After swine for US troops in Afghanistan, Pakistan eyes donkey meat exports to China

Men ride on a donkey cart on a street during monsoon rains in Karachi on July 6, 2020. (AFP/File)
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Updated 23 October 2024
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After swine for US troops in Afghanistan, Pakistan eyes donkey meat exports to China

  • Pakistan reported a population of 5.5 million donkeys in 2024, one of the highest in the world, as per official data 
  • Islamabad previously exported swine meat, prohibited for consumption, for NATO personnel in Afghanistan 

KARACHI: Pakistan’s food ministry has signed an agreement with a Chinese company to establish a donkey slaughterhouse and hide processing facility in southwestern Gwadar city to export the animal’s meat and hides to China, an official confirmed this week, after Islamabad previously exported the meat of swine, another animal prohibited for local consumption, to Afghanistan for American troops stationed there. 

Pakistan is frequently listed as one of the countries with the highest number of donkey populations worldwide, with Islamabad reporting its donkey population had increased to 5.9 million during the fiscal year 2023-24 from 5.5 million in 2019-2020, the Pakistan Economic Survey (PES) 2023-24 said. 

This is not Pakistan’s first venture into exporting animal meat illegal for consumption in the country. In the 2015-16 financial year, Islamabad exported $2.8 million worth of swine meat, primarily to Afghanistan, for the dietary needs of NATO personnel stationed there. As per data from the country’s central bank, Pakistan exported $447,000 worth of swine meat to Afghanistan in the 2016–17 financial year. 

While donkey meat is prohibited in Pakistan, with food authorities in the eastern Punjab province sealing eateries in the past for passing off donkey meat as beef, the animal’s meat and hides are quite popular in China. Gelatin derived from donkey hides is highly sought after in China for its use in Ejiao, a traditional medicinal remedy. Several Chinese eateries sell donkey meat and burgers for consumption. “Fat Wang’s Donkey Burger” in Beijing is a popular restaurant known for its donkey burgers.

“This facility will process donkeys into meat and gelatine for export to China,” Dr. Muhammad Akram, an official of Pakistan’s Ministry of National Food Security and Research, told Arab News about the slaughterhouse and hide processing facility in Gwadar.

The Donkey Sanctuary, a British charity, reports that approximately 5.9 million donkeys are slaughtered worldwide annually for their hides. Due to a decline in its domestic donkey population, China has increasingly turned to global sources to meet the demands of its Ejiao industry, the Donkey Sanctuary says. In July, Pakistan’s commerce ministry informed a Senate standing committee that protocols for exporting donkey hides and meat to China had been finalized.

Dr. Saif-ur-Rehman, who was part of a team of Pakistani and Chinese researchers who conducted a study in 2020 that concluded donkey meat exhibits “good antioxidant activity,” said Pakistan would have to ensure donkey breeding if it wants to export its meat to China. 

“Pakistan is very fertile for donkey breeding, as it does not face fertility issues encountered by other animals,” Dr. Rehman told Arab News. “Despite the natural growth being good and the population reportedly increasing, slaughtering should be started only after breeding farms are established.”

Dr. Rehman said donkeys were a popular source of medicinal products in China. According to the 2020 study, which was titled: “The Extracting Technology for Antioxidant Oligopeptides from Donkey Meat,” donkey hides are believed to enrich human blood and enhance the production of white blood cells in it, making the animal’s meat useful in adjuvant chemotherapy. 

Donkey meat is said to improve liver and kidney functions, promote blood health, boost immunity and offer anti-aging benefits as well as enhancing eyesight and the performance of lungs, the study further says. 

Dr. Akram said the government will prohibit public purchasing of donkeys until breeding centers are established by the Chinese company in all four Pakistani provinces. This he said was important as Pakistan wanted to sustain the population of donkeys.

“This multimillion-dollar project represents a significant investment, contributing to the broader scope of Chinese investment in Pakistan,” he explained. 

