2011

The Fishing Industry of Pakistan

Authors: Mohsin-ul-Ibad Haider Fahad Abdul Malik Hussain Shahid Rajput

Table of Contents:
Chapter 1: Economic Overview of Pakistan Overview Pakistans Economy in Retrospect Significance of the economy The economy today

Chapter 2: Description of the Porters Model Factor Conditions Demand Conditions Firm Strategy, Structure, and Rivalry Related and Supporting Industries Chance Government

Chapter 3: Secondary Research Literature Review: Secondary Data

Chapter 4: Application Porters Model Introduction Economic Significance Factor Conditions Demand Conditions Firm Strategy, Structure, and Rivalry Related and Supporting Industries

Chapter 5: Issues and Recommendations

The Fishing Industry of Pakistan

Chapter 1: Economic Overview of Pakistan

1.1 Overview:
Pakistan, a developing country, has suffered from decades of internal political disputes and low levels of foreign investment. It has the worlds 27th largest economy in terms of purchasing power according the International Monetary Fund (IMF) with a GDP of $464,711 million. It is a country that has constantly faced economic and political turmoil since its independence in 1947 . With rise in development spending by Islamabad, the countrys poverty levels reduced by 10% from the year 2001 to 2007. The economy grew during 2004 to 2007 due to a rise in GDP from 5 to 8%. This was largely due to development in industrial and services sector irrespective of severe electricity shortfalls, which the country faces till date. However, the year 2007 witnessed a lot of political and economic instability leading to depreciation of Pakistani rupee. The growth of the economy was affected once again during the 2008 global economic recession. In general, Pakistan has failed to make proper use of the resources endowed to it. Textiles account for most of Pakistan's export earnings, but Pakistan's failure to expand a viable export base for other manufactures have left the country vulnerable to shifts in world

demand. Pakistan fisheries, gem stone, dairy and many other

industries have huge potential for foreign exchange earnings and

allowing the country to make great leaps in economic development.

The yearly inflation rates for Pakistan are given in the following chart: Period 1991-1992 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 SPI 10.54 10.71 11.79 15.01 10.71 12.45 7.35 6.44 1.83 4.84 3.37 3.58 6.83 11.55 7.02 10.82 CPI 10.58 9.83 11.27 13.02 10.79 11.80 7.81 5.74 3.58 4.41 3.54 3.10 4.57 9.28 7.92 7.77 WPI 9.84 7.36 11.40 16.00 11.10 13.01 6.58 6.35 1.77 6.21 2.08 5.57 7.91 6.75 10.10 6.94

1.2 Pakistans Economy in Retrospect:

Pakistan's average economic growth rate since independence has been lower 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. Interestingly, Pakistans industrial and economic growth performance up to the late 1960s was phenomenal. 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. Later, 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. Later, 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.

1.3 Significance of the Economy:

Pakistan is one of the world's largest producers of the following commodities according to FAOSTAT, the statistical arm of the Food and Agriculture Organization of The United Nations, given here with the 2008 ranking:

Apricot (3rd) Buffalo Milk (2nd) Chickpea (3rd) Cotton (3rd) Dates (5th) Mango (6th) Onion, dry (4th) Oranges (11th) Rice, paddy (11th) Sugarcane (5th) Wheat (10th)

Source: UNO Apart from the above agricultural significance, Pakistan also has the third largest gas reserves in the world, Pakistan has the fifth largest mineral reserves in the world, and Pakistan is the ninth largest wheat exporter in the world. The gem stone industry of Pakistan is so strong that if regulated properly, it can help Pakistan pay all its loans in two years. But due to lack of proper regulation of Pakistani industries, Pakistan ranks 68th in the world in its exports with exports of $18.33 billion (2009).

1.4 The Economy Today:

Today Pakistan is amongst the elite group of 11 countries, also termed as 'The Next Eleven" identified by Goldman Sachs investment bank as having a high potential of becoming the world's largest economies in the 21st century along with the BRICs. By October 2007, Pakistan raised back its Foreign Reserves to a handsome $16.4 billion. Exceptional policies kept Pakistan's trade deficit controlled at $13 billion, exports boomed to $18 billion, revenue generation increased to become $13 billion and attracted foreign investment of $8.4 billion. Since the beginning of 2008, Pakistan's economic outlook has taken stagnation. Security concerns stemming from the nation's role in the War on Terror have created great instability and led to a decline in FDI from a height of approximately $8 billion to $3.5 billion for the current fiscal year. The main statistical data pertaining to the economy of Pakistan for the year 2009 are given below: 1. GDP (purchasing power parity): $448.1 billion (2009 est.) $436.4 billion (2008 est.) $422 billion (2007 est.)

2. GDP (official exchange rate): $166.5 billion (2009 est.)

3. GDP - real growth rate: 2.7% (2009 est.) 3.4% (2008 est.) 6% (2007 est.)

4. GDP - per capita (PPP): $2,600 (2009 est.) $2,500 (2008 est.) $2,500 (2007 est.)

5. Unemployment rate: 15.2% (2009 est.) 13.6% (2008 est.)

6. Population below poverty line: 24% (FY05/06 est.) 7. Labor force: 55.88 million

Chapter 2: Description of the Porters Diamond Model

Michael Porter, a professor of the Harvard Business School, developed a model, in his book, The Competitive Advantage of Nations, well known as the Porters diamond Model, for the purpose of evaluation of the competitiveness of an industry or a state. He argued that a nation cannot just survive on the God given resources and has to make a conscious effort to turn them into advanced factors. A nation must be continuously involved in the process of development and innovation. This observation was a result of the impact the Japanese market had on the US during the 1980s.

Successful international industries tend to be located within particular cities and regions. Geographic concentration is vital for firms to efficiently draw on each others resources and capabilities and to benefit from a shared culture and learning experience, supply capabilities and local infrastructure. Industry clusters are geographical concentrations of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters lead to productivity increases, higher innovation rates and faster new business developments. Porter argued that productivity is the main factor for international competitiveness and that the standard of living of a countrys population can be improved as a direct result of increases in that factor. Clusters may take different forms between firms producing different products across value-added chains or between firms producing similar products at different stages of the same chain. Examples are banking in London and New York, chemical transport in Rotterdam, Houston and Singapore, film in Mumbai and Hollywood and Internet/Software in Silicon Valley and Bangalore.

