KARACHI: Foot-and-Mouth Disease (FMD) is endemic (present) and widespread throughout Pakistan, Dr David Ashford, an Animal Health Attaché at the US Embassy in Islamabad, tells The Express Tribune. Ashford has worked in the field of veterinary medicine and infectious disease control since 1986, and holds a doctoral degree in veterinary medicine from Cornell University and a doctoral degree in infectious diseases from Harvard University.

“Studies suggest that 35-50% of all animals are exposed to the virus by the time they reach one year of age,” he says. This number is high, which is why the US is working to control this and other important diseases of livestock in Pakistan. “But this must be a programme with complete and sustained support from Pakistan itself.” These US efforts are part of broader US-Pakistan cooperation to improve agricultural production and the overall welfare of Pakistani farmers.

FMD virus was once endemic throughout the world. Through concerted and broadly supported national control efforts, combined with regional alliances to insure border crossing of animals and coordinated vaccination programmes, the virus has been eliminated from most of the Americas, Europe, Australia, New Zealand, Japan, and recently from Malaysia and the Philippines.

However, without widespread annual vaccinations, inspection and control of the movement of live animals and animal products, animal health certification, and a strong and well-supported public veterinary service within Pakistan, FMD remains and will remain endemic, Ashford says.

The US eliminated the disease through a national programme designed and implemented in the early part of the 20th century.  Thanks to the development of effective vaccines and the formation of country and regional cooperative strategies, the rest of the Americas have nearly completed eradication of this disease. “It can be done: just look at the success of countries such as Brazil, which is now the number one exporter of meat in the world,” Ashford points out.

Pakistan is the world’s fourth-largest producer of milk, which may be an important source of food not only for Pakistanis but for the rest of the world. The presence of FMD in Pakistan currently prohibits the exportation of this food. “Better control of FMD in Pakistan can help Pakistani farmers not only improve their own production, but potentially export and help feed a hungry world.”

It is difficult to estimate the national cost of the disease in terms of GDP, because a great part of the loss is contained within loss of the ability to export animal products. “However, we do know from previous studies that the presence of the virus causes losses to the domestic market of about Rs7 billion per year. From the perspective of small farmers, which make up 60% of agricultural production in Pakistan, our recent studies have shown that having a single buffalo affected by FMD will cost that farmer about Rs18,500 for six months of milk production,” Ashford says.

While it is true that the disease is widely endemic in Pakistan and most farmers recognise the disease, what is not widely known is how devastating the decision to live with FMD can be on the overall Pakistani economy and what might be done to control the disease and why.  There is often a resignation among those that have lived with a particular disease or loss for decades or centuries to continue to see that disease or loss as part of the status quo – and therefore, they see no need for action. What world efforts have shown, and what the work of the Food and Agriculture Organisation and the Government of Pakistan in these pilot projects have shown, is that there is great value in taking action and getting rid of this very costly disease.

Pakistan has shown past success in similar animal disease control programmes when it joined the world in successfully eradicating another disease called Rhinderpest. “In the case of FMD, there may be a need to expand vaccination and inspection teams – not just of doctors and experts, but of para-vets and technical staff to vaccinate and inspect animals as they move around Pakistan,” Ashford says.

Export of animals from any country in which the virus exists can potentially lead to outbreaks in other countries. That is why regional strategies for control and international cooperation are an essential component to success.

“The United States remains dedicated to this effort to control FMD and other important diseases, and we need your help in spreading awareness of the value of vaccination and disease control to improve the lives of Pakistanis,” Ashford concluded.

Published in The Express Tribune, May 13^th, 2013.

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To start its business here, the group will set up a franchise in Karachi, industry players say. It is encouraged by the opportunities that are expected to be created in the wake of ongoing efforts to normalise trade between India and Pakistan.

Gitanjali, along with other top Indian companies, expressed their interest in investing in Pakistan when a delegation of Pakistan’s gems and jewellery industry visited India recently.

Talking to The Express Tribune, All Pakistan Gems Merchants and Jewellers Association Chairman Saeed Mazhar Ali said many companies expressed interest in establishing their business and franchise in Pakistan and talks with Gitanjali had entered final stages. The jewellers were waiting for the grant of most favoured nation (MFN) status to India by Pakistan, which allows Indian investment in Pakistan, he said.

With increased collaboration, he said, India would transfer technology and expertise in gems and jewellery business, which would help Pakistan set up its industry on modern lines, focus on branding and marketing and hire skilled manpower.

