The poultry sector, essential for providing protein to families and children, is on the brink of collapse due to severe financial difficulties. Escalating costs and heavy taxes are severely impacting this crucial industry.
Dr. Sajjad Arshad, Senior Vice President of the Faisalabad Chamber of Commerce and Industries (FCCI), highlighted the sector’s vital role in nourishing people, particularly children. With an annual production of 1.44 billion kilograms of chicken meat and 17.5 billion eggs, the sector significantly contributes to the national economy.
However, Dr. Arshad noted that the sector is struggling due to multiple challenges leading to financial losses and depletion of capital. Recently, the government imposed a sales tax on the industry, instead of offering any incentives to support poultry farmers who play a critical role in providing protein for children. Dr. Arshad warned that this new tax could be the final blow to an already struggling sector, which is a crucial income source for many families.
Dr. Arshad expressed frustration with the government’s uneven treatment of businesses. He pointed out that while poultry farmers were previously exempt from sales tax, they are now facing significant tax burdens. He called for equal treatment of agriculture and poultry sectors and urged policymakers to reconsider the sales tax, given the sector’s current difficulties.
The poultry sector is also grappling with feed shortages, high raw material costs, and expensive electricity. Dr. Arshad explained that these issues are causing financial strain for farmers, potentially leading to the closure of poultry farms. This would affect the availability of eggs and chicken meat, impacting both exports and local consumers who rely on this affordable protein source.
Dr. Arshad also mentioned that annual chicken meat consumption in Pakistan is only 7.20 kilograms per person, and the average consumption of eggs is just 88 per year, which falls short of international standards. He warned that if financial challenges persist, farmers might be unable to grow new chicks, leading to further shortages of eggs and chicken meat. This situation is particularly concerning as 40% of Pakistanis already face malnutrition issues, with many children suffering from stunted growth due to insufficient nutrition.
He urged the government to review its policies and provide support to the poultry sector instead of imposing additional taxes. Dr. Arshad emphasized the need to nurture a healthy generation to address emerging challenges.
Muhammad Akram, a poultry farmer, called for government relief through subsidies or loan programs to help farmers overcome cash flow issues. With rising costs and the new sales tax, farmers are struggling, and many have reduced their flock size, which will impact production of eggs and chicken meat.