Porter's diamond model suggests that there are inherent reasons why some nations, and industries within nations, are more competitive than others on a global scale. The argument is that the national home base of an organization provides organizations with specific factors, which will potentially create competitive advantages on a global scale. Porter's model includes 4 determinants of national advantage, which are shortly described below:

2.1 Factor Conditions:

Factor conditions, according to Porter, can be divided into Basic and Advanced factors. Basic factors are inherited by a nation like land, water, fish, weather, sunlight, and others. The advanced factors are those that have been developed form the basic factors by a conscious effort. According to Porter, any stock of factors at one point in time is less important than the rate that it is upgraded. This transformation from basic to advanced factors requires a conscious effort and do not automatically become advanced. Factor conditions include those factors that can be exploited by companies in a given nation. Factor conditions can be seen as advantageous factors found within a country that are subsequently build upon by companies to more advanced factors of competition. Factors not normally seen as advantageous, such as workforce shortage, can also be seen as a factor potentially strengthening competitiveness, because this factor may heighten companies' focus on automation and zero defects.

2.2 Demand conditions:

Porter focuses on local demand rather than foreign and says that local demand must be sophisticated and stringent. It should also be anticipatory of foreign demand that means it should be in line with foreign demand. If the local market for a product is larger and more demanding at home than in foreign markets, local firms potentially put more emphasis on improvements than foreign companies. This will

potentially increase the global competitiveness of local exporting companies. A more demanding home market can thus be seen as a driver of growth, innovation and quality improvements. For instance, Japanese consumers have historically been more demanding of electrical and electronic equipment than western consumers. This has partly founded the success of Japanese manufacturers within this sector. For example, Japans sophisticated and knowledgeable buyers of cameras helped stimulate the Japanese camera industry to improve product quality and to launch new, innovative models.

2.3 Related and Supporting Industries:

Porter again focuses on the local related and supporting industries. The reason for this the local industries can easily anticipate the need of the related industries. The local firms can easily communicate with local buyers and so the process becomes easier. When local supporting industries and suppliers are competitive, home country companies will potentially get more cost efficient and receive more innovative parts and products. This will potentially lead to greater competitiveness for national firms. For instance, the Italian shoe industry benefits from a highly competent pool of related businesses and industries, which has strengthened the competitiveness of the Italian shoe industry world-wide.

2.4 Firm Strategy, Structure, and Rivalry

The structure and management systems of firms in different countries can potentially affect competitiveness. German firms are oftentimes very hierarchical, which has resulted in advantages within industries such as engineering. In comparison, Danish firms are oftentimes more flat and organic, which leads to advantages within industries such as biochemistry and design. Likewise, if rivalry in the domestic market is very fierce, companies may build up capabilities that can act as competitive advantages on a global scale. Home markets with less rivalry may therefore be counterproductive, and act as a barrier in the generating of global competitive advantages such as innovation and development.

Two other determinants that usually npt included in the model are:

2.5 Chance:
Disruptive developments outside the control of firms and governments that allow in new players who exploit opportunities arising from a reshaped industry structure. For example, radical innovations, unexpected oil price rises, revolutions, wars, etc.

2.6 Government:
Government choice of policies can influence each of the four determinants. Successful government policies work in those industries where underlying determinants of national advantage are present and reinforced by government actions. Government can raise the odds of gaining competitive advantage but lacks the power to create advantages on its own.

By using Porter's diamond, business leaders may analyze which competitive factors may reside in their company's home country, and which of these factors may be exploited to gain global competitive advantages. Business leaders can also use the Porter's diamond model during a phase of internationalization, in which leaders may use the model to analyze whether or not the home market factors support the process of internationalization, and whether or not the conditions found in the home country are able to create competitive advantages on a global scale. Finally, business leaders may use this model to asses in which counties to invest, and to assess which countries are most likely to be able to sustain growth and development.

Chapter 3: Secondary Research

3.1 Literature Review:
Most of research incorporates data obtained from the Trade Development Authority of Pakistan (TDAP) and an interview conducted from the CEO of Deep Blue Sea Foods (Private) Limited, Mr. M. Faisal Iftikhar Ali. The data collections from TDAP consisted of the economic

significance of fishing industry in Pakistan, its export, its contribution to GDP, the role of TDAP and the EU in the development of the sector, and many other factors. The fish processing plants and harbors, and information about the utilization of fish is also given in detail in the report. The data also contained various presentations on the future plans of TDAP for the advancements of the sector. These presentations contained some highly realistic recommendations for the developments of the industry and also the costs and investments in the sector. These recommendations are highly realistic and province specific and if implemented, would result in a great leap forward for the industry. The interview with Mr. Iftikhar provided us with highly valuable preliminary information about the industry as a whole, its structure, processes, organization, norms, government regulations, and many other important facts. Mr. Iftikhar had an abundance of knowledge on the exportable products of Pakistan and told us that Pakistani fish was actually very good as far as quality and texture of the fish were concerned. He said that Pakistani fish have faced the least rejections in the world i.e. only 3 rejections in 15 years. Besides, Pakistani fish are better in texture and taste as compared to many neighboring countries. But the issue of hygiene is one the biggest issues of the Pakistani fishing industry. He gave valuable and astonishing information about the reasons behind the recent European Ban placed on Pakistan and the substandard hygiene conditions of Pakistani fish. He also enlightened us about the technology used during the cold chain and in the preservation of fish. He said that the recent floods have become a boon in disguise for the fishing sector rather than being a curse because the entrance of sweet water with the floods draws the fish closer to the harbor. In order to streamline our research and to gain an insight into the industry itself, we made a visit to the harbor where we observed the predicament of the fishermen. We saw no Government intervention neither did we feel that the associations responsible for the well being of the fishermen were doing anything. We have based a number of the recommendations given at the end of the research keeping in view the conditions and problems faced by the fishermen and also the ones who manually cut and clean the fish scales. A fisheries industry review titled Review of the Inland Fisheries of Pakistan (1992) written by Dr. William George was consulted in order to have a comparison between the condition of

fisheries in the year 1992 and today. Astonishingly, little progress has been in the fisheries sector. The contribution to GDP of fisheries in the year 1992 was 0.8% and today it is close to 1% (William 1992). We also went through a number of websites providing a wealth of both preliminary and in depth knowledge about the sector.

3.2 Secondary Data:

Fishery plays an important role in the national economy. It provides employment to about 300,000 fishermen directly. In addition, another 400,000 people are employed in ancillary industries. It is also a major source of export earning. In July-May 2002-03 fish and fishery products valued at US $ 117 million were exported from Pakistan. Federal Government is responsible for fishery of Exclusive Economic Zone of Pakistan. In addition, It is also responsible for making policies, inter-provincial co-ordination, planning, research, quality control, training, exploratory fishing, stock assessment, fisheries management, fleet improvement, data collection and export etc.