Ali expressed the hope that the two countries could benefit from each other’s resources, experience and expertise. Many jewellery-making skills were vanishing in Pakistan and only a few artisans were left, who could make jewellery designs in Polki, Kundan, Kolkata, Jaipur and Rajisthan styles, he said.

To enhance its skills, Pakistan’s jewellery industry is planning to hire master trainers from India. Skilled workers of Pakistan will also be sent to India for training in a bid to shield the art from going into oblivion.

Though India is targeting Pakistan’s market, the local jewellery manufacturers have their own ambitions too. They are hoping to capture a large pie of the huge Indian market as both the sides have many common jewellery designs. Jewellery exports to India can reach $3 to $4 billion in a few years.

At present, Pakistan exports its jewellery to India through Dubai. South Asians in the US, Europe and the Middle East also purchase Pakistani jewellery.

Gemstone mining

With the help of India, vast mine reserves of gemstone in Pakistan can be used for value addition as Indian businesses have expertise in cutting and polishing precious stones.

Pakistan uses outdated technology in mining of gemstone and the crude techniques damage many high-value stones. The lack of modern facilities of cutting and polishing also deprive the country of potentially lucrative value addition.

All the eyes are on ongoing talks and expected roadmap to promote trade between the two countries.

Easy visa procedure

Mazhar Ali said as soon as Pakistan gave MFN status to India, Pakistan’s gems and jewellery products could capture a five-time bigger market. However, he pointed out that easy visa procedures and banking and communication facilities were critical.

He said Indian investors wanted work or long-stay visas instead of visit visas. Similarly, Pakistani artisans seek long-period visas to go to India for modern training.

Traders have also called for special tariff lines for the gems and jewellery industry, which include least or zero duty on finished products, raw material and machinery.

Cheaper jewellery

Prices of Pakistani jewellery are lower than Indian products because of lower value of Pakistani rupee than Indian currency.

Here, wages of skilled workers are less than their Indian counterparts due to difference in currency value. Many Indian companies are interested in taking advantage of the low production cost by investing in raw material and technology, which will also help Pakistan get latest technology and expertise.

Pakistan has an advantage in terms of freight charges. For gems and jewellery sent by India, $3,000 is paid as freight per container and the container arrives in 20 days. However, containers sent from Karachi can reach India in two days and the freight cost will be one-fifth.

Exhibition

The All Pakistan Gems and Jewellers Association has decided to organise a single-country exhibition of Pakistani jewellery in India and has sent proposals to the Ministry of Commerce and Trade Development Authority.

Though delegations of gems and jewellery manufacturers visit India, they are not allowed to sell jewellery there. Contrary to this, many Indian jewellers sold jewellery in a single-country exhibition held in the current year in Lahore.

Published in The Express Tribune, December 17^th, 2012.

KARACHI: Unlike a lot of industries, the local tractor industry is not war of opening of trade with India. In fact, it is looking forward to it. Universal Traders are in talks with an Indian counterpart to start importing tractors to Pakistan once the negative list is phased out and trade with India opens up next year.

Escorts Limited and Universal Tractors of Pakistan will collaborate next year to import 7,500 tractors. It is interesting that the two companies have been working together since 2003. However because of the ban on imports from India, these tractors were being imported from sister concerns of the Indian company from Norway and the US, at much higher cost.

The two companies are now hopeful that with the removal of the negative list tractors will be legally imported from India which will also help in combating smuggling.

The tractors will not be imported as a CKD and assembled in Pakistan. The assembly plant was commissioned under the tenure of former prime minister Shaukat Aziz and is already at an advanced stage of completion. Rajiv Kumar, Head of Exports at Escorts Limited spoke to The Express Tribune said that his company is already exporting to over 60 countries. Kumar also said that the company was initially set up in partnership with Ford in the 1960s. Ford left India in 1996 and since then the company is a full-fledged Indian enterprise. The company started off with an annual production of 20,000 tractors which has now gone up to 80,000. Basically this means that an Escorts tractor is manufactured every four minutes. The total Indian market for tractors is 650,000 a year.

Kumar also said that where Indian tractors would prove beneficial in overcoming the shortfall in the demand for tractors in Pakistan, there was no reason why Pakistani tractors could not make a foothold in the vast Indian market. He also spoke about the possibility of assembling in Pakistan for further onward exports.