Dr. Akram emphasized that the meat will not enter Pakistan, a Muslim-majority country, where halal dietary guidelines prohibit the consumption of donkey meat.

 “Located in a free zone, the facility with an only exit by air or sea [policy] will ensure that the meat is only exported, preventing any by-products from entering Pakistan,” the food ministry official explained. “A quarantine officer will be present to oversee the export process and ensure compliance.”

Muhammad Zubair Motiwala, chief executive of the Trade Development Authority of Pakistan (TDAP), confirmed donkey by-products will be sent abroad.

“They [Chinese company] will take it and use both the skin and the meat,” Motiwala told Arab News. “But it will have significant benefit,” he said, adding that there were animals in Pakistan that could be exported to other countries as they were not consumed locally.


Pakistani, UAE officials agree to expand cooperation in railways sector

Updated 17 March 2025
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Pakistani, UAE officials agree to expand cooperation in railways sector

  • The UAE is Pakistan’s third-largest trading partner after China and US, and a key source of foreign investment
  • Pakistan Railways is currently working to improve its services with the help of domestic and international partners

ISLAMABAD: Pakistani and United Arab Emirates (UAE) officials have agreed to expand bilateral cooperation between the two countries in the railways sector, the Pakistani railway ministry said on Monday.
The statement came after Railways Minister Hanif Abbasi’s meeting with UAE First Secretary to Pakistan Ahmed Al-Tahiri, at which both officials discussed strengthening bilateral relations across all sectors.
Abbasi highlighted that Pakistan Railways is continuously working to improve its services through long-term agreements with domestic and international suppliers, emphasizing that Pakistan offers a business-friendly environment and presents significant opportunities for investors.
“Both sides deliberated on various aspects of railway operations and mutual trade interests,” the Pakistani railways ministry said in a statement. “Both leaders agreed to continue and expand bilateral cooperation in the railway sector and other economic domains.”
Pakistan Railways faces many challenges like aging infrastructure, outdated tracks, locomotives and signal systems. Poor maintenance and a lack of modern safety measures often contribute to train derailments and accidents. Notable tragedies include the 2005 Ghotki train disaster, which killed over 130 people and the 2021 collision that left at least 65 people dead.
The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry. Both countries have stepped up efforts in recent years to strengthen their economic relations. In Jan. 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure.
During Monday’s meeting, the UAE first secretary emphasized the deep-rooted ties of brotherhood and mutual respect between the two nations, according to the Pakistani railway ministry.
“He reaffirmed the UAE’s commitment to further enhancing bilateral cooperation,” the ministry said.


Pioneering American AI firm to expand operations in Pakistan, finance ministry says

Updated 17 March 2025
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Pioneering American AI firm to expand operations in Pakistan, finance ministry says

  • Afiniti is a leading global AI provider in health care, telecommunications, travel, hospitality, insurance and banking industries
  • Around 80 percent of Afiniti’s operational support team is based in Pakistan, with its customer base extending to Europe and other regions

ISLAMABAD: A pioneering American artificial intelligence (AI) company, Afiniti, has decided to expand its operations in Pakistan and recruit more talent in the South Asian country, the Pakistani finance ministry said on Monday.
Founded in 2005, Afiniti is a global AI provider in health care, telecommunications, travel, hospitality, insurance and banking industries as well as across multiple customer experience channels.
A delegation, led by Afiniti Chief Executive Officer Jerome Vaughan Kapelus, called on Finance Minister Muhammad Aurangzeb on Monday to discuss the company’s growth and continued investment in Pakistan.
“The meeting focused on discussions regarding Afiniti’s expanding business operations in Pakistan, the recruitment of talent and associated issues related to the taxation structure,” the Pakistani finance ministry said in a statement.
Kapelus highlighted that around 80 percent of Afiniti’s operational support team was based in Karachi, Lahore and Islamabad, with the company’s customer base extending to North America, Europe and other regions.
He praised Pakistani engineers, computer scientists and technologists, and said that his firm had an “exceptional” experience while recruiting people from Pakistan, according to the statement.
Pakistan is making steady progress in AI, with increasing investments in research, education and industry. Initiatives like the National Center for Artificial Intelligence are driving innovation, while startups explore AI applications in health care, finance and security sectors.
Despite challenges such as limited funding and infrastructure, Pakistan’s AI sector shows promise, with companies leveraging AI for data analytics, automation and customer engagement. As global AI adoption increases, the South Asian country aims to strengthen its position through policy support and technological advancements.
Aurangzeb appreciated Afiniti’s continued investment in Pakistan and assured the delegation of his government’s support in creating an enabling ecosystem for IT and agriculture sectors. He apprised the delegation of the Pakistan Crypto Council’s launch to regulate and integrate blockchain technology and digital assets into Pakistan’s financial landscape.
“The meeting concluded with a reaffirmation of the government’s commitment to supporting businesses like Afiniti, and the importance of continued collaboration between the public and private sectors to foster growth and development in Pakistan,” the finance ministry said.


