It is distressing, indeed, to learn from a news report that points to the aggravation of problems of the country's high potential seafood industry as a sequel to lack of attention to its crying need that had been spelled out in the budget proposals submitted by the Pakistan Seafood Industries Association (PSIA).
This has reference to a press release issued by PSIA Chairman Sardar Hanif Khan, in which he has lamented that utter disregard of the pre-budget pleadings has resulted in making the survival of fisheries sector all the more difficult.
Dilating upon the unsavoury situation prevailing for some time, with a marked focus on the steps required to retrieve it, he stated that the Association's pre-budget proposals were submitted to the Ministry of Commerce, the Trade Development Authority of Pakistan and the Federation of Pakistan Chambers of Commerce and Industry, because of the urgency of putting in place a number of measures vital to the highly export-oriented seafood industry. Now that he has come out with the details of PSIA pleadings they will appear to be something like a seven-point agenda for consideration of all those who matter.
A dispassionate perusal of these proposals will leave little to doubt about their legitimacy. For one thing, justifiable was the demand for zero rating of sales tax on utilities to a heavily export-oriented industry which deserves to be endorsed. In the same way, reduction of withholding tax to 0.5 percent on export, instead of the present one-percent, was quite in accordance with incentives provided to textiles and other export oriented industries.
As for the plea for allowing import of printed packing material, namely, printed empty cans and lids, printed box board cartons, printed plastic pouches, printed plastic cups and lids without payment of duty, sales tax and income tax and placing them in the free list, was backed by plausible reasons too. It was sought with a view to facilitating exporters to present their products in perfect and attractive packing.
Moreover, it has been argued that quality empty cans and lids are not manufactured in Pakistan, and also that the quality of other packing material like box board cartons and plastic products is too poor, thereby rendering them un-presentable for export purposes. That it failed to appeal to the imagination of relevant authorities will certainly be viewed as regrettable. The same can be said about the neglect of the industry's other suggestions as well.
Mention in this regard may be made to the proposal for duty, sales tax and income tax free import of plant, machinery and equipment for production of value-added seafood products, as they would have proved instrumental, in no small a way, in ensuring much more foreign exchange earnings from a big boost to seafood exports. For in the absence of locally produced machinery and equipment, recourse has to be taken to their import, which is apt to raise their cost of production no doubt.
Hence the need for curtailing their cost of import through elimination of duties and taxes can hardly be disputed. As such, the plea for allowing duty, sales tax and income tax free import of insulated fish boxes and plastic crates, should also not have escaped the attention of decision-makers too. Moreover, two of the association's pleas had nothing to do with relaxation in taxes and duties, yet were of great value in purposeful development of the fisheries sector to its lasting advantage.
For one, the association proposed that 10 percent of export value be allocated for Research and Development (R&D) as done in the case of textile sector. By another proposal 25 percent relief was asked for in the cost of diesel to fishermen per trip, since their operations remain un-profitable at the present, thereby resulting in too small catches. Viewed in this perspective, Hanif Khan's bewilderment over across the board neglect of their proposals should become understandable.
Beyond average comprehension will thus appear to be the government's neglect of a sector of the economy that has such a strong potential, as to make exports worth $1 billion on an annual basis. As such PSIA chief's assertion that the government has focused all its attention on the already developed sectors and all incentives are being made available to them, can hardly be disputed either.
The same can be said about his contention that the Ministry of Food, Agriculture and Livestock (Minfal) has failed to do the needful for the development of fisheries sector due to its other priorities. His appeal to the government, especially, to the Prime Minister, to review the PSIA's proposals so as to get them included in the budget 2007-08, should inspire some hope of a fair deal to this sector.