Report on the Fisheries Industry of PakistanGroup Members:

Table of ContentsAcknowledgments:........................................................................................................................................2

CHAPTER 1: PAKISTAN ECONOMY OVERVIEW.................................................................................3

Overview:...............................................................................................................................................3

CHAPTER 2: MODEL FOR INDUSTRY ANALYSIS.............................................................................16

Diamond Model...................................................................................................................................16

CHAPTER 3- SECONDARY RESEARCH................................................................................................19

FISHERIES INDUSTRY.............................................................................................................................19

History..................................................................................................................................................19

Significance..........................................................................................................................................20

Factor Conditions.................................................................................................................................22

Demand Conditions:............................................................................................................................29

Firm Strategy Structure and Rivalry....................................................................................................30

Marine subsector..................................................................................................................................31

Related Industries.................................................................................................................................35

Chapter # 4: Empirical Research.................................................................................................................38

Factor Conditions.................................................................................................................................38

Demand conditions..............................................................................................................................52

Recommendations:.......................................................................................................................................59

1

CHAPTER 1: PAKISTAN ECONOMY OVERVIEW

Overview:

The economy of Pakistan is 43rd largest in the world (in nominal terms) and 25th largest in the world (in

absolute dollar terms). Pakistan has a semi-industrialized economy, which mainly encompasses textiles,

chemicals, food processing, agriculture and other industries. Growth poles of Pakistan's economy are

situated along the Indus River; diversified economies of Karachi and Punjab's urban centers coexist with

lesser developed areas in other parts of the country. The economy has suffered in the past from decades of

internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly,

ongoing confrontation with neighboring India. However, IMF-approved government policies bolstered by

foreign investment and renewed access to global markets have generated solid macroeconomic recovery

the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking

sector have helped the economy.

The World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally.[16] Islamabad has steadily raised development spending in recent years. Inflation remains the biggest

threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In 2008,

following the surge in global petrol prices inflation in Pakistan reached as high as 25.0% and currently

it’s around 11.47%.

History:

Pakistan gained independence in 1947 from UK. Pakistan's average economic growth rate since

independence has been higher than the average growth rate of the world economy during the period.

Average annual real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the

1980s. Average annual growth fell to 4.6% in the 1990s with significantly lower growth in the second

half of that decade.

During the 1960s, Pakistan was seen as a model of economic development around the world, and there

was much praise for its economic progression. Karachi was seen as an economic role model around the

world, and there was much praise for the way its economy was progressing. Many countries sought to

emulate Pakistan's economic planning strategy and one of them, South Korea, copied the city's second

"Five-Year Plan" and World Financial Center in Seoul is designed and modeled after Karachi. Later, 2

economic mismanagement in general and fiscally imprudent economic policies in particular, caused a

large increase in the country's public debt and led to slower growth in the 1990s. Bangladesh Liberation

War 1971 and separation of Bangladesh adversely affected economic growth. In particular, the latter war

brought the economy close to recession, although economic output rebounded sharply until the

nationalizations of the mid-1970s. The economy recovered during the 1980s via a policy of deregulation,

as well as an increased inflow of foreign aid and remittances from expatriate workers. Historically,

Pakistan's overall economic output (GDP) has grown every year since a 1951 recession.

After the highly destructive 2005 earthquake, Pakistan's economy kept expanding, growing by over 7% in

the twelve months ending June 30, 2006..the country's economy is not as weather-sensitive as had been

previously perceived comes from a 2008 analysis that "examined 68 countries, quantifying their

sensitivity to fluctuations in weather, using figures on GDP by industry sector and the sensitivity of

particular sectors to given weather variables." The analysis found that of the 68 countries, the "least

weather-sensitive country was Pakistan." Pakistan emerged as one of the best performers in the wake of

the global financial crisis, even as the country waged a costly war against militants. Its domestically-

driven economy was minimally affected and its banking sector boasted surplus liquidity while remaining

unharmed. However the impact was seen for export sectors which shrank as a result of lower external

demand.

In this chapter an overall summary of the Macroeconomic indicators of Pakistan are indicated in the form

of charts and tables:

3

GDP of Pakistan:

Pakistan GDP growth rate:

4

The figures for GDP for real sector on 14th may 2011 are as follow:

Real sector GDP Current Prices Million

PKR

Constant Prices Million

PKR

GDP For Real Sector 17,107,487 5,817,406

Agriculture 3,698,658 1,216,523

o Crops 1,788,676 509,393

o Livestock 1,802,221 670,743

o Fishing 61,403 22,041

o Forestry 46,358 14,346

1. Industry 4,323,057 1,499,360

o Manufacturing 3,167,947 1,085,440

o Mining and Quarrying 431,907 140,971

o Construction 396,777 146,169

o Electricity & Gas Distribution 326,426 126,780

Services 9,085,772 3,101,523

o Wholesale & Retail Trade 3,115,906 1,000,477

o Transport Storage & Communication 2,132,844 581,388

o Finance and Insurance 649,701 260,172

o Ownership of Dwellings 401,687 158,707

o Public Administration & Defence 975,296 385,506

o Community, Social & Personal

Services1,810,338 715,273

5

Demographics:

Population of Pakistan:

Population Growth:

6

Labour Force:

Literacy Rate:

Year of

censusMale Female Total Urban Rural

Definition of

being "literate"

Age

group

1951 19.2% 12.2% 16.4% -- --One who can read a clear

print in any languageAll Ages

1961 26.9% 8.2% 16.3% 34.8% 10.6%

One who is able to read with

understanding a simple letter in any

language

Age 5 and above

1972 30.2% 11.6% 21.7% 41.5% 14.3%

One who is able to read and

write in some language with

understanding

Age 10 and

Above

1981 35.1% 16.0% 26.2% 47.1% 17.3%One who can read newspaper

and write a simple letter

Age 10 and

Above

1998 54.8% 32.0% 43.9% 63.08% 33.64% One who can read a newspaper

and write a simple letter, in any

language

Age 10 and

Above2004 66.25% 41.75% 54% 71% 44%

2009 69% 45% 57% 74% 48%

7

Unemployment:

8

Foreign Investment

in Pakistan:

9

Inflation Rate:

10

11

Foreign Trade:

The following is a list of Pakistan's main trading partners as of 2010.[1]

Country Percentage of imports Percentage of exports Percentage of total trade

European Union 12.1 22.6 15.8

China 19.1 7.9 15.4

United Arab Emirates 10.4 7.9 9.6

United States 5.2 17.1 9.2

Saudi Arabia 10.5 2.3 7.8

Kuwait 5.4 0.4 3.8

Malaysia 4.1 0.8 3.0

Japan 3.6 1.6 3.0

India 3.3 1.3 2.6

Afghanistan 0.3 7.0 2.5

Iran 2.9 1.4 2.4

12

Country Percentage of imports Percentage of exports Percentage of total trade

Singapore 3.2 0.4 2.3

13

CHAPTER 2: MODEL FOR INDUSTRY ANALYSIS

To analye ones’ industry several factors can be looked upon. These could include its’ competitiveness

nationally and globally.

Micheal E.Porter is one of the few known individuals who have contributed towards frameworks which

aid in industry analysis. These include the diamond model and Porter’s five forces model. Other models

which we will be looking at in greater depth include PEST analysis and SWOT analysis.

Diamond Model

Classical theories have always linked factor endowments to a nations’ success stating that factors such

as land, labor and natural resources determine ones’ ability to compete globally. The diamond model,

on the other hand, goes beyond these basic factors stressing on acquiring advanced factors such as

skilled labor and technology. Porter suggested that making a conscious effort through research and

development led to the acquisition of advanced factors which would consequently result in a national

advantage.

The diamond model focuses on four key ingredients which are

Firm Strategy, Structure and Rivalry: the conditions in the home market that affect how

corporations are created, managed and grown

Related and Supporting Industries: the existence, extent and international competitive

strength of other industries in the nation concerned that support or assist the industry in

question.

14

Demand Conditions: extent and nature of demand within the nation concerned for the

product or service.

Factor Conditions: production factors required for a given industry, e.g., skilled labor,

logistics and infrastructure.

Factor Conditions:

These typically consist of basic and advanced factors. Porter highlights this difference, emphasizing on

the importance of acquiring advanced factor to remain competitive. These advanced factors as stated

are attained through research and development. Pakistan, as a whole, has failed to diversify its’ basic

factors into advanced ones resulting in a huge disadvantage as compared to other markets in the world.

Though some industries have made a conscious effort, such has not been a persistent one.

Demand Conditions:

According to Porter, having a high local demand is essential for competiveness. Such a sophisticated

demand enables an industry to prepare globally as they would already be producing high quality

products and constantly innovating to satisfy local customers. Whatever Pakistan imports (currently) has

a generally high local demand enabling them to effectively compete.

Firm Strategy, Structure and Rivalry:

In a culturally rich country like Pakistan, family-driven industries are highly popular. Based on this firm

strategy and structure typically follow an inherited pattern. Kinship trends which are evident in everyday

lives extend to businesses determining corporate culture. Rivalry within the nation spurs innovation

which at a global level gives the national companies a competitive edge.

