ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet which is scheduled to meet on Thursday (today) is likely to allow export of goats to Kuwait by relaxing restrictions aimed at enhancing exports which will increase prices of mutton in the local market, besides impacting export of value-added products, sources told Business Recorder.
Sharing the details, sources said the ECC decided to ban commercial export of live animals in its meeting held on July 30, 2013, which was ratified by the federal cabinet. There is a significant demand for sheep/ goats by Al-Mawashi, a prominent livestock importer in Kuwait.
The fulfilment of this demand may further strengthen trade relations of Pakistan and Kuwait beside attracting the foreign investment, introduction of state-of-the-art feedlot systems and creating significant employment opportunities; therefore, the Special Investment Facilitation Council (SIFC) considered the offer of Al-Mawashi of switching over in import of live sheep/ goats from Australia to Pakistan in its 10th Executive Committee meeting held on June 26, 2024, and reconsidered in its 12th meeting held on January 22, 2025 and recommended the Ministry of National Food Security and Research to consider and submit a summary for lifting the existing ban on the export of live sheep/ goats to Kuwait.
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Keeping in view the expected magnitude of foreign investment by Al-Mawashi while enhancing the trade relations with Kuwait and encouraging farmers to rear sheep and goats on a commercial scale, this ministry reviewed the population statistics of sheep/ goats in Pakistan and the current volume of meat export and proposes to exempt ban on the export of up to 100,000 heads of fattened male sheep and goats in a calendar year subject to review the annual quota every year and the fulfilment of following conditions: (i) the sheep/ goats meant for export must originate from the fattening farms having not less than -100- heads of males of sheep or goats(verified by the provinces, where such farms are located); (ii) the male sheep/ goats at the time of export must not be less than one and a half years old, meaning sheep/ goats must have two incisors teeth and weigh not less than 50kg.
The Ministry of Commerce, being the dealing ministry with export and trade of animals, has been consulted and solicited views/ comments. Ministry of Commerce is of the view that allowing export of live animals/ livestock may adversely affect the export of value-added meat and meat products.
According to the Commerce Ministry while the export of livestock, particularly goats and sheep, may increase foreign exchange earnings; however, the following comments from Ministry of Commerce may also be considered before deciding the case: Ministry of Commerce is of the view that it has been pursuing the policy of encouraging export of value-added products including meat from Pakistan in order to fetch foreign exchange. This in view, Pakistan has been able to standardise slaughter houses and Pakistan’s exports of meat products increased to US$ 507 million and finished leather products US$ 631 million during the year 2023-24.
Therefore, allowing export of live animals/ livestock may adversely affect the export of these value added export sectors. It is apprehended that if permission is granted, Pakistan may be foregoing foreign exchange of value-added products by exporting merely live animals. It is important to consider that exporting live animals may generate less revenue in foreign exchange as compared to exporting processed meat products, which involves value addition and can command higher prices in the international market.
The MNFSR has been requested to assess the impact of export of live animals on prices of meat, availability of livestock to slaughter houses, exports of value added meat and value-added leather products and industry of Pakistan.
According to the MNFS&R report for 2022-23, the per capita meat availability in the country was 22.79 kg per annum, slightly below the required 23-24 kg. Additionally, with food inflation at 20 per cent in the third quarter of 2023-24, exporting livestock could further escalate domestic meat prices.
Copyright Business Recorder, 2025
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