Managing Director of Universal Tractors Pakistan, Muhammad Iqbal told The Express Tribune that they had imported 100 Indian tractors since 2003 through their European and American enterprises. He further said that once the negative list was phased out they planned on importing 28,500 tractors over the next three years. Iqbal also said that with the shortfall in demand of 20,000 tractors annually in Pakistan, imports from India would benefit agriculture. He said that Indian tractors were not more expensive than local tractors and would become even cheaper after local assembly.

Iqbal said that at present Pakistan needed 650,000 tractors immediately. He also said that the transport of tractors would be cheaper because of easy access from Wagah border.

Published in The Express Tribune, December 15^th, 2012.

KARACHI: The US has announced that it will invest $50 million in small and medium enterprises (SMEs) in Pakistan, out of an economic cooperation package promised in the Kerry-Lugar bill. The amount will be invested through a privately-managed equity fund.

The US consulate’s Economic and Development Assistance Coordinator Vinay Chawla made an announcement in this regard here on Friday.

He said the assistance to be provided to SMEs follows Pakistan’s stated policy of ‘trade, not aid’, and will promote job creation. He said the equity funds will work to fulfil the capital requirements of SMEs.

He informed journalists that Pakistani, Middle Eastern and American fund managers have expressed a keen interest in investing in Pakistan through the programme. He said that in the first round of selection, fund managers had pledged $660 million on their behalf as well, apart from the funds promised by the US. He said that some fund managers have been shortlisted out of the total pool of applicants, and they will present a final application for the programme by January 2013. “Two equity funds will start investing in Pakistan by the first or second quarter of the coming year,” Chawla said.

Companies and trade bodies with a net worth of $10-15 million will benefit from the programme, which will provide loans of between $0.5-5 million for their capital needs, said Chawla. He added that private fund managers will be free to identify those sectors and companies they wish to invest in.

“The US’ role will be limited as a partner: it will only ensure that beneficiaries abide by international environmental and social principles, and prevent funds from being diverted to prohibited sectors such as firearms manufacturing,” explained Chawla. He added that the programme does not come with any strings attached, and that the US will place no restrictions on its business activities.

He said the $50 million provided as start-up capital to the equity funds are being provided under Kerry-Lugar funds earmarked for economic cooperation. “These funds have been already approved and are available,” he added. “Returns earned by the funds will be reinvested in Pakistan, which will support growth and help us achieve the objectives of economic cooperation,” Chawla said.

He said that fund managers are willing to match 75% of the funds committed by America, and that the size of each fund will be at least 24 million dollars.

Published in The Express Tribune, December 1^st, 2012.

KARACHI: The Cabinet Division has rejected a summary suggesting that the age limit set for import of used cars be reduced from five years to three years, show documents available with The Express Tribune.

The summary was sent by the Ministry of Industries to the Economic Coordination Committee (ECC) of the cabinet, but the Cabinet Division declared that it was in violation of the rules of business.

The summary supported the stance taken by local car assemblers, who insisted that the increase in used car imports was creating difficulties for them. According to the summary, the increase in the age limit of used cars from three to five years has caused an extraordinary increase in the import of used cars, which has become equal to 37% of domestic production.

The summary stressed that there was very insignificant difference between prices of locally produced cars and imported used cars and thus the objective of providing people cars at economical rates could not be realised.

The summary pointed out that Pak Suzuki Motor Company is working at 61% of capacity, Honda at 25% and Indus Motor at 80%. Indus has 3,000 vehicles lying unsold and Honda has 2,080 unsold cars.

In response, the Cabinet Division, in a memorandum, reminded that recommendations for amendments in the import policy for used cars were beyond the jurisdiction of the Ministry of Industries, saying the matter was dealt with by the Ministry of Trade and Commerce, which had issued the previous notification for increase in the age limit.

The Cabinet Division was of the view that after the bifurcation of Ministry of Industries and Production into two separate ministries, the subject of production of cars had been assigned to the Ministry of Production.

Published in The Express Tribune, October 17^th, 2012.

Bahrain originally imported the sheep from Australia but refused to accept them after finding they were infected, according to Haleem Adil Shaikh, an adviser to provincial chief minister. However, a local importer brought these sheep to Pakistan.

The sheep carry a virus that Pakistan is thus far protected from, according to an emergency letter dispatched to the federal food and security ministry, provincial health ministry, administrator and Karachi commissioner and other relevant departments

The letter recommended that the sheep be quarantined and not be transferred anywhere else before their culling and burial in the present location. A large ditch has been dug at a farm in Razzaqabad to cull the diseased animals.

