PAKISTAN is continuously losing its share in the booming world halal meat business despite its close proximity to the Middle East, one of the largest meat markets, and the fact that it maintains a good-quality stock of cattle.

It is also in contrast to experts’ opinion that, like basmati rice and mangoes, local meat is popular because of its distinct flavour, particularly in the Pakistani diaspora concentrated in the Gulf States.

The local meat industry registered 27 per cent growth between 2003 and 2015, as the commodity’s exports went up from just $14 million to $244m a year during this period. But exports have been in constant decline since then.

The Trade Development Authority of Pakistan (TDAP) data shows that the country exported meat and its products worth $113.963m during the first seven months of the ongoing financial year (ie July to January), a year-on-year decline of around 7pc. In the same period two years ago, the exports stood at $188.345m.

Meat exporters say a number of issues are dampening the sector’s performance. A common but unexpected problem expressed by all meat exporters, who are fewer than three dozen in number, is non-payment of their dues by foreign buyers. The problem arises because meat exporters generally avoid using formal banking channels.

Exporters say the biggest problem they face is non-payment of their dues by foreign buyers

“Non-payment for the consignments already delivered to foreign buyers is a troublesome issue, as none from within or outside the country is coming to our rescue,” says All-Pakistan Meat Exporters and Processors Association (APMEPA) President Nasib Ahmad Saifi. “We have sought help of trade bodies, and written to relevant government authorities and our missions abroad but to no avail.”

Mr Saifi laments that all local departments get into action when a complaint is filed by a foreign firm against a local business. “But when it is the other way round, no one is coming to our rescue, neither the government of the destination (importing) country nor our own government.”

Ironically, Pakistani businesspeople living abroad are among these defaulters. Shehzad Aslam Ghauri, one of the leading meat exporters, throws light on the gravity of the situation, suggesting that more than 90pc of the payments are pending in the Gulf states. He regrets that mostly Pakistani importers based in the Middle East are conniving with their kafeels (local sponsors) in depriving their Pakistani brothers of dues.

He says that these “usurpers” have assets here Pakistan, but local authorities are not helping exporters to recover their dues by auctioning these assets.

As shipment of meat is made on a daily basis, it is difficult to go through the hassle of formal banking channels by opening letters of credit, etc, he says, though he admits that the banking system is comparatively safer.

Indian meat exporters are also blamed to be affecting Pakistan’s exports, as they are using the name of Pakistan for selling their meat.

“Indians, taking advantage of their country’s growing trade relations with the United Arab Emirates, are claiming Pakistan’s meat market share by selling their consignments as they were from Pakistan,” claims Mr Saifi, who finds no solution to the problem unless the Pakistani government itself comes into action to check the “forgery”.

A swinging and unreliable supply chain is another matter of concern for meat exporters. They say that prices of cows and goats keep fluctuating in the local market while the rates they would have quoted to foreign buyers would remain unchanged for years, particularly when competition is with heavily subsidised shipments from Australia, New Zealand and India.

Mr Saifi holds the government responsible for an unreliable supply chain because it is not giving attention to rearing cattle, whose number should be double than the number of human population in a country wishing to enter the meat export trade.

Primitive processing units, missing value chain, poor quality control, lack of technical know-how about processing, storing, transport and marketing of livestock products, lack of capacity-building programmes and facilities for exporters are other problems marring this sector.

Exporters, however, agree there are black sheep in their own ranks as well, who are not only damaging business interests but also the country’s image by indulging in bad business practices.

They admit that some traders are involved in mixing poor-quality meat obtained from slaughterhouses other than those mentioned in their business agreements with foreign buyers just to reduce costs and increase their profit margins. By doing so, they not only tarnish the reputation of the approved slaughterhouses but also of the country in the meat markets abroad.

Published in Dawn, The Business and Finance Weekly, May 21st, 2018