Muhammad Luqman

The Punjab government is considering providing interest-free loans to entrepreneurs in the commercial poultry sector, particularly for value-addition units such as processing plants and cold storage facilities. The government is also exploring options to facilitate the import of state-of-the-art machinery for the industry.

“Various plans are being discussed with stakeholders to formulate a policy in this regard,” said Dr Sajjad Hussain Kashfi, Director General (Research) of Punjab Livestock Department. The poultry sector remains a key component of Punjab’s economy. More than 70% of total poultry farming, 80% of egg production, 85% of feed production, and all poultry processing units in Pakistan are located in the province.

Talking to Wealth Pakistan, Dr Kashfi said the Poultry Research Institute (PRI), Rawalpindi, is providing diagnostic services to farms through its extensive provincial network. He added that the institute also trains farm workers in flock management and offers extension services for disease prevention and treatment.

He noted that poultry meat plays a critical role in stabilizing the prices of mutton, beef, and pulses. Any disruption in the poultry sector, he warned, could have spillover effects on essential food items and overall food security.

The Director General (Research) said the Livestock Department is conducting research to address industry-related challenges while fostering a business-friendly environment through the implementation of relevant laws and regulations. However, industry stakeholders believe that improving the ease of doing business and rationalizing the tax regime are crucial for the sector’s sustained growth, particularly in Punjab.

“Poultry is a business. It needs a level playing field, not a discriminatory tax regime,” said Dr Abdul Karim Bhatti, former Central Chairman of the Pakistan Poultry Association (PPA). Talking to Wealth Pakistan, Dr Bhatti said that with an investment exceeding Rs700 billion in Punjab, the sector has generated around 1.5 million jobs, particularly in rural areas.

He said Punjab, with an estimated 4,866 layer farms, 17,405 broiler farms, and numerous high-density controlled sheds, remains a key driver of affordable white meat and egg supply for Pakistan’s population of over 250 million. He maintained that over-taxation, particularly the imposition of Federal Excise Duty (FED), had adversely affected the business.

“We want to pay taxes, but there is a need for a rational tax regime for the poultry sector,” he said. He pointed out that processed and branded meat is taxed, while unhygienic raw meat is often sold without taxation.

“If you impose 18% GST on processed meat, people will turn to unhygienic raw chicken, exposing themselves to a host of diseases,” Dr Bhatti warned. He further said the government is strangulating the poultry business in the name of price control. When prices rise, rates are capped, but when prices fall sharply, farm owners receive no relief.

“The government should believe in a free-market system, as poultry is a business of profit and loss,” he said. However, he added that when losses are effectively government-induced, farm owners are left uncertain about whether to continue operations or exit the business altogether.

Credit: INP-WealthPk