‘Significant progress’ in IMF review triggers bull run at Pakistan stock market

Updated 17 March 2025
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‘Significant progress’ in IMF review triggers bull run at Pakistan stock market

  • The KSE-100 index gained over 1,000 points to close the week’s first session at 116,199.59 points
  • The index may rise to a record 123,000 points by June, if Pakistan clears IMF review, analyst says

KARACHI: Pakistan’s stocks rallied on Monday and rose 0.6 percent to the highest close in more than two months as the International Monetary Fund (IMF) gave some positive signals about its ongoing review of the South Asian country’s $7 billion loan program.
The benchmark KSE-100 index gained more than 1,000 points in the day trade before closing the week’s first session at 116,199.59 points, according to stock analysts.
Sana Tawfik, head of research at Arif Habib Ltd, said the stock market could reach 123,000 points by June if Pakistan sails through the first review of the IMF program.
“This is the highest since January 6,” Tawfik said, citing two main reasons for Monday’s bullish run.
“One is the IMF that issued a statement saying significant progress has been made [in talks with Pakistan] toward reaching the staff-level agreement. [Secondly], the overall sentiment is positive.”
The Washington-based lender put all speculation about its negotiations with Islamabad to an end, when its mission chief, Nathan Porter, said last week the two sides had made “significant progress” toward reaching an accord.
“The mission and the authorities will continue policy discussions virtually to finalize these discussions over the coming days,” Porter said on March 15.
The IMF team stayed in Pakistan for more than two weeks and reviewed the country’s economic reforms under its Extended Fund Facility as well as a fresh loan of about $1.5 billion to increase its climate resilience and sustainability.
“The IMF described the progress of the $7 billion loan program as ‘strong’ despite the absence of a staff-level agreement,” said Naveed Nadeem, a senior equity trader at Topline Securities Ltd., in a note to clients.
Monday’s rally was driven by Mari Energies, Pakistan State Oil, Oil & Gas Development Company Ltd. Lucky Cement and Searle Pakistan that collectively added 658 points to the benchmark index at the Pakistan Stock Exchange.
The equity market also gained some strength from reports of the government’s plan to resolve the longstanding issue of power sector debt, or the circular debt, according to analysts.
“This performance was influenced by the government’s initiatives to tackle Pakistan’s power sector debt,” Nadeem added.


Pakistan calls Indian PM’s remarks about regional peace ‘misleading and one-sided’

Updated 17 March 2025
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Pakistan calls Indian PM’s remarks about regional peace ‘misleading and one-sided’

  • PM Narendra Modi said in a recent podcast that India’s attempts to foster peace with Pakistan were ‘met with hostility and betrayal’
  • India’s ‘fictitious narrative of victimhood’ can’t hide its involvement in fomenting militancy on Pakistan’s soil, Islamabad says

