Pakistan Dairy Sector Can Unlock Rs. 500 Billion Extra

Pakistan's dairy sector has the potential to generate nearly Rs. 500 billion annually for the government's revenue, according to Usman Zaheer Ahmed, chairman of the Pakistan Dairy Association. If even half of the informal dairy market is brought into the formal economy and taxed at a minimum rate of 5 percent, the sector could generate Rs.

250 billion in revenue. Ahmed discussed these figures during the Pakistan Agricultural Coalition's Agri Connections Conference and Expo in Lahore. Federal Minister for National Food Security Rana Tanveer Hussain emphasized that food security is now considered a matter of national security, as agriculture contributes 26 percent to the country's GDP and supports over 100 million Pakistanis.

Hussain noted that farmers are facing increasing challenges due to more frequent and severe floods, heat waves, and dwindling water resources. The minister stressed the need for collective action and better research, access to finance, fair markets, and consistent policies to support farmers. At the conference, State Bank of Pakistan Deputy Governor Salimullah identified three major constraints affecting farmers and agricultural lending: high risk levels, limited accredited warehouses, and restricted access to finance.

Salimullah explained that the State Bank is working on developing an ecosystem to make agricultural lending more attractive to banks. Omar Sagga, chairman of Taraf, a meat trading company based in Jeddah, spoke about the growing interest from Gulf investors in Pakistan's meat processing industry. He highlighted that while there is strong human capital and quality livestock in Pakistan, investor interest alone is not enough to generate actual investment, and a suitable ecosystem is required to attract capital.