Related and Supporting Industries:

The popular terminology of clusters sprouts from this determinant. Clusters which are geographic

concentrations of interlinked businesses result in higher productivity consequently increasing

15

competitiveness. In Pakistan, industries with the same suppliers or products typically reside in close

proximity resulting in added benefits such as potential technology knowledge spillovers.

Critics stress on the importance this model gives to domestic markets, however, according to Porter

nations become globally competitive after gaining national success.

16

CHAPTER 3- SECONDARY RESEARCH

FISHERIES INDUSTRY

History

The marine fisheries industry of Pakistan started virtually from scratch at the time of

independence in 1947. It was then based entirely on a small-scale fishery. A single rundown fish

trawler was inherited by Pakistan at that time as its share of the partition of the resources of the

fisheries industry of the subcontinent, no fish harbour and fish processing plant was present. A

fish harbour was later constructed at Karachi in 1958. Commercial shrimp trawling alos started

in 1958, after the Central Fisheries Department (now the Marine Fisheries Department – MFD)

introduced mechanization of larger fishing craft in 1956. After the introduction of

mechanization, the trawler fleet expanded rapidly, becoming the backbone of fisheries in

Pakistan. Now all the shrimp trawlers are fully mechanized, using trawl winches for net hauling.

Since then, the fishing fleet of the country grew considerably and has now become mechanized

to a large extent.

Table 1. Marine fish production of Pakistan (in m. tonnes)

Year Marine Inland Total Production

Sindh Balochistan EEZ Total Marine

1947 23 910 8 983 - 32 893 7 050 39 943

1950 26 360 10 889 - 37 249 10 400 47 649

1960 45 824 16 333 - 62 157 18 500 80 657

17

1970 102 418 37 385 - 139 803 18 740 158 543

1980 175 255 57 688 - 232 943 46 320 279 263

1990 260 246 107 226 2 330 369802 113 158 484 960

1998 295 648 130 799 6 651 433 098 182 806 615 904

Pakistan’s fisheries industry has experienced a great degree of neglect from the government

since the 1947 partition. Since 1950 the government has mobilized 65 per cent of its manpower

and 50 per cent of financial resources to develop the agriculture sector. On the other hand, only

0.1 per cent of total available manpower and also 0.1 per cent of total financial resources have

been utilized to develop the marine fisheries sector in Pakistan. Pakistan’s 1st deep-sea fishing

policy was formulated in 1982, in the wake of the UN Convention on the Law of the Seas. For

the first time, the convention defined territorial and exclusive economic zones for all states in the

world. An objective of the federal government’s deep-sea policy was to boost exports in this

sector. Consequently, it allowed joint ventures between foreign and local investors. However, the

policy was changed in 1989, permitting only Pakistani flagged vessels. This failed to restrict

foreign trawlers as local feudals and investors began to front for them. In 1995, responding to

pressure from local fishermen, the government altered the policy by creating a buffer zone lying

between 12–35 nautical miles (NM). This was designed to protect territorial waters from

incursions by trawlers and large local launches. However, in 1999, the newly-installed military

government abolished the buffer zone. Commercial fishing operations were allowed up to the 12-

NM limit but transgressions into coastal waters and into the creeks are reported frequently. The

consequences for livelihoods and sustainability are self-evident.

Significance

Fishery plays an important role in the national economy. It contributes only 0.3 per cent to overall Gross

Domestic Product (GDP), 1.3 per cent to Agriculture GDP and less than 1 per cent to national

employment. There has been an increase in fishery exports from US$77 million in 1993 to US$131

million in 2003. While, this is low as a percentage of total exports, in absolute terms fish exports generate

18

an important share of Pakistan’s foreign exchange earnings. The increased catches over time are due to

greater ingress by foreign trawlers, facilitated by both a change in zoning policy and the liberalization of

licenses.

Employment in the primary sector peaked in 1997 at 416 405 fishermen, but declined to 324 489 in 2006.

This declining employment is most apparent in the inland sector. The inland sector is somewhat more

labour intensive and less productive (177,572 fishermen each producing an average of 0.80 tonnes per

year) compared with the more mechanized marine sector (146,917 fishermen each producing 2.59 tonnes

per year). It is clear that the high annual rate of increase in production is not due to increase in labour

force size but rather to more efficient fishing and greater market demand (to supply fishmeal factories in

particular). Employment in the secondary sector (processing/marketing) is estimated to be around 55,000.

A high proportion of those employed are women working in shrimp processing plants (sorting and

peeling). In addition, another 400 000 people are employed in ancillary industries.

Employment in fishing industry (2006)

Sector Employment

Primary sector(including aquaculture)

Marine 146,917

Inland 177,572

Total 324,489

Secondary sector 55,000

Total ~379500

Table. Fish export (1998)

19

Commodity Quantity (m. tonnes) Value (000 Rs)Fish 46 063 1 974 694· Salted 18 610 548 775· Frozen 24 249 1 220 126· Chilled 3 168 203 905· Others 36 1 888Shrimp 15 921 3 209 779· Frozen 15 900 3 208 037· Others 21 1 742Lobsters 104 38 113· Frozen 79 29 624· Live 25 8 489Crabs 4 078 194 121· Frozen 97 25 471· Live 3 940 165 385· Canned 41 3 265Molluscs 5 806 335 213· Frozen 5 674 331 456· Preserved 132 3 757Fish products 1 738 182 615· Fishmeal 1 568 22 535· Fish maws 92 86 163· Shark fins 78 73 917Total 73 710 5 934 535

Factor Conditions

Coastal Areas:

Pakistan is endowed with rich fishing potential. It is located in the northern part of the Arabian

Sea. The Arabian Sea at the coast of Sindh and Balochistan has rich fish deposits of commercial

importance. Pakistan has a coastline of about 1 120 km, with a number of bays and broad

continental shelf lying in front of the Indus deltas which are ideal for growth of marine life. The

Exclusive Economic Zone of Pakistan extends up to 200 nautical miles from the coast. Major fish

centres are Karachi, Gwadar and Pasni. Most of the marine catch is done within 12 nautical miles.

On the basis of topographical features and productivity, the coast is divided into two zones, i.e.

the northwestern region or Makran coast, and the southeastern region or Sindh coast

The northwestern region (or Mekran Coast) extends from Hub River to the Iranian border, which

is about 772 km long. The entire shelf area of this region comes to about 14 530 km2. The bottom

20

is generally rock and the shelf is uneven. The continental slope (i.e. isobath of 200 m) starts

between ten and 30 miles along the coastline. The region is characterized by a number of bays

such as Sonmiani, Ormara, Kalmat, Pasni, Gwadar and Gwater bays. Trawling is possible in

some areas but in most part, the shelf is narrow and has rough bottom and beset with numerous

rugged canyons and rocky areas.

The southeastern region (or Sindh Coast) is 348 km long and extends between the Pakistan-

Indian border and the Hub River. The bottom is generally sandy or sandy-muddy. The shelf area

is about 35 740 km2. The shelf in most areas in the Indus delta region extends up to 80 miles. The

region, unlike Balochistan, is characterized by a network of creeks having mangroves that serve

as a nursery ground for finfish and shellfish resources.

Fishing is undertaken right from the seashore to 200 nautical miles out to sea. This distance has

been divided into two broad categories known as (i) coastal water fishing (up to 12 nautical

miles) and (ii) deep sea fishing. The area of deep sea fishing has further been divided into Zone-I

(12 to 35 nautical miles) and Zone-II (35 to 200 nautical miles). Coastal water fishing is

undertaken in most coast villages. These villages are predominantly inhabited by fishers whose

main livelihood is fishing. In contrast, deep-sea fishing in Zone II is undertaken largely as a

commercial venture. The zone is reserved for foreign as well as Pakistan Flag vessels. Several

restrictions are imposed on the fleet operating in this zone, including:

A royalty of US$5 000 per fishing trip is charged from bottom/midwater trawlers and squid

jigging vessels, in advance, prior to the issuance of N.O.C. for each fishing trip. A fishing trip is

limited to 60 days, however it terminates when a vessel reports at the port for offloading of the

fish catch.

Licensees are entitled to determine the mode of procurement of vessels, either on a self-

ownership basis or on a charter/joint venture basis. Licensees are not given licences for more than

two vessels.

The licensee is not permitted to trans-ship the fish catch at sea. Vessels are encouraged to

land/export their catch from Korangi Fisheries Harbour. However, when it is technically possible

the vessels will be bound to land/export the catch from Korangi Fisheries Harbouronly. A US$40

commission is charged by the Korangi Fish Harbour Authority to vessels offloading their catch at

the Korangi Fisheries Harbour, and US$2 000 on every offloading/trans-shipment elsewhere.

21

All vessels have to employ at least 25 percent Pakistani crew, and arrange for their training on

board.

Boats Used:

Most of the fishing boats being used in Pakistan are made of wood. There are about 19 000

registered boats in Pakistan, of which about 14 000 boats are being operated from Sindh, and the

remaining 5 000 fishing boats being operated from Balochistan. In the Exclusive Economic Zone

of Pakistan, 30 fishing vessels (20 stern trawlers and 10 tuna longliners) are permitted by the

government to operate beyond 35 miles from the coastline. Fishing activities are continued

throughout the year; however, peak fishing seasons are during post-southwest monsoon calm

period (September to November). Shrimp are caught throughout the year except June and July,

during which time the Government of Sindh imposes a closed season.

