KARACHI, Oct 24: Traditional western buyers of shrimps and fish from Pakistan are switching over to cheaper imports from other countries, and purchase orders have plummeted by 30 to 40 per cent after September 11, industry sources here said.
The economic slowdown in Europe and America has adversely changed the consumption pattern, reducing the demand of various products. Cheaper goods are more in demand.
Exporters claim that October is our peak season for export of shrimps but poor demand from the western countries have slashed the arrival of orders by at least 30-40 per cent.
“We are being asked to ship shrimp at much lower price than the rates offered by India, Indonesia and Bangladesh. Our exports have virtually become uncompetitive in world markets,” President Pakistan Seafood Industries Association (PSIA), Hanif Khan told Dawn on Wednesday.
People in America and Europe now prefer to eat at home rather than go to restaurants and hotels after September 11 catastrophe. Room occupancy and hotel business has declined and majority of leading hotels are now half empty, Hanif Khan said.
“If the demand plummets further, our exports will drop to $115-120 million in the current fiscal as compared to $137.7 million in 2000-2001,” he said.
He said the average unit price (AUP) in September 2001 was $1.92 per kg as compared to $2.28 in August 2001 despite increase in quantity by 37 per cent. The AUP in September 2000 was $1.82 per kg. Pakistan exported 8,670 tons (16.6 million) in September as compared to 6.305 tons ($14.4 million) in August. In September 2000, exports were 9,062 tons worth $16.5 million.
PSIA chief said exports in September increased due to clearance of old shipments, otherwise orders from foreign countries were not normal after September 11.
He said it is difficult to say whether the foreigners had quit eating white meat from Pakistan because of anthrax fear. “Importers have not yet pointed any such case in fish and shrimps besides any blocking of shipments at any port on the grounds of anthrax. Our shipments are still going without any interruption,” he said.
To counter adverse impact on fish exports, he said, “the government should ask our embassies abroad to persuade the governments to lower import duties on Pakistan ranging between 4 and 50 per cent on fish and shrimp exports. For instance, he said, importers of European countries have to pay 4.5 per cent import duty while Bangladesh has been exempted.
He said war risk levy coupled with weakening dollar had made exports costlier. He said the Export Promotion Bureau (EPB) should compensate the levy of war risk surcharge from the export development funds. The withholding tax of one per cent on exports may be cut to 0.5 per cent in the current depressing scenario.
