Joint Venture between Pakistan-China likely to fetch $100m from tuna export
Pakistan Times Business & Commerce Desk

KARACHI: Pakistan is likely to enter into joint venture with China to enhance its tuna fish export to the tune of $100 million annually.

A large consortium of Chinese investors has expressed its interest to invest in fisheries sector to bring long liner fishing technology into Pakistan and exploit the tuna export that has a potential of almost $500 million annually.

In a meeting with a Chinese consortium of fishing sector, the Chairman, EPB, Tariq Ikram invited to bring long liner technology into Pakistan which is necessary to multiply the fish catch of tuna.

The export potential in tuna fish in Pakistan is around half a billion dollars annually if the long liner technology brought to the country through foreign direct investment.

Tuna is a migratory fish, which swims into the waters of Pakistan and because of Pakistan’s inability to catch it with long liner technology; it swims past Pakistan’s waters into Iranian waters and Gulf where Iran and Oman etc. make excellent use of it to maximise their catch.

The Chinese companies had provided the long liner technology to Indonesia, Oman and other countries in the region.

The Chinese investors have, however expressed their serious concerns over corruption and bureaucratic delays that they have heard of in Pakistan. The EPB chief have explained to them that the investment climate in Pakistan is extremely supportive now and they only have to acquire tuna fish license from the government.

He said that perhaps only other permission required would be for the usual utility connection such as telephone, electricity, water etc. He advised the investors to establish their credibility by forming a company of their choice in Pakistan with foreign and local partnerships.

Also, they should develop a clear proposal reflecting the structure of their planned investment, the estimated exports that they could make from Pakistan, the opportunities for increasing employment as a result of their project and the transfer of technology of long liner tuna fishing that would result as a consequence.

The investors indicated that they would be making an investment of between $5 million and estimate to use approximately 30 tuna long line fishing boats to be able to catch 20,000 tonnes of tuna for 100 per cent export. The likely export value of the project would be around $100 million per annum and the project could be set up within 12 months.

The investors have agreed to send their proposals to the EPB latest by May 20, 2005. The investors assured the EPB chief to generate employment for approximately 200 people and also to ensure transfer of technology to the fishermen of Pakistan in long liner fishing.

Tuna fish export from Pakistan is very small and tuna catch mostly done through fishing nets which damages the quality of the fish and therefore export price is one tenth of what it could be at the moment.

Tuna is exported mostly in dried form, which attracts less than 50 cents per kg. The tuna found in Pakistan’s waters is of good quality and could fetch attractive export price.●