Mechanization of boats by inboard marine diesel engines was started in 1956 under the auspices

of MFD (then Central Fisheries Department). There are four basic types of fishing boats: (i)

mechanized; (ii) mechanized-cum-sail boats; (iii) sail boats; and (iv) doonda boats.

Mechanized fishing boats:

There are 4 335 mechanized fishing boats registered, which includes shrimp trawlers and

gillnetters. Trawlers operate only in Sindh. The shrimp trawlers are locally built of wood

according to traditional design. As an adaptation for trawling, most boats have a transom

(straight) stern, but some are of the unchanged hora type, with a pointed stern. In the latter case,

the net is pulled in over the side. The average overall length is 15 m (range 10–23 m), the average

keel length is 11.6 m (range 8.5–18 m), the average breadth 4 m (range 2–7 m), and the average

depth 1.9 m (range 0.8–3 m). They are fitted with marine diesel (inboard) engines, mostly

between 66 and 125 hp (range 22–170 hp). The gillnetters are also locally built of wood,

according to traditional design. These boats are pointed at both ends and the net is pulled over the

side. The overall length ranges between 13 and 35 m. They are fitted with 120–250 hp inboard

marine diesel engines. Industrial and freezer vessels are also operated in the EEZ of Pakistan’s

coastal shelf depending upon the numbers permitted by the government. These vessels are

required to stay within 20 and 35 n.m. offshore. All their catch is exported. The activities of these

vessels are monitored by the Maritime Security Agency through a Vessel Monitoring System

22

(VMS). A 12-n.m. coastal zone (territorial waters) has been reserved for the exclusive use of the

small-scale sector.

Mechanized-cum-sail boats:

These are also made of wood, but generally smaller than gillnetters. They are fitted with 2 to 3

outboard engines. They are locally known as hora boats. Most of the sailboats are now operated

in freshwater bodies. Their number is decreasing. Doonda boats are fibreglass lifeboats of

scrapped ships, with an overall length of 7.5 to 10.5 m, and converted into fishing boats. These

boats are fitted with 22–33 hp engines. These boats can operate in up to 20 m depth. These are

recent in Pakistan, starting in the late 1980s. At present there are about 2 000 such boats in

operation, mainly based at Karachi. However, small fleets of such boats are also operated from

Gadani, Pasni, Gwader, Ibrahim Hydri and Chashma Goth.

Fishing Gear

The most common fishing gear used in Pakistan is the gillnet, used by both small as well as larger

fishing vessels. Smaller fishing boats employ gillnets in shallow waters, and catch a variety of

demersal fishes such as croakers, pomfrets, trevallies, mullets, catfishes and sharks. Bottom set

gillnets, locally known as tukri, are also used for catching shrimp. In contrast, trawling for shrimp

is the most important fishing gear being used in Pakistan, and is undertaken by medium sized

fishing trawlers (LOA 15 to 20 m). Shrimp trawls are locally constructed from imported nylon

webbings and are called gujjo. A typical trawl net is operated with 120 hp vessel, and a stretched

mesh of 50 mm in the body and 25 mm in the cod end. The cod-ends of these nets are fitted with

Turtle Excluder Devices (TEDs).23

As the size of the mesh in the cod end is very small, it does not allow juveniles to escape.

Therefore, a large quantity of undersized shrimp and fish are caught. Most of the by-catch, locally

termed kachra or trash fish is sold at throwaway prices. An increase in the minimum mesh size

permitted in cod ends, and an efficient escape device in the net would permit juveniles to escape.

MFD has already started trials using square-mesh panels in the trawl net. Various sizes (25 to 38

mm stretched) have been tested. Apart from saving juveniles, the use of square mesh panels will

also speed up sorting out shrimp from trash fish, hence maintaining the freshness of shrimp catch

by quicker chilling after capture. Ruch (gillnet) has a stretched mesh size of 150 mm. The

maximum length of a gillnet is between 2.5 and 5 km.

Poplate plastic net is a polyamide monofilament net with a mesh size of 155 mm stretched. The

average length is 2 to 4 km. It is used by doonda fishing boats. Since pomfret is the main target

species of this net, the gear became known as the poplate plastic net. This net is set mostly in 16-

20 m bottom depth to catch a variety of demersal fish.

Surmai plastic nets are polyamide monofilament gillnets used by doonda fishing boats targeting

mackerel, hence the local name. The mesh size is 78 mm stretched. It is set on the bottom or in

mid-water, and is usually 2–4 km long. The gillnet fishery is replaced by longline fishing in

November, December and January. Katra nets are surrounding nets for small pelagic species.

They are 150 to 200 m long and 24 m to 30 m deep. The bunt, where catch is retained, lies in the

middle of two lateral wings. After encircling the fish school, the footrope of the katra net is

hauled in from both wings simultaneously. There is no purse line per se, but an extension rope

attached to the middle of the bunt assists in hauling operations. The net has 15 mm stretched

mesh in the lateral wings and 12 mm stretched mesh in the bunt.

Large gillnetters are employed for catching tuna, mackerel, sailfish and other pelagic species in

offshore waters. Sardinellas and anchovies are caught in shallow coastal waters using encircling

nets locally known as katra. Line gears are also used in shallow coastal waters for catching

seabreams, croakers, eels and other demersal species.

Landing Sites:

Karachi Fish harbour is the biggest and oldest fish harbour in the country, being used by all

categories of fishing boats. The harbour was designed to cater for about 1000 fishing boats, but

24

currently more than 4 000 fishing boats are based there, making it heavily congested. At present it

caters for the needs of 70–80 percent of the local fishing fleet. At Korangi, a new fishing harbour

was constructed in 1993 but it is little used. Other fishing harbours exist, and fall under a variety

of managerial jurisdictions:

• Karachi – Autonomous authority nominated by the Sindh Government

• Ibrahim Hyderi – Local Government

• Korangi – Pakistani Fish Harbour Authority (Federal; MinFAL)

• Pasni – Autonomous authority nominated by the Secretary of Fisheries, Government of

Balochistan

• Gawader – Federal; Ministry of Communications (A fisheries harbour-cum-mini-port)

• Gaddani – Balochistan Coastal Development Authority

• Damb – Balochistan Coastal Development Authority

Processing Units:

There are 29 fish processing units in Pakistan with storage capacity of 10,000 tons, out of these

25 units are locate in Karachi of Federal Government provided intelligentsia and technical

assistance to seafood establishments for improving their processing conditions in line with

various EU / international standards. Through this process, 8 establishments have already

improved their conditions and were approve to export seafood to European Union countries. In

addition, another five plants have almost upgraded their conditions and others are also

undertaking changes in their facilities to comply with EU / international standards.

Techniques:

Fishing is done with line to trolling, induced and occasional fishermen use wither line or small

nets with small boats while full-time fishermen use large boats or Yakdars and Ranchins. 

Some foreign trawlers also fish in Gwadar Sea with the permission of government. Small boats

can stay up to 1 day in the sea while big launch take 15 days or more. 

Baluchistan Government has banned fishing by trolling, wire net, ring net, encircling nets and

bottom troll. Trolling is the worst technique since small fish get crushed under the weight of big

ones so trolling is prohibited up to 22.2km in provincial sea limits. But still certain trawlers have

the license to catch in these limits and so they trawl out the best catch leaving inferior one for

25

local fishermen who greatly suffer. Also these trawlers make a sort of magnetic circle that attracts

all the fish in that area leaving waste for local ones.

Different Methods of Fishing:

Shrimp fishery

The shrimp fishery is very meaningful because of foreign exchange earned and employment

produced from it. It is only permitted in province of Sindh. Commercial shrimp trawling started

in 1958, after the MFD introduced mechanization of larger fishing vessels. Now almost all of the

shrimp trawlers are equipped with winches for net hauling. However, shrimp can also be caught

by the use of cast net, which is locally termed 'thukri'. The catching is mainly carried out in

shallow depths from October to March. It is also caught in eustaries and brackish waters from

July to September. The catch is then processed frozen for the objective of exporting to North

American and European Union markets.

Tuna fishery

The fishing of tuna varieties is another appreciable aspect of the industry that is carried out

by artisanal fishing vessels. Usually, the fleet shoot the gillnets in the evening and fetch them the

next morning. The main target are the pelagic species with higher commercial values. The catch

is exported as chilled to neighbouring country of Iran through informal channels for canning

purposes. This fetches more profit than if exported to Sri Lanka in dried and salted form.

Benthic fishery

The deep sea resources remain comparatively unexploited because local vessels are neither

suitable nor equipped for deep-water fishery. The idea has motivated entrepreneurs to augment

their deep-sea fishing craft for use of the resources. Small-scale benthic or demersal fishery is

most common in coastal inshore waters. Fishermen use nylon gillnet, locally termed 'ruch', with a

mesh of about 150 mm long.

Pelagic fishery

A small-scale pelagic fishery is in operation in Sindh, using special nets, locally termed 'katra'.