Pakistan is endowed with rich fishery potential. It is located in the northern part of the Arabian Sea and has a coastline of about 1,120 km with a broad continental shelf and its Exclusive Economic Zone extends up to 200 n. miles from the coast. There are about 16,000 fishing boats in coastal area of Pakistan which operate in shallow coastal waters as well as in offshore areas. These fishing boats undertake fishing trips lasting for few hours to about 25 days depending upon type of fishing.

3.2.1

Measures

to

Lift

the

Ban

on

Pakistan

Fisheries:

The Trade development Authority of Pakistan carried out the following measures to ensure that the ban be lifted off Pakistan fisheries exports to the European Union.

Fishing vessels:
Sindh:
200 boats to be re-furbished on immediate basis as per EU standards. In addition, 200 small boats to be equipped with insulated boxes. Rs. 102 million approved by Sindh government for boats. Boat owners have serious financial problems, need government support. 50% cost to be shared by the Sindh government and 50% by the boat owners. Boat owners to deposit Rs.15000 as upfront cost. For remaining cost, loan to be arranged through NBP on easy one year installments. Markup to be picked by Federal government. For small boats, insulated boxes to be provided for storage of catch on cost sharing basis of 75% by Sindh government and 25% by boat owners. The Secretary Sindh to prepare revised PC-1. KS&EW will prepare preliminary design and cost based on this EU requirement. A modular boat incorporating all necessary modifications will be constructed which will then be replicated by KS&EW and other firms if they qualify. MFD would provide specification of boats as per EU standards. Committee constituted as under: Representative of KS&EW Representative of MFD Representative of UNIDO Representative of KFHA Representative of FCS

KS&EW submitted technical and financial proposal based on at least 200 boats. Estimated cost Rs. 300/- per sq ft for lining of fish holds etc. with fiber glass.

Complete boat refurbishing by KS&EW estimated cost Rs. 1.25 million. Initially, 5 boats in 12 working days. Marine Mercantile Department (MMD), Ministry of Ports & Shipping to initiate re registration of boats to asses exact number of boats in operation.

Sindh Govt has shortlisted 3 boat modifiers Estimated cost Rs. 230/- per Sq.Ft. Estimated modification of 3 boats in 7 days.

Baluchistan:
Trawlers not operating in Baluchistan the major modification cost would be provision of insulated boxes for small boats and some modification of gill netters. Cost of refurbishment in Baluchistan same as in Sindh. 100 gill netters and 100 smaller boats to be refurbished. The cost sharing in Baluchistan for gill netters and provision of iceboxes to small vessels would be in the ratio of 80% by Baluchistan government and 20% by boat owners. 20% cost sharing by boat owners; loan may be arranged from NBP and markup to be picked by the Federal government. Funds are not available with Baluchistan government. Federal government would be requested for support. Technicians from KS&EW would visit Pasni and Gwadar to assist local technician for modification of boat. For funding Secretary Fisheries Baluchistan prepared PC-.

Landing/Auction Sites: Sindh: Cleanliness and environment:

FCS is responsible for management of landing of fish and auction halls FCS is responsible for temperature control FCS would maintain EU standards sanitary and phyto-sanitary conditions in auction halls as per procedure laid down by MFD

Initiatives by Sindh Government:

Sindh Govt. to regularize unauthorized Jetties and landing sites. Sindh Govt. has included in ADP 2007-08, a scheme for construction of Mini Fish Harbor at Mubarak Goth and Ibrahim Hyderi and Establishment of Disease Centre & Sea Water Analysis Centre at Hawks Bay at a cost of Rs.115 Million. PC1 prepared for PDWP.

Management by Harbor fishermen Cooperative Society:

A professional ISO-9000 Certified Harbor management firm would be contracted to manage and run, complete chain in the Karachi Fish Harbor, in a professional manner. KHFA Board to be reconstituted with FCS and TDAP also on the Board Senior adviser of CSF agreed to such arrangements. CSF fund up to US $10 million available for physical planning. Breakup is as under; US$ 6 million by Federal Finance Ministry US$ 2 million by CSF US$ 2 million by Sindh Govt.

Infrastructure and Development:

KHFA would make necessary management with NLC or KSWB (water supply through Rangers). Water Requirement 1.5mgd. On long term basis, Sindh Govt. is working on installation of tri-generation plants. Floated tender, only 2 bids received. Sindh Govt. has called for EOI for building of 700 MT flake ice unit in Karachi Fish Harbor. Sindh government to provide on board 27 flake ice units. 5 units to MFD model boats. 22 to boats selected through balloting out of 200 boats (from latest 2000 boats). 50-50 share of Sindh Government and FCS in setting up a Flake Ice common utility facility or Private limited company, providing ice at least possible cost to fishermen.

Baluchistan:
Cleanliness and environment:
Dredging of Pasni Harbor. KPT has been assigned the task of dredging to be done by February, 2008. KPT to bear entire cost. Up gradation of Pasni & Gwadar harbors to be assigned to NESPAK. Auction hall at Pasni. Since the Harbor is run by the Baluchistan Government. Secretary Fisheries Baluchistan would prepare PC-1 and the Federal government would be requested to support it financially. Estimated cost is Rs. 25 million. The Gwadar Fish Harbor is under the control of Federal Government Ministry of Port and Shipping. Federal government to extend financial support.

Establishments, Sanitary, and Phyto-Sanitary Issues and Treaceabilty:

The MFD would ensure that all EU approved establishments are inspected according to the requirements of the EU. Non compliant establishment to be suspended.

Establishments to ensure EU compliance within 3 months. MFD to submit a report in this regard.

Traceability of FP right through the supply chain to be ensured.

Peeling Sheds:
Modern peeling sheds to be constructed in the Karachi Fish Harbour. Structural engineer and designer from the NESPAK and engineer from visit Thailand to get the designs for peeling sheds (replicating the design) KFHA would

Inspection of Establishments:
MFD, FCS, TDAP, UNIDO, Fisheries Association to jointly issue compliance rules, and are tasked to ensure compliance. MFD to further develop its in-house capability by outsourcing to International certification and pre-inspection agencies and also by training and developing its inspectors.

MFD Inspectors Knowledge, FP Production Chain Supervision:

Training:
Following training centers to be developed into technology training and development center. MFD Fishery Training Center Establishment of Fishery Research Center in Pasni. Federal Government has approved a project Establishment of Fisheries Training Institute at Gwadar at the cost of Rs. 361 million with an allocation of Rs. 50 million for the year 2007-08. This Centre will be upgraded into technology training and development centre by adding research component for which PC-I will be revised. For interim

arrangement, training in Gwadar should be arranged in coordination with Provincial Labour and Man Power Ministry. MFD to make necessary arrangement for training of local fisher man at Pasni and Gwadar according to EU standards.

