Pakistan’s ECC Declines Live Animal Exports to Kuwait Amid Economic and Domestic Concerns
In a recent session, Pakistan’s Economic Coordination Committee (ECC) rejected a proposal seeking a one-time exemption to allow the export of live sheep and goats to Kuwait. The move comes despite growing demand from Kuwait’s livestock importers and a push by certain stakeholders to revive live animal exports.
The decision was influenced by concerns from the Ministry of Commerce, which argued that such a policy shift could harm Pakistan’s domestic meat and leather industries. The rejection signals Pakistan’s cautious approach to balancing international trade opportunities with the stability of local markets.
Background of the Proposal
Live animal exports from Pakistan have been banned since July 2013 to ensure a steady supply of livestock for domestic consumption and promote the country’s value-added meat sector. However, the latest proposal, driven by increasing demand from Kuwait, particularly from the leading livestock importer Al-Mawashi, sought to temporarily lift the ban.
The initiative was expected to bring multiple benefits, including strengthening trade ties between Pakistan and Kuwait, attracting foreign investment, and introducing modern feedlot systems. It was also projected to create employment opportunities, particularly in the agricultural and livestock sectors.
The Special Investment Facilitation Council (SIFC) had reviewed the proposal in meetings held in June 2024 and January 2025, after which it was recommended for consideration by the ECC. Proponents of the initiative believed that opening up exports could enhance Pakistan’s reputation as a reliable livestock supplier in the global market.
Concerns Raised by the Commerce Ministry
Despite the anticipated benefits, the Ministry of Commerce strongly opposed the proposal, citing several economic and logistical risks. The key concerns included:
- Impact on the Value-Added Sector: The ministry highlighted that Pakistan earns significantly higher foreign exchange through processed meat and leather exports compared to raw livestock exports. Encouraging the export of live animals could divert resources away from industries that add greater economic value.
- Potential Increase in Local Meat Prices: Officials warned that allowing live animal exports could lead to a shortage of livestock in the domestic market, pushing up meat prices for local consumers. This could place additional financial pressure on households already facing inflation.
- Livestock Availability for Domestic Consumption: With rising demand for meat and dairy products within Pakistan, the ministry stressed the importance of ensuring an adequate livestock supply to meet the needs of local consumers before considering exports.
Given these factors, the Ministry of Commerce recommended that any decision regarding live animal exports should be carefully analyzed with a long-term perspective rather than allowing a one-time exemption.
ECC’s Deliberations and Final Decision
During the meeting, the ECC discussed the potential risks and benefits associated with the proposal. Committee members agreed that while there was a strong demand from Kuwait, granting an exemption without a comprehensive long-term strategy could disrupt the domestic livestock industry.
The ECC concluded that:
- Stakeholder Consensus is Essential: The committee stressed the need for consultations among all relevant stakeholders, including industry experts, trade bodies, and policymakers, before making any major policy shifts.
- One-Time Exemption is Not a Sustainable Solution: The members agreed that instead of allowing temporary exceptions, a long-term strategy should be developed to assess the feasibility of live animal exports in a manner that does not harm local markets.
- Comprehensive Demand and Supply Analysis Required: The ECC emphasized the need for a detailed study on the livestock sector, including growth projections, domestic consumption patterns, and price stability concerns.
- Further Review by the SIFC Executive Committee: The proposal, originally backed by the SIFC, was sent back for further deliberation at the SIFC Executive Committee level. The ECC advised that any future proposal should be based on a consensus-driven approach with a clear roadmap.
Future Implications and the Way Forward
The ECC’s decision highlights the government’s commitment to prioritizing economic stability over short-term trade gains. While Kuwait remains a key trade partner for Pakistan, the rejection of this proposal suggests that Pakistan is cautious about ensuring food security and protecting its domestic industries before expanding livestock exports.
However, the debate over live animal exports is unlikely to end here. Some stakeholders continue to argue that controlled exports, under a well-regulated framework, could unlock new revenue streams and improve Pakistan’s livestock sector by integrating global best practices.
Going forward, Pakistan’s policymakers may need to explore alternative solutions, such as:
- Encouraging Processed Meat Exports: Instead of exporting live animals, the government could work on expanding the country’s processed meat industry to meet international demand while retaining the economic benefits.
- Boosting Livestock Production Capacity: Investing in modern farming techniques and feedlot systems could increase livestock production, allowing for controlled exports without negatively affecting local supply.
- Developing a Comprehensive Export Policy: A well-researched policy framework that ensures sustainability, price stability, and industry growth could help Pakistan balance both domestic and international trade needs.
For now, the ECC’s decision reflects a strategic pause rather than a complete dismissal of livestock exports. The matter will likely be revisited in the future with a more structured and long-term perspective.
As Pakistan navigates the complexities of global trade, policymakers will need to carefully weigh the economic, social, and market-driven factors to ensure sustainable growth for the livestock sector while maintaining affordability for local consumers.
Do follow gulf magazine on Instagram
for more information click here
