Pakistan dairy sector expecting $1.5 billion foreign investment: PDA chief

A Pakistani livestock trader feeds his cows at an animal market in Peshawar on August 23, 2017. (AFP)
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Updated 11 December 2019

Pakistan dairy sector expecting $1.5 billion foreign investment: PDA chief

  • Pakistan is world’s third largest milk producer, with 95 percent of it sold by milkmen without processing
  • PDA chairman stressed on better marketing Pakistan’s dairy potential to Saudi Arabia and UAE

KARACHI: Pakistan, the world’s third largest milk producer, is expecting $1.5 billion in mainly foreign direct investment (FDI) in its dairy sector as the country ramps up marketing efforts for pasteurized milk, the chairman of the Pakistan Dairy Association (PDA) said on Saturday.
Pakistan produces more than 59 billion liters of milk annually, according to the Economic Survey of Pakistan, of which 95 percent is sold without processing by milkmen.
“The share of processed milk in the country is only 5 percent at present which shows huge investment potential especially in the processing and supply chain. In the last five years, the industry has attracted $1 billion investment. With even 1% growth, we are looking at at least $1.5 billion FDI that we can bring into Pakistan,” Sulaiman Sadiq Monnoo told Arab News.
“Due to a lack of cold supply chain in the country every year, 11 to 12 billion liters of milk goes wasted that can be preserved with supply chain management,” Monnoo said. He is also CEO of DairyLand, one of the country’s largest dairy farms located in Sindh that produces and markets pasteurized and ultra high temperature (UHT) treated milk.
At present, Monnoo said, two Turkish companies were in the process of bringing operations to Pakistan.
“A Turkish company is coming to Pakistan while another has signed a memorandum of understanding with a Punjab based dairy farm,” he said.
SÜTAS, the Turkish dairy giant signed an agreement with Pakistani multinational conglomerate, Nishat Group, to start their dairy business in Pakistan in October 2018. Nishat Dairy is expected to start production from next year.
The PDA chief also stressed on better marketing Pakistan’s dairy sector potential to Gulf countries.
“Gulf countries such as Saudi Arabia, UAE and Qatar are concerned about their food security and it depends on (Pakistan’s) government how it... offers them opportunity to invest in Pakistan,” Monnoo said.
He added that presently, the dairy market was in stress due to the government’s removal of zero rated tax on the country’s dairy sector, people’s declining purchasing power amid inflation, and due to a negative perception in general about processed milk.
“The price difference has increased between regulated and unregulated milk and people feel the pinch of it,” Monnoo said.
In April this year, Chinese dairy giant, Inner Mongolia Yili Industrial Group suddenly withdrew its intention of acquiring up to 51 percent shares in the army-owned Pakistani food company, Fauji Foods. No reason was formally cited, but the management of Fauji Foods said in a notification to the Pakistan Stock Exchange that the acquirer and sellers had been unable to reach an agreement on the proposed sale and transfer of shares.
The PDA chief however, said he believed the Chinese dairy giant withdrew due to Pakistan’s current market situation.
Still, milk processors hope that an ongoing focus on the marketing of pasteurized milk will create more opportunities and shares for processed milk, and revenue for the government.
“Legislations for pasteurizing milk are being stressed while food authorities in Punjab and Sindh are active against adulterated milk sellers. In the coming days, selling loose milk will be difficult,” Monnoo said.
But small dairy farmers fear the extra legislation could wipe them out as authorities plan on implementing minimum pasteurization laws in eastern Punjab province as early as next year.
“This act will destroy the business of thousands of small farmers especially those who own as low as only two buffalos and feed their families,” Shakir Umar Gujjar, President of Dairy and Cattle Farmers Association told Arab News.
“There is a difference between adulterated milk and organic milk,” he said.


Islamabad court orders government to allow India to appoint lawyer for Kulbhushan Jadhav

Updated 03 August 2020

Islamabad court orders government to allow India to appoint lawyer for Kulbhushan Jadhav

  • The former naval commander was arrested in 2016 in Pakistan’s southwestern province of Baluchistan and convicted of espionage
  • India took the matter to the International Court of Justice which ordered a stay on Jadhav’s execution in 2019

ISLAMABAD: The Islamabad high court on Monday ordered the Pakistan government to give India a ‘chance’ to appoint a representative for Kulbhushan Jadhav, an Indian man condemned to death on charges of spying, Pakistani media reported.
Former Indian Naval Commander Kulbhushan Jadhav was arrested in 2016 in Pakistan’s southwestern province of Baluchistan and convicted of espionage and sabotage by a Pakistani military court a year later.
India took the matter to the International Court of Justice (ICJ) which ordered a stay on Jadhav’s execution in 2019, as well as consular access for India. Pakistan was also ordered to conduct an “effective review” of the death penalty.
Indian officials say they have been prevented from obtaining Jadhav’s written consent to arrange legal representation, necessary for a review of his case. Earlier this month, Pakistan invited India to file a review against the death sentence in light of the ICJ judgment.
A two-member bench comprising IHC chief justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard a petition filed by the Pakistan government to appoint a lawyer for Jadhav on Monday.
Responding to the judge’s remarks, Pakistan’s Attorney General Khalid Javed Khan said an ordinance had been passed by parliament recently to give an opportunity to India and Jadhav to file a review petition against the sentence.
“We will contact India again through the Foreign Office,” he said.
Under the ‘International Court of Justice Review and Reconsideration Ordinance 2020’, which was enacted on May 20, a petition for the review of a military court’s decision can be filed with the Islamabad high court through an application within 60 days of its promulgation.
The Pakistan government has said Jadhav refuses to file a review petition or an application to reconsider the military court’s verdict.
Indian external affairs ministry spokesperson Anurag Srivastava said last week Pakistan had blocked all avenues for effective remedy available to India in the Jadhav case, saying New Delhi has so far requested consular access to Jadhav for 12 times over the past one year.