Pakistan exporters race to meet Malaysia’s US$200m halal meat deal
Industry leaders warn that without significant upgrades to infrastructure and efforts to lower livestock costs, Pakistan risks losing out to regional competitors.
Workers at a slaughterhouse in Lahore.
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LAHORE: Malaysia’s plan to import US$200 million worth of halal meat from Pakistan has sparked a scramble among Pakistani exporters eager to break into the lucrative Southeast Asian market – one Islamabad hopes will help revive its struggling economy.
But industry leaders warn that without significant upgrades to infrastructure and efforts to lower livestock costs, Pakistan risks losing out to regional competitors.
EXPORTERS LOOK TO MALAYSIA
At a meat processing facility run by Anis Associates in Raiwind, in Lahore, workers handle more than 300 animals a day, processing both mutton and beef.
For over two decades, the company has exported halal meat to Central Asia. Now, it is setting its sights on Malaysia.
But the firm says expansion will not come easily and it needs help from authorities.
“If the government supports us, only then can we enter the (Malaysian market),” said its CEO Nasib Ahmed Saifi.
“Livestock is expensive here, and duties are also high. We are located far from Malaysia, so our freight charges are higher and are paid in dollars.”
Pakistani exporters have been encouraged by a US$200 million halal meat export agreement signed with Malaysia last October, during Prime Minister Shehbaz Sharif’s visit to the country.
The deal represents a significant jump from current export volumes to Malaysia, said economist Ali Salman.
“To develop an agreement from (almost zero) to US$200 million sounds very ambitious, and may be unrealistic at this point in time,” said the executive director of Pakistani think-tank Policy Research Institute of Market Economy, adding that challenges are ahead.
MEETING MALAYSIA’S HIGH STANDARDS
Producers face multiple hurdles. Malaysia’s food safety requirements – widely regarded as a global benchmark, especially in Halal food standards – demand strict disease control, hygiene and sanitation at slaughterhouses.
Muhammad Junaid, livestock consultant at Pakistan’s Ministry of National Food Security and Research, said only three slaughterhouses in the country are registered with Malaysia’s Department of Veterinary Services.
“We wish to have more slaughterhouses (registered) to cater for the upcoming increase in slaughter (volumes),” he said.
Anis Associates said it already adheres to international standards for how its meat is cleaned, cut and stored. Still, certification comes at a cost – US$265 per shipment – which exporters want the government to subsidise.
REGIONAL COMPETITION
Competition poses another challenge. Malaysia’s meat market is currently dominated by Australia and New Zealand, with India rapidly increasing its presence by offering lower prices.
Pakistani exporters warn that India’s cost advantage is eroding their competitiveness.
However, Pakistan retains an edge in beef exports, as India does not export the meat, giving Pakistani suppliers access to Malaysia’s beef products market.
Logistics also remains a major obstacle. The government says it is working to upgrade infrastructure and expand temperature-controlled supply chains.
Islamabad is also using diplomatic channels to help connect Pakistani exporters directly with Malaysian buyers.
Analysts agree that improvements in standards, certification and logistics could open the door for Pakistan’s halal meat industry to tap into Malaysia’s vast market.
But success, they say, will depend on how quickly both the government and exporters can overcome these structural challenges.
