriculture and riding the globalisation wave in export markets.

CSF also carried out a study on special economic zones (SEZs) by benchmarking Pakistan against China, India, Malaysia, Vietnam and Thailand. Globalised economies require policies based on de-regulation, privatisation and liberalisation. This theme requires reduction in tariff barriers and custom duties for imports, the prices and increase in quality of the products for the consumers.

CSF has developed an action plan on unifying the policies and promoting the effective creation of special economic zones in Pakistan. This action plan includes developing an Act on Special Economic Zones which is based mostly on the Indian model and includes the legal and institutional framework for establishing and effectively operating the SEZs, incentives for developers and investors, standards for SEZ approval and the role of private sector and provincial and federal governments.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Saarc foreign ministers discuss process to use $300 million development fund ​

NEW DELHI (September 16 2007): Finance Ministers from eight member states of the South Asian Association for Regional Co-operation (Saarc) on Saturday in New Delhi started discussion on mechanism to operationalise the $300 million Saarc Development Fund for socio-economic uplift of the people of the region.

Saarc Development Fund envisages to identify and implement development projects aimed at poverty alleviation, institutional and human resource development, social and infrastructure development in member countries under an agreed mechanism.

Advisor to Prime Minister on Finance & Economic Affairs Dr Salman Shah, who is leading Pakistan delegation at the second meeting of the Saarc Finance Ministers, said that Pakistan desires to have progress in these areas to make Saarc a more vibrant organisation.

He said that he would hold meetings with his counterparts from Saarc states to exchange experiences in socio-economic sectors for betterment of the people. Saarc Finance Ministers at the first meeting in Islamabad in July 2006 had agreed on a roadmap for creating the Saarc Development Fund, and had approved the framework to make the organisation reflective of people's aspiration.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

AJK to have highway-cum motorway network soon ​

MIRPUR (September 16 2007): AJK will soon have a grand highway-cum-motorway network to provide comfortable travelling facilities to the commuters as AJK government has decided in principal to implement the plan under phased programme, official sources said.

The sources told APP here Saturday that the AJK government has planned a grand road network across AJK under a phased programme. Kashmir Highway Authority has recently been set up to implement the plan.

The proposed highways from Keil to Bhimbher would be of international standard and the project would be completed by reputed and much experienced construction companies including contractors involved in the construction of silk route. After completion of the highways and motorway network across AJK toll tax system will be introduced in the area to collect the tax to meet expenditure of similar public welfare projects.

The sources revealed that 'Slide management system' has been introduced in AJK in order to make all highways usable round-the-clock. Elaborating the system, the sources indicated that it was aimed at ensuring interruption-free travelling facilities to the masses in the mountainous areas where travellers have to suffer long delays because of landslides.

The sources further said that experts including engineers involved in various development projects of public welfare including roads and highways shall have to declare life of projects.

The AJK government has decided that there would be no compromise on quality of development projects in the liberated area. The AJK administration has already launched the broad-based plan for the speedy development and uplift of AJK in line with the means of modern construction with special focus to convert the area into a true model and welfare state.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Power demand needs $2 billion annual investment: ADB ​

FAISALABAD (September 15 2007): The country's power demand is currently growing at around 2,000 megawatts (MW) per year, and investment needs for this may exceed $2 billion per year over the next decade, according to Asian Development Bank.

The bank's project completion report on 'Energy Sector Restructuring Programme' (ESRP) said that substantial ADB involvement in Energy Sector Restructuring Programmes can help sustain the progress made under the ESRP.

However, the investment needs to be linked to further reform efforts in six areas: (i) Commitment by the Government to announce tariff decisions approved by Nepra in a timely manner and enable cost recovery across the power sector; (ii) Clear policies on and payment arrangements for any subsidies for power supplies; (iii) Stronger commitments to conclude the restructuring of Wapda and the privatisation of some of its successor companies; (iv) Progress toward open access in the power sector, at least for larger power consumers; (v) Swift establishment of an independent CPPA; and (vi) Strengthening of Nepra as the independent power sector regulator.