Fishing is carried out from 'hora' boats - wooden sailboats with pointed ends, a broad breadth and

long-shaft outboard engine. In depths shallower than 20 m, shoals of clupeids, especially

the Indian Oil Sardine, are usually intended. Such operations are mainly based at Ibrahim Hydri

26

and Chashma Goth villages. The desirable months are from October to November and February

to April. The catch is the prime candidate for conversion into fishmeal.

Supporting facilities:

1. Freezing Plants:

In the last published form of data in 1965 on freezing plants, it was stated that the

following facilities were available:

2. Packaging:

Though the production of Fisheries is increasing every year, little attention has been paid

for the packaging technology of fresh and processed Fish. It will not out to mention that

some products were rejected in the foreign markets due to poor quality of packaging

materials.

In most of the cases fish is still being carried out in the old age methods presumably due

to high cost of packaging materials, like polyethylene, cellophane, aluminium foil, tin

plate etc.

Traditional packaging materials, like bamboo baskets, wooden boxes, second hand ply-

wood cases, gunnies, screw pinemats etc. are used for packaging fresh and processed fish

for local market and to a limited extent for export trade.

27

Demand Conditions:

Local Consumption:

The population of Pakistan is increasing rapidly. In 2006 the population was 160.9 million. Fish

production was 611,246 tonnes, of which 476,711 tonnes were fit for human consumption. The

per capita fish consumption was about 2.0 kg/year, which is very low by international standards.

People of Pakistan are not fish eaters by nature. Inland fish production is mostly consumed

locally, and this situation is expected to continue, with the inland population consuming any

increased fish production achieved through aquaculture.

Foreign Demand:

The Pakistani seafood industry is primarily export-oriented and mainly governed by the

requirements of the exporter. The performance of the export sector has been appreciable and

export earnings have increased substantially since independence. In 1947 only salted dried

products were exported from Pakistan, but now high-grade frozen seafood products as well as

live marine animals are exported. There is no doubt about the potential for increased seafood

exports, but post-harvest losses are a major constraint to the development of the fisheries sector.

In the 1970s, dried fish products were the major commodity exported by the fisheries sector. It

was sold mainly to Sri Lanka. Thereafter, frozen fishery products became the leading export

commodity. Frozen fishery products are now exported to about 65 countries. Major importers of

frozen fish from Pakistan are China, Malaysia, Hong Kong (SAR), Thailand, EU countries and

USA. Export of chilled fishery products has increased significantly in the last five years. These

are purchased by Gulf countries and by Singapore. Live lobster and crabs are exported to China,

Singapore, Malaysia, etc. In 2007, total fishery exports were 123 600 tonnes (product weight)

valued at USD 188 million.

The exports mainly comprise frozen fish, frozen shrimps, lobsters and crabs, dried fish and

molluscs. Only a small quantity of fishmeal was exported. Shrimp was the main export item. It

was exported as freshly frozen, either shell-on tails or as peeled product. Shrimp canning ceased

in 1983, and has been replaced by freshly frozen crab meat, which is exported to USA. Fishmeal,

fish maws and shark fins are also exported.

28

Firm Strategy Structure and Rivalry

The fisheries sector is divided into the following sectors:

1. Marine subsector

Pakistan has a continental shelf area of 50,270 km2 and coastline length of 1,120 km. The total

maritime zone of Pakistan is over 30 percent of the land area. The coastal belt is characterized by

a meshwork of estuaries and creeks with mangrove forestry that serve as nursery grounds for

species of finfish and shellfish. In 1958, the first modern fish harbour was constructed at

the Karachi District. Later, the fleet expanded and is now mostly mechanized.

Harbours:

Karachi Fish Harbour is the biggest and oldest of its kind in Pakistan, being used by all types of

fishing boats. Currently more than 4,000 fishing craft are based in it. At present, it can be

assumed that the harbour caters for the needs of near 75 percent of the local fleet.

The major fish harbours of Pakistan are:

- Karachi Fish Harbour handles about 90% of fish and seafood catch in Pakistan and 95% of fish

and seafood exports from Pakistan.

- Karachi Fisheries Harbour is being operated by Provincial Government of Sindh.

- Korangi Fish Harbour  is being managed by Federal Ministry of Food, Agriculture and Livestock.

- Pasni Fish Harbour  being operated by Provincial Government of Balochistan.

- Gwadar Fish Harbour  being operated by Federal Ministry of Communication.

2.Inland subsector

Freshwater capture fisheries are dominated by the Indus River and its tributaries. The fish fauna

of the Indus system in its northern part is cold-water type, while the greater middle and southern

parts of the system are warm-water fisheries zones. Greater differences exist between various

zones of one river than between different rivers of the same zone. River modification as a result

of Indus basin development has changed almost the entire profile of the major rivers.

Consequently, the fish communities in rivers have been affected mainly by external influences.

Fisheries in rivers and reservoirs account for more than 80 percent of total inland fish production.

The riverine fishery management system is operated mainly by provincial fisheries departments. 29

They enforce regulatory laws that restrict catch by size of fish and establish closed seasons. In the

absence of any fisheries management plan, integrated coordination of the development of inland

fisheries is limited.

Reservoirs

Six large reservoirs have been created in the past four decades through the construction of dams

and barrages across rivers, which provide about 250 000 ha for fish production. In addition, there

are several smaller reservoirs. Although the large reservoirs and barrages remain the major source

of fish production, there is a continuous decline in landings. The fisheries production is currently

managed by WAPDA through harvest limits during certain seasons and minimum size of fish

landed.

Lakes (sweet or saline) and other wetlands

In the Sindh Province alone there are more than 100 natural lakes of different sizes covering an

area of about 100 000 ha. Among them Lakes Halijee (1 800 ha), Kinjhar (12 000 ha) and

Manchar (16 000 ha) are quite important for fish production, and Manchar alone supports 2 000

fishing families. Apart from these big lakes, a cluster of small lakes called Bakar Lake extends

over 40 000 ha. The natural lakes in Punjab cover about 7 000 ha.

Some of the lakes, such as Nammal (480 ha), Ucchali (943 ha), Jahlar (100 ha), Kalar Kahar (100

ha), Kharal (235 ha) and Khabakki (283 ha), are brackish and are too saline to support

aquaculture.

3. Recreational subsector

There are three main types of recreational fisheries in Pakistan: (i) billfish and tuna fishing, in the

EEZ off Karachi; (ii) sport fishing (pelagic) in coastal waters; and (iii) hand-line fishing (bottom

fishing) in inter-tidal and shallow waters. About 1 000 people with 120–150 fishing boats are

involved in this sector, and they are not licensed. However, their boats are required to be

registered by Marine Mercantile department for seaworthiness.

4. Aquaculture subsector

30

Aquaculture in Pakistan is still in its infancy, but there is immense potential for development.

Aquaculture production has rapidly increased since 2000 from around 10-15 thousands tonnes to

reach over 100 000 tonnes in 2006 and 2007. Despite its vast fresh, brackish and marine waters,

only carp culture is practised in inland waters. Carp are cultured in earthen ponds, using mostly

extensive farming systems with very few inputs. In Pakistan, the fish fauna is rich but only seven

warm-water species and two cold-water species are cultivated on a commercial scale. Trials with

shrimp culture in the Indus delta region did not succeed due to non-availability of hatchery-

produced seed. Freshwater carp farming is the major aquaculture activity in Punjab, Sindh and

NWFP.

The northern mountains of Pakistan have good potential for trout culture, but production is still

very small. Aquaculture is a recent development and management of the sector is still poor. Two

Asian Development Bank (ADB) projects have assisted in strengthening the institutional

structure, through the development of model farms, hatcheries and production of juveniles, as

well as through human resources development and strengthening of extension services.

Aquaculture has also received a substantial amount of government investment, and facilities are

now in place that can provide the basis for a major future expansion.

With the exception of trout culture in the North-West Frontier Province (NWFP) and the northern

region, virtually all aquaculture consists of pond culture of various carp species. Pakistan has no

coastal aquaculture operations, despite its potential. According to the latest estimates, the total

area covered by fish ponds is about 60 500 ha (Sindh, 49 170 ha; Punjab, 10 500 ha; NWFP, 560

ha; and the other provinces (Balochistan, Azad Jammu Kashmir [AJK] and Northern Area [NA]),

240 ha).

About 13 000 fish farms have so far been established across Pakistan, varying considerably in

size. The average farm size is 5 to 10 ha. No direct data on the number of fish farmers employed

in this sector is available as fish farming in most parts of the country is carried out as an integral

part of crop farming. According to best estimates, about 50 000 people are either directly or

indirectly employed in the sector. In the Sindh Province, the majority of farms are located in

Thatta, Badin and Dadu, the three districts through which the River Indus passes. Badin and

Thatta have waterlogged floodplain areas suitable for fish farming. In the Punjab Province, farms

are located mostly in irrigated areas or where there is abundant rain and the soil is alluvial. As a

result, Sheikhpura, Gujranwala and Attock Districts have most farms (three-quarters of all farms

in the Punjab).31

NWFP has comparatively fewer farms, with trout farms in Chitral, Swat, Dir, Malakand,

Mansehra, Federally Administered Tribal Area (FATA) and other parts of NA. Carp culture is

practised in Dera Ismail Khan, Kohat, Mardan, Swabi and the Abbotabad Districts of NWFP.

