Because of the disruptions in maritime trade within the Middle East, Pakistan has begun sending fruits and vegetables to these same countries. The Ministry of Commerce has reported that there have already been six shipments sent from Pakistan to Kuwait, which will act as the redistribution point for goods within this region.
This decision was made in the context of Prime Minister’s direction as well as a successful effort to attain a balance between increasing exports and maintaining comfortable levels of domestic supply. After consulting with Middle Eastern partners, Pakistan received a list of fifty-six (56) types of food products requested by those partners to supply consumers and six (6) types of food products which were determined by local authorities to be commodities required for the consumption of citizens, thereby making them ineligible for export. The remaining 50 types of food products listed had an excess amount of available inventory or supply subject to export. Fruits and vegetables fall under the category of export merchandise.
The success of the development relies on two aspects; first is how the product is delivered (or is delivered to the point of ending). Second, where the facility is the point that receives products, and the point that resends products back into a regional supply chain. Products that have been exported from Oman will come back to Oman through Omani ports, not via an export but via the local supply to the recipient. As a result, exporters seem to be quickly adjusting to new forms of transportation as they begin to conduct more global commerce. They also seem to be finding new more effective and efficient methods of receiving goods after they have been exported in case of disruptions in international supply chain management from ocean shipping.
The Ministry of Commerce’s senior official indicated that the private sector will handle the commercial side of this operation while the Government will provide facilitation and logistics support. Daily meetings are held to discuss developments in relation to the program, indicating that it works as an active trade response instead of a one-time export opportunity. Based on his statement, the Ministry of Commerce assures exporters only surplus goods will be exported; thus, decreasing the potential number of goods sold domestically.
The immediate impact of this development on Pakistan’s fresh produce market is that the demand within the region means that there is a new opportunity for the country and it is pursuing this by taking an organized and strategic approach to its exports. In addition to gaining access to the Gulf markets, Pakistan’s fresh fruit and vegetables are starting to be used in establishing a logistics network through Kuwait and Oman as well as sourcing produce from different countries.
