Suzuki warns against used vehicle imports
The CEO of Suzuki Motor Company Pakistan met with the coordinator to the prime minister on commerce to discuss challenges facing the local automotive industry, particularly the implications of allowing used vehicle imports for commercial use.
According to a statement, Suzuki representatives voiced concerns that opening Pakistan's market to imported used vehicles could lead to an influx of lower-quality cars. They warned that this could undermine customer welfare and damage the auto industry by allowing substandard vehicles to dominate the market.
The Ministry of Commerce officials acknowledged the concerns and assured the delegation that appropriate safeguards would be incorporated into the forthcoming Import Policy Order.
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Suzuki warns against used vehicle imports
Listen to article The CEO of Suzuki Motor Company Pakistan met with the coordinator to the prime minister on commerce to discuss challenges facing the local automotive industry, particularly the implications of allowing used vehicle imports for commercial use. According to a statement, Suzuki representatives voiced concerns that opening Pakistan's market to imported used vehicles could lead to an influx of lower-quality cars. They warned that this could undermine customer welfare and damage the auto industry by allowing substandard vehicles to dominate the market. The Ministry of Commerce officials acknowledged the concerns and assured the delegation that appropriate safeguards would be incorporated into the forthcoming Import Policy Order.
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Pakistan's economic trajectory shall be defined strategically to enhance productivity, technological upgrading, and global market integration. The country's export sector stands at a crossroads grappling with structural challenges and untapped opportunities. Structural barriers leads to export stagnation, including a combination of policy distortions, market inefficiencies, and administrative bottlenecks. Addressing these challenges is essential for unlocking growth and improving export competitiveness. To avail the opportunities, the country must prioritise advancements in productive capacity, efficiency, and technological capabilities to drive higher output and global competitiveness. Pakistan's livestock sector remains a dynamic and resilient sector of the country's economy contributing 63.6% to agriculture's value addition and 14.97% to the country's gross domestic product (GDP) at constant market prices in the fiscal year 2024-25. The gross value addition of the livestock sector increased by 4.72% over the previous year. Additionally, the livestock sector accounts for approximately 2.9% of total exports through the trade of meat, live animals, and animal-based products. The current livestock population includes 230 million ruminants and over 2.2 billion poultry birds, producing 58 billion liters of milk, 06 billion kg of meat, and 26 billion eggs annually contributing to the national food security and export enhancement. The global halal market for the livestock products, including milk, meat and poultry products is around $200 billion. There is a significant export potential for halal meat and value-added products, targeting the Middle East, Asia, and Africa. Meat exports in Pakistan reached $511 million in FY 2023-24, a 20% year-on-year (YoY) growth. The country ranks among the top 10 global beef/veal producers, gaining access to China and Malaysia. Meanwhile, Middle Eastern and Gulf markets offer untapped opportunities for halal meat. In comparison to leading beef industries, Pakistan's average carcass weight for beef animals is 125kg compared to the United States (370kg), Australia (290Kg), New Zealand (160kg) and Brazil (250kg). It is due to the lack of specified beef breeds and limited adoption of feedlot fattening technology in the meat production system. It can be optimised to gain 180kg through efficiency in production and adopting the best globally practicing technologies i.e. calf milk replacer in calves weaning, backgrounding and feedlot fattening. The 30% underweight slaughtering of beef calves is a significantly economic loss of the national resource base and may necessitates consideration for a policy decision on minimum slaughtering weight for beef animals in meat industry. To boost export growth to its true potential, the Ministry of Commerce has identified the meat product line as one of the national priority sectors for the export strategic trade policy framework. The vision is 'to develop the Pakistani meat industry with the highest food safety and halal standards to serve international markets with value-added products'. Over the past 20 years, Pakistan's meat industry has seen substantial private-sector investment in processing, enabling it to meet global demand with diverse products. The country now has 35 FS-certified export abattoirs, some offering advanced packaging for value-added, longer-lasting products. With an annual capacity of 247,500 tons of beef and 82,500 tons of mutton, the sector's output is valued at $1.65 billion. Pakistan produces 10-12 million young cattle and buffalo calves annually, but 30% die early, leaving 8-9 million for supply. Improved feeding and feedlot fattening could add 500,000 tons of beef (180kg avg. carcass weight), unlocking $2 billion in potential—far exceeding the current $500 million exports. The dairy sector is an important component of Pakistan's economy, with milk's value exceeding that of wheat, rice, maize, and sugarcane combined. Pakistan ranks at 3rd place in overall global milk production, but only 2nd in buffalo milk. However, milk production accounts for only 5.5% of the global total due to low yields (1.62 tons/animal annually— compared to 