Beyond Agriculture: Livestock Has Emerged as Pakistan’s Next Economic Growth Engine.

Beyond Agriculture: Livestock Has Emerged as Pakistan’s Next Economic Growth Engine.

For more than seven decades, Pakistan’s development policies have largely underestimated the true economic importance of the livestock sector by treating it merely as a sub-sector of agriculture. This outdated approach has kept one of the country’s largest economic assets in the shadow of agriculture, denying it the policy attention, institutional recognition and public investment commensurate with its contribution to the national economy. The paradox is undeniable: a sector contributing approximately 15 percent of Pakistan’s GDP, accounting for more than 62 percent of agriculture’s value addition, and sustaining the livelihoods of over eight million rural families has never been recognised as an independent driver of economic growth. Yet livestock possesses the capacity to generate billions of dollars in exports, create millions of jobs, strengthen food and nutritional security, reduce rural poverty and contribute significantly to foreign exchange earnings. The time has come to correct this historical imbalance.

Livestock is no longer merely an agricultural activity; it has emerged as a strategic economic industry and should now be recognised as one of Pakistan’s principal engines of sustainable economic growth.

The recent high-level dialogue on “Harnessing the Livestock Potential of Pakistan” at the Prime Minister’s Secretariat marked an important turning point in national thinking. More importantly, it demonstrated that livestock has finally reached the highest policy forum of the country. This recognition should not remain symbolic. It must be translated into a new national vision in which livestock is treated as a strategic economic sector with dedicated policies, institutions and budgetary priorities rather than simply as a component of agriculture.

The economic evidence strongly supports such a transformation. Livestock contributes nearly 15 percent to Pakistan’s Gross Domestic Product (GDP) and more than 62 percent of agriculture’s value addition, making it the largest contributor within the agricultural economy. More than eight million rural households depend on livestock for their livelihoods, while millions of others benefit indirectly through milk collection, meat production, feed manufacturing, leather processing, transport, veterinary services and marketing. Few sectors have such a broad economic footprint or such a direct impact on poverty alleviation and rural development.

Despite this remarkable contribution, one of the greatest contradictions in Pakistan’s economic planning is the striking disparity between the livestock sector’s contribution to the national economy and the level of public investment it receives. While livestock contributes around 15 percent of the national GDP, it has historically received only around one percent of public development allocations. This imbalance has limited investment in veterinary infrastructure, disease surveillance, livestock research, genetic improvement, extension services, processing industries and export development.

A sector of such strategic importance cannot be expected to compete globally without investment that reflects its economic value.

The global livestock economy has changed dramatically over the past three decades. Nations no longer rely simply on exporting live animals or raw agricultural commodities. Today, the highest returns come from value-added industries including processed meat, specialised dairy products, leather goo ds, pharmaceuticals, collagen, gelatin, vaccines, animal genetics and biotechnology. Countries that invested in scientific livestock development have transformed this sector into a major source of exports, foreign exchange and employment.

Pakistan possesses all the fundamental resources needed to achieve similar success. The country produces nearly 70 million tonnes of milk annually, making it one of the world’s leading milk-producing nations. It also maintains one of the largest populations of cattle, buffaloes, sheep, goats and poultry in the region. Yet much of this enormous production is marketed in raw form, with only a limited proportion processed into high-value products such as milk powder, cheese, butter, yoghurt and specialised dairy ingredients.

Consequently, Pakistan continues to capture only a small share of the global dairy market.
The meat sector has shown encouraging progress in recent years. During FY 2025–26, Pakistan’s exports of meat and meat products exceeded US$500 million, reflecting growing international confidence in Pakistani halal meat. While this achievement deserves recognition, it represents only a fraction of the country’s true export potential. Given Pakistan’s livestock resources and its strategic location near some of the world’s largest halal food markets, export earnings could increase many times through improved productivity, quality assurance and value addition.

However, several major barriers continue to prevent Pakistan from becoming a leading exporter of dairy and meat products. Persistent endemic animal diseases, particularly Foot-and-Mouth Disease (FMD), remain among the principal obstacles to accessing premium international markets. Equally significant is the growing global concern regarding Antimicrobial Resistance (AMR). The irrational use of antimicrobials in food-producing animals and inadequate systems for monitoring antimicrobial residues have resulted in increasingly stringent import requirements across many export destinations.

Other constraints include the absence of internationally recognised disease-free zones, weak animal identification and traceability systems, inadequate veterinary laboratories, limited modern slaughterhouses and milk processing facilities, poor cold-chain infrastructure, fragmented supply chains, insufficient compliance with international sanitary and phytosanitary standards, and inadequate investment in certification, branding and value addition. Unless these structural weaknesses are addressed, Pakistan will continue to fall short of its immense export potential despite possessing abundant livestock resources.
Yet the opportunities are equally significant. The global halal food market, valued at more than US$2.3 trillion annually, continues to expand rapidly. Pakistan enjoys a unique comparative advantage through its large livestock population, internationally accepted halal production practices and strategic location connecting South Asia, Central Asia, China and the Middle East. With appropriate policy reforms, scientific investment and export-oriented planning, Pakistan can establish itself as a major supplier of halal meat and value-added dairy products to international markets.