Direct Exports Ex-Gwadar:

Arrangement may also be made for direct export from Gwadar and Pasni. MFD would take necessary action for opening of offices at Gwadar and Pasni. Inspection procedures need to be implemented in Balochistan by MFD.

Leakages of Revenue:
FCSAreas of Leakages: AUCTION Misdeclaration of quantity up to 70% resultantly pilfering of revenue to the extent of 70%. GATE MONITORING/PASSES Not being properly monitored, especially the fish coming from outside. GHOST EMPLOYEES CONTRACT Mal practices in award of contracts for janitorial services, water supply etc. MOLE HOLDERS Recovery of outstanding dues from the moles. MEDICAL SERVICES Malpractices in medical supplies and expenses. WELFARE ACTIVITIES Malpractices in spending of funds. Present FCS Administration has increased the revenue by over 100% with checks and balances.

MFD:
Fixed charges hence no revenue leakages.

KFHA:

Fixed charges for issuance of licenses to boat owners, hence no revenue leakages. Over-employment.

Cost Estimates: Baluchistan

Cost Estimates for Boat Up gradation, Machinery &

Equipments for Handling Port Operations

Total Cost (In S.no Descriptions Up gradation of 100 boats @ Rs. 500,000 1 2 per boat Provision of 1,000 insulated ice boxes Machinery 3 4 5 6 7 8 & Equipment for Port 25.00 25.00 26.00 9.00 7.15 7.50 164.65 25.00 25.00 26.00 9.00 7.15 7.50 164.65 50.00 15.00 50.00 15.00 1st Year Million Rs.)

Handling Up gradation of PFH & Auction Hall etc. Provision of 20 Flake Ice Units Provision of 3 No. Reefers Interest of S. No 1 & 2 @ 11% Contingencies @ 5%

Grand Total

Sindh:
With the option of boat modifiers, the total cost for boat modification of 200 boats would be Rs. 80 Mln. (per boat Rs.400,000). As per 50:50 cost sharing, the share of Govt for 200 boats would be Rs.40 Mln. Share of boat owers for 200 boats would be Rs.40 Mln (@ of Rs.200,000/- per boat). Total Interest to be picked up by the Govt. for 200 boats would be

Rs4.4 Mln (@11% per annum) With the option of KS & EW, the total cost for boat modification of 200 boats would be Rs.100 Mln (per boat Rs.500,000). As per 50:50 cost sharing, the share of Govt for 200 boats would be Rs.50 Mln. Share of boat owners for 200 boats would be Rs. 50 Mln (@ of Rs.250,000/- per boat). Total Interest to be picked up by the Govt. for 200 boats would be Rs.5.5 Mln (@11% per anum

3.2.2 EPBs Role in Fisheries:

EPB has been the main coordinating agency in improving the hygienic conditions in Karachi Fish Harbor and up-gradation of fish processing units to meet European Union and international standards. Ministry of Commerce / Export Promotion Bureau provided assistance to all agencies concerned with export of fish / seafood from Pakistan. Th following assistance / funds were provided by EPB to Karachi Fish Harbor to meet the European Union requirements regarding hygienic conditions at the harbor: EPB imported 10000 fish crates at the cost of Rs. 7.0 million and which are being used in auction halls, fishing trawlers and processing units. EPB is also importing 200,000 fish boxes to meet the requirement at Karachi Fish Harbor.

EPB provided an amount of Rs. 5.0 million to Marine Fisheries Department, Karachi for procurement of appliances and equipments for up-gradation of Quality Control Laboratory to meet European Union requirement.

EPB procured 200 fiber glass trolleys for handling of fish / shrimps at Karachi Fish Harbor for an amount of Rs. 3.7 million. EPB provide Rs. 1.0million for up-gradation of auction halls in Karachi Fish Harbor. EPB procured hot water pressure washing machine for cleaning of boxes and auction halls and foot operated taps at a cost of Rs. 0.386 million for Karachi Fish Harbor. Besides EPB played a very vital role along with Marine Fisheries Department in up gradation and approval of 7fish processing units by the EU Inspection Mission during the month of March 999

Fish Consumption/Utilization:
A substantial quantity of fish is consumed locally. In addition, small pelagic and by-catch of trawl fishing is being used for production of fish meal. Remaining balance is exported in salted dried, frozen and chilled form. Marine aquaculture is non-existent; however, fresh water aquaculture is fairly developed. The Government of Pakistan is taking various measures to increase the export of seafood. The measures are:

Up-gradation of fishing vessels to control post harvest losses. Provision of modern peeling sheds for providing raw material to fish processing industry. Flake ice plants on harbors. Intensive marketing efforts at international level. Promotion of marine aquaculture. Human resource development through training. Regular monitoring of resources through stock assessment surveys and exploratory fishing.

Procurement of handling and cleaning equipments for fish harbours.

Construction of coastal highway.

3.2.3 TDAPs Role in Fisheries:

TDAP has been the main coordinating agency in improving the hygienic conditions in Karachi Fish Harbour and up-gradation of fish processing units to meet European Union and international standards. Ministry of Commerce / Trade Development Authority of Pakistan provided assistance to all agencies concerned with export of fish / seafood from Pakistan. The following assistance / funds were provided by TDAP to Karachi Fish Harbour to meet the European Union requirements regarding hygienic conditions at the harbor: TDAP imported 10000 fish crates at the cost of Rs. 7.0 million and which are being used in auction halls, fishing trawlers and processing units. TDAP is also importing 200,000 fish boxes to meet the requirement at Karachi Fish Harbour. TDAP provided an amount of Rs. 5.0 million to Marine Fisheries Department, Karachi for procurement of appliances and equipments for up-gradation of Quality Control Laboratory to meet European Union requirement. TDAP procured 200 fiber glass trolleys for handling of fish / shrimps at Karachi Fish Harbor for an amount of Rs. 3.7 million. TDAP provide Rs. 1.0million for up-gradation of auction halls in Karachi Fish Harbor. TDAP procured hot water pressure washing machine for cleaning of boxes and auction halls and foot operated taps at a cost of Rs. 0.386 million for Karachi Fish Harbor. Besides TDAP played a very vital role along with Marine Fisheries Department in up gradation and approval of 7 fish processing units by the EU Inspection Mission.