Some carp farms use a semi-intensive culture system. On a typical carp farm in Pakistan, the ratio

of the warm-water species stocked on the farm is catla (10–20 percent), rohu (30–35 percent),

mrigal (15–20 percent), grass carp (15–20 percent) and silver carp (15–20 percent).

Intensive culture has not yet been developed because of non-availability of low-cost feed and

limited production expertise.

Reported aquaculture production in Pakistan (from 1950)

(FAO Fishery Statistic)

PAKISTAN FISHERIES SECTOR AT A GLANCE

 Fish Production (0.604 m mt)

32

 

 PAKISTAN WATER RESOURCES

Marine (sq km)

Freshwater (ha)

 

 

Related Industries:

Despite the lack of development in this industry Pakistan’s fishing industry has a number of related

industries like:

33

- Boat Making

There are boats making sheds mainly at the Karachi and Gwadar Harbor. They are not in very

good condition and no new technology is being used while making boats.

- Poultry Feed

Fish is a perishable product. Therefore, if timely delivery does not take place, then the fishes rot

and go bad. This happens very often in our fishing industry while transporting from other harbors

to the Karachi harbor. Not only while transporting, the unhygienic conditions also make the

fishes go bad. All the rotten or unfit fishes that are not suitable for eating or further processing are

used to make animal feed like poultry feed.

- Net- Repairing

Net repairing is another related industry of the fishing industry. Since majority of the fishermen

still use nets, and have been using them for a long time, they need repairing quiet often.

- Ice Making and Selling

Pakistan has very few refrigeration facilities so mostly ice is used to preserve the fishes that are

caught. Ice plays an important role and since, we do not have proper refrigerators and even if we

do the capacity is not enough.

- Fish Drying and Processing

Not all of the catch is exported in raw form or locally distributed. In exporting, major portion of

the catch is further processed and frozen because our foreign buyers do not use raw fish but in

frozen form. Locally, only a small portion is processed because the demand is basically for raw

fish. Therefore, processing plants are very important related industries. Raw material is being

provided to the processing units while the processed fish like smoked or salted is sent to the

canning industries for further processing. But this network does not fulfill the requirement as per

the diamond model. However our raw material in the fishing sector has not been improved. Due

to impurities and pollution our processed fish products are of low quality thus not reaching

the international standards. Therefore foreign investment fails to come in. If there had been a

strong and developed network foreigners would have gained confidence and invested in our

fishing sector, bringing in new technology and bright prospects for the industry.

34

- Canning Industry

This is one of the related industries, which has the potential provided that links areavailable.

Pakistan has been of the 80 nations whose canned fish is banned for import in

European and other developed countries, mainly because of the unhygienic canningfactories.

However authorities are trying to improve in this area after the Iranian offer to

develop canning industry along the coastline of Baluchistan.  The offer has been welcomed as

Pakistan is already exporting tuna fish to Sri-Lanka in dry conditions and there is sufficient

availability of raw material. Another encouraging factor is that a local private sector company has

set up a plant for manufacturing various types of tin plates at Windher in Baluchistan some 85 km

from Karachi. The basic advantage of canned food over all other types of processed foods is that

once the process is complete the product can be kept safely for years without special storage

facilities being required, and it can also be readily eaten as it is already cooked during the process

of canning.

- Pharmaceuticals

It also supply’s products for the pharmaceutical industry and protein for inclusion in

dietsof fishes, poultry and livestock. Cord liver oil is used in many medicines by thepharmaceutic

al industry.

- Cosmetics

Where a major supply of fish is used for the food industry, the by-products of fish including

scales, meat, oils and organs benefit the cosmetic industry whose product line now protect skin

from increasingly harmful ultraviolet rays and prevent from wrinkling, producing youthful skin.

35

Chapter # 4: Empirical Research

Factor Conditions

One of the most important conditions that determine the success of a nation is factor conditions. However porter argues that for a nation to be successful the basic factors should be turned and enhanced into advanced factors so as to provide competitiveness to nations and encourage the nation to be successful in the international market.

There are two types of fishing carried out in Pakistan which are Marine fishing and Inland fishing. Marine fishing is carried out on sindh coast and Baluchistan coast where as Inland fishing is carried on the reservoirs, lakes, dams as well as aquaculture forums namely Mangla dam, Tarbela dam, Chashma barrage, Hub dam, Khanpur, Badin, Thatta, Gilgit and Baltistan.

Major marine fishing areas includes:

Jiwani Gwadar Pasni Ormara Thatta Badin Somiani Kalmat.

Basic conditions of all these ports are somehow the same and very poor. There is no proper developed infrastructure available. No advanced facilities provided to the labour force. Similarly no proper icing refrigerators and chillers are available to restore the catch and prevent it from retuning up.

Similarly the roads and current infrastructure leading to these areas are not properly developed and maintained. As a result trucks and trawlers reach these areas very late increasing costs and time.

Icing Facilities:In our empirical research, we encountered the following features:

At the time of catch, the fish has to be kept between the temperatures of 0°-4°C before it reaches the port. It is the practice of the fishermen to keep them in ice in the boats. It is preferable to keep them in between huge chunks of ice for the required temperature to be maintained. But the fishermen tend to break it in small pieces of ice and store it accordingly. This further decreases the quality of the fish which reaches the harbor.

36

It was decided by the Export Promotion Bureau and the Department of Fisheries that ice flake containers would be constructed, and these would be distributed amongst the fishing vessel owners so that our vessels are compliant with the EU guidelines in terms of icing equipment. 50 of them were produced, and distributed on a random basis amongst the vessel owners. The ice-flake containers were handed to small boats with an average catch, as well as to non-operational boat owners. Thus, this idea was not a huge success for the fishing industry.

Major sea food products and types:

Pakistan is highly blessed with a variety of seafood products and different species found in the rivers and seas of Pakistan. These include:

Shrimps Fishes Crabs

As for the fishes there is a wide variety of fishes found in Pakistan. Some of the major marine varieties are sharks, drums, croakers, cat fish, skates, and rays. However catfish and Indian mackerel are two types of fishes which are easily found along the coast sides of Pakistan.

Some of the inland varieties include manaseer, rahu, pallu, trout, thalla, kuggur, dumbra, and many others.

Major fish products exports and locally consumed.

Live/ Fresh: Salted/Dried Frozen (Leading Export) Value Added Maws/shark fins

Different types of fishing nets used in fishing

In Pakistan fishermen uses a variety of fishing nets. However these fishing nets are quite old and no new fishing nets have been deployed to facilitate the farmers.

In Pakistan, the following nets are used: Gill-nets: These are one of the most used nets, along with trawl nets, in Pakistan. Various other

types of gillnets are used in costal and offshore waters of Pakistan. These can be categorized into two types i.e. surface gillnet which are used in coastal waters for catching a variety of food fishes

37

such as croakers, groupers, barracuda, catfishes, mullets etc. Bottom-set gillnet is used for demersal species such as croakers, groupers, lobsters, sharks, rays and other bottom dwelling fishes. Additionally, very long gillnets, sometime reaching 8 to 9 km, are operated in offshore waters for catching large pelagic such as tuna, mackerels, billfishes and sharks.

Trawl-nets: There is no trawling legally allowed to operate along Balochistan coast, however; the Government of Balochistan permitted operation of limited numbers of Karachi based shrimp trawlers to operate in some specific areas along Balochistan coast. Prior to year 2001, all trawl nets were operating manually. However, winches have now been introduced and it is estimated that about 90 % of the shrimp fleet, now have winches which have effectively increased the area of operation of the fishing boats. At present, all shrimp trawlers are also involved in trawling of fish, especially from November to March.

Cast-nets and Stake nets: small nets used in coastal villages in shallow water in Balochistan and also in the creeks in Sindh respectively.

Bhoola and Bhan: Used in coastline fishing. It is also resembled to a thin cloth (“dupatta”), which demonstrates the lack of penetration involved in the nets. This leads to eggs being caught as well. Bhan is beach seine which is predominantly used in creek areas for catching mullets, small pelagic fishes and other species. This gear is also used along open coastline, especially at Clifton. Bhoola is used in creek areas for catching fishes and crustacean from inter-tidal zone.

Line Gears: basic fishing rods which are used in the process of long-lining.

Katra: Almost entire fishing fleet of ‘Katra’ using boats is based in Sindh; however, a few such boats have managed to get themselves based in Dam, Sonmiani area of Balochistan, where they operate in connivance with the local influential. Similarly, instead of closing the net from the bottom by bunt line, the lower part of the net is retrieved achieving a bag which is ultimately heaved. One of the practices used with “Katra” nets, is that it is attached to a hora boat. After being attached, it is lowered into the water at the surface. The hora is then sped around in a circular motion. During this circular movement, the fishermen spill diesel in the water. This leads to fishes getting intoxicated and rising to the surface. These are then caught and then primarily used in the chicken feed industry, while some of it even surfaces on the local market as well.

