Advisory bodies of livestock, fisheries dept: Minister urges KCCI to nominate officials for inclusion
This initiative, he stated, would enable KCCI to actively participate in policy-making and contribute valuable input toward future planning and development of the sector.
During his visit to the Karachi Chamber, the minister highlighted the immense investment potential in the livestock and fisheries sectors, describing them as some of the most promising avenues for rapid returns on investment.
'Livestock is the only sector that guarantees a return on investment within six months, something unmatched by any other industry or business,' he asserted. He invited KCCI members to explore this sector, emphasizing its strategic importance for both economic growth and rural development.
Muhammad Ali Malkani stressed the urgent need to shift focus toward aquaculture, particularly as fish stocks in the ocean are rapidly depleting.
'Many businesspeople have already ventured into successful fish and shrimps farming,' he noted.
'We need to expand these efforts and transition toward sustainable aquaculture practices.'
Pointing out the tremendous opportunities in poultry, fisheries, and shrimp farming, he cited neighboring India's success in capitalizing on these areas, which has significantly boosted their exports. In contrast, Pakistan's marine and aquaculture exports remain limited to under USD 500 million annually.
'There is vast untapped potential in these sub-sectors, and with the right investments, we can greatly enhance our export capacity,' he said.
He further encouraged investors to look beyond short-term ventures such as trading in sacrificial animals, and instead consider long-term investments in meat farming and shrimp cultivation.
'The Sindh government is fully prepared to extend technical assistance and all necessary support to investors in these areas,' he said.
'Such efforts will not only help boost exports but also play a significant role in alleviating poverty in rural regions where farming facilities are established.'
Chairman Businessmen Group (BMG) Zubair Motiwala, who participated in the meeting via Zoom, emphasized the need to prioritize and promote fish farming in Sindh, which holds immense potential for employment generation and boosting fisheries exports. He noted that fish farming offers a high return on investment with relatively less effort, provided that adequate water resources, government support, and financial backing are made available.
He pointed out that there are several promising locations in Sindh, including Keti Bunder and other fertile coastal areas, that are ideally suited for establishing fish and shrimp farming facilities.
He stressed the importance of raising awareness about the profitability and potential of fish and shrimp farming, particularly as private investment remains heavily concentrated in the textile sector.
Highlighting the transformative impact such investment could have on the socio-economic conditions of Sindh's coastal population, he urged greater focus and resources towards aquaculture. He expressed confidence in the capabilities of Minister Muhammad Ali Malkani, describing him as a committed and action-oriented leader who is well-positioned to deliver tangible results. In this regard, he recommended that KCCI maintain close coordination and liaison with the Ministry of Livestock and Fisheries to support and advance this important sector.
Senior Vice President of the Karachi Chamber of Commerce & Industry (KCCI), Zia ul Arfeen, while welcoming the minister, underscored the immense yet largely untapped potential of Pakistan's blue economy.
He noted that despite possessing a vast coastal belt of over 1,000 kilometers, Pakistan has failed to fully utilise its aquatic resources.
Marine exports currently stand at a modest USD 350 million, a figure that pales in comparison to countries like India, China, and Vietnam, which have developed strong, export-oriented marine industries.
He emphasised that the livestock sector also holds a vital position in Pakistan's agriculture-driven economy, contributing approximately 14.97 percent to the national GDP.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Is Gold Standard coming back?
Several countries have begun to trade in currencies other than the dollar as the US-led West continues to use punitive sanctions as a foreign policy tool — sanctions designed to throttle trade, strangle fund transfers through the Western controlled SWIFT payment system and freeze assets — physical and liquid assets. This trend has gathered considerable momentum after the US-led West imposed sanctions against powerful countries like Russia and China leading to their decision to strengthen an available forum, Brazil-Russia-India-China-South Africa (BRICS), with its expanding membership (including Iran) which President Trump has openly declared a war against. In recent months' Western attention has riveted on China procuring gold while reducing its investments in US treasuries/bonds by about 300 billion dollars - still a drop in the ocean as China's total holdings of US bonds are over USD 3 trillion, which have suffered a rate decline due to the tariffs announced by President Trump on Liberation Day. This has led to discussions on whether some countries intend to revert back to the gold standard, defined as fixing the price for gold in their local paper currency rather than pegging it to the dollar or the Euro. The gold standard reduced uncertainty in trade with price imbalances between trading countries offset by a balance of payment adjustment mechanism as gold, used to pay for imports, reduced the money supply of importing nations leading to deflation and thereby making them more competitive; while importation of gold by net exporters increased money supply causing inflation and making them less competitive. To put it from a historical perspective, the demise of the gold standard began soon after the end of World War II as the