Chapter 4: Application of the Porters Model

4.1 Introduction:
Fish has been an important source of protein for humans throughout recorded history. Fishing is one of the oldest occupations of the people living near lakes, rivers, and seas. It has been suggested that the longer lifespan of Japanese and Nordic populations may be partially due to their higher consumption of fish and seafood. The shortage of grain on the land has increased the importance of fish and its subsistence usage. Many developed countries have recognized its importance as have involved in constant research and development in order to gain maximum benefit out of this natural resource. Fish is high in omega 3 fatty acids, which are heart-friendly, and a regular diet of fish is highly recommended by nutritionists. This is claimed to be one of the major causes of reduced risk for cardiovascular diseases in the Inuit. The Mediterranean diet is likewise based on a rich intake of fish. Nutritionists recommend that fish be eaten at least 2-3 times a week. Fish is a low-fat food, a great food of protein, vitamins and minerals. About 70% of the protein requirement of the body can be fulfilled by consumption of fish. The oils in fish are important for unborn and newborn babies. Eating different kinds of fish helps to reduce chances of stroke or heart attack.

4.2 Economic Significance:

Fishery has an important role in the national economy. It provides employment to about 300000 fishermen and another 400000 are employed in ancillary industries. It is also a major source of export earnings. In July-May 2002-03, fish and fishery products valued at US$ 117 million were exported from Pakistan. Its contribution to GDP is currently 1% and Pakistan earns 6% of its total foreign exchange by exporting fish, shrimps, and other fish products. In the year 1992, the contribution of Fisheries to the GDP was just 0.8%, which clearly shows the extremely restricted growth of fisheries in Pakistan. Pakistan is endowed with rich fishery potential. It is located in the northern part of the Arabian Sea and has a coastline of about 1120 km with a broad continental shelf

4.3 Plants and Establishments:

There are 29 fish processing units in Pakistan with storage capacity of 10,000 tons, out of these 25 units are located 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.

4.4 Porters Model

Michael Porter created a model which provides a very useful tool to measure the competitiveness of any industry.

4.5 Factors conditions:

4.5.1 Basic Factors:
Water is the most basic factor for any countrys fishing industry. Specifically, abundance of sweet water is necessary. Secondly, the fish itself is the second most important factor. Pakistan has an abundance of both marine and inland fish species. Some of the major marine varieties are sharks, drums, croakers, cat fish, skates, and rays. Some of the inland varieties include manaseer, rahu, pallu, trout, thalla, kuggur, dumbra, and many others. For fishing industry to prevail, abundance of sweet water is imperative. In this regard, Pakistan has a number of sweet water lakes like manjhar lake, haleji lake, kinjhar lake, and many others. In addition, the country is endowed with six large reservoirs which provide for 250000 hectares for the production of fish products.

4.5.2 Technology:
Among the factors conditions, the most important factor to gauge an industrys competitiveness is the king of technology used. The only prevalent technology used for preservation is freezing.

Up gradation in the technology means enhancing the speed of freezing i.e. how quickly the fish can be frozen to -7 degrees of temperature. The quicker the freezing is, the more the productivity is. This is because more fish can only be bought and frozen if the fish already in the freezers is frozen and ready for sale to the customer. A technology called Individual Quick Freezing (IQF) is used to make sure that each and every fish is frozen completely. IQF allows to reach ultra-high freezing to very low temperatures (-30C to - 40C) designed to halt the activities of the microorganisms that cause decay and deteriorate foodstuffs. Individual Quick Freezing (I.Q.F.) is the latest technology available in freezing and with the advent of the same, it is now possible to preserve and store raw fruit and vegetables in the same farm-fresh condition for more than a year, with the color, flavor and texture of produce remaining as good as fresh from the farm. If the fish is not frozen properly and from within, it might rot and be useless. The people supervising the freezing process often check the fish by cutting one into half and smelling it. If the fish turns out to be unfrozen or rotten, that fish and all others frozen with it are rendered useless. Some fish producers also use technologies like Liquid Nitrogen Spray to freeze fish. Ammonia and Freon are used for freezing purposes.

4.5.3 Hygiene Issue:

Another aspect influencing the factor conditions of the fishing sector is the Hygiene issue. The reason attributed to the below standard hygiene situation of the boats, vessels and storage is that 80-90% of fishermen are engaged in collecting chicken feed rather than fish itself. This frequent and constant practice has led to the lack of hygiene considerations as the fishermen do not keep the boats clean because they do not feel the need to.

4.5.4 Harbors
Another important factor for the fishing sector is the presence of good harbors. The major fish harbors of Pakistan are:

Karachi Fisheries Harbor is being operated by Provincial Government of Sindh. Karachi Fish Harbor handles about 90% of fish and seafood catch in Pakistan and 95% of fish and seafood exports from Pakistan.

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

Pasni Fish Harbor being operated by Provincial Government of Baluchistan. Gwadar Fish Harbor being operated by Federal Ministry of Communication.

As far as the fishing boats and vessels are concerned, there seems to be no concept of replacing them. They are replaced whenever the government asks them to, or else they are just repaired or refurbished whenever required.

4.5.5 Vessels and Boats:

As of 2000, the number of docked fishery vessels was near 6,000. The two main types of fishing craft include:

Mechanized docked boats: There are over 4,000 boats of this kind registered, which constitute shrimp trawlers and as well as gillnetters. Both are also locally made of wood, according to traditional design and fitted with 80220 hp diesel engines. The average length of a trawler is 1025 m while that of a gillnetter is 15-35 m. For hauling, many trawlers have a transom stern. Gillnetters are pointed at both ends and the net is pulled over the side. Freezing vessels also operate in the EEZ and all their catch is exported.

Mechanized sailboats: Made of wood and equipped with two or more outboard engines, but generally smaller than docked vessels, they are locally called 'hora' boats. Most of these sailboats now operate in freshwater bodies. 'Doonda' boats are custom-built fiberglass scrapped lifeboats, with an average length of 7-10 m and 2233 hp engines. These boats are able to function in up to 20 m depth. As of 2006, there are over 2,000 active boats of this kind.

4.5.6 Fishing Nets:

Also, their fishing nets also do not meet the minimum mesh size requirements set by the government under the Fisheries Act which is 1.5 centimeter but the fishermen use nets of about 0.5 centimeter.

4.5.7 Impact of Floods:

The recent floods have also had an impact on the sweet water availability for the industry. Where the recent floods have devastated the economy of Pakistan at large, they have strangely proven to be beneficial for the fisheries sector. The fact behind it is that fishing requires a lot of sweet water. If the seas are abundant in salt water then the fish cannot survive in those waters. In fact, in very salty waters, jelly fish abound. The floods moved a lot of fresh water near the harbor and so the catch is expected to grow this year. Overall, the industry has failed to convert the basic factors into advances ones, as has been suggested by Porter in his model. The reason can partly be attributed to the complacency of the people involved in the sector and partly to the role played by the Government of Pakistan. The role of government in the formation of standards, rules, and regulations is commendable. The fishery export in Pakistan is exempt of taxation; however it has to pay commission to TDAP (Trade Development Authority of Pakistan). The government has given the sector a lot of freedom and has also developed the Export Development Fund (EDF) which makes it very convenient for the fishermen and the members of associations to obtain loans. But the Government lacks the ability and the political will to implement these rules and regulations. Without implementation, the rules can never prove to be effective.