The report says that ADB has continued to be engaged in the power sector of Pakistan since 2000. It has provided technical assistance to restructure the gas sector and build the institutional capacity of the National Transmission and Despatch Company Limited and the Alternative Energy Development Board. A major new loan for the transmission sector was approved in December 2006. A technical assistance project for the CPPA is currently going through tendering. ADB's private sector operations have an investment in KESC. A new loan for the distribution sector is being considered, the report said.

In general, the report says that the model for future lending should be multi-tranche facilities, so that the lending program can be linked to progress on ongoing conditions and to further reform efforts. ADB should also aim to lend money in areas where it can take the lead in policy dialogue and reform to ensure best value for money in its overall support.

According to ADB's project completion report, the ESRP was implemented broadly as conceived, and attained most of its planned objectives. Some aspects of the program were delayed, and the achievement in some areas, for example, privatisation, was incomplete. The Government is of the view that initial impediments have been removed, and further progress on implementation of program is expected as planned. However, in general, the reform program was adhered to and the most important objectives were met. Sustained and regular policy dialogue between the Government and ADB, in formal missions and other discussions, ensured effective monitoring of the program.

Overall, from the point of view of relevance, efficacy, efficiency, and sustainability, the program is considered successful. The growing skills of the power sector regulator, the privatisation of KESC, the improvement in the environment for inward investment in the power sector, and the unbundling of Wapda all involved difficult decisions for the Government and those decisions were taken and implemented.

The ESRP loans began processing in April 1998 with a fact-finding mission but were not approved until December 2000. There were several reasons for this relatively long approval period, some of them extraneous to the energy sector (for example, Pakistan 's nuclear tests in May 1998). However, the key factor was the policy dialogue, which led to the policy matrix and the loan covenants. The extended negotiating period gave the Government enough time to meet key conditions for the approval of the loans. This demonstrates the importance of investing time in loan processing and setting tough conditions for loan approval.

Conditions associated with the incentive tranche of Loan (1807) were all met within 4 months of loan approval. Although there was a slight delay compared with the timetable, this was still good performance. The second and third tranches had fewer conditions but were not disbursed because privatisation was not achieved and the Government decided to repay the loan. The other conditions for the second and third tranches were relatively straightforward.

Setting conditions 2 years in advance of a program as wide-ranging as the ESRP is difficult. On the one hand, conditions may be affected by adverse external events such as the difficult environment for power sector investment in 2002 and 2003. On the other hand, the progress of the program may show up other areas where conditions may be needed. The program could have included a mechanism of formal review after about 18 months to consider revising the content and timing of loan covenants. The objective would be to make the covenants more relevant to prevailing conditions, strengthen or bring forward some conditions, and waive or defer others.

The role of the Ministry of Finance, as the Executing Agency for the loans, was also a source of strength for the program. The MoF was well placed to see the link between Pakistan 's macroeconomic crisis and the need for reforms in the energy sector. A well-thought-out structure for monitoring and implementing the ESRP was established. Responsibility for coordinating and monitoring the implementation of the ESRP was given to the MoF, which was supported by (i) the Ministry of Water and Power in the implementation of sector reforms, (ii) Nepra in sector regulation, and (iii) the Privatisation Commission in the privatisation of KESC and other corporatised Wapda entities. A federal steering committee and a KESC privatisation cell ensured timely implementation.

According to report, the loans for the ESRP were closely co-ordinated with those of the IMF and other development partners, particularly the World Bank. This close coordination was a key strength of the ESRP, as it recognised the clear links between Pakistan 's power crisis and macroeconomic instability and offered remedies for both problems.

Loan (1809), the technical assistance loan designed to support the evaluation of the social impact and labour retrenchment and redeployment program for KESC's privatisation, was cancelled in its entirety. Interest in using the loan proceeds seems to have been limited from the outset, with substantial delays in establishing the project management unit for the loan.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

CAA seeks more flights to Heathrow, Gatwick airports ​

Sunday, September 16, 2007
By Saad Hasan

KARACHI: Pakistan is seeking an increase in the number of flights to London’s two busiest airports for its private airlines, an aviation official told The News on Saturday.

