Pakistan seeks reversal of UAE ban on chilled meat exports from sea amid quality concerns

A butcher hangs goat meat at his shop in Rawalpindi, Pakistan on November 29, 2012. (Photo courtesy: AFP/File)
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Updated 21 September 2023
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Pakistan seeks reversal of UAE ban on chilled meat exports from sea amid quality concerns

  • United Arab Emirates decided not to import meat products from Pakistan via sea after receiving bad consignments
  • Pakistan’s trade development body acknowledges the problem, blaming the shipping company’s refrigeration system

KARACHI: The Trade Development Authority of Pakistan (TDAP) said on Thursday it was actively trying to seek the reversal of a ban imposed by the United Arab Emirates (UAE) from next month on the export of chilled meat via sea after consignments carrying “substandard” products.

TDAP acknowledged the problem after initial investigation, though it blamed the refrigeration system of a shipping company for being behind the whole issue.

The UAE said this week it would stop importing “chilled fresh meat” from Pakistan via sea from October 10 since an unnamed company had supplied “sub-quality” products to its markets.

Pakistan exports meat worth around $144 million per year to the UAE.

“Initial investigations have revealed that the sub-standard quality of meat was allegedly due to inefficient / non-functionality of the refrigeration system installed in the reefer containers, which is a responsibility of the shipping lines,” TDAP said in a statement. “It has also been learnt that the concerned exporters have filed damages against the shipping line.”

“The Pakistani Consulate, in Dubai, has engaged with stakeholders, to ascertain the reason for this unfortunate event including requesting for a formal meeting with the UAE Ministry of Climate Change and Environment to present Pakistan’s viewpoint and comprehensively address their concerns,” it added. “The Mission will seek to assuage the concerns highlighted by the UAE authorities and at the same time strongly advocate for vacation of the ban.”

The UAE ministry announced this week it would not allow import of fresh chilled meat from Pakistan by sea after October 10.

No restriction was placed on exports via air transportation, with the condition that the meat was vacuum- or modified atmosphere-packed and had a shelf life of 60 to 120 days from the date of slaughter.

Faisal Hussain, the CEO of the Karachi-based Organic Meat Company Limited (TOMCL), a leading meat importer, said the “partial ban” would hurt Pakistan’s overall export figures.

“Export volume [of meat] for overall Pakistan will go down by two-third as Pakistan will only be limited to export what can be sent via air, and air space has limitations,” Hussain told Arab News. “And it’s expensive as well, so where Pakistan made its space in the UAE against other countries, it will also be lost.”

An internal memo from TOMCL said the restriction had been placed as another meat exporter, which the company did not name, had sent “sub-quality fresh chilled meat to UAE via sea.”

According to TDAP, Pakistan is one of the largest meat producers in the world. Over the past decade, it has become one of the fastest-growing meat exporters also, capitalizing on its competitive advantage to supply meat to Gulf Cooperation Council (GCC) countries.

In January 2023, bovine meat exports from Pakistan totaled $31 million, marking a 29 percent increase compared to $24 million recorded during the same period in 2022, according to TDAP.


Pakistan to press ahead with privatization after $441 million net loss in FY2024-25

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Pakistan to press ahead with privatization after $441 million net loss in FY2024-25

  • National Highway Authority and power distribution companies are major loss contributors
  • The government says reforms agenda is shifting ‘from diagnosis to delivery’ after PIA sale

KARACHI: Pakistan is pressing ahead with plans to privatize state-owned enterprises (SOEs) after official data released on Friday showed the sector posted a net loss of PKR 122.9 billion ($441 million) in the year ended June 2025, with the government approving new transactions involving power utilities, an international airport and other major assets.

The Cabinet Committee on State-Owned Enterprises, chaired by Finance Minister Muhammad Aurangzeb, reviewed the Annual Consolidated Performance Report of SOEs for the fiscal year ended June 2025. The report was prepared by the Finance Division’s Central Monitoring Unit, which showed SOEs remain a significant drag on public finances.

“The Committee was informed that during FY 2024-25, aggregate revenues of SOEs stood at approximately PKR 12.4 trillion [$44.6 billion], reflecting a decline largely attributable to reduced profitability in the oil sector following lower international oil prices,” said an official statement circulated by the Finance Division.

“Aggregate profits of profit-making SOEs declined by 13 percent to PKR 709.9 billion [$2.55 billion] compared to PKR 820.7 billion [$2.95 billion in the preceding year], while aggregate losses of loss-making SOEs showed improvement, declining by around 2 percent to PKR 832.8 billion [$2.99 billion],” it added. “Despite this improvement, the net result was an overall net loss of PKR 122.9 billion [$441 million] for the SOE sector, compared to a net loss of PKR 30.6 billion [$110 million] in the previous year.”

It was highlighted that losses remain heavily concentrated in a small number of entities, particularly in the transport and power distribution sectors.

“National Highway Authority and several power distribution companies continued to be major loss contributors, reflecting structural issues, high depreciation, financing costs, and the public service nature of certain operations that are not commercially viable,” the statement said.

It added the cabinet committee directed that the findings of the report be shared with relevant ministries to inform reform measures and that progress on audits, governance reforms, debt rationalization and fiscal risk containment be reviewed regularly.

In a separate post on X, government finance adviser Khurram Schehzad said the SOE reform agenda was shifting “from diagnosis to delivery,” citing recent privatizations including First Women Bank, the shutdown of Utility Stores Corporation and progress on Pakistan International Airlines.

The Privatization Commission also held a meeting during the day, saying it would also move ahead with the privatization of power distribution companies while recommending that Islamabad International Airport be included in the privatization program under an open, competitive concession model.

It also decided to restart the sale process for House Building Finance Company Limited after terminating an earlier negotiated transaction that failed to meet valuation benchmarks.

Pakistan is implementing structural reforms under a $7-billion program agreed with the International Monetary Fund, which has urged Islamabad to rein in losses at state firms and reduce fiscal risks stemming from debt and guarantees.