4.6 Demand conditions:

4.6.1 Local Demand:
The nature of the demand for fish is seasonal and grows in the winter. The local demand for fish is officially about 1kg and 300 grams and is still declining. This is the lowest in the world, whereas the world average is 17kg. But, interestingly, it has encouraged export of fish. The extremely low per capita consumption of fish can be attributed to the fact that Pakistanis prefer chicken over fish and the demand is thus shifted to chicken. Global demand for fish is increasing at the rate of 5 to 6% annually but the local demand is declining constantly. Due to the insignificance of local demand, the fishing industry of Pakistan is completely almost export focused and imports of Vietnam in order to cater to the local demand.

According to the CEO of Deep Blue Seafoods (Pvt) Limited, Mr. M. Faisal Iftikhar Ali, Pakistani fish have faced the least rejections in the world i.e. only 3 rejections in 15 years. Besides, Pakistani fish are better in texture and taste as compared to many neighboring countries. But the issue of hygiene is one the biggest issues of the Pakistani fishing industry. Another issue is of absence of aquaculture that is shrimp farming. There is no aquaculture in Pakistan whereas Bangladesh has aquaculture exports worth $1 billion, Vietnam has Aquaculture of $15 billion, and 90% of Indias $2 billion export consists of aquaculture. Pakistan also does not have any value addition in fishing.

4.6.2 Export of Pakistan:

Fish and fishery products are processed and exported to over 50 countries. About 30 35% of the fish and fishery products are exported to European Union countries. Japan, U. S. A. China, Saudi Arabia, U. A. E. Malaysia, S. Korea, Hong Kong, Sri Lanka and Singapore are other major importing countries. After the ban of European Union on Pakistan, the country lost a very big market. Pakistan exported about $50 million worth of fish. But fortunately, Pakistan found Egypt as a highly profitable market for its fish.

4.6.3 The European Union Ban:

Another factor that has severely affected the demand for fish, specifically the international demand is the European Union ban of the fish exports of Pakistan. The European Union Ban was placed on Pakistan Fish industry in the year 2007. The reason being the industry had not been meeting the international standards of hygiene since the preceding many years in which the delegates had made frequent visits to the harbors. The reason of such visits was that the Governments of many European countries were pressurized by the local fishing companies to put stringent standards of hygiene on countries that exported fish. These companies themselves had to follow these standards which increased their costs. Countries like china, Bangladesh and Pakistan did not follow such standards and so they could export fish on much cheaper costs and prices, shrinking the market of the local European fishing companies. This backdrop led to the EU to make constant visits to the fish exporting countries and the extremely poor hygiene conditions of the Pakistan industry came into the lime light. The delegates of the European

Union paid their last visit in 2007 and imposed a ban which made Pakistan lose a $50 million European fish market. But Pakistan soon recovered from the loss by finding an equivalent market in Egypt which is itself the biggest market in Middle East for fish.

4.6.4 Threats to Exports:

The following issues still are a threat to the export potential of the fisheries industry:

Fish export has showed an increasing trend in the past many years, however, a substantial decrease has occurred, due to ban imposed by EU.

Post harvest losses are high due to handling of fish catch on board and long voyage time. Congestion at Karachi Fish Harbor. There are more than 16,000 fish boats operating in Sindh zone.

The storage capacity is only 10,000 tons which is not sufficient to cater the future requirements.

Pakistan is exporter of raw material or semi processed fish / seafood.

The Minister of Livestock and Dairy Development Mr. Humayun Aziz Kurd has informed the National Assembly in the recent session that efforts are underway to comply with EUs high quality standards and it is expected that the ban will be lifted soon.

4.7 Firm Strategy, Structure, and Rivalry:

4.7.1 Structure:
The operational process of the fishing industry starts with the accumulation of the fish caught by fishermen in three shifts: the first in the morning, the second in the afternoon, and the third in the night. These fish are sold by means of auctions and the highest bidder wins the deal. This means that the fishing associations and the fishermen do not work in collaboration but are isolated from each other, although the associations do have their own fishermen. The purchased fish is then brought to the factories where they are processes according to the requirements of the owners of the fish. There are eight different types and 14 different sizes of shrimps. The processed fish are

then frozen to about negative 14 degrees of temperature and stored at cold stores at about negative 18 degrees centigrade. The shelf life for the fish is only 18 months. The process that starts from the moment the fish are caught till they are processed is called cold chain. The temperature must not exceed 4 degrees or else the fish will start to decay. The structure of the Pakistan industry is devoid of vertical integration, where the upstream, midstream, and down-stream sector work in perfect isolation. The fish processing firms do not integrate with the fishermen so that their concerns can be shared with them. Only few associations like the Pakistan Fisheries Exports Association (PAKFEA) have their own fishermen but generally, both the parties work in isolation. The marketing of the fish is done through the local channels which are used by all other industries. The fish is processes and sold to wholesalers, who then sell it to the retailers and then to the final consumers. The marketing process is hygienically poor.

4.8 Related industries:

4.8.1 Fish Feed Producing Sector:
Manufactured feeds are an important part of modern commercial aquaculture, providing the balanced nutrition needed by farmed fish. The feeds, in the form of granules or pellets, provide the nutrition in a stable and concentrated form, enabling the fish to feed efficiently and grow to their full potential. Traditionally two of the most important ingredients have been fishmeal and fish oil. These come mainly from the processing of fish from the wild catch, usually pelagic species that are generally not suited to processing for human consumption. Fish sold for human consumption attract a higher price than those used to make fishmeal. The fishmeal fisheries are often referred to as reduction fisheries. The worlds largest reduction fishery is in the Pacific, off the coast of Peru and Chile and is regulated by the governments of those countries. The North Atlantic is another important source of fish for fishmeal and fish oil. Many major suppliers belong to the International Fishmeal and Fish Oil Organization.

Fish meal is a commercial product made from both whole fish and the bones and offal from processed fish. It is a brown powder or cake obtained by rendering pressing the cooked whole fish or fish trimmings to remove most of the fish oil and water, and then ground. What remains is the "fishmeal". Unfortunately, due to the lack of aquaculture in Pakistan, these industries have not been able to flourish. However, fish feed production can still be initiated in Pakistan and most of the offal is wasted. This can provide highly valuable foreign exchange.