Only state-owned Pakistan International Airlines (PIA) has 10 weekly flights to Heathrow Airport, one of the busiest and lucrative airports in the world. “We want to win flights for Air Blue and Shaheen to Heathrow and Gatwick airports,” said a senior Civil Aviation Authority (CAA) official directly involved in negotiations with British aviation authorities.

Four British carriers can use Heathrow to fly to Pakistan, but only British Airways operates currently. The other three are British Midland Airways, European Air Charter and Astraeus Airlines.

Air Blue, the first Pakistani private airline to extend operations to Manchester, would be in the most favourable position to exploit the opportunity with its surplus pilots and cabin crew, industry people said.

The airline is also in search of a long-haul aircraft. “Finding an aircraft is an issue these days, but we are in a continuous search for an A330-200 on dry lease,” an airline official said. A CAA delegation will visit Europe from Sept 19 to 20 to negotiate 10 articles of an air services agreement with the European Commission. This is a pre-requisite for a new regulation of EC, which allows airlines from its member states to utilise each other’s routes.

However, the CAA official said, the number of passengers, frequency of flights and other details would have to be negotiated at bilateral level with the 20 member states. “This (new regulation) will greatly benefit the European low-cost carriers. All they have to do is open an office in the country where there are dormant routes available and utilise them,” he added.

PIA Case: About PIA rolling back its routes as part of a restructuring move, the official feared that Gulf based airlines could easily exploit this vacuum to their advantage. While the national flag carrier claims that only unprofitable routes are being rolled back, travel agents say flights to Chicago has a huge market, so there is no question of their being unprofitable.

CAA seeks more flights to Heathrow, Gatwick airports

 

[Neo]

Plan to make Korangi harbour export corridor ​

Sunday, September 16, 2007
By Shahzad Anwar

KARACHI: Seafood exporters blamed that Ministry of Food Agriculture & Livestock was planning to declare Korangi Fish Harbour as export corridor to EU and other countries.

Marine Fisheries Department the operational arm of the MINFAL was not allowing exports from Karachi Fish Harbour to EU on basis of so called quality standard grounds, the sources said and added that Planning Commission had submitted in its proposals that KoFH was a strategic asset and its operation was supposed to be leased out to an international operator through bidding after upgrading of harbour facilities.

Sources said that registration of new boats at Karachi Fish Harbour had already been banned and fishermen were forced to register & operate from Korangi Fish Harbour after clearance from Marine Fisheries Department (MFD).

The Karachi Fish Harbour is being controlled by Sindh Government, while Korangi Fish Harbour was constructed under ordinance No. XVI of 1982 aimed to increase fish production by providing basic infrastructure facilities to increase the foreign exchange earnings of country through increased export of marine fish products.

Exporters said that reason behind exports ban to EU was a clash of interest between provincial government and MINFAL, as former earns huge amount from Karachi Fish Habour, while later wants to control these resources by making Karachi Fish Harbour failure and shifting boats to Korangi Fish Habour which is the property of Federal Government.

National Standing Committee on Food, Agriculture & Livestock had directed Marine Fisheries Department to resolve the seafood export ban to EU. But eight months have passed and MFD is yet to lift ban on exports.

Couple of days back Federal Minister for Food Agriculture and Livestock Sikander Hayat Bosan said that seafood exports would not be allowed to EU till seafood processing factories de-listed by European Union meet quality standards set by EU.

“Though processing factories made good progress regarding improvement in deficiencies in respect of quality standards pointed out by EU, but they are yet to do bit more in this regard,” he said and noted that fisheries was provincial subject but federal government just plays role of a regulator.

However, he said before inviting EU for final inspection processors must have to satisfy Marine Fisheries Department (MFD) the sole representative of federal government, which regulates seafood trade in the country.

The EU had slapped ban on import of Pakistan seafood from April 12, 2007 by de-listing all processing factories on the basis of quality standards, which barred annual seafood exports from Pakistan to EU worth $80 million.

Plan to make Korangi harbour export corridor