Exporters argued that the fee hike would hurt overseas sales of meat and meat products from Pakistan by increasing prices. “The hard work of the associations (including meat, poultry and exporters associations) paid off and better sense prevailed. The reversal has removed an irritant. I wish and hope that the spirit of accommodation will not stop here and the relevant officials will further help a meat business that has potential to double exports in a year’s time,” Tariq Butt, president All Pakistan Meat Producers and Exporters Association (PMPEA) told GlobalMeatNews.
Dr Ehsan ul Haq, director – animal quarantine department, admitted that the government conceded to the meat exporters’ demands because it realised international competition was too intense in some segments, and the fee hike could hit sales. He hinted that the government would increase the fee again, but do so more slowly and in consultation with the business community.
He explained: “We have withdrawn the decision because the idea was not to hurt the business interests of meat producers or discourage exports, but we are engaging with multiple meat producers bodies to identify products where margins permit increase in the fee.
“There is a need to upgrade and equip the regulatory set-up for which resources are required. The government is providing a service and it cannot be afforded at price it is getting currently from exporters,” he stressed.
The earlier increase raised costs as follows:
Chilled beef on the bone, up Pakistan Rupees PKR60 (US$0.58) to PKR150 (US$1.47) per piece;
Chilled beef on the bone per container from PKR3,120 (US$30.64) to PKR7,200 (US$69.90);
Chilled mutton on the bone from PKR40 (US$0.38) to PKR50 (US$0.48) per piece;
Chilled mutton on the bone per container from PKR5,600 (US$54.36) to PKR7,000 (US$67.96);
Frozen boneless beef and mutton from PKR650 (US$6.30) per container to PKR14,000 (US$135.90);
Frozen boneless beef or mutton per box from PKR0.45 (US$0.004) to PKR10 (US$0.097);
Liver, heart, kidney, lungs, and other offal from PKR100 (US$0.97) to PKR250 (US$2.42) per box;
Liver, heart, kidney, lungs, offals per container from PKR550 (US$5.33) to PKR14,000 (US$135.90);
Feet and heads of sheep, cows and buffalo per container from PKR650 (US$6.31) to PKR110,000 (US$1,067.90).
Meanwhile, a fee of PKR100,000 (US$970.80) was introduced for registering meat processing plants, with a renewal of registration costing PKR50,000 (US$485.40) – both steps were previously free.