“The provincial live stock ministry ordered 21,268 sheep which arrived from Bahrain to be culled after laboratory tests showed bacterial presence of salmonella and actinomyces in them,” Roshan Shaikh, an administration official told AFP. The animals arrived some 10 days from the Gulf state of Bahrain, Shaikh said.

“We also ordered them to be culled after receiving report based on laboratory tests,” he added.

The confirmation of the disease came from two ISO certified laboratories, the Sindh Poultry Vaccine Centre Karachi and the Central Veterinary Diagnosis Laboratory Tando Jam.

Authorities were initially considering three possible ways of disposing of the sheep. This included slaughtering them using a safe way, killing them off through lethal injections or killing them in a gas chamber.

The last facility, however, is not available in Pakistan while the injection process is a difficult one, leaving slaughter as the only option.

The commissioner in Karachi sought skilled butchers; however, experts warned him that butchers taking part in the exercise could be contaminated by the virus.

Authorities have therefore invested in safety measures including the use of masks and hand gloves for the butchers.

The administration has also increased the number of police guarding the infectious livestock.

According to Commissioner House sources, the process of disposing of the sheep was to be completed by Sunday so that danger of the infection spreading would be terminated.

Dispelling rumours

The owner of the Pakistan Livestock and Meat Company Muhammad, Tariq Butt has said the National Veterinary Laboratory has confirmed that there is no virus in the sheep.

He said that the federal ministry of food security and research has set up a four-member committee headed by federal secretary to look into the matter.

The committee has collected new samples from the sheep and a laboratory is expected by Monday.

He said that the Sindh livestock department has issued orders to cull the sheep on the basis of reports by the National Veterinary department only. He said that the value of the sheep is more than Rs130 million.

He added that the Australian government has guaranteed that there is no infection in the sheep.

Butt said that Pakistan Livestock and Meat Company will take legal action against the killing of the sheep.

He pointed out that no sheep had died because of the said illness so far and offered to eat the flesh of the animal to prove it was safe to consume.

He warned that the decision to kill the sheep would shake the confidence of investors and have an impact on the agriculture and livestock sectors.

( With additional input from AFP)

Published in The Express Tribune, September 17^th, 2012.

KARACHI: The government has decided to produce diesel instead of generating 100MW electricity from gas extracted from Thar coal, according to an official.

The plan to produce 100MW electricity has been postponed, however, a smaller plant will be set up to generate 10MW to meet electricity demand of the project.

“Expression of interest applications will be sent to the private sector soon,” said an official familiar with the project on Wednesday. The cost of establishing a diesel production plant, estimated between $150 and $200 million, is much less than establishing a power plant to generate 100MW. The proposed plant will have the potential to produce 1,000 barrels of diesel per day.

The Thar coal gasification pilot project has been marred by delays as furnace oil lobbies and the bureaucracy are pressurising the government to shelve the project, official added.

Prime Minister Raja Pervez Ashraf earlier this month released Rs900 million for the underground coal gasification (UCG) project. These funds will be spent on import of infrastructure for generating 10MW and payment of salaries.

Sources said that the process of inviting tenders for the purchase of generators operated by coal gas and other equipment has been being delayed due to massive fluctuation in the import price following the rupee falling to new lows against the dollar.

Sources said that if new tenders for import of generators and other equipment are invited, the plan can suffer another one year delay. Completing the tender process will take three months, three months for import process and another three months for commissioning of the generators.

Published in The Express Tribune, August 23^rd, 2012.

KARACHI: South Korea has become the third new high-value market, after the United States and Japan, that has allowed mango import from Pakistan after approving the country’s quality standards, traders say.

Exporters have started making preparations to send the first mango shipment in the ongoing season.

In a statement issued on Monday, Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association Co-chairman Waheed Ahmed said the Korean market was important because the fruit could be exported through sea route. “It can be a second important destination for sea shipments after Dubai,” he remarked.

The development came after visiting Korean experts approved the quality of Pakistani mango. To assess the quality standards, they visited the hard water treatment facility of Iftikhar Ahmed and Company and Pakistan Horti Fresh Processing Limited.

The fruit treatment facilities were found satisfactory and as per required standards of an importing country.

Waheed gave credit to the efforts of Pakistan Horticulture Development and Export Company, Pakistan’s embassy in Seoul as well as his association for the landmark achievement.

