This document discusses Pakistan's poultry industry. It notes that the poultry sector contributes significantly to Pakistan's agriculture GDP and employment. Some key facts presented include that Pakistan's poultry industry is worth over 1 trillion rupees annually and employs over 1.5 million people. Per capita meat and egg consumption in Pakistan is lower than international standards. The document also outlines several issues facing the poultry industry, such as high production and export costs. It concludes with recommendations to address these issues like reducing taxes, providing export subsidies, and considering industrial needs in trade agreements.

1. Prof. Dr. Rana Muhammad Ayyub
PhD Marketing (UK), DVM, M.phil.
UVAS Business School
Shaping export friendly
policies for Poultry industry of
Pakistan

2. Livestock Subsector of Pakistan
1.The agriculture sector of Pakistan is considered
backbone of economy and it contributed 22% of GDP
of Pakistan
2. Livestock is the subsector of the agriculture sector
which contribute 60% to the agriculture GDP.
3. The Livestock subsector comprises of various
industries including Poultry, Meat, Leather and Dairy
industries etc.
Economic Survey of Pakistan 2020

3. Poultry Industry
Poultry farming is the form of animal
husbandry which raises domesticated
birds such as chickens, ducks, turkeys
and geese mainly broiler to produce
meat or eggs for food.

4. • Commercial Poultry in Pakistan was established in 1962.
• Presently turnover of Pakistan Poultry Industry is about 1,082 Billion
rupees.
• Poultry sector generates employment and income for about 1.5
million people of Pakistan directly & indirectly.
(Source: Pakistan Poultry Association, 2020)
Facts About Poultry Industry of Pakistan

5. • Poultry sector is one of the most organized sector of Pakistan. Its growth rate is
10-12% per annum.
• At present over 190 billion rupees worth of agriculture produce and by
products of agriculture are being used in poultry feeds.
• There are over 15000 poultry farms spread deep into the rural areas across the
country from Karachi to Peshawar.
• Capacity of modern farms range from 5,000 to 500,000 broilers.
(Source: Pakistan Poultry Association, 2020)
Facts About Poultry Industry In Pakistan

6. • Marketing channels of broilers and eggs are predominantly in the unorganized
sector.
• 40-45% of the total meat consumption is being procured from poultry products.
• Poultry Slaughterhouses, Processing/Value Addition in organized sector is 5-
6%
• In our country per capita consumption of meat is only 6.61 kilo grams and 88
eggs annually.
• Whereas developed world is consuming about 40 kilo grams meat and over
300 eggs per capita per year.
Facts About Poultry Industry In Pakistan

7. • As per standard of World Health Organization, daily requirement of animal protein for a
person is 27 grams whereas public is consuming 17 grams only.
• Therefore, we are already consuming less animal protein as per required standards.
Pakistani consumed 6.61 Kg of meat and 88 eggs yearly
• Around 1,322 million Kg of chicken meat and 17,500 million table eggs were produced
in Pakistan
• Developed countries data showed increasing meat demand but at a slower rate due to
fact that they have already reached the saturation level than that of developing world.
(Source: Pakistan Poultry Association, 2020)
(Economic Survey of Pakistan, 2020).
Poultry Production & Consumption

8. (Source: FAO, 2020)
Meat production in Developing and Developed Countries

9. (Source: Economy survey of Pakistan, 2020)
The estimated production of commercial and rural poultry products in
Pakistan

10. Projected food consumption trends of Livestock products

11. Per capita meat consumption and income, by country, 3 year average centered on 2010

12. Per capita meat consumption (Kg) 1983-2020

13. A comparison of different types of meat commodities in Pakistan

14. • Poultry meat contribution 28% of the total meat
production in Pakistan and
• Poultry sector has shown a robust growth at the rate of 8
to 10 % .
• Pakistan broiler industry is one of the technologically
advanced industry. That is the reason, this broiler meat is
also being exported.
• Previously, Gulf countries Like Saudi reopened it
Potential of Poultry industry in Pakistan

16. Category-wise meat imports in the region

17. Issues Faced in Production of Poultry
1. The cost of production of poultry and its products is very high in Pakistan.
2. Locally, poultry stakeholders have to face legal, tax, procedural and administrative hurdles
in poultry production.
3. Turn over tax for poultry was required to reduce from 0.5% to 0.25% but still turnover tax
is 0.5%.
4. Poultry and its products exempted from levy of sales tax but still charge sales tax on
electricity bill that increase the cost.
Problem Being Faced In Poultry Industry

18. Issues Faced in export of Poultry
1. Free trade agreement is under process, but the local stakeholders are not taken into
confidence for setting the modalities.
2. To increase export of poultry meat and eggs to a neighboring big Chinese market, there is
no freight subsidy.
3. The facility of tax refund for poultry export is also missing.
4. Many products from poultry industry, such as wings and panjass, are smuggled to China
through Vietnam, these malpractices are neither in favor of producer.
5. Worldwide, there are subsidies on export of processed chicken, but in Pakistan there is no
provision of subsidies.
6. Non-stunning slaughter in Pakistan increase cost by 8.5% and lack of processing plants of
an intending exporters.
Problems Being Faced In Poultry Industry

19. Issues Faced in Import of Poultry
1. Heavy imports duties (up to 60%) are imposed on crumbs, coatings, spices to
be used on nuggets, which increase the cost.
2. Pakistan can import from any producer who is the cheapest and not
necessarily who meets the standards of quality, that result in erosion of our
capacity utilization.
3. Grandparents, though being seeds have been taxed. The imported raw
materials, have been subject to an additional import duty of five percent.
Problem Being Faced In Poultry Industry

20. 1.Adequate measures should be taken to reduce the cost of production.
2.The export subsidy should be extended to processed (frozen)
chicken.
3.The turnover tax should be reduced from 0.5% to 0.25% to make this
industry competitive.
4.The sales/WHT tax on import of various vegetables protein sources
(e.g. Millet meal, linseed Meal, Sesame seed meal, Coconut meal
and other vegetables protein meals) should be exempted.
Recommendations

21. 5. The sale tax on electricity bills and WHT tax should be exempted
on poultry and its products.
6.10% import duty imposed on Seeds of chickens and 30% Regulatory
duty on import of Corn is withdrawn.
7.While signing bilateral trade agreements with others countries like
China and Malaysia etc. must kept in mind that our industrialists
must be relaxed as per their requirements regarding processes and
products. Needs a careful analysis of involved production procedures
and cost effectiveness.
Recommendations

22. Thank You