4.8.2 Recreation sector

Recreational fishing in Pakistan is usually overlooked by the Pakistan Game Fish Association (PGFA). There are three main types of recreational fisheries in Pakistan: billfish and tuna fishing in the EEZ of Karachi; sport fishing (pelagic) in coastal waters; and hand-line fishing (bottom fishing) in inter-tidal and shallow waters. About 1,000 people with 120150 fishing boats are involved in this sector. No license is required. However, their boats are required to be registered by Marine Mercantile department for seaworthiness.

Chapter 5: Issues and Recommendations

The problems and the recommendations have been combined from various sources including secondary and empirical research. Comprehensive secondary research was done which was based on recent news articles, online database and reports available on the fishing sector. An interview of fishermen at Karachi sea-port and of Mr. M. Faisal Iftikhar Ali ,the CEO of Deep Blue Sea foods (Pvt) Limited was also conducted. A questionnaire regarding the industry was also used, it was filled by Mr. Ghazanfar Ali Shah. Some of the problems we identified are mentioned below with very realistic recommendations.

5.1 Low Per Capita Consumption:

If we look at the demand of fish in Pakistan, we find that per capita consumption of fish is one of the lowest in the world. While our per capita consumption is 1.3 kg., the world average is 17 kg. According to unofficial but reliable resources, the perapita consumption of fish in Pakistan is about 0.8kg. Bangladesh has per capita consumption of 10.8 kg. The major reasons for such a low level of consumption are that people here prefer chicken and meat over fish. High fish prices may also be one reason. This low demand means that our resources are not utilized to full potential. Recent floods have made our rivers and delta richer with fish resources, whilst destroying the agriculture land. In this situation fish can be an important substitute to the agriculture food crop which has been destroyed in recent floods. Hence the food crises which the government fears will occur due to recent floods can be easily averted if proper government effort is made. There are chances that we might have a better catch this year around but only if the effort is made to utilize the situation properly.

5.2 Unsophisticated Local Demand:

However, it is not only our local demand which is far below world average, the sophistication in demand is also lacking. Most local consumers prefer consuming fresh fish, which means that our local demand does not comply with International market demand, where preserved and canned fish are preferred. Since the local demand does not instigate the need for value addition most fish sold in international market also fetch nominal prices since no proper value addition takes place. So there is a need to create sophistication in fish demand and also to increase the fish consumption as it is a good source of nutrition and since world is slowly edging towards food crisis, the redemption of this industry is essential to ensure food security in Pakistan. Recently we have witnessed introduction of frozen fish, this can be an important step towards the revival of fish industry. These new processing plants should focus on wide variety of products and should also market them to potential foreign consumers. These processing plants will perform several other functions apart from creating value addition. Other ways to create sophistication in local demand is a government driven effort to promote fish consumption by publicizing the

health benefits on fish and controlling the price level so that other form of meat become less favorable.

5.3 Lack of private investment:

There has been lack of private investment in the fishing sector. Most of the investment activities are focused on small scale so the government needs to attract private sector investment in coastal area on a large scale. These private sector investments should focus on investing in modern fishing vessels and equipments. These investments could also be targeted towards the fish farms where selected high value fish species are grown. Therefore the government should provide appropriate financial incentives to the private investors so that they are willing to invest in the fishing sector. Incentives can include tax exemptions and research assistance. For example, the government should carryout stock evaluation of fish in our coastal regions and identify the hot spots for fishing. In this way private investors will realise the actual potential of the sector and will be willing to take the risk.

5.4 Non-utilization of By-products

The common by-products of fish are Fishmeal or fish oil. These can be processes and sold for high profits if properly regulated. However, there is little economic benefit for fishermen to make these by-products useful, hence they generally dispose these by-products in to the sea, where they become food for other fishes and aquatic creatures. The liver of fish is one byproduct which is not normally consumed by fish eaters. This liver can be of immense marketable value. Fish oil and protein supplements for humans can be made from high-fat livers. Similary, fish scales contain natural fish silver. This gives fish the shine and glitter that it has. Certain types of lipsticks, nail polish, and other cosmetics make use of this natural silver which has a high market price, since it takes a ton of fish to yield 250g of natural silver. Fish scales are also a raw material in collagen-based products such as skin moisturizers, anti-aging creams, wrinkle removers, hand creams, cleansing gels, and all manner of Botox knock-offs and raccoon-eye miracle cures. The offal of the fish is used to make fishmeal. Hence all these uses of fish byproducts can be made and new related industries can be formed.

5.5 Environment Issues and Need for Waste Treatment plants.

Being a developing country, Pakistan faces difficulty in controlling the damage that an untreated waste poses to its natural resources. According to official estimates, 411 million gallons per day (mgd) from total of 472 mgd of waste goes untreated into the sea. This untreated waste not only contains hazardous chemicals that are toxic for aquatic life, but also solid waste such as polythene bags also cause accidental death of sea creatures. Due to financial costs of treatment plants and also many more important issues in hand, there is currently no interest by Pakistan Government to make any improvement. The impact of the environmental pollution has translated in a sudden drop of fish catch over the past 30 years. From third (3rd) largest export industry of Pakistan, Fish Industry has plunged to thirtieth (30th) position. Despite no recent stock assessment to prove the worsened situation, the situation is crystal clear. Before 1980, our sea waters were clear. But now, the amount of waste has increased so much that we find murky brown water. This has not been helped by the increased use of Karachi port. Increased use has caused oil spills which are another major source of destruction to our natural resources. The extent of fish exhaustion may be 40 percent or more. This will only be clear when a stock assessment is done, which has not been carried out since 1994. The glimpse of hope in this regard is that Norway is financing a program to assess our fishery department in finding out Fish stocks at our sea. Inland fishing has also been affected. Apart from domestic and industrial waste, extensive use of pesticides and fertilizers by agriculture sector is another contributing factor. These are the reasons why the fish have moved further away from the coastline. Not only the quantity of fish has been affected, also has their quality declined due to exposure to toxic waste. If such ignorant behavior of relevant departments prevails, than we might lose more international market due to quality concerns and health hazards posed by the affected fish. Apart from pollution at sea, changing world demography and climate is also causing some problem for Fish Industry. The sea temperature is on a rise, and resulting hostile conditions, such as cyclones in Arabian Sea maybe a cause of disappearance of certain fish species including sharks. The holistic climatic conditions may be causing death of fish on large scale and might be forcing them to migrate to safer waters.