United States emerged as the largest creditor nation in the world. It was initially replaced by what was referred to as the gold exchange standard that allowed the dollar as a reserve currency but exchangeable for gold at the rate fixed by the US – an option that was available to central banks but not to firms or individual firms. Initially, this rate was set at 35 dollars per ounce. However, some countries at the time opted to impose trade restrictions to protect their reserves and exchange rates. French President Charles de Gaulle began reducing the dollar reserves held by the Banque de France (French central bank) and exchanging them for gold at the official rate, which led to a sustained balance of payments crisis in the US culminating in President Nixon's decision on 15 August 1971 to end US dollar convertibility to gold and replace it with a system which allowed for periodic devaluation of the dollar against gold. In December 1971 the US dollar was devalued to USD 38 per ounce, in October 1973 it was further devalued to USD 42.22 and as a measure of the failure of this measure the dollar was then floated. By 1976 October, the US officially changed the definition of the US dollar and references to gold were removed from the statutes. But countries have continued to cite gold as a component of their reserves to this day, including Pakistan. One advantage of the gold standard was that it took control of issuing paper money out of the hands of officials — officials who can be easily manipulated by economic team leaders guided less by economic and more by political considerations — as it allowed the quantity of gold held to act as a limit to further issuance of paper currency, thereby avoiding the threat of inflation. Pakistan as a case in point bears testimony to the misuse of discretionary powers by State Bank of Pakistan, which accounts for prohibitive conditions imposed by donor agencies on monetary policy (discount rate as well as the external value of the rupee). However, it is relevant to note that a 2012 study disabused those nostalgic about the good days of the gold standard after two-thirds of economic historians rejected the notion that the gold standard was 'effective in stabilising prices and moderating business-cycle fluctuations during the nineteenth century' and instead they maintained that the gold standard deepened the 1929 depression. Be that as it may, reserves cited by countries include not only US dollar/Euro reserves but also gold reserves. Today the largest gold reserves are held by the US (8133 tons), followed by Germany 3350 tons, Italy 2451.8 tons, France 2436 tons, Russia 2330 tons and China 2299 tons. On 31 July, perhaps as a countermeasure to reported China's gold purchases, the US imposed a 39 percent tariff on one kilogram and 100-ounce gold bars from Switzerland with immediate effect. The impact was very well argued in a tweet by endgame macro: 'a US Customs ruling reclassified these bars, the exact formats COMEX accepts for delivery, into a tariffed category. That's critical because Switzerland is the world's largest gold refining hub, and a substantial share of the physical gold that underpins COMEX futures flows from there. Within hours of the news, premiums for New York gold futures jumped above the spot price, signalling that deliverable supply into the US market had abruptly tightened. Swiss refiners have already slowed or halted shipments, further compounding the squeeze. At its core, this is about leverage and strategic positioning. The US is applying pressure on Switzerland while giving domestic refiners a direct pricing advantage in kilo and 100 ounce formats. That could lock in a higher New York futures premium, even if global spot prices hold steady. By effectively capping imports of these bar types, the move raises the stakes for COMEX short sellers, whose ability to source bars for delivery just got more complicated. Alternative routes such as shipping 400 ounce bars to London for recasting in the US, or rerouting through non-Swiss refineries will take time, limiting throughput in the interim. The longer game may be less about tariffs for revenue and more about weaponizing the gold market, creating a controlled squeeze in the very bar formats that drive global futures pricing.' Game perhaps was won by China; however, the set has been won by the US but the match is still to be played out between the two competitors focused on domination of the global economy. Pakistan as a case in point has dollar reserves of around 14 billion though rollovers alone are USD 16 billion and gold reserves of 64.75 tons against India's dollar reserves of over 700 billion and gold reserves of 880 tons. There is a long way to go for Pakistan to catch up and requires more than a decade of sustained growth backed by in-house out of the box policies that will reduce the country's indebtedness in the power sector (requiring comprehensive macro-policy decisions instead of micro decisions that are continuing) and a tax structure designed to be fair, equitable and non-anomalous rather than simply focused on raising total collections. Copyright Business Recorder, 2025
Business Recorder
an hour ago
- Business Recorder
Defying gravity: why SBP must hold its ground
