In a major achievement, Pakistan’s seafood exports reached an all-time high of $496 million in the fiscal year 2022-23, exporters said.
Experts and exporters believe that Pakistan has the potential to surpass the $1 billion mark in seafood exports if major markets lift their restrictions completely. The country had previously recorded its highest seafood export of $451 million in the fiscal year 2017-18.
Saeed Farid, the Vice Chairman of the Pakistan Fisheries Exporter Association (Pakfea), called it a big achievement for the fisheries sector.
“The seafood processing industry has aligned to international demand after Covid-19 which created a glut in the international seafood market,” he said, adding that now, as the global market resumed, Pakistani exporters were able to capitalize on niche fisheries varieties, including cuttlefish, squid, octopus, ivory shell, and other shellfish, which found their way to non-traditional markets.
Muhammad Moazzam Khan, the former director general of the Marine Fisheries Department, lauded the surge in seafood export. “The fish processing industry has wisely shifted to the export of shellfish including squids, cuttlefish, octopuses, and shells such as clams, whelks, ivory shells, and razor clams which is providing a boost to seafood exports,” he said.
Bans on Pakistani Seafood exports
However, according to Farid, challenges still persist, with the United States maintaining a ban on Pakistani shrimp exports due to non-compliance with Turtle Excluder Device (TED) regulations. This ban by U.S, Food and Drug Administration (FDA) was imposed in 2017 following a visit.
“The seafood export could be much higher if the US ban on shrimp trade did not exist, which pulled down the country’s exact seafood industry potential,” he said
This ban has been in place for six consecutive years, hampering the country’s seafood industry potential. The European Union also imposed a ban on Pakistani seafood exports, which was enforced in 2007. Though partial bans have been lifted for a few companies, Pakistan still faces significant restrictions. He lamented that despite the passage of 16 years, Pakistani authorities have not invited a European Commission mission to resolve the issue and lift the ban.
There are over 300 seafood processing establishments under the Pakistan Fish Inspection and Quality Control Act 1997. If allowed to export their fish products, the total export value could reach approximately $1 billion, Farid suggested.
Raw material shortage
According to Faisal Iftikhar, former Chairman of Pakfea, there is a shortage of raw materials for seafood processing plants despite the record growth in seafood exports.
He commended stakeholders for their efforts in achieving this milestone but expressed concern over the decline in the average unit price (AUP) by 10.61 percent, leading to a focus on trading lower-value products.
To further boost seafood exports, aquaculture of highly valued fisheries and shrimp farming in inland waters and along the coasts should be encouraged. The Fisheries Development Board has already demonstrated successful shrimp farming in Pakistan, urging the private sector to invest in these areas.
Rupee depreciation
The surge in seafood exports could be attributed to the depreciation of the Pakistani rupee against the US Dollar, which allowed exporters to access markets that were previously out of reach due to high prices on the local market, some experts believe.