62% of the world average). The average yearly production of milk was 48 million metric tons (MMT) in 2018-19 and to 58 MMT by FY25, reflecting steady growth rate of 3% annually. As a result of various dairy development and policy initiatives over the last two decades, the commercial dairy sector, lead by the private sector, has been developed resulting improvements like the enlargement of herds and import of high-quality milk germplasm, the increased productivity per animal and farm mechanisation. Over 12,000 commercial dairy farms have developed in the last two decades along with 38 milk processing and value addition plants established in the country having a daily capacity of 2.18 million liters milk processing and product development for retail and export markets. However, the small holder production system is still on low yield due to poor genetics and conventional practices but accounts for about 80% of the national milk production. The supply chain in dairy industry consists of raw milk sales contributing 90% and 10% of milk is processed into pasteurised /UHT milk. Farmgate prices remain competitive, with a zero-rating regime maintaining affordability. However, the downward pressure on prices by the government, aimed at keeping milk prices affordable for the public pose challenges for producers. According to the data provided by Animal Husbandry Commissioner Office, Ministry of National Food Security and Research, Islamabad, total and species wise milk production available for human consumption for last 1.7 decades is in below figure. The figure shows consistent increase in the yearly production of the milk. However, the data is derived from the base calculation of the livestock census held lastly in 2006. The main trade and policy barriers in the dairy sector include issues at the policy level, such as price capping, which discourages an enabling environment for private sector investment, and the fact that livestock is not treated as an industry, preventing access to relaxed duties, taxation, and soft loans aimed at increasing production and creating an export surplus of milk value-added products. To boost dairy exports to $1.5 billion-$2 billion in the medium term, key policy interventions require deregulating milk prices, recognise the dairy sector as industry to avail soft loans and relaxation in duties and taxation and curb smuggling of milk powder. Furthermore, key development initiatives require genomics and sexed sorting technologies, standardise the vaccines development, tightening quality standards, and developing infrastructure for milk pasteurisation and value addition in the potential milk clusters. Pakistan poultry industry remains one of the most vibrant and rapidly evolving industry. In FY25, the sector's gross value added is estimated at Rs923.5 billion, reflecting its dynamic role in the agricultural economy. With an average annual growth rate of 8.1% over the past decade, through product diversification and innovation, Pakistan's poultry sector may introduce innovative ready-to-cook and ready-to-eat products in addition to expanding the product range in export markets. Likewise, the country's export of fish and fisheries products has seen consistent growth, reflecting rising global demand for seafood, earning approximately $318.9 million in export revenue for three quarters in FY25. Development of value chain like fish hatcheries, commercial fish feed, and training is needed to develop this sector to enhance the exports. The Planning Commission of Pakistan has crafted an economic transformation plan 'Uraan Pakistan' with a focus on 5Es: Exports, E-Pakistan, Environment & Climate Change, Energy & Infrastructure, and Equity & Empowerment, aimed at propelling Pakistan towards a prosperous future in the country. The 5E framework is expected to provide a strong economic foundation and encompass the initiatives and multi prolonged strategies to address the overall challenges for Pakistan's socioeconomic development. Under the framework, export, climate change, and food and water security have been identified as key drivers for the sustainable economic growth of the country. Meanwhile, the federal government has approved a national programme for Animal Disease Surveillance, FMD Control and Animal Track and Traceability – in Compliance with National and International Standards for Rs7.3 billion in the public sector development programme 2025-26. The programme will target 'end-to-end' disease control for using immunisation, digital disease surveillance, and traceability for major diseases, including control for Foot and Mouth disease in compliance with international standards. The program is expected to enable the private sector investment to help improve the productivity and quality of meat and livestock products in the domestic and international markets. It is aimed at supporting compliance with sanitary and Phyto sanitary standards for export markets. Furthermore, the Pakistan Bureau of Statistics (PBS) is implementing the 7th Integrated Agricultural Census on agriculture, livestock and machinery and the final report is expected by the end of 2025. The future road map for sustainable export growth in the livestock sector lies in value chain clusters to help business nurturing, technology transfer, and cost efficiencies for cost and quality compatibility with global markets. Furthermore, facilitation of entrepreneurship for youth, strengthening public-private collaboration, and consultative forums comprising policymakers, industry leaders, and academia working to refine regulatory frameworks and export promotion strategies, are crucial. Together, these initiatives may form a cohesive blueprint to unlock the livestock sector's export potential, and impart national food security and economic stabilisation with long-term global integration.
