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Advisory / BIOTECHNOLOGY

Economical Application of Biotechnology

Biology in this century has become an information science. Many programs and initiatives underway at major research institutions and leading companies are already giving shape to this assertion. The guru of information technology, Bill Gates, has commented that the two technologies that will shape this century are biotechnology and information technology. Genetic modification has a major impact on our biological sciences and our ability to progress a biology-based knowledge economy. Pakistan is a nation of biologists, and physicists. Our ability to exploit the knowledge and expertise we have built up in the agricultural, medical and computer fields will be determined by the extent to which the strategy we choose is based on science or politics.

This year in the 10th Comstech general assembly meeting at Islamabad; The President Pervez Musharraf at the inaugural session had appealed to the Islamic countries to declare "Jihad-i-Akbar" for the uplift of science and technology by generously contributing for creating a multi-billion dollars fund. The meeting approved 15 projects in Pakistan including “Chloroplast Transformation to Develop Biosafe Transgenic Plants”, “Cloning, Over-expression of Sopmato-tropin and its use as a Lactogenic Agent in Indigenous Buffalo Breeds”, “Identification and Cloning of Inherited Alopecia, Ectodermal and Nail dysplasias Genes”, while setting up of Biotechnology departments like- Biosaline Agriculture (INBA) in UAE, Information Technology (INIT) in Islamabad and renewable energy in Sudan.

Biotechnology and Agriculture

The Green Revolution ushered in the late 1960s has transformed some countries from a food-grain importer to a self-sufficient one. However, with our burgeoning population having already crossed the 150 millions mark, the achievements of the Green Revolution are unlikely to be sufficient. Injurious but common farm practices have damaged the cultivated land through water and wind erosion, compaction, salinization, and water logging. Our forest cover is a sad mismatch of desirable levels and actual ground realities. Over-tillage rapidly depletes prime agricultural lands and today little quality land is available to increase the area under farm production. It is therefore not surprising to learn that Pakistan will need to import an estimated 10-12 million tones of food-grains to meet its basic requirement of food by the year 2050.  There is little doubt that agricultural research will have to be rejuvenated to meet the increasing demands of farm production. To achieve this, there will have to be a paradigm shift from the methodologies held in the 1970s and 1980s. Radical changes will have to be made even in the thought processes that plan the needs of the new century. Conservative and obsolete policies drawn for an older era will have to give way to realistic measures reflecting the urgency of the demand for technological breakthroughs. The success of the Green Revolution of the earlier decades will now have to be repeated through a Gene Revolution. Biotechnological interventions can play a vital role by not only increasing crop productivity but also taking care of the increasing threat of biotic and abiotic stresses on crop plants.

Agricultural biotechnology offers efficient and cost-effective means to produce a diverse array of novel, value-added products and tools. It has the potential to increase food production, reduce the dependency of agriculture on chemicals, and lower the cost of raw materials, all in an environmentally friendly manner.

The initial phase of a revolution in agriculture has already occurred. Large areas of genetically modified (GM) crops of soybeans, maize, cotton, and canola have been successfully grown in the Western Hemisphere. In the United States in 1999, of the total of 72 million acres planted with soybeans, half were planted with GM herbicide-resistant seeds. When herbicide-resistant seeds were used, weeds were easily controlled, less tillage was needed, and soil erosion was minimized. The total global area under cultivation with transgenic crops as of 1999 was 98 million acres, while by year 2001, it have been cultivated on 125 million acres (ISAAA). The commercialisation of other Bt crops such as canola, cotton, and maize is in progress in several countries including Asian countries such as India and China.

Between 1996 and 1999, eight countries, five industrial and three developing, have contributed to more than a 15-fold increase in the global area of transgenic crops. Adoption rates for transgenic crops are some of the highest for new technologies by agricultural industry standards. High adoption rates reflect grower satisfaction with the products that offer significant benefits ranging from more flexible crop management, higher productivity and a safer environment through decreased use of conventional pesticides, which collectively contribute to a more sustainable agriculture.

The main objectives of creating transgenic plants are attempts to engineer metabolic pathways for the production of tailor-made plant polymers or low molecular weight compounds, increased resistance towards pathogens and pesticides, improved food quality, and the production of polypeptides for pharmaceutical or technical use. Plant-made vaccines or antibodies are especially attractive as plants are free of human diseases, reducing screening costs for viruses and bacterial toxins.

World Market Scenario

Pakistan can take lessons from the growth of America's biotechnology industry; which has resulted from a remarkable combination of entrepreneurship, innovative capital markets, and federal research investments. The United States, Australia, and China lead the world in biotechnology, which is contributing to their strong economic growth and creating substantial improvements in quality of life.