There is growing pressure on the central bank from the authorities in the twin cities to lower interest rates and simultaneously appreciate the exchange rate. Meanwhile, the State Bank of Pakistan is working hard to build foreign exchange reserves by buying from the market. In economic theory, these three objectives are impossible to achieve simultaneously, and any forced effort could lead to another crisis. According to one of the most senior bankers in the country, they are trying to defy gravity. The PKR has slightly appreciated against the USD in recent weeks, while authorities are attempting to control exchange rate stress through negotiations with exchange companies and banks. However, this is not the right strategy and may not be sustainable. The PKR/USD exchange rate was 284 in March 2023, and after more than two years, it stands at 282. There has been no depreciation in the currency during this period, mainly due to the SBP increasing the policy rate to 22 percent and maintaining positive real rates for most of the time. This attracted capital to the PKR and reversed capital flight. This policy also reduced the demand for currency in circulation (CIC), which fell to zero in FY24 but has recently started growing again at worrying levels. The incentives to keep PKR in banks are decreasing. Like water, capital finds its way. When real rates were positive, there was no incentive for companies to build inventories or for traders to hoard commodities like sugar and wheat, which helped tame inflation and stabilize the currency. However, as the SBP halved the rates, CIC has begun growing again at a faster pace. Foreign currency availability in the open market has almost dried up. Non-essential economic demand has started picking up, and there are signs of commodity hoarding by traders, which may lead to price spikes in the future. The SBP's decision to keep the policy rate unchanged in the last review was prudent. In the interbank market, banks manage their supply and demand for foreign exchange. Banks adopted a strategy of attracting home remittances by offering a premium, competing with each other and diverting flows from the informal market. This is why remittances broke all records last year, supported by a government subsidy. The subsidy allocated in FY24 was around Rs 80 billion, while banks billed around Rs 200 billion. The subsidy was rolled back in FY25. The SBP has altered the incentive structure and is urging the federal government to restart the subsidy. So far, banks are unclear about the subsidy's fate. Despite the subsidy, banks incurred losses in the remittance business. Large banks reported losses between Rs 5–10 billion in the first half of CY25. Senior executives from several banks conveyed that they are unwilling to incur further losses, even as import demand grows. This suggests banks might become selective about opening Letters of Credit (L/Cs), as they were in FY23, if the central bank does not adopt the right policy measures. Multiple implied exchange rates exist, with banks and exchange companies offering varying rates to clients, which could exacerbate the situation. The SBP must assert its independence in managing the exchange rate and monetary policy. It should not cater to pressures for currency appreciation. The hard-earned stability, built by buying $12–14 billion over the last eighteen months, could be squandered away quickly. It is best to let market forces determine the currency's value. If the central bank desires a stronger currency, it must keep real interest rates significantly high. If the goal is to lower interest rates, the currency should serve as the first line of defence. The objective must be to avoid a repeat of the 2022–23 crisis, whose memories are still fresh. The SBP should maintain clear policies and provide forward guidance. The finance minister should refrain from making public comments on interest rate levels and instead focus on creating a conducive environment for lower rates through steps aimed at achieving greater fiscal consolidation. The bottom line: interest rates have already been halved within a year, and the impact on demand and currency is evident. The SBP should continue to monitor data and maintain high real rates until capital flows, such as investment and market-based debt, start to pick up. Copyright Business Recorder, 2025
Business Recorder
an hour ago
- Business Recorder
Upward momentum
KARACHI: Pakistan rupee continued its merry run against the US dollar in the inter-bank market as it gained Re0.41 or 0.14 percent during the previous week. The local unit closed at 282.06, against 282.47 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP). The rupee has maintained a positive trajectory against the greenback in recent days on account of improved sentiment in the currency market amid an ongoing crackdown by law enforcement agencies against illegal currency dealers and smugglers. During the previous week, Moody's Ratings (Moody's) upgraded Pakistan's local and foreign currency issuer and senior unsecured debt ratings to Caa1 from Caa2. The global rating agency also upgraded the rating for the senior unsecured MTN programme to (P)Caa1 from (P)Caa2. Finance Minister Muhammad Aurangzeb signalled potential easing of Pakistan's policy rate later this year, noting slowing inflation and stable economic indicators. Meanwhile, foreign exchange reserves held by the SBP increased by $11 million on a weekly basis, clocking in at $14.24 billion as of August 8. Total liquid foreign reserves held by the country stood at $19.49 billion. Net foreign reserves held by commercial banks stood at $5.25 billion. Open-market rates In the open market, the PKR gained 36 paise for buying and 35 paise for selling against USD, closing at 283.50 and 284.55, respectively. Against Euro, the PKR lost 2 paise for buying and 11 paise for selling, closing at 330.12 and 332.31, respectively. Against UAE Dirham, the PKR gained 11 paise for buying and 10 paise for selling, closing at 77.18 and 77.45, respectively. Against Saudi Riyal, the PKR gained 12 paise for buying and 15 paise for selling, closing at 75.41 and 75.70, respectively. ========================================= THE RUPEE ========================================= Weekly inter-bank market rates for dollar ========================================= Bid Close Rs. 282.06 Offer Close Rs. 282.26 Bid Open Rs. 282.47 Offer Open Rs. 282.66 ========================================= Weekly open-market rates for dollar ========================================= Bid Close Rs. 283.50 Offer Close Rs. 284.55 Bid Open Rs. 283.86 Offer Open Rs. 284.90 ========================================= Copyright Business Recorder, 2025