According to him, though Korea imports mango from the Philippines, Thailand, Vietnam and other countries, the unique taste and quality of Pakistani fruit were enough to compete and win a good share in the foreign market.

Less distance between Pakistan and South Korea compared to ports of other lucrative markets would be an added advantage for the exporters, he said.

Consignments could be shipped within 14 days to Seoul, where at least 10,000 to 15,000 tons of mangoes could be exported per year. However, due to absence of marketing and advertisements, exports could remain limited this season.

Waheed asked the state-owned Trade Development Authority of Pakistan to arrange a visit of exporters to South Korea in order to introduce different mango varieties.

In the last three years, Pakistan has got access to the markets of the US, Japan, Jordan, Mauritius and South Korea. Efforts are under way to tap another important export destination – Australia.

Published in The Express Tribune, July 3^rd, 2012.

Gemstone export to India is currently banned, however, this restriction is expected to be removed by the end of this year when MFN Status is implemented to India.

An Indian delegation led by Gems & Jewellery Export Promotion Council Vice Chairman Sanjay Kothari visited Pakistan from June 7 to 12 and met leading traders and Prime Minister Yousaf Raza Gilani to discuss trade in the gemstone sector.

They also visited technical training centres operated by Pakistan Gems and Jewellery Development Company.

Sanjay in an interview with The Express Tribune said that customers on both sides of the border have the similar tastes which makes it the most important sector for mutual trade. Pakistan’s jewellery market is estimated at $10 billion while India’s industry is almost triple at $30 billion.

He said that gems and jewellery industries of both countries have  great hopes to ongoing talks between the governments of the two countries to ease trade restrictions.

Sanjay said that the main purpose of the tour was to identify joint venture possibilities and areas where cooperation can be increased.

India does not produce precious stones but is the global hub of turning raw stones into finished products. 11 out of 12 diamonds produced in the world are processed in India.

He said that in absence of the direct trade between the two countries, transactions are done through indirect routes such as Dubai.

According to Sanjay, the volume of gems and jewellery trade between the two old foes is about $18 million annually. Pakistan is looking to increase trade to $1.5b by 2017.

India has exported jewellery worth $17.7 million to Pakistan in the current financial year so far. This includes $15.38 million worth of gold jewellery, $1 million worth of cut-and-polished diamonds while the rest was fake jewellery.

Meanwhile, gemstones and jewellery worth $1.31 million were exported to India from Pakistan.

The Indian industry is estimated at $30.49 billion while its exports fetched $42 billion in the period under review. Pakistan has the potential to tap one of the largest jewellery market as only 5% of the Indian gems and jewellery industry is formalised.

With growing and strengthening middle class in India, demand for Jewellery, especially branded, is increasing.

The Indian delegation offered to train craftsmen and invited the Pakistani industry to participate in India’s International Jewellery Show which is going to be held from 23 to 27 August in Mumbai. Organisers expect 3,000 visitors and 800 exhibitors at the mega event. 

Published In The Express Tribune, June 24^th, 2012.

KARACHI: Pakistani exporters of potato are facing a loss of millions of dollars as Russia has stopped clearance of consignments after complaining that the potatoes from Pakistan are infected with a disease.

According to potato exporters, the situation demands immediate steps on part of the federal ministries of commerce and national food security and research.

The exporters say the quarantine department of Russia has raised questions over the efficiency of Pakistan’s quarantine department and has threatened to slap a ban on potato imports.

However, the exporters insist that the potatoes are healthy and are not infected with any disease, blaming the Russians for indulging in a propaganda campaign to protect their agriculture sector. They term the allegations a ‘non-tariff barrier’.

The exporters claim that a government laboratory, after conducting tests, has cleared potato of any disease.

A leading exporter told The Express Tribune that Russia permitted extensive imports of potato three years ago when its crop and fields were badly damaged by cold weather. Moscow then tried to introduce the condition of ‘minimum required liquid’ to restrict imports, but still it cleared Pakistani potato to meet its pressing needs.

Last year, a record 100,000 tons of potato was exported to Russia. So far this year, 50,000 tons have already been shipped.

Russia is also importing potato from the US, Israel, Saudi Arabia, France and Egypt, leading to fierce competition.

The cost of imports has also gone high for Russian traders following a fall in the value of the ruble. Imports from Pakistan cost around $445 per ton.

Exporters have suggested that the government invite Russian quarantine experts to visit Pakistani farms, factories and warehouses to check potato quality themselves.

Published in The Express Tribune, June 7^th, 2012.