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Pakistan Government Criticised for Cheap Poultry Imports

04 June 2015

PAKISTAN - Pakistan's government has been criticised by the Pakistan Poultry Association (PPA) recently for allowing cheap imports of poultry products, but placing high duties on feed ingredients used by local poultry producers.

The association said that the government has withdrawn the zero-rated status for value-added, processed, frozen and packed poultry products, and that the cost of production has gone up by Rs20 to Rs40 as a result.

According to PPA Chairman Khalil Sattar, the government has compounded the problem by imposing import duty in the range of 5 per cent to 30 per cent plus sales tax on ingredients used by local producers of value-added chicken, while poultry products are allowed to be imported under the Free Trade Agreement (FTA) from Malaysia at 0 per cent and at 10-16 per cent import duty and free from sales tax from China.

On the other hand, he said, none of the two countries considers Pakistan compliant with their regulations for poultry processing and poultry health monitoring and as such Pakistani producers cannot export to Malaysia or China.

Highlighting the problems of poultry processors, Mr Sattar said: “We have to pay heavy labour cost, heavy overheads, huge electricity and gas bills, taxes like social security, EOBI, Workers Profit Participation Fund, Workers Welfare Fund, contribution to provident fund, the sum is Rs20 to Rs40 per kg depending on the product.

“On the other hand, the cost to the unrecognised live bird and street side slaughter wet market is not more than Rs4 per kg.

"The unorganised sector pays no taxes at all whereas the organised sector pays all kind of taxes and produces safe and healthy products. Such gross discrimination has made the survival of the poultry industry a bit too difficult.”

ThePoultrySite News Desk

Top image via Shutterstock

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