Pakistan targets $195 million through kinnow export this year

This file photo shows a Pakistani worker sorting kinnow (mandarin oranges) at an orchard in the agricultural town of Bhalwal on Jan. 18, 2010. (AFP)
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Updated 13 December 2019
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Pakistan targets $195 million through kinnow export this year

  • Last year, the country earned the highest export revenue of $222 million by exporting 370,000 tons of the fruit
  • Lack of new varieties, declining quality, and absence of quarantine protocol posing major export challenges

KARACHI: At the advent of the new kinnow season, Pakistan has reduced its export target for the fruit by about 70,000 tons, citing tough competition in the international market and deteriorating quality of citrus in the country, exporters said on Friday.
“Export of kinnow from Pakistan has started and we have set a target of 300,000 metric tons that will help generate $195 million in revenue,” Waheed Ahmed, Patron-in-Chief of All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), told Arab News.
Pakistani firms expect kinnow production of 2.2 million tons during the current season and will export 20 percent of it.
Punjab is the center of production and supply of citrus fruits where about 85 percent of the citrus production area is covered by kinnow variety followed by Musambi (10%), Fruiter (4%), Blood Red (1%).
Last year, Pakistani exporters set a target of 350,000 tons, though they ultimately sold 370,000 tons and generated $222 million in export revenue for the country.
While they acknowledged that they had earned record revenue in 2018, exporters said their losses were also record high due to stiff competition in the Russian market.
“The target has been slashed because exporters had to suffer huge financial losses of up to $6 million in the Russian market. Exporters were shy of taking risk this time and reduced the target by 50,000 tons,” Ahmed said.
“No new markets are included as the export destination this year,” he continued. “Until the Food Security Department resolves the issue of quarantine with Thailand and other countries, new markets cannot be tapped.”
Due to the serious issues of quality, the PFVA is abiding by a self-imposed ban since 2014 on export of kinnow to Europe, a big market for the Pakistani fruit.
The European market would offer better price for Pakistani kinnow compared to other conventional international markets, if the country’s resumed exports increased by 50 percent, said the PFVA chief.
Exporters say the country has not introduced new varieties of kinnow for decades and the existing varieties had exhausted. They also point out that other countries had developed many varieties of the fruit.
“We need to develop at least three to four new varieties, including seedless citrus with enhanced shelf life. We need to enhance the cultivation area as well,” Ahmed noted.
Exporters say the existing kinnow orchards have already completed their life cycle and do not have adequate resistance to protect against the effect of climatic changes and diseases, raising serious quality issues.
“With improved quality and shelf life, the country can earn $1 billion in five years,” Ahmed said. “This can be achieved with extensive research and development (R&D). Otherwise, the existing export of citrus fruits would be badly affected.”
He also called for the resumption of exports to Iran which discontinued nine years ago, resulting in the loss of $40 million per annum.
“Pakistan can export around 80,000 to 90,000 tons of kinnow to Iran,” Ahmed said, questioning the wisdom of allowing import of tomatoes from Iran but not availing the opportunity of exporting kinnow to that country.


US company eyes hydropower projects as Pakistan plans private-led power generation

Updated 7 sec ago
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US company eyes hydropower projects as Pakistan plans private-led power generation

  • The power minister tells GE Vernova it can serve as a strong technical and investment partner
  • He highlights reforms in the country’s power sector as Pakistan moves to a market-based model

ISLAMABAD: United States-based energy company GE Vernova on Monday expressed interest in expanding investment in Pakistan’s hydropower sector, an official statement said after a meeting between the company’s hydro division chief and the country’s power minister.

GE Vernova is GE’s dedicated energy company that focuses on power generation, grid technologies and renewable energy, including hydropower, wind and solar technologies, battery and energy storage systems, grid modernization and transmission solutions.

The meeting between the company’s hydropower chief, Frederic Ribieras, and the Pakistani minister, Sardar Awais Ahmed Khan Leghari, came as the country shifts toward a market-driven power sector in which private developers will lead future generation projects.

“Mr. Ribieras expressed interest in hydropower technologies,” the power ministry said in its statement. “The Minister supported this interest and said a list of potential investment projects can be shared with GE Vernova.”

Leghari told the GE Vernova official that the government wanted the private sector to take the lead in the sector and would not procure power in future.

He maintained the US company “can serve as a strong technical and investment partner.”

The minister said Pakistan was pursuing a least-cost energy strategy and had recently reached nearly 56 percent clean energy generation.

He highlighted transmission constraints and urged global investors to explore business-to-business opportunities, adding that the country needs battery-energy storage systems to support wind-power integration.

According to the statement, Ribieras proposed pumped-storage hydropower as an option, with the minister saying the government was open to reviewing all least-cost solutions.

He also highlighted the ongoing reforms, including the planned privatization of electricity distribution companies, and said GE Vernova’s expertise could support initiatives such as advanced metering infrastructure.