Muhammad Saleem

The poultry sector, a vital source of protein for families and children, teeters on the brink of collapse due to crippling financial strain. Skyrocketing costs and punitive taxes are hammering this crucial sector. Dr. Sajjad Arshad, Senior Vice President of the Faisalabad Chamber of Commerce and Industries (FCCI), told WealthPK that the poultry sector plays a crucial role in nourishing people, particularly children. This sector annually produces 1.44 billion kilograms of chicken meat and 17.5 billion eggs. Statistics show how this sector strengthens the national economy. However, he said this sector is in limbo these days due to multiple factors leading to losses and depletion of actual capital. Recently, the government imposed a sales tax on this struggling industry instead of announcing any incentives for the poultry farmers who are contributing significantly to ensuring protein for children.

He said the imposition of the sales tax would be the last nail in the coffin of this sector, which is a source of income for countless families. Dr. Arshad expressed dismay at the government’s unequal treatment of businesses. He said poultry farmers were exempt from the sales tax, but the policymakers showed no mercy and burdened them with hefty taxes. Agriculture and poultry are indispensable to each other, and the government needs to treat them equally. He urged the policymakers to exempt the poultry sector from the sales tax, as this sector is already grappling with multiple issues. Elaborating on the issues encountered by the poultry sector, the FCCI office-bearer said feed shortages, expensive raw materials, and electricity are plaguing this sector. “The farmers are finding it difficult to tackle the situation, as their financial losses are surging with each passing day. This situation will lead to the closure of poultry farms, ultimately impacting the export of eggs and chicken meat. The local consumers will also suffer a lot when the cheap source of protein is not readily available at affordable rates,” he said.

Dr. Sajjad said the ratio of annual chicken meat consumption in Pakistan is only 7.20 kilograms. Similarly, he said the average Pakistani consumes only 88 eggs per year, which is not on par with international standards. He said the government’s policies are detrimental to the steady growth of the poultry sector. Dr. Sajjad apprehended that the farmers would be unable to grow new chicks due to financial issues. The shortage of chicks means the closure of poultry farms and a shortage of eggs and chicken meat in the country, he said. A cause for concern is that 40% of Pakistanis are already facing malnutrition issues. Scores of children are victims of stunted growth due to nutrition challenges, and the unavailability of protein will aggravate the situation, he believed. He urged the policymakers to review their policies and incentivize the poultry sector rather than exposing it to new taxes. “We have to nurture a healthy generation to meet the emerging challenges,” he emphasized.

Muhammad Akram, a poultry farmer, urged the government to announce relief by offering subsidies or loan programs for poultry farmers. Currently, the farmers are struggling to overcome cash flow issues. Amidst the imposition of sales tax and surging input costs, expenses have soared, leaving no ray of hope in sight, he said. Sensing the financial crunch, many farmers have cut back on flock size. This practice, he warned, will impact egg and chicken meat production.

Credit: INP-WealthPk