According to FAO, the mesh size (“eye”) of the net should be around 8-10 cm (4-4.5 inches). But, in the local practices, the mesh size decreases to 1 inch or sometimes even less than that. This is more prevalent in the Sindh side of the fishing industry, rather than Balochistan where a more strict system is adopted.

Employment generation from the fishing industry:

Fishermen population includes all the crew members employed on crafts playing in marine and inland water bodies as well as those engaged in fish processing plants, curing yards, fish carries fish farming and other auxiliary industries. Fishermen are categorized into full-time, part-time and occasional on the basis

38

of earning and working time spend in fisheries. Full-time, part-time and occasional fishermen spend 90%, 30% and less than 30% earning and time in fisheries and related activities respectively.

Fishermen population (both marine and inland sectors) decreased gradually during the period from 1998 to 2009. The fishermen population in Sindh was about three times that of Baluchistan.

Part-time fishermen population in marine and inland sectors also showed gradual decrease during the period from 1998 to 2009. Number of part- time fishermen that engaged in marine sector was 26,129 in 1998, which increased, to 35,689 in 2009. The population of part-time fishermen in inland sector also showed gradual decrease during the same period as it decreased from 85,170 in 1998 to 63,482 in 2009.

The population of occasional fishermen also showed gradual increase during the same period (1998-2009) as it increased from 1998 to 2009. The number of occasional fishermen in marine sector was also increased from 1998 to 2009. The population of occasional fishermen in inland fisheries sector also showed gradual increase during the same period as it increased from 46,003 in 1998 to 41,611 in 2009.

Fishing Crafts

At the time of creation of Pakistan, the entire fishing fleet was sail driven. Mechanization of boats by inboard marine diesel engines started in 1956 under the auspices of Marine Fisheries Department (then Central Fisheries department). In 2009, the number of mechanized boats in actual operation, engaged in marine fisheries is around 4,693 which comprise of about 1,925 trawlers and 2,768 gill-netters. In addition to these about 9,186 mechanized cum sail driven boats, which are operated by long shaft outboard motors. Pakistan fishermen with traditional fishing crafts and gears are predominantly engaged in exploiting of resources in coastal waters. However, larger gill-netters especially those engaged in exploitation of large pelagics operate in comparatively deeper waters. Before 1953 nets made up of cotton twine nets were used. Now all fishing gears used in marine and inland fisheries sector are being fabricated from synthetic material i.e. nylon twine.

Almost entire fishing fleet of Pakistan consists of wooden boats except a small number of fiberglass life boats which are converted into small gillnet boats. There are various sizes and types of fishing boats used in Pakistan.

Smallest category of boat is called “Katti” in Balochistan and “Toni” in Sindh. These boats (usually smaller than 5 meters) are used in shallow coastal waters for catching fishes with handlines or small gillnets. These boats are used for catching crabs in creek areas and also for harvesting the catch of ‘Bhoola’ net installed in creek system. The boats are fitted with outboard or long-tail engines. It is maximally operated by 2 to 3 persons. Smaller boats of these categories are used by a single person.

Medium sized boats are called “Rachins” in Balochistan and “Hora” in Sindh. These boats have a size range between 6m to 15m and have a maximum beam of about 3 m. These boats are powered by outboard or long-tail engines (a few such boats have inboard

39

engines) and are used in shallow coastal waters for catching a variety of fish and shellfish species. Gillnet is most popular gear used by these boats, however, handlines, longlines, castnets, traps for crabs and ivory-shell are also harvested with these boats. Presently these boats are mainly used for catching Indian mackerel using monofilament surface gillnets along the shallow coastal waters and in the bays along Balochistan coast.

Modified versions of “Hora” which are beamier (upto 4 m) are called “Katra” boats. These boats are powered with one to four longtail engines and are used for catching small pelagics in shallow coastal waters. These boats are mainly based in Sindh, however, a few such boats are now illegally operating in waters of Balochistan.

40

Trawlers which are based in Sindh are

usually 14 to 25m in overall lengths. These boats are fitted with inboard engines of

various capacities of even upto 600 hp. Most of these boats now have deckhouses and

also winches have been installed. The winches are powered by a separate engine placed

on the deck. Trawlers are primarily employed in shrimp harvesting, however, since 1995

all trawlers keep two types of nets i.e. shrimp and fish trawler nets. In shrimp harvesting

season i.e. July to November and January to February shrimp trawling is mainly done

whereas in the reminder of the year fish trawling is being done. Most of the trawlers are

operated in shallow coastal waters which are main shrimp grounds; however, with installation of

winches and improved navigational equipments these trawlers now operate in comparatively deeper

waters.

Large gill-netters are usually 15 to 30m in length is powered by inboard engines.

These boats are used for catching large pelagic and demersal fishes in shallow and offshore

waters. Some of these boats undertake very long fishing voyages even venturing in the waters of

Somalia and Yemen.

‘Doonda’ boats are life boats obtained from ship breaking industry based in Gaddani. In most cases a small

fish hold is made in the middle of the life boat. These boats are mainly used for line gears or gillnets.

41

42

PAKISTANTYPE OF VESSELS # 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TOTAL 11,444 11,768 12,114 12,618 12,695 12,838 13,002 13,145 13,308 13,426 13,522 13,879

MECHANIZED 3,250 3,486 3,676 3,769 4,170 4,027 3,945 4,143 4,322 4,396 4,458 4,693 Trawlers 1,562 1,604 1,675 1,690 1,705 1,738 1,775 1,790 1,820 1,853 1,870 1,925 Gillnetters 1,688 1,882 2,001 2,079 2,465 2,289 2,170 2,353 2,502 2,543 2,588 2,768

MECHANIZED-CUM-SAIL BOATS 8,194 8,282 8,438 8,849 8,525 8,811 9,057 9,002 8,986 9,030 9,064 9,186

8,194 8,282 8,438 8,849 8,525 8,811 9,057 9,002 8,986 9,030 9,064 9,186

SINDH

TOTAL 6,039 6,209 6,462 6,701 6,813 6,896 6,209 6,462 6,701 7,118 7,152 7,312

MECHANIZED 2,095 2,206 2,357 2,400 2,493 2,540 2,615 2,642 2,687 2,726 2,750 2,827 Trawlers 1,562 1,604 1,675 1,690 1705 1,738 1,775 1,790 1,820 1853 1,870 1,925 Gillnetters 533 602 682 710 788 802 840 852 867 873 880 902

MECHANIZED-CUM-SAIL BOATS 3,944 4,003 4,105 4,301 4,320 4,356 4,365 4,370 4,375 4,392 4,402 4,485

3,944 4,003 4,105 4,301 4,320 4,356 4,365 4,370 4,375 4,392 4,402 4,485

BALOCHISTANTOTAL 5,405 5,559 5,652 5,917 5,882 5,942 5,559 5,652 5,917 6,308 6,370 6,567

MECHANIZED 1,155 1,280 1,319 1,369 1,677 1,487 1,330 1,501 1,635 1,670 1,708 1,866 Trawlers - - - - - - - - - - - - Gillnetters 1,155 1,280 1,319 1,369 1,677 1,487 1,330 1,501 1,635 1,670 1,708 1,866

MECHANIZED-CUM-SAIL BOATS 4,250 4,279 4,333 4,382 4,205 4,455 4,692 4,632 4,611 4,638 4,662 4,701

4,250 4,279 4,333 4,382 4,205 4,455 4,692 4,632 4,611 4,638 4,662 4,701

Sail boats fitted withoutboard motors

Sail boats fitted withoutboard motors

Sail boats fitted withoutboard motors

43

InfrastructureFisheries sector of the country could not achieve the desired level of development due to lack of

infrastructure. So far only four fish harbours are operational whereas there are no landing facilities even at

some major fishing centers such as Ormara, Jiwani, Sonmiani, Kalmat, Ibrahim Hayderi, Keti Bundar and

Shah Bunder etc. Similarly, road linkage along the coast of Pakistan is fragmentary. Other infrastructure

facilities such as communication, educational and medical facilities etc. are also not fully developed along

the coast of Pakistan. There is lack of proper and developed infrastructure.

Process:The process starts with auction. Now the fishermen who catch fish do not sell fish at a fixed price like you

get it from the markets but they bring their fish to a specified area (Market) after catching which is solely

for the auction of the fish. These are brought to the auction area by mole-holders who act as middle men

in the auction, and take a commission off the fishermen’s income. The auction area is like a long hall and

has different sections one is for fish and the other for shrimps and lobsters. The fish are placed in the

market on different platforms that are present there according to the kind of the fish. Now the auction

takes place at two times i) 4: 30 pm and ii) 8: 00 am. When the fishes and the shrimps are placed here

people gather around with calculators in hand and bid for the fish. In the end the person with the highest

bid will get it. In this the person can select some fish from the lot or the person can also bid for the whole

lot. The quality of the fish is judged by the smell, weight, colour and the proportion of mass. If there is no

smell, weight is above average, colour is perfect and the mass is displaced proportionally then people will

bid more for this fish. After purchasing fish and shrimp they are taken to the processing plants if they are

to be exported or taken to the local market if they are to be consumed locally. Those that are taken to the

processing plants are divided into three types and according to the types their process varies:

1. Chilled/ Fresh: When people have to export fish in this state time is of the essence because the

fish or shrimps have to reach their destination within 8-10 hrs. After purchasing the fish the fish

are taken to the plant and washed and then straight away packed in plastic bags that are put in the

cardboard boxes. After doing this these boxes are sent to their destination via air because if we

use other method of transport then its going to take more time and there will be a chance for the

fish to get stale.

