Pakistani poultry sector in risk of total collapse, seeks government bailout.
Last weekend, Mr. Muhammad Fargham, Vice chairman of the Pakistan Poultry Association (PPA) urged the government to provide the poultry […]
Last weekend, Mr. Muhammad Fargham, Vice chairman of the Pakistan Poultry Association (PPA) urged the government to provide the poultry sector a desperately needed bailout package, as it has been badly affected from the economic difficulties imposed by the Covid-19 outbreak.
He continued saying that almost 35 to 40 per cent of poultry farms have been shut down, while the rest of the sector is challenged by heavy losses due to the indefinite closure of marriage halls, food service establishments and the hospitality industry.
During the press conference, he said that the poultry sector has been suffering for the past six months because of the high cost of production, combined with the reduced purchasing power of consumers. The cost of production increased many times over due to the increase in cost of borrowing and capital financing.
This was the main driving force that led him to urge the Pakistani government to boost businesses which have been directly hit by the pandemic and launch financial programmes to help closed industrial establishments get back on their feet. Mr. Muhammad reiterated that food security should be deemed on top of the government’s list, and this can only be done by aiding the sector.
Another point that was addressed to the government was to allow an exemption to the poultry sector on import duty and all taxes related to poultry vaccines, medicines, raw materials and machinery in order to reduce the sector’s production costs.
However, his cries for concern did not just stop with the government. The vice chairman also appealed to the banks to provide loans to the poultry sector as soon as possible according to the State Bank of Pakistan’ s (SBP) directives, stressing that such loans should be provided without the condition of showing past records. The sanction of new loans for poultry farms should be ensured in order to enable continuity of production activities.
Poultry farmers have been experiencing heavy losses during the recent months, and the PPA’s vice chairman is dreading a complete industry collapse if the government does not announce a relief package.
Source: https://profit.pakistantoday.com.pk/2020/08/15/covid-19-poultry-industry-asks-for-a-bailout-says-sector-on-the-verge-of-collapse/