The challenge, therefore, is no longer one of resources or potential. It is one of vision, strategic planning and political commitment. The country possesses the animals, the farmers, the veterinary professionals and the markets. What it now requires is a decisive shift in national policy—from treating livestock as a conventional agricultural activity to recognising it as one of Pakistan’s foremost economic industries.

Pakistan can learn valuable lessons from countries such as Brazil, Australia, New Zealand and the Netherlands. These nations transformed their livestock sectors into globally competitive industries through sustained investment in animal health, genetic improvement, veterinary research, disease surveillance, value addition, quality assurance and export-oriented policies.

Their success demonstrates that livestock is not merely an agricultural activity; it is a modern, science-driven economic industry. Pakistan possesses comparable natural resources and human capital. What it requires is the political will to pursue a similar path.
The Federal and Provincial Governments should therefore formulate a comprehensive National Livestock Development Strategy with clearly defined objectives, measurable targets and adequate financial resources. Such a strategy should integrate disease prevention and control, veterinary public health, antimicrobial stewardship, research and innovation, genetic improvement, climate-resilient livestock production, value addition, digital animal identification and traceability, export certification and private-sector participation under one coordinated national framework.

If Pakistan implements comprehensive reforms in animal health, establishes internationally recognised FMD-free zones, strengthens Antimicrobial Resistance (AMR) surveillance and antimicrobial stewardship, modernises meat and dairy processing industries, develops efficient cold-chain logistics, introduces nationwide animal identification and traceability systems, and fully complies with international sanitary and phytosanitary standards, the country’s livestock export potential can increase many-fold. A realistic medium-term objective should be to raise combined exports of halal meat and value-added dairy products to US$5–7 billion annually within the next decade. With sustained investment, technological advancement and market diversification, achieving US$10 billion in annual livestock exports should become Pakistan’s long-term national target. Such growth would generate substantial foreign exchange, create hundreds of thousands of jobs, improve farmers’ incomes and position livestock among Pakistan’s leading export-oriented industries.

However, achieving this vision requires a fundamental change in national thinking. For decades, the success of Pakistan’s livestock sector has been measured by the number of animals it possesses. That approach belongs to the past. In today’s competitive global economy, the true measure of success is the quality of livestock.

Productivity, superior genetics, disease-free status, food safety, animal welfare and international certification—not herd size alone—determine competitiveness in international markets.
Pakistan must therefore adopt a new national philosophy: “Quality of Livestock, Not Quantity of Livestock.” This simple but transformative principle should guide every aspect of future livestock policy. National breeding programmes should focus on producing high-yielding and climate-resilient animals. Veterinary services should prioritise disease prevention rather than disease treatment.

Research institutions should develop technologies that improve productivity and sustainability. Investment should support modern farms, processing facilities and export-oriented value chains rather than simply increasing animal numbers. A smaller population of healthy, genetically superior and internationally certified livestock will generate far greater economic returns than a much larger population with low productivity.
Although the recent dialogue on “Harnessing the Livestock Potential of Pakistan” at the Prime Minister’s Secretariat marked a historic milestone, one critical issue deserves to be incorporated into its official proceedings and future recommendations.

The dialogue rightly highlighted the strategic importance of the livestock sector, yet the longstanding disparity between the sector’s contribution to the national economy and the level of public investment allocated to it requires urgent policy attention. A sector contributing nearly 15 percent of Pakistan’s GDP cannot realistically fulfil its national and international potential while receiving only around one percent of public development allocations. Correcting this imbalance should become one of the most important outcomes of the Prime Minister’s initiative.
Investment in livestock should no longer be regarded as routine government expenditure.

It is an investment in economic growth, food security, rural prosperity, employment generation, public health and foreign exchange earnings. Every rupee invested in veterinary services, scientific research, disease surveillance, vaccine development, modern processing facilities, export certification and value addition has the potential to generate multiple times its value through increased productivity and expanded exports.
Pakistan stands today at a defining moment. For more than seven decades, livestock remained in the shadow of agriculture despite being one of the country’s largest contributors to national income. That era must now come to an end.

Livestock has emerged as a strategic economic sector and deserves to be recognised, planned and financed accordingly.
The future of Pakistan’s livestock industry should no longer be measured by the number of animals in the country, but by the quality of those animals, the value of the products they generate, the exports they support and the prosperity they create. National policies, institutions and budgetary priorities must reflect this new reality.
The historic dialogue at the Prime Minister’s Secretariat should therefore be remembered not merely as another government seminar, but as the beginning of a new economic vision for Pakistan. It should mark the moment when livestock finally emerged from the shadow of agriculture and was recognised as one of the nation’s principal economic growth engines.

If Pakistan embraces this vision with determination, invests in science, innovation, veterinary excellence and export competitiveness, and aligns public investment with the sector’s true economic contribution, livestock can become one of the country’s largest sources of foreign exchange, employment and inclusive economic growth. The future of Pakistan’s economy will not depend only on factories, highways or technology parks; it will also depend on the strength of its farms, the health of its livestock, the excellence of its veterinary institutions and the competitiveness of its livestock value chains. The era of livestock living in the shadow of agriculture is over. The era of livestock as Pakistan’s next economic growth engine has begun.

Dr. Alamdar Hussain Malik
Advisor Academics, University of Veterinary and Animal Sciences, Swat
Former Secretary/Registrar Pakistan Veterinary Medical Council

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