The biotechnology industry has grown rapidly, doubling in size from 1992 ($7 billion in revenues) to 2000 ($25 billion). There are more than 350 biotech drug products and vaccines currently in clinical trials targeting more than 200 diseases, including various cancers, Alzheimer’s disease, heart disease, diabetes, multiple sclerosis, AIDS and arthritis. While consumers around the world are already enjoying biotechnology foods such as papaya, soybeans and corn, and hundreds of bio-pesticides and other agricultural products are also being used to improve our food supply and to reduce our dependence on conventional chemical pesticides.

Biotechnology Industry Report 1992–2000

*U.S. dollars in billions. Source: Ernst & Young LLP, Annual Biotechnology Industry Reports, 1992–2000.

The US biotechnology industry had a strong year in 1998-2000 in terms of raising revenues to fund research and product development. According to the Biotechnology State of the Industry Report the industry raised a total of Rs. 366.00 billions in 1998-2000. There are 1,379 biotechnology companies in the United States, of which 339 are publicly held. In 1998-2000 the industry generated revenues of over Rs.120.00 trillion, spent Rs. 85.2 trillions on R&D, and employed over 160,000 highly-skilled workers. Most biotech companies are fairly small, with two-thirds of firms having fewer than 135 employees.

While New Zealand spends Rs. 3.5 billions per year on biotechnology related research. This is small compared to other countries around the world; which are investing heavily in the biology revolution. Singapore is spending Rs 7.2 billions per year, while Germany, regarded as a GMO sensitive country is spending Rs. 70.5 billions per year. The United Kingdom is has invested Rs. 1.7 trillions in the biotechnology market.  Biotech investors often wait years to receive investment returns since it typically takes over 7 years and Rs. 10-12 billions to bring a new biotech drug to market. Although the agriculture time line is shorter it still takes about 6 to 7 years but costs much less. Therefore, the encouragement of risky and long-term capital inflows from investors is important to the continued health of the industry.

European dedicated biotech companies tend to be much smaller than their North American counterparts. Employment in the sector had reached 61,000 in Europe by 2000, but in the US the figure was 174,000. American biotech businesses also grow bigger and are more mature than European bio-companies; which are multiplying fast, but are still at the fledging stage.

Economical Applications for Pakistan

Agricultural innovation has always involved new, science-based products and processes that have contributed reliable methods for increasing productivity and environmental sustainability. The set of techniques commonly referred to as biotechnology has introduced a new dimension to such innovation.

Pakistan is an agriculture base state, it covers a total area of 19,671.63 million acres, of which 5,411.49 million acres are cultivated. The irrigation system to support this cultivation is one of the largest in the world. The major “Kharif’ crops are rice, cotton and sugarcane and the main ‘Rabi’ crops are wheat, potatoes, rape seed and mustard. Minor crops include tobacco, pulses, potatoes, onion, chillies, and garlic. Agriculture remains the dominant sector of the economy and accounts for about 24 percent of GDP, half the employed labor force, and a large share of foreign exchange earnings.

Bt Cotton

Pakistan is the world's fourth largest producer of cotton after China, the USA and India, according to statistics from the All Pakistan Textile Mills Association. Cotton and textiles make up over 60 per cent of Pakistan's Rs. 488.00 billion annual export.

Cotton or white gold as it is aptly called is grown for its lint and seed, which yield cotton fiber and seed oil, respectively. This crop occupies 70-75 millions acre of world area with a production of 20-25 metric tones. In Pakistan its area spans over 12-14 millions acre with an average yield of 485kg/acre or 210kg/hectare of lint and 500kg/acre of seed cotton. To meet the challenges of this century with a population of more that 140 million, a total production of 12 million bales is required as against the 7-8 million bales of today. This can be achieved by the use of improved crop production practices coupled with appropriate pest management tactics. In addition, generation of novel. Bio-technology can help to achieve the near impossible. Genes that have been identified as potentially profitable, if engineered into acceptable cultivator methodology can be used to generate such transgenic. Among these are genes imparting resistance to herbicides, insects, pathogens and biotic stresses. It is also widely accepted now that a number of other qualitative characters can be improved, such as fiber strength, fineness, color and thermal adaptability of the fibre.

Pakistan offers a rapidly expanding market for insecticides and pesticides. The total market has expanded from Rs. 7.20 billions ($120m) in 1990 to Rs11.00 billions ($184m) in 2000. By the introduction of the Bt cotton in Pakistan could result in a 45-55 per cent reduction in insecticide use on cotton (Which is 85per cent of Rs11 billion). This would mean a benefit of about of about Rs 4.2 to Rs 5.40 billions apart from the favorable impact on the environment and increase in cotton yield.

