ISLAMABAD, April 19: The federal government is likely to allow Balochistan to directly export fish and earn foreign exchange after the establishment of a fish processing plant at Gwadar.

Official sources told Dawn here on Monday that the directive has been issued to Balochistan Development Authority to seek early clearance of the project from the concerned agencies in Islamabad, in order to complete the project within 15 months.

The fish processing plant project, which is expected to cost Rs 177.7 million, also includes a plant to salt fish and a plant to process shrimp. The project will be a joint venture and later will be disposed off on built, operate and transfer (BOT) basis.

Among the stated objectives of the project are to: Provide practical and demonstrated scope for the improvement of quality of fish catch at the required specifications of the international consumer market; Provide better price to the fishermen of Balochistan in order to help reduce poverty; Provide incentives for enhanced quality of fish and shrimp; Provide incentives for the new generation of fishermen; Generate a value-added fisheries product; training and awareness among local fishermen regarding the actual processing of fish & shrimps, and remove the middlemen involvement.

The total availability of fish at Gwadar is about 36,000 metric tons, locally consumed quantity is about 1,704 metric tons and consumption of hinterland is about 8,031 metric tons.

This quantity of fish is sent to Karachi at an average rate of purchase value of Rs 19,776 per ton which is exported from Karachi at an average rate of Rs 51,515 per ton from Karachi.

It is anticipated that during the first seven years, the plant would payback the total project cost of Rs 177.5 million and during the next three years period the total profit is computed to be Rs 175.8 million. Total net profit in 10 years after paying back the project cost has been estimated as Rs 297.2 million.

In Pakistan the retailing of fish is still in its primitive traditional stage, without any scientific quality control and grading. It is understood that the privileged customers would welcome the retailing of semi-processed, packed and well-preserved fish and ready to cook fish, marketed through supermarket chains and self-service stores.

Traditional methods of selling wet fish does not match with modern methods of quality controlled whole fish, dressed fish, filleted fish, smoked fish which could be packed and marketed in attractive colourful packing to cater to the need of prospective customers.

Officials maintained that this modern method of local marketing which has been neglected so far, could also find a lucrative market in neighbouring countries particularly in the UAE.