Dr. Rehana Kausar
China and Pakistan have long-standing ties spanning decades. These relations rely on trust and cooperation, which exist between these two countries. Chinese and Pakistani societies have very warm and friendly attitude towards each other. Such an environment facilitates increased cooperation and further diversification of existing good relations. Pakistan gets substantial financial support from China to develop various sectors including agriculture. These two countries have started to boom their development through joint ventures; therefore, several agreements of cooperation have been signed between them. One of the most important agreements between these two countries is free trade agreement of 2007, which entirely changed the pace of cooperation between them. As a result, trade volume reached up to 20 billion USD (United States Dollar) in 2015 between the two states. Mutual trade has continuously grown, 19% on average, from 2012 to 2017.
In November 2018, the Government of Pakistan (GOP) made a request to China to collaborate in the agriculture sector under CPEC during Prime Minister’s Imran Khan’s maiden visit to China. Consequently, cooperation in the agriculture sector was one of the areas mentioned in the Memorandum of Understanding (MOU) signed between President Xi and Premier Khan during his visit. Building on that MOU the two countries signed a comprehensive framework agreement for agricultural cooperation in May 2019. Fisheries and Aquaculture was one of the main area mentioned in the agreement.
The value of agricultural trade between the China and Pakistan during Calendar Year (CY)2020 was $795 million. Chinese agricultural exports to Pakistan during this period were $385 million, agricultural imports from Pakistan were $410 million, led by rice ($187 million), seafood products ($166 million), oilseeds ($12 million), tree nuts ($8 million), and pulses ($4 million).
Pakistan is a coastal country geographically located in South Asia. Its coastline is stretched between Iranian border on the West side and Indian border on the East side. Full length of Pakistan’s coastline is 1,120 km making it an ideal habitat for fin and shellfish resources. The total area of Pakistani marine waters, including exclusive economic zone, is 240,000 km in which fishery resources are explored and exploited. Pakistani main fishery resources are comprised of 20 large, 15 medium sized pelagic and 250 demersal fish species. In Pakistan, fisheries play a vital role in the economic uplift by employing thousands of people. It is reported that 400,000 people are associated directly with fisheries sector in Pakistan, whereas 600,000 people work with auxiliary industries. Fisheries sector supports around one million people along the entire coastline of Pakistan. Marine fisheries form the main fisheries sub-sector in Pakistan as about 70% of fisheries production belongs to it.
Several projects are already on the way through CPEC (China-Pakistan Economic Corridor), a derivative of the “Belt and Road Initiative”. Transfer of knowledge and technology is one of the key elements of this initative. These efforts include research collaboration in cage farming and shrimp production. Joint efforts related to marine resources through research institutions are also planned. Moreover, cooperation is also planned related to the development of fisheries sector in the areas of increased production, handling, processing, storage, transportation, post-harvest losses, trade models etc. After the EU ban in 2007 on Pakistani fishery products, the export market diverted to China, South Korea, Thailand, Sri Lanka, Japan, Malaysia, and some West African countries. Even after the removal of this ban in 2013 these markets are still efficiently continued to cater. Now, China is the biggest importer of Pakistani oyster, crab, shrimp, and lobster and for fish, it is the second largest market. There is a growing trend of mutual fishery trade between China and Pakistan. Fishery products of 16 different originating from Pakistan are reaching Xinjiang Uyghur, China through the “Belt and Road Initiative” roads. The fishery products were packed and transported by the first Chinese company “Yufei International Fishing Co” having a business license in Pakistan. The company aims to sell fishery products in China and in future Dubai and Iran as well. More Chinese fishery products trade companies are expected to operate in Pakistan in near future. Development of free trade zones in both the countries is planned which promises brighter mutual trade future. Export of fishery products can be boosted to 1 billion USD in coming few years if there is a persistent increase in fisheries production. The production can be amplified by putting a ban on the catch of juvenile fish from breeding places, the introduction of modern methods of fish caught in inland areas and promoting intensive fish culture all around the country.
Fisheries sector is gradually gaining momentum in Pakistan. Seafood export exhibits a rising trend during the last two decades. Since the EU ban on the export of fishery products in Pakistan, there is a growing trend of adaptation of international standards in handling, processing, and transportation of seafood. Export of fishery products can be enhanced by increased cooperation through high commissions and embassies by promoting fishery products exhibitions and stimulating public and private sector partnerships.
The fisheries sector would benefit by the proposed establishment of fish feed production units and hatcheries to meet the growing demand, promotion of aquaculture in saline inland and coastal areas of Sindh and Baluchistan. As an example, Mufeng Biological Technology Co. has built a cold storage central near the Khunjerab Pass from which seafood imports (e.g., squid, shrimp, pomfret and bonefish, etc.) could be exported to China’s Xinjiang region and distributed through the interior. The storage center would also process orders that would arrive at Gwadar Port en-route to China.
Out of China’s approximately US$ 99.6 billion in food imports, Pakistan’s share is only around 0.37% (roughly US$ 0.4 billion). Pakistan can enhance its exports through various CPEC initiatives and by tapping into the growing food import dependence of China in general. The MNSFR, in its 2018 Food Security Policy, envisages the development of nine agricultural development zones along the CPEC. These zones are envisaged to develop clusters and infrastructure in an effort to produce commodities deemed exportable to China. These commodities include cereals, dairy, eggs, meat, honey, tobacco, fisheries, seafood, and fruits. Chinese collaboration is expected, with private sector leading the initiative. The focus would be to harness the latest R&D to innovate and upgrade the processing techniques and post-harvest operations, and to develop marketing tools to better promote the produce.
Due to the rapid pace of CPEC and trade liberalization between the two countries, a new era of enhanced fishery trade between China and Pakistan is imminent. After EU ban, China is the largest emerging potential market for Pakistani fishery products. Fishery exports from Pakistan to China are gaining momentum. Although, fishery trade is getting pace, however, fishery production augmentation in Pakistan is direly needed to be coordinating with revised policies related to technical barriers to fishery trade. Since, China and Pakistan share cordial relations, which are improving continuously, therefore, it is the need of the hour to formulate joint fisheries business policies and find fishery trade expansion possibilities.
In the end, I hope that increased interaction between technical and business community of both countries in the fisheries and aquaculture sector will result in increase trade which will in turn stimulate the era of economic prosperity in both Pakistan and China.
Writer is Senior Scientific Officer, Aquaculture & Fisheries Program, National Agriculture Research Centre, Islamabad