In Pakistan, average yield of conventional cotton per acre is around 25-28 maund or 933 kg-1,044 kg. Bt Cotton in Pakistan can increase per acre yield from 14 to 30 per cent. Which means that, on the one hand, it will bring prosperity for Pakistani farmers, on the other, it will bring a boom to all industries and business activities which are directly or indirectly associated with agriculture sector.

Bt Rice:

Bt Rice will reduce yield losses caused by caterpillar pests, the most important of which are the yellow stem borer, in Pakistan and other parts of Asia and the striped stem borer, in temperate areas. Average yield losses to stem borers in Asia are often estimated at 5%, and vary from region to region. In some areas, stem borers are among the major constraints on yield, while in others they occur at levels too low to cause yield loss. Similarly in Pakistan a bacterial disease “Blight” reduce substantial yield in Basmati rice which causes economical loses about Rs. 1.5 billions annually

In Pakistan average yield of conventional rice per acre is around 30 – 45 maund or 1,235.00 – 1,852.00 Kg. Bt Rice in Pakistan can increase per acre yield from 20 to 30 per cent. By the introduction of the Bt rice in Pakistan could result in a substantial reduction in insecticide use on rice and better control over disease like Stem Borers and Blight. This would mean enormous benefit to rice growers and whole economy, apart from the favorable impact on the environment and increase in rice yield.

Biofuel:

Another growth area in this century will be the development of alternatives to non-renewable resources especially fossil fuels. Biotechnology will provide answers through modified enzymes and microorgamisms that can turn abundant biomass into feedstocks for the production of synthetics, plastics, polymers and bio-fuels like Ethanol and

Biodiesel.

Growth in the ethanol industry offers enormous potential for overall economic development and additional employment in these smaller communities. In Pakistan it is estimated that 400 million litres ethanol production facility can create 5000 - 6000 local jobs. The processing of grains for ethanol production can provide an important value-added market for Pakistani farmers, helping to raise the value of commodities they produce. Pakistani agriculture faces some of the toughest times in recent history.

Therefore, production of ethanol can spark new capital investment and economic development in rural communities across Pakistan as well.

There are a number of benefits to producing and using bio-fuels aside from the transportation fuel supply issue. First, bio-fuels are produced domestically, and the feed-stocks for them are grown domestically. This helps reduce our country's trade deficit and creates jobs in our country, both of which are good for our economy. Our agricultural community especially stands to benefit, since bio-fuels are made from crops and agricultural residues, providing options for new valuable crops and new uses for existing crops and residues. Producing our fuel domestically also improves our energy security; we become less dependent on the strategic, political, and economic whim of other countries. Our country's heavy reliance on imported oil is becoming a serious energy security issue, and it is clear that our vulnerability will get worse with time. Key among the reasons for rising oil imports is the limited domestic resource base of crude oil. Producing and using bio-fuels is much better for the environment than burning fossil fuels. Bio-fuels produce fewer harmful emissions during production and combustion and they contribute virtually no carbon dioxide to the atmosphere, which is very important for reducing the build-up of greenhouse gases.

Biotechnology has tended to favour the industrialized world, where most of the research is concentrated.

In Pakistan number of “Mujahads” like - Dr Anwar Nasim, Chairman National Commission on Bio- Technology, Dr Kausar A Malik Bioscience Pakistan Atomic Energy Commission, Dr. Sheikh Riazuddin Director of Centre of Excellence in Molecular Biology, Dr, Zahoor Ahmad CEMB, and Dr Yusuf Zafar of National Institute of Bio Technology and Genetic Engineering (Nibge) are participating in this jihad since 1990’s and working hard to put biotech tracks in the country. Unfortunately progress in Pakistan is hindered by number of reasons like inadequate funding/ lack of human resources, restricted information, poor higher education, weak links between universities and research institutions, lack of appropriate legal regimes, little private sector involvement, while the major hamper which is prohibiting biotechnology to flourish in our country is “The Ministry of Environment” which is holding bill of Biosafety guidelines from more than one year. Such a obstruct will stop direct foreign investment and development in our country while our country would be remain for behind in this emerging technology.  

Conclusion

Our collective and unique knowledge in the agricultural area gives us an enormous opportunity to leverage the money being spent by other nations in biotechnology. Much of our knowledge is derived from years of observation on the farm and it would be difficult for others to compress this data gathering into a short time frame.  Pakistan can gain economical benefits from biotechnology projects in number of ways. Firstly, they provide employment in the agriculture, health, energy and manufacturing sectors. Secondly, there is likely to be some downstream processing which adds value to the product before it leaves Pakistan, providing skilled employment, adding to our pool of knowledge and to our production infrastructure. Thirdly, where the intellectual property is held in Pakistan we can use it in a way, which is most appropriate for us. Hence this illustrates the breadth and implies the positive potential of biotechnology for our economy.

 By Ijaz Ahmad Rao