2. Frozen: In this state after buying fish and shrimps they are taken to the plant. There these fish and

shrimps are washed and then after washing they are brought onto a long table. There workers

differentiate fish and shrimps according to the size and quality and then once this is done these 44

fishes are put into a tray and then these trays are placed into the blast freezers for about 8 to 10

hours. These blast freezers take the temperature of fishes to -35c. When these fishes are taken out

they are hard as rock and have a thin coat of ice on them because of freezing. To remove this coat

the workers dip the fishes in the water and then these are put in plastic bags and then packed in

cardboard boxes. These boxes are then stored into the normal freezers which are at 18c of

temperature. Whenever there is demand exporters just pick the boxes from these freezers and then

send them.

3. Dry/Salted: After purchasing the fishes they are brought to the plant and out into large containers

that contain saturated salt water. After 8-10 hrs these fishes are taken out and then put under the

sun to dry. The drying process takes around 2-3 days. Once the fish is dry then it is packed and

stored and ready to be exported. This practice was extensively used in the earlier years of

independence, when the freezing facilities were not very developed. In 1970’s, Sri-Lanka was our

main importer for dry fish.

4. Value Added: As mentioned in the frozen subsection, after the fish is kept at 18°C, the fish is

then transferred to the value addition process. Depending on the requirement of the importers, the

fish is sent through automatic filleting machines and processing lines of fishing fingers to make

them into nuggets, fish fingers etc. KANPA is the only processing unit investing in this sector of

fishery. They have entered their second phase of the value addition plant, and are due to start

production by the end of next year.

Grading of Fishes:- Fish is graded into the following categories, in terms of quality

1. AA (A+)

2. A

3. B

4. C

5. Non-exportable/ local

- The division by category is done on the basis of:

1. Weight45

2. Distribution of mass

3. Colour

4. Smell

Difference in the Balochistan fishing industry:

- Most of the boats used in the Balcohistan side of the industry are horas, gill-netters and

dhoondhas.

- There is no formal harbor facility, as compared to Karachi fisheries harbor.

- A prevalent practice is the use of donkey carts to unload the fish catch onto the habour.

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Breeding Seasons: According to the department of fishery policies, June- July are breeding seasons where all fishing

is prohibited. These usually only existent on paper. Last year in 2010, the Ministry of Fisheries

allowed the fishing ban to be lifted in the month of June. This is a small period as compared to

other nations such as Australia (5 months), Iran (3 months), India (varying being 2 and 3 months)

and China (3 months).

The peak season for fishing is between August and November.

There are calls from the fishermen community to reduce the length of the closed fishing season.

These emanate due to two reasons:

- It is argued by the fishermen that the Indus River and its tributaries divert a great amount of

quality fish from India to Pakistan, and we lose out on this valuable catch.

- The aforementioned argument is usually forwarded by the fishermen from the Katchi community,

who depend on their daily wages from fishing. They don’t have a concept of saving, and thus

suffer the most when the ban is implemented

Labour force:The fishermen are divided into the following backgrounds:

- Pathans

- Bengalis

- Balochis

- Katchi

Women and children are also involved in the process phase of the industry. The children, ranging from

the age of 6-10, are used in cutting the head and tail of the fishes and cleaning off the waste in the

auctioned fishes. Women, on the other hand, are used in the factories for sorting out and packing the

different types of fish which come in for processing.

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Inadequate InstitutionsWith the exception of Punjab, and to a lesser extent Balochistan, Provincial/Areas Fisheries Depts. are not

properly manned nor organized, in particular at district levels. Mandates, hierarchies and responsibilities

in these organizations are not well defined, nor well known, while some institutions which could enhance

the development of fisheries and aquaculture within the wider economy are simply lacking. Internal

conflicts linked to institutional dis-functioning have prevented fisheries management and aquaculture

development to receive the attention they require. The lack of producers’ organizations, in particular in

relation to aquaculture, is slowing down the development of the sector and hampering information sharing

and concerted action. The lack, if not non-existence, of fisheries management schemes organized and

managed by communities is also an institutional weakness that could be rectified through adequate

devolution of responsibilities for sustainable inland and coastal fisheries resources management and use.

Research and Development SectorAlthough a number of research organizations, institutions and universities are involved in fisheries related

research but most of the researches conducted so far have little or no relevance with practical aspects of

fisheries industry. In the absence of proper research, backup development of the sector cannot be

expected. There is lack of research in the sector. Adequate research support is needed for development of

the sector to happen.

Lack of Facilities for Resource Surveys and Stock AssessmentSince past 15 years no stock assessment survey has been carried out in Pakistan, therefore, present status

of various resources in shallow and offshore waters is totally lacking making it impossible to take

management measures. In the absence of constant monitoring of the resources, it is not possible to

determine level of exploitation of commercially important species. Exploratory surveys have also been

carried out, thus, new fishing ground and resources could not be identified, therefore, fishermen are

compelled to fish in the known fishing ground, thus increasing unnecessary pressure on these stocks.

Process of finding new exploitable resources is also stopped due to lack of resource survey and stock

assessment facilities in the country. Fisheries and aquaculture information in Pakistan faces problems of

inadequacy, reliability and accuracy. For example, there are some inadequacies in the data collection

system in Balochistan linked to poor sampling methods along the coast, whilst no reliable data collection

system exists in other provinces. In most cases, fisheries data from Sindh are merely estimates and prone

to personal judgments resulting in unreliable data. Inadequacies in the statistical fisheries and aquaculture

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data collection system make the management of aquaculture, and inland and marine fisheries resources

very difficult.

Development Of Human Resource And SkillsInadequate human resources and skills are found at two levels: within government structures, and within

fishing and fish farming communities. In most cases, fisheries institutions are inadequately staffed. Lack

of trained manpower and suitable facilities in fisheries and aquaculture management organizations and

research institutions are considered to be one of most important impediment to the development of both

fisheries and aquaculture. This has consequences in terms of both the quality and the relevance of

extension work carried out at the field level, with weak knowledge and experience being passed on to

fisherfolks and fish farmers. There is little or no government support in the training of fishermen and

most of training is done through the culture of “Father and Son” or done by the companies that hire these

fishermen.

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Demand conditions

Local demand:Pakistan has an ever growing population. However it is not a fish eating nation, which is apparent from

the average of 2kg/per capita per annum consumption in the country, while the world average lies

around 16kg/per capita per annum.

COUNTRY CONSUMPTION

(per capita, per

annum)

Maldives 142 KG

Iceland 89 KG

Greenland 86 KG

Japan 61 KG

USA 24 KG

Most of the people who consume fish in Pakistan on a regular basis are Balochis who have it for breakfast

and lunch. The averages within Pakistan (per capita per annum) :

Balochistan 15 Kg

Sindh – 5 Kg

Punjab and NWFP (combined) >250grams

The huge difference between the consumption averages of Sindh and Punjab is primarily because of the

population disparity. Sindh has a high per capita and low total consumption, while Punjab has a low per

capita but high total consumption as the province is home to approximately 61% of the population.

Inland fish is mostly consumed locally, and this is expected to continue with the development of the

aquaculture sector.

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Foreign demand:Frozen fish is our number one export, with our major importers being

China

Malaysia

Hong kong

Thailand

Gulf countries

The year 2010-2011 showed an export amount for $258.161 million, accounting for fisheries, in

comparison to $197.829 million in July-May 2009-10. The exports have expanded by a good 30.5% in

the last 3 years.

In the last 5-6 months there has been an increased demand for Indian mackerel. Pomfret is also highly

demanded internationally and brings in good earnings. The fish is normally sold at around a rate of Rs

3000/kg internationally, while locally it would fetch around Rs 500/kg. This is because Pakistanis don’t

generally have a taste for good fish (preference is for mutton, beef or chicken) or the skills to pick out the

best, hence are willing to pay only much less as compared to other nations. Fish distributors take

advantage of this lack of skill of the average buyer and sells only the lowest variety of pomfret.

Sometimes the “pomfret” sold is not even actual pomfret!

It should be noted that most of the Grade AA fish goes to Japan, as the Japanese are very quality

conscious and have excellent skills in identifying and categorizing their fisheries.

The fishing stock depletion rate is around 10%, which can be attributed to the fact that fishing of

juveniles continues as the I of the fishnets are very small, causing small fish and even eggs to get caught.

The depletion rate is further supported by the fact that there is weak implementation of the policy of no

fishing during the breeding season ie June- July.

Problems in the international market:

Until 2007 the EU formed about 25% of our fisheries export market. In April 2007, EU inspectors

surveyed several sites Pakistan and on the grounds of unhygienic conditions of handling, storage,

packaging and transportation, the EU banned all fishery imports from the country. It was conveyed to

Pakistan that until these exports complied with their sanitary and phyto-sanitary requirements, their entry

in the EU will not be allowed. Subsequently all Pakistani exporters were delisted.