ISLAMABAD: Pakistan’s Foreign Office on Monday said Indian Prime Minister Narendra Modi’s recent remarks on a podcast about regional peace were “misleading and one-sided,” criticizing New Delhi for “conveniently” omitting the Kashmir dispute from discussions.
Modi, in a podcast with American computer scientist and podcaster Lex Fridman released on Sunday, said that India’s attempts to foster peace with Pakistan were “met with hostility and betrayal” and hoped that “wisdom would prevail” on the leadership in Islamabad to improve bilateral ties.
In response to Modi’s remarks, the Pakistani Foreign Office said India’s “fictitious narrative of victimhood” could not hide its involvement in fomenting militancy on Pakistan’s soil and the “state-sanctioned oppression” Indian-administered Kashmir.
The Muslim-majority Himalayan region of Kashmir has been a flashpoint between Pakistan and India since their independence from the British rule in 1947. Both Pakistan and India rule parts of the Himalayan territory, but claim it in full and have fought three wars over the disputed region.
“Instead of blaming others, India should reflect on its own record of orchestrating targeted assassinations, subversion and terrorism in foreign territories,” it said in a statement.
“Pakistan has always advocated constructive engagement and result-oriented dialogue to resolve all outstanding issues, including the core dispute of Jammu and Kashmir.”
The statement by the Pakistani Foreign Office was a reference to allegations against Indian agents of plotting assassinations in the United States (US) and Canada.
In Jan. 2024, Pakistan also accused India of “extraterritorial” and “extrajudicial” killings of two of its citizens on Pakistani soil, while it has consistently accused India along with other countries of fomenting militancy in its western provinces, particularly Balochistan.
New Delhi denies all allegations.
The Pakistani Foreign Office further said that peace and stability in South Asia have remained “hostage to India’s rigid approach and hegemonic ambitions.”
“The anti-Pakistan narrative, emanating from India, vitiates the bilateral environment and impedes the prospects for peace and cooperation,” it said.
“It must stop.”


Pakistan’s power generation dropped 15% MoM during February— report

Updated 17 March 2025
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Pakistan’s power generation dropped 15% MoM during February— report

  • Pakistan’s power generation cost declined by 13% year-on-year and 30% month-on-month during February 2025, says report
  • Financial analysts attribute power generation decline to a lack of industrial activity, increasing shift toward solar energy

KARACHI: Pakistan’s power generation dropped by 15% month-on-month (MoM) in February 2025, a report by a top brokerage firm said on Monday, which analysts attributed to reduced demand due to slow industrial activity and an increasing shift of customers toward solar energy. 

According to a report by brokerage firm Topline Securities, total electricity generation dropped by 3% year-on-year to 81,738 GWh over the first eight months of the fiscal year 2024-25 (from July-February). This was down from 84,317 GWh in the corresponding period last year, it said. 

“Pakistan’s power generation decreased by 2% YoY and 15% MoM to 6,945 GWh in Feb 2025,” Topline Securities said. 

The report cited a decline of 13% in power generation cost YoY and 30% MoM in February 2025, adding that in the first eight months of the current fiscal year, power generation cost declined by 3% to Rs8.8 per unit.

Financial analysts attributed the decline in power generation due to reduced demand as a result of lack of industrial activity and an increasing number of people shifting toward solar energy. 

“There is reduced demand due to industrial activity which you can also see in the large scale manufacturing (LSM) numbers,” Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., told Arab News. 

He said another reason for the decline in power generation was the increasing shift of residential consumers toward solar energy. He said commercial consumers had also installed their own captive plants that run on gas and coal. 

“This also shows a shift toward alternative [sources of energy] which decreases the grid’s usage,” he added. 

Samiullah Tariq, the head of research at Pakistan Kuwait Investment Company Ltd., agreed. 

“Reasons include reduced industrial activity, people leaving the [national] grid due to higher [energy] prices and solar adoption,” Tariq said. 

Pakistan has sought to ease fiscal pressure in recent months by undertaking energy reforms that reduce tariffs and slash capacity payments to independent power producers (IPPs). The federal cabinet approved a plan in January to renegotiate agreements with 14 IPPs in its bid to lower electricity costs and addressing the mounting circular debt.