Therefore, waste treatment plants are essential for the improved future of our fishing sector. These plants need to be set up not only on the port cities, but also in inland cities where untreated waste is washed into the rivers. In a metropolis like Karachi, there are only three waste treatment plants operational, and these too are not working at full capacity. The main reason for lack of treatment plants is the influx of people into the city and their unplanned settlements. Therefore, there is need to plan how the problem is dealt with and how our precious resource is saved and revived.

5.6 Geographical Concentration and need for diversification:

Most economic activities of Pakistan are concentrated in Karachi. Not only does Karachi account for 70 percent of total Marine catch, it also accounts for most fish processing plants. Out of 29 plants, 25 are situated in Karachi. Even freezing facilities are inadequate in Baluchistan and hence this explains why despite more coastal area, the contribution by Baluchistan is insignificant. Due to this over burden on Karachi port, the infrastructure has deteriorated and has not been upgraded according to the requirements. This of course is not a good sign for the country. This not only results in Congestion at the Karachi port, but also any disturbance in the metropolis means that the economy suffers badly since it is dependent on one city. Hence, looking at the current load on the port, and the ongoing break down of law and order situation of Karachi, it is high time that government start focusing its attention and resources towards development of Gwadar and other seaports in Baluchistan. These seaports can be developed specially for fishing purposes and hence provide proper facilities of storing and processing which lack in Karachi.

5.7 Fishing Vessels and Methods:

Fishermen in Pakistan do not have advanced Fishing vessels. Deep water fishing cannot be done due to few capable vessels. Most of the vessels used are small and can only store limited catch. Most ships are small, wood made vessels with small diesel engine. Also the hygiene factor lacks

on these boats. Most boats do not have proper insulators. The boats are so old that they are inhibited to insects and rodents. The storing compartments are also not clean. There is hardly any facility to wash the ships after off loading the catch. There is need for not only modernizing the vessels and fishing methods but also improving techniques of storing the catch and cleaning the ship. The government should support local fishermen to use appropriate technologies for sustainable deep-sea fishing. Some of the fishing methods being used currently are less productive and more harmful for the sector. Destructive nets have been introduced in an effort to increase fish catch. These nylon made nets have a fine mesh which traps small fry. These fry are useless for the economy as they do not fetch decent price in local or international market. Also if these fries are given time, they can grow to an economically valuable fish. The nets are not best in quality and durability. They are prone to rip off if the waves are too rough. These nets either wash up later on the beach or entangle other marine life to death. Stationary fishing methods are increasingly becoming ignored, instead trawling is being used. The mechanization of boats and launches has both facilitated the use of these nets as well as permitting mobility. The increasing use of which has accelerated the pace of fishing and encouraged the use of bigger nets

5.8 Implementation of Law

Implementation of laws in Pakistan has failed in most cases. The fishing sector is no exception. Despite several laws concerning the pollution, licensing the fishing activity and banning nonconforming fishing nets, the fishing activity continues irrespective of such laws. However there is need for setting some new laws such as limiting the number of fishing vessels at the port, protecting threatened species and zoning the sea into different fishing areas. There are also reports of fish smuggling to Iran, where fish prices are relatively high. Smuggling is actually causing huge losses to countries export earnings. This smuggling usually takes place via Baluchistan where law enforcement agencies have little control. These smuggling activities must be stopped and proper trading channels should be used

The use of big destructive nets like the katra or seine nets and bulla or the estuarine set bag nets should be stopped. These nets scrap the ocean surface and destroy the fish habitat. These few laws if implemented can change the current situation of the fishing sector of Pakistan.

5.9 Condition of Fishermen:

Government should support the organization of fishing communities and urgently improve their access to basic services. They should also establish training and development centers in major sea ports. One major reason why Pakistan cannot match its rivals in Fish export is that it has not focused on its human resources i.e. the fishermen. Fishermen, who are major stakeholders of this sector, are literally mistreated by the government. They are not provided proper shelters and their colonies are considered illegal. Other than shelter, the basic needs of these fishermen are also being constantly overlooked by our state. The facilities for the daily activity of these people are ignored. They are not provided health, education and other basic needs. Due to this, they have for generations stayed stuck in the vicious circle of poverty. Lack of education has also caused inability to understand the basic requirements in their trade. Not only these fisherman lack basic knowledge about modern fishing techniques, but are also unaware of simple techniques which can help keep the quality of their catch according to international standards. Some of these fishermen also indulge in malpractices such as cutting mangrove forests, oblivious of the consequences of doing so. These training centers should provide education to these fishermen and should warn them about the consequences of their actions which will eventually result in their own loss. These fishermen also need to be taught alternative skills so that they do not indulge in out of season fishing, which is disturbing for the fish life cycle. Skills such as ship breaking, handicraft and other cottage industries can be promoted in these areas. These fishermen if trained can improve their earnings and standard of living. These will not only be beneficial for these fishermen but will also have positive effect on the economy of Pakistan. Most of the fishermen are unaware of the opportunities and are exploited by middle-men, who take away a huge share of the profit unfairly. These training centers can help these fishermen to identify the opportunities in the local and international markets and refrain from being exploited

by the Middle-man, also called beoparis. These measures can help alleviate the suffering of these fishermen and give them chance to live like every citizen.

5.10 Other Fishermen Problems:

1. No financial assistance from the Government. 2. They have low income. 3. Competition is rising since the private companies fishermen have better tools than the normal one. 4. Transportation charges are exorbitant due to high fuel costs. 5. Catch has been low due to the 3rd point. 6. Since the local market is not that much interested in eating fish, they have to forcefully sell the catch to a private company for lower rates than expected. 7. No incentives such as basic needs availability from the Government. 8. They are also not aware of the international borders due to which there is a high probability of entering neighbors border esp. India. 9. Security is also a major issue. Chances of accidents are huge which is a concern as well because God forbidden if anything happens then who will take care of their family members. 10. Majority of the fishermen are poor and they are unable to afford the latest fishing vessels. 11. The ban from EU has also encountered problems. Many fishermen used to get income from the exports of these aquatic products. But due to the ban, source of income has been badly hurt. 12. Health is also a problem. The conditions are not good for humans due to the filth and dirt near sea, but still they (Fishermen) are busy catching the products to earn a living. 13. Deep sea fishing is the recent trend in fishing. But due to the lack of education they are unable to try this technique. 14. Moreover, many fishermen are also unaware of the recent developments taken place in the industry. 15. Government has been negligent to the extent that no major hospitals are available for the fishermen near the ports.

References:
The majority of the work has been written with the help of empirical Research and interviews conducted from people involved in the industry. The rest of the information has been collected from the internet (The Porters Model and the Economic overview of Pakistan) and various libraries.