Muhammad Asad Tahir Bhawana

Despite having a significant edge in quality of citrus fruit and mango over other countries, Pakistan’s share in exports to China remained a mere 0.01% of the total $1.2 billion worth of imports Beijing made of these fruits in 2020. Several factors could explain this lower-than-potential export figure, including the “absence” of sanitary and phytosanitary measures, as well as Pakistan’s inability to comply with tariff and non-tariff requirements.

China, currently the second-largest food importer globally after the United States, imported approximately $12 billion worth of fruits in 2020. This position has been achieved due to substantial growth in per capita income, which has fuelled consumerism in China. The demand for fruit within the country is experiencing exponential growth. Between 2016 and 2020, Chinese fruit imports witnessed a 23% increase, ranking third globally, after the US and Germany.

Pakistan has yet to fully tap into the opportunities in the Chinese fruit market. To successfully enter this market, Pakistan needs to have rigorous quality checks and well-established logistics systems that adhere to the desired safety standards for fruit production and transportation. Citrus fruit constitutes a significant sector, accounting for 40% of Pakistan's total fruit production. Citrus is the leading export fruit as its exports earned Pakistan $205 million in 2021. Pakistan exported 536,000 tonnes of citrus fruit during the year.

Pakistan exports approximately 17% of its total citrus production, with Afghanistan receiving 27% and Russia receiving 23% of these exports. However, Pakistan's citrus exports to China were only 80 tonnes in 2020. Pakistan has been actively working on implementing the necessary sanitary measures required by China to increase citrus exports to Beijing. Annually, Pakistan produces over 1.7 million tonnes of mangoes at an average growth rate of 4.4%. In 2022, mango exports amounted to $104 million, with the United Arab Emirates being the largest importer, followed by the United Kingdom and Afghanistan.

However, when it comes to mango exports to China, Pakistan's share is less than 0.5% of its total mango exports and only represents 0.3% of China's mango imports. Specifically, Pakistan exported 37 tonnes of mangoes to China in 2020, 37.42 tonnes in 2021 and 23.95 tonnes in 2022. Despite having favourable tariff conditions in the Chinese market, Pakistan's export performance falls significantly short of its potential. One advantage Pakistan possesses is the seasonality of its mangoes.

As mangoes from Southeast Asia are not available in the market from May to September, which coincides with the Pakistani mango season, Pakistan has an opportune time to capture the Chinese market. China consumes a considerable portion – one-fifth – of the world's mangoes, and Pakistani mangoes are renowned for their unique taste, presenting a potential for rapid market penetration in China.

While the Hainan province of China and other Southeast Asian countries supply mangoes from January to May, Pakistan's mango season runs from May to September, providing a strategic positioning with minimal competition during that period. In developed markets, the demand for Pakistan's citrus fruit is diminishing due to the increasing availability of seedless varieties. Pakistan exports citrus fruit worth $196 million worldwide but has no significant share in China's $137 million citrus market.

Overall, Pakistan's citrus exports to developed countries only account for a modest 2.6% share. This is largely attributed to the preference of consumers in developed countries for seedless citrus varieties, which now make up 61% of global citrus exports. Pakistan's efforts to expand horticulture exports to China are hindered by various barriers, including inadequate value chain infrastructure and quality control processes.

The export of high-quality mangoes and citrus faces challenges related to food safety, inconsistent quality, certifications, marketing, and fruit fly infestation. A key challenge is the lack of infrastructure and resources available to farmers and other stakeholders involved in maintaining quality standards throughout the mango value chain. The absence of well-defined standards and grades within the mango industry exacerbates this issue.

Credit: INP-WealthPk