Seafood traders decry ineffectiveness of economic relief package

KARACHI: Lockdown-hit seafood traders have raised doubt over the effectiveness of the central bank’s economic relief package while they are reeling under sales trough – calling for the sector-specific support programs, zero-rated tax facility and rebates on exports.

Industry officials said seafood industry has remained closed since February due to COVID-19 lockdown, whereas salaries continued to be paid. The situation might last till September. There is also a constitutional ban on fishing in June and July.

Pakistan Fisheries Exporters Association (PFEA) said the refinancing scheme of the State Bank of Pakistan to give concessional loans for salaries and wages is not helpful as it shares only half of payrolls. The relief doesn’t work as the industry would be without earnings for five months.

PFEA officials were talking via a video link with the Union of Small and Medium Enterprises and seafood exporters, including Akhlaq Hussain, Yasir Abbas Syed and Zafar Kundi.

Seafood processing plants need to be provided with loans on soft terms and subsidies to do balancing, modernisation and replacement and upgradation for value addition, they said.

The officials demanded zero-rated tax facility for seafood export industry, just like proposed for other five industries on sales tax and income tax refunds. They also emphasised the need for lower electricity tariffs. The officials also stressed inclusion of correct HS codes in the second free trade agreement with China. They called for efforts at the highest levels to remove the hurdles in exporting seafood to the European Union and USA. Seafood exports continued to fall in April. They amounted to $39 million during the last month, down around 16 percent year-on-year. The government imposed lockdown in late March to prevent local transmission of the novel coronavirus infection. In July-March, seafood exports, however, rose around eight percent to $317 million.

Efforts are required to get the ban on exports to countries, like Saudi Arabia, removed. They demanded allowance of minimum 5 percent rebate on merchandise exports under foreign trade policy of Pakistan. They said regional countries give about 15 percent rebate on merchandise exports. They also demanded resumption of freight subsidy allowance for frozen and fresh seafood exports just like live seafood.

Zulfikar Thaver, president of Union of Small and Medium Enterprises said the fishing sector needs to be modernised. It needs finance and facilities to meet the international standards. “In fact it needs to partner with China under China-Pakistan Economic Corridor for revival as there is vast scope and sky is the limit,” Thaver said. “This sector can employ, give opportunities for handsome income generation and feed the masses with one of the best nutritional value food. We are knocking at the doors of Small and Medium Enterprises Development Authority for advocacy of our cause with the government not to overlook our needs anymore and revive this promising sector on fast track.”

Mukesh Kumar, provincial chief Small and Medium Enterprises Development Authority emphasised the need of uplifting a promising sector with vast potential. He endorsed the suggestions and promised to take up matter to revive the aquaculture. He agreed to submit a complete proposal based on facts and figures to be prepared jointly with the stakeholders.