An ignored engine of economic growth

Dr Alamdar Hussain Malik

Pakistan’s livestock sector is one of the most important yet under‑appreciated pillars of the national economy, providing food, income, and employment to millions of rural households. Healthy animals are central to this system, and their wellbeing depends on effective veterinary services, disease control, and professional regulation.

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Despite livestock contributing nearly 15 percent to national GDP and over 60 percent of agricultural value addition, the sector continues to operate below its potential due to weak veterinary infrastructure, inadequate professional oversight, and insufficient policy focus. In this sense, Pakistan’s livestock sector represents an ignored economic engine — capable of driving rural prosperity, enhancing food security, and generating billions of dollars in export revenue if veterinary and institutional systems are strengthened.

Pakistan’s total livestock population reached approximately 251 million animals in 2024, among the largest in the world, including roughly 59.7 million cattle, 47.7 million buffaloes, 89.4 million goats, 33.1 million sheep, and 1.2 million camels. This vast population produces over 72 million tonnes of milk and nearly 6 million tonnes of meat annually, sustaining more than eight million rural families, who derive 35–40 percent of their income from livestock.

For decades, Pakistan’s textile sector accounted for the major share of national exports, but with textiles now at the edge of collapse, the livestock sector emerges as the only viable engine to lead Pakistan’s export growth, provided it is properly managed, modernised, and linked to international halal markets. This makes improving livestock productivity, veterinary services, and institutional governance more urgent than ever.

However, productivity per animal remains suboptimal. Average milk yields in Pakistan are significantly lower than in countries such as India, China, or the European Union due to inadequate veterinary services, poor disease control, weak breeding practices, and insufficient nutrition. Improving these factors could substantially increase milk output, meat production, and farmers’ incomes.

Pakistan has developed a considerable veterinary education infrastructure, with around 20 institutions offering DVM degrees and at least eight universities providing postgraduate programs. The Pakistan Veterinary Medical Council (PVMC) is mandated to regulate education and professional standards under the Pakistan Veterinary Medical Council Act 1996. Unfortunately, the council has often shifted focus from core regulatory responsibilities, limiting its impact on animal health and sector productivity. Strengthening PVMC is essential for ensuring competent veterinary practice nationwide.

A major gap is the absence of effective regulation of veterinary pharmaceuticals, leading to misuse of antibiotics and contributing to antimicrobial resistance (AMR) — a growing global health threat. Veterinary surveillance also protects public health through the One Health framework, which connects human, animal, and environmental health and helps prevent zoonotic disease outbreaks.

Despite its vast resources, Pakistan exports less than 3 percent of its meat and dairy output, earning only US $512 million annually, a tiny fraction of the global halal food market, which is estimated at over US $300 billion per year, including beef, mutton, poultry, and dairy products. Countries like Brazil, Australia, India, and New Zealand dominate halal meat exports, while New Zealand, the Netherlands, and Germany lead in halal dairy exports, collectively earning between US $12–20 billion annually each. Analysts estimate that if Pakistan could tap even 1–2 percent of the global halal food market, it could earn US $3–4 billion per year, translating to a potential loss of US $2.5–3 billion annually due to inadequate veterinary services, FMD outbreaks, poor dairy quality, and drug residue issues.

Currently, Pakistan’s limited halal exports go mainly to Middle East countries, but rejections due to Foot-and-Mouth Disease (FMD), drug residues, and lack of dairy processing standards keep Pakistani products out of major markets in Europe, Southeast Asia, and Malaysia. Improving veterinary care, disease control, laboratory testing, dairy processing, and halal certification could allow Pakistan to capture a significant share of this US $300 billion global market, positioning the livestock sector as the primary engine of national export growth — especially crucial now that the textile sector, Pakistan’s former mainstay, is at the edge of collapse.

Even modest improvements — exporting 8–10 percent of production of both meat and dairy with proper halal certification — could dramatically increase earnings and rural incomes, opening billions of dollars of untapped foreign exchange that currently leave Pakistan behind its global competitors.

It is remarkable and ironic that, after 78 years of independence, the appointment of a Livestock Promotion Consultant is being made only now, despite the existence of well-established institutions such as PARC, NARC, and a full-fledged Office of the Animal Husbandry Commissioner. One must ask: what were these organisations created for if they could not promote livestock development or improve sector performance? The reasons for their failure are clear: fragmented mandates, weak implementation, lack of accountability, and misaligned priorities. Policies often remain on paper while vaccination, disease control, and livestock productivity programs are inconsistently executed. Instead of focusing on milk and meat productivity, export promotion, and disease control, these organisations are often absorbed in administrative routines or unrelated research projects. As a result, milk yields remain low, disease outbreaks like FMD continue unchecked, veterinary services are inadequate, exports of meat and dairy remain marginal, and drug residue violations persist. Their performance, in short, has fallen far short of expectations and has been insufficient to convert Pakistan’s vast livestock resources into economic growth, export revenue, or improved rural livelihoods.

This raises the urgent question: why has a sector with enormous untapped potential been allowed to remain underdeveloped for decades? Unless roles, responsibilities, and coordination mechanisms are clarified and enforced, Pakistan’s livestock sector will continue to be underutilised, leaving billions of dollars in domestic and export revenue unrealised.

Pakistan’s livestock sector has enormous untapped potential that, if harnessed, could transform the rural economy and significantly boost national revenue. Despite producing over 72 million tonnes of milk, nearly 6 million tonnes of meat, and 26 billion eggs annually, Pakistan exports less than 3 percent of these products, earning only US $512 million per year. Analysts estimate that Pakistan could realistically capture US $3–4 billion annually from halal meat and dairy exports alone if veterinary services, qualitf y control, and international certification are strengthened.

The domestic side also represents untapped potential. Milk and meat productivity per animal in Pakistan is far below international averages, meaning millions of tonnes of potential output are lost each year. By improving animal health, nutrition, breeding practices, and disease control, the sector could add billions more in domestic value, increasing farmers’ incomes and national GDP. Furthermore, improving veterinary infrastructure and ensuring compliance with international standards would enable Pakistan to enter high-value markets in the Gulf, Europe, Southeast Asia, and Malaysia, which currently reject or limit Pakistani exports due to FMD and drug residues.

Addressing these challenges could not only increase export earnings by US $3–4 billion but also create millions of rural jobs, strengthen food security, and elevate Pakistan’s position in the global livestock economy.

In total, when both domestic productivity gains and export potential are considered, Pakistan could unlock over more than US $5 billion annually in economic benefits — a figure that underscores just how underutilized this critical sector has been.

The untapped potential in milk, meat, and allied products makes the livestock sector a strategic economic engine that, if properly supported, could rival many other sectors in driving national growth and foreign exchange earnings.

Recognising and strengthening the livestock sector is not just a professional concern — it is a strategic economic imperative. Analysts estimate that if Pakistan modernises veterinary services, improves animal health, implements robust disease control, and expands halal meat and dairy exports with proper certification, the country could potentially add US $3–4 billion annually to its economy from exports alone. Combined with gains from higher domestic productivity and value addition, the total economic boost could exceed more than US $5 billion per year, benefiting millions of rural households, enhancing food security, and positioning Pakistan as a significant player in the global halal meat and dairy market. Ignoring this sector means leaving one of the most powerful engines of sustainable economic growth underutilised.