Daily Times

The foundation of Pakistan’s economic development is dependent on the strength of animals and agriculture owing to its fertile soil and long tradition of cultivation.

The livestock sector constitutes a strong base for the country’s economy; supporting its material prosperity, food security and livelihood of rural communities.

In 2022-3, livestock made up the largest share and contributed 62.8 percent to value addition in the agriculture sector and 14.36 percent of the GDP. Over eight million rural families in Pakistan depend on the livestock sector and earn 35-40 percent of their income from this sector.

Rural communities throughout Pakistan depend on livestock farming as their major source of income. The rural economy benefits from the subsequent agribusinesses and has been rejuvenated following a spike in employment opportunities that include animal husbandry, fodder cultivation and veterinary services among others.

Over eight million rural families in Pakistan depend on the livestock sector.

In Budget 2024-5, the Government has proposed the commodity be removed from the list of zero-rated products, which are not taxed.

Meanwhile, industry representatives have expressed apprehension that the standard 18 percent tax status (GST) will have severe implications for businesses and cause significant damage. The price of a one-litre container of tetra-pack milk would rise from Rs 300 to Rs 350-360 after the imposition of GST.

Pakistan is facing a crisis of malnutrition, and its under-five mortality rate was 137 for every 1,000 births, which is very high by international standards.

According to the National Nutrition Survey, 40 percent of children in Pakistan are underweight and over half of the children are affected by stunting.

If this situation remains, the prices of tetra-pack milk will suffer a massive hike and will further destroy the livestock sector.

So, the demand is to reduce the tax on milk products and livestock sector which will not only help to grow the sector but also help our new generation to have healthy lives.

Policymakers must set as priority strategic interventions if they are to unlock the full potential of livestock in the economic development of Pakistan. This encompasses improving farmers’ market access, attracting investments towards value chains, innovating animal husbandry practices, and making regulatory oversight and disease control institutions strong.

Pakistan could achieve lasting growth, food security, and inclusive development by promoting a conducive environment for private sector involvement as well as supporting small-scale farmers, thereby creating employment for her youthful population.

The writer is a freelance columnist.