Livestock Sector's Role in Pakistan's Economy

Livestock is the backbone of Pakistan’s rural economy, contributing 61.9% to the agricultural GDP and 14% to the national GDP (Pakistan Economic Survey 2022–23). It supports over 8 million rural families, providing 35-40% of their household income (FAO, 2023). With agriculture employing approximately 38.5% of the national labor force (World Bank, 2023), the livestock sector is not only a source of livelihood but also a vital component of national food security and economic resilience.

Despite its importance, Pakistan’s livestock sector faces several structural and emerging challenges. Climate change is intensifying droughts, heat stress, and water scarcity, directly affecting animal health and productivity. Inadequate veterinary infrastructure and periodic disease outbreaks, such as foot-and-mouth disease and lumpy skin disease, further threaten livestock populations and reduce yields in meat, milk, and by-products. Additionally, traditional and inefficient farming practices, including poor feeding regimes and lack of genetic improvement, limit the sector’s potential.

Socially, livestock ownership is a critical safety net for rural women, who often tend to animals and rely on them for nutrition and income. However, their access to extension services, training, and markets remains limited. Environmentally, livestock farming is a significant contributor to methane emissions, highlighting the need for climate-smart practices such as improved manure management, fodder cultivation, and rotational grazing.

To ensure sustainable growth, Pakistan must invest in modern veterinary services, farmer education, climate-resilient breeds, and value-added livestock chains. Strengthening cooperatives, supporting digital livestock markets, and facilitating microfinance access for smallholders particularly women can transform livestock into a driver of inclusive rural development. Holistic livestock policy reform will be essential to ensure that the sector not only feeds the nation but also empowers its rural communities.

The Economic and Environmental Role of Livestock in Pakistan

The livestock sector plays a vital role in Pakistan’s economy and food systems, serving as a cornerstone of rural livelihoods, national exports, and nutritional security. For millions of small-scale farmers, livestock is the primary source of cash income, derived from the sale of milk, meat, wool, and leather. The sector employs an estimated 8 to 10 million people, encompassing a broad value chain that includes herders, veterinarians, feed producers, and market traders (PARC, 2023). It also contributes significantly to women’s economic empowerment, over 70% of rural women are engaged in livestock care, making it one of the few accessible income-generating activities for women in rural areas (Benazir Income Support Program, 2023).

Livestock is also a key contributor to Pakistan’s export economy. With annual earnings of approximately $1.3 billion, the sector exports halal meat, dairy products, and leather goods primarily to China, the UAE, and Saudi Arabia (Trade Development Authority of Pakistan, 2023). Domestically, livestock contributes over 50% of the daily protein intake for the population, while milk production, at 65 million tons per year, ranks Pakistan as the fourth-largest milk producer in the world (FAO, 2023).

However, these economic and nutritional benefits come with considerable environmental costs. Livestock farming is responsible for 14% of the country’s methane emissions (Ministry of Climate Change, 2023), largely due to enteric fermentation and poorly managed manure. Unregulated waste runoff also pollutes freshwater supplies, exacerbating health and sanitation issues. Overgrazing has degraded nearly 40% of rangelands in Balochistan and Khyber Pakhtunkhwa, while deforestation for fodder collection further undermines ecological stability (IUCN, 2023). Moreover, the sector consumes about 15% of the nation’s freshwater resources (PCRWR, 2023), contributing to already severe water stress.

To address these issues without undermining livestock’s economic value, sustainable practices are essential. Rotational grazing can help restore pasture health, while biogas plants offer a clean energy solution from manure. Introducing drought-resistant fodder crops such as barseem and lucerne can improve feed availability while conserving water. A balance between economic growth and environmental sustainability is crucial to ensure that the livestock sector continues to serve as a driver of prosperity for rural Pakistan.

Toward Sustainable Livestock Management in Pakistan

Pakistan’s livestock sector, while economically vital, faces several persistent challenges that hinder its potential for sustainable growth and productivity. Disease outbreaks are among the most critical threats. Foot-and-mouth disease (FMD), a highly contagious viral illness, results in estimated economic losses of $200 million annually due to reduced milk yield, mortality, and trade restrictions (Livestock Department Punjab, 2023). Similarly, recurring avian influenza outbreaks severely disrupt the poultry sector, which supports 1.5 million small-scale poultry farmers across the country (Sindh Poultry Association, 2023). These health crises not only impact livelihoods but also threaten national food security.

Poor breeding practices and feed shortages further limit productivity. Many farmers rely on low-yield indigenous breeds, such as Desi cows, which produce only 3–5 liters of milk per day, compared to improved breeds like Sahiwal, which yield 8–10 liters. Additionally, feed costs account for nearly 60% of total production expenses. Unable to afford high-quality fodder, many farmers resort to substandard feed, compromising animal health and output.

Market access and infrastructure pose additional constraints. The absence of regulated livestock markets allows middlemen to exploit farmers through unfair pricing. Post-harvest losses in the dairy and meat sectors remain high up to 30% due to insufficient cold storage and transport facilities (PARC, 2023), undermining both farmer income and food quality.

To address these challenges, Pakistan is implementing various sustainable livestock management strategies. Artificial insemination (AI) programs targeting breeds like Sahiwal and Red Sindhi are being expanded, while the government allocated PKR 5 billion in the 2023–24 budget for nationwide vaccination drives to reduce disease prevalence. Climate-smart practices such as silage preparation and hydroponic fodder cultivation are gaining traction, particularly in water-scarce regions. Manure-to-biogas initiatives, like the Pakistan Biogas Program, provide clean energy while managing livestock waste.

Policy reforms and financial support are also crucial. Initiatives like the Kissan