Daily Times

KARACHI: The Ministry of National Food Security and Research (MNFS&R) is not paying attention to preventing smuggling of livestock and food grain, industry stakeholders complain.

They say that smuggling of livestock instead of their use in tertiary sector industries was depriving the country of precious foreign exchange.

“There is a misconception that poor farmers get better value of their animals if they export them or smuggle them outside of the country. They can better value if they supply animal parts including hides to the industries inside the country,” says Agha Saiddain, the senior executive of Pakistan Tanners Association.

“Due to export of live animal,s there are many industries which suffer due to shortage of raw material. Among these are tanning industry, leather garments, footwears, gloving, sports goods, casing, wool and poultry industry.”

“The value addition of cow hide is 71 percent when converted into finished leather. It is unfortunate that we are no longer a member of the billion-dollar export club, and the leather sector has witnessed around 29 percent decline in volumes and around 15 percent in value during September to February 2018.

Pakistan faces competition from countries like Bangladesh, besides those in the developed world.”

“Pakistan is currently at second position, after Italy as far as quality of leather is concerned, and under these circumstances, it is not difficult for leather industry to achieve the growth rate of 48 percent.

“The exports from Pakistan to European Union after the grant of Generalised System of Preferences plus status have showed an downward trend.

“The export of this sector stood at around $1.11 billion per year, around seven years ago.

“These have declined by 21.5 percent on the whole during last six fiscal years. Our exports are stagnant at around $981 million.

“Pakistan has lost around 40 percent global market share whereas the global growth rate from 2007-08 to 2016-17 was around 46 percent.

“The global market has grown to $144.18 billion whereas Pakistan exports got reduced by 21 percent.

“The government should stop smuggling of live animals through Chaman and Khyber Pakhtunkhwa,” he maintained.

Saiddain says that export of live animals on average per year stands at 61,000 (buffalo), 6,000 (pure bred animals), 25,000 (sheep) and 24,000 (goat).

“The same buffalo and cow if sold domestically fetches more revenue and accelerates our economy. Moreover, Pakistan is exporting breed ready for future reproduction and its export can cause acute shortage of beef and meat and prices will be beyond the reach of common people if this continues,” Saiddain laments.

“Our livestock sector is contributing more than 12 percent of agricultural GDP. It can face serious setback if large quantities of adult animals are exported from the country.

“On the other hand, zero percent duty to Bangladesh and India in leather exports by Japan has dented the exports of Pakistan, contrary to those countries, Pakistan faces around nine to 16 percent duty on exports to Japan.

“India has spent 4,000 million rupees, 9,130 million rupees and 12,510 million rupees under 10th, 11th, and 12th Indian Leather Development Plans, respectively.”

He stresses the need to encourage export of halal beef/meat by setting up modern slaughterhouses. “Pakistan has a very meager share in halal meat market. Presently, the share of Brazil, India and Australia is 54%, 11%, and 9%, respectively against the share of Pakistan which is as less than 5 percent.”

“Export of Halal meat may be encouraged by setting up modern slaughterhouses. The countries dependent on imported halal meat are Saudi Arabia (47%), UAE (80%), Kuwait (62%), Oman (70%), Qatar (78%), Bahrain (64%), Iran (50%), and Afghanistan (40%). All these countries are very close to Pakistan and we can capture major share of halal meat market of $3.18 billion.”

Published in Daily Times, March 24^th  2018.