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Since the market lost is so large, the local authorities looked into the matter immediately, and thel

government of Sindh started a Rs Rs558 million project for the development of hygiene conditions,

especially the boats, in the industry. Not all the proposals of the project are actually carried out mainly

due to corruption and poor management. However, some steps have been taken, and the EU have been

invited to inspect the sites quite a few times, but the invitations have either been ignored or refused due to

the “dangerous security situation within the country”.

The loss of the EU market has been a big blow as Pakistan can earn approximately $50 to 80 million

annually from this market.

Exports to Egypt have also come to a halt recently as political uncertainty continues in the key Middle

Eastern country.

Despite the loss of these markets our overall exports are continuously increasing to China, UAE,

Thailand, Korea, Saudi Arabia and Indonesia.

Structure and Rivalry:

The fishing industry is a competitive market structure with lots of companies operating. All of these

companies are local, except for one which is a Korean company called KANSHIRO. Most of the

companies are owned by a few families, KANPA being the biggest. There is no vertical integration within

the companies i.e. there is no price dictatorship.

- GPRS phones with fishermen have made it even more competitive. They have perfect

information of rates at all auction markets, as they reach the docks with their catch. It was stated

by the processing unit owners that the fishermen now have THURAYA phones which aids them

in their position with the GPS facility, as well as helps them get a better idea of where the rate for

auction is better. Accordingly, they send their boats to the auction market where the best price is

prevalent.

The structure of our fishing industry can further be divided into the marine sector, inland sector and the

aqua culture sector. The descriptions of the each sector have already been given in chapter 3. Some more

empirical data was found on the aqua culture sector:

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37% of our total fisheries production is contributed by the inland sector of which 15% is attributed to

aquaculture. The aquaculture system of Pakistan is mainly extensive and in some area semi-intensive*.

Mainly low value fish species are being cultured. Following is the data collected in our visit to the

aquaculture departments of the Ministry of fisheries:

PUNJAB

Sr. # Items Remarks

1 Area (Acres ) 44,000

2 Total Number of Farms 7,800

3 Total Fish Production (m tons) 78,140

4 Fish Species being cultured Mostly carps, saul, catfish, Mahseer

etc

5 Aquaculture system Polyculture in semi-intensive and

extensive systems

SINDH

Sr. # Items Remarks

1 Area (Acres ) 124,412

2 Total Number of Farms 3218

3 Total Fish Production (m tons) 67798

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4 Fish Species being cultured Mostly carps

5 Aquaculture system Polyculture in extensive systems

NWFP

Sr. # Items Remarks

1 Area (Acres ) 2746

2 Total Number of Farms 349

3 Total Fish Production (m tons) 412.4

4 Fish Species being cultured Mostly carps and Trout

5 Aquaculture system Polyculture carps in extensive

systems and intensive culture of

trout

BALOCHISTAN

Sr. # Items Remarks

1 Area (Acres ) Unknown

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2 Total Number of Farms Unknown

3 Total Fish Production (m tons) 10,000

4 Fish Species being cultured Mostly carps and Trout

5 Aquaculture system Polyculture carps in extensive

systems and intensive culture of

trout

* The terms intensive, semi-intensive and extensive are commonly used to define culture methods. In

practice, the distinction between them is often less than clear. They are, however, generally linked to the

level of inputs of feed and/or fertiliser and to the stocking density of the fish that can be supported.

In intensive culture systems there is a decreased dependence on the availability of natural food and

greater dependency on the use of commercial feeds. Densities of fish kept within such holding areas are

limited by species tolerance, ability to grow at raised stocking densities and maintenance of

environmental parameters rather than the production of a natural food supply.

By contrast, fish production in extensive systems is based on the use of organic and inorganic fertilisers.

Fertilisation of ponds promotes the growth of simple plants which form the base of the food chain in the

pond. Fish stocked in these ponds feed on these simple plants and smaller fish. At its most effective, this

type of production can be integrated with other types of crop or livestock production, using animal

manure and agricultural by-products as sources to stimulate primary production ie the plant growth.

Semi-intensive aquaculture aims to increase the production of fish from pond systems beyond the level

supported by food which is naturally available through the use of supplementary feeds. Supplementary

feeds range from cereals and agricultural and fishery by-products to formulated feeds. Traditionally they

are incomplete and would be inadequate as a sole source of food. Their function is to provide extra

nutrients to complment those obtain from natural foods.

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Constraints in the sector: Provincial Fisheries Department (PFD) are deficient of trained manpower to a great extent in

various disciplines of aquaculture.

Technology gap exist in the field of aquaculture in Pakistan within country and with other

countries.

The intensive system is hardly practiced mainly because:

- No commercial fish feed available in Pakistan.

- No centralized system of disease monitoring and surveillance

- Low quality fish seed and inbreeding in the existing broodstocks

The government has recently taken some initiative steps to develop aquaculture, however they hardly

concentrate on the problems mentioned before.

Creation of separate ministry of Livestock and Dairy Development (Fisheries) separate from

Food and Agriculture.

One Mega Project entitled ‘Aquaculture and Shrimp Farming’ is being implemented with the

total cost of Rs. 2 billion

One project on saline water aquaculture is under process for approval.

Recommendations:The success of the fishery industry has been hampered by the lack of investment made my both, the

government and the private sector. There are several aspects that can be worked upon so as to improve the

workings of this industry. One of the basic recommendations includes the implementation and

enforcement of laws. The breeding season consists of two months in which ideally, all fishing activities

should be stopped. In Pakistan, though this law exists on paper it is not implemented. Fishing is

technically allowed only after 15NM in order to safeguard little fishes and eggs that reside near the shore.

Again in Pakistan, this law is not regulated. Another area where law implementation is loose revolves

around the nets which are being used by fishermen. According to international standards, the net should 56

have mesh sizes of at least 10 inches to avoid catching small fishes. In Pakistan the average mesh size is

only of 1 inch. Therefore, our first and foremost step should be to enforce these basic laws especially so

that our supply does not decrease significantly. The fishery industry in Pakistan relies solely on family

knowledge, whereby, the father passes on his knowledge to his son who passes it on to his son and so

forth. This, however, restricts the technological advancement within the industry. Though some aspects of

our industry show acquisition of technology (for example the ‘THURAYA’ phone) it has not kept pace

with the international market. Therefore, education facilities should be provided for fishermen to increase

their knowledge and to help them become acquainted with modern technology. This improvement would

go in vain if proper facilities are not provided which brings us to another recommendation. Proper

infrastructure should be provided at every stage i.e. proper storage facilities to place the catch before it is

brought to the dock, proper landing facilities whereby, the catch can be unloaded and so on. EU placed a

ban on Pakistan’s products mainly because of hygiene issues; therefore, proper facilities could help

eradicate such issues. Proper facilities include new auction halls, uninterrupted supply of electricity,

adequate supply of fresh water, hygienic ice, modernization of existing processing units and induction of

freezing technology.

There should be research and development programs which covers every aspect i.e. from primary

production till its final consumption. Though several research institutions exist, the fisheries sector is

unable to gain from these institutions due to the lack of linkage between the two. Aquaculture production

is growing at a fast pace due to increase in global demand for fish, shrimps, molluscs and other aquatic

products. This growth has been highly prevalent in developing countries. There is a great potential for

fish farming both in inland and marine resource, which will not only create employment opportunities but

also significantly contribute to our national economy. For enhancing such development local and overseas

investors should be encouraged to invest in inland farming through various incentives such as R&D

support, credit facilities, etc. It must be noted, however, that aquaculture results in environmental and

social problems which signifies the importance of conducting a feasibility study before any action is

taken. The fisheries sector in Pakistan needs subsidies on priority basis like other countries. One of the

main problems which is impeding the aggregate performance of this sector are the increasing diesel

prices. Following the steps of the Indian government, the Pakistani government should provide subsidized

to the fishermen ensuring the viability of their fishing trip. Gaining from the Sri Lankan government, our

government should also provide the fishermen with credit facilities enabling them to purchase new

equipment or repair their existing equipment in a timely manner.

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Pakistan should also focus on value added products. It is estimated that Pakistan can earn an additional

US $80 to 100 million by exporting fresh and canned tuna fish, usually sold at throwaway prices in dry

form. About 2 hundred thousand tons of tuna fish is caught annually. This fish is sometime exported to

Sri Lanka at 50 cents per kg, in dry form, while it can easily fetch US$4 per kg or more if properly

packed or in fresh form. By working on its related industries for example the canning industry, Pakistan

can focus on exporting canned fish which has an increasing world demand. Ready-made food meals

should be focused on rather than dry/salted forms. Our export efforts are based on traditional methods

which need to be reviewed and aggressive marketing techniques should be imported. Most of the fishes

used in fish meal are regarded highly in the international market, these include Sardines and Herrings.

Awareness should be created displaying the trade-off between the prices attained from the international

market compared to that acquired through selling fish meals. Trout and Salmon both popular in the

international market and available in Pakistan are not exploited as they should be. Such species should be

focused upon to enhance foreign exchange earnings of the country. In addition attractive packing facilities

should be used to attract foreign buyers and promotional videos should be made to attract potential

investors.

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