LAHORE, Feb 18 (ABC): The Punjab government is weighing interest-free loans and machinery import support for the poultry sector to boost investment and value addition. Officials say the proposed measures aim to strengthen commercial poultry operations across the province.
The government plans to extend interest-free loans to entrepreneurs, especially for value-addition units such as processing plants and cold storage facilities. At the same time, it is 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), Punjab Livestock Department.
Poultry sector’s economic importance
The poultry sector remains a key pillar 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 operate in the province.
Talking to Wealth Pakistan, Dr Kashfi said the Poultry Research Institute (PRI), Rawalpindi, provides diagnostic services to farms through its provincial network. In addition, the institute trains farm workers in flock management and offers extension services for disease prevention and treatment.
He stressed that poultry meat plays a critical role in stabilizing the prices of mutton, beef, and pulses. Therefore, any disruption in the poultry sector can trigger spillover effects on essential food items and overall food security.
The Livestock Department is also conducting research to address industry challenges. Meanwhile, it is implementing relevant laws and regulations to create a more business-friendly environment.
Industry calls for tax reforms
However, industry stakeholders argue that improving the ease of doing business and rationalizing the tax regime are essential for sustained growth.
“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 the sector has attracted more than Rs700 billion in investment in Punjab. As a result, it has generated around 1.5 million jobs, particularly in rural areas.
He noted that Punjab hosts an estimated 4,866 layer farms and 17,405 broiler farms, along with numerous high-density controlled sheds. Consequently, the province drives the supply of affordable white meat and eggs for Pakistan’s population of over 250 million.
Dr Bhatti maintained that over-taxation, especially the imposition of Federal Excise Duty (FED), has hurt the poultry sector.
“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 often escapes taxation.
“If you impose 18% GST on processed meat, people will turn to unhygienic raw chicken, exposing themselves to a host of diseases,” he warned.
Call for free-market mechanism
Dr Bhatti further said price controls have created uncertainty for farm owners. When prices rise, authorities cap rates. However, when prices fall sharply, producers receive no relief.
“The government should believe in a free-market system, as poultry is a business of profit and loss,” he said.
He added that when losses become government-induced, farm owners struggle to decide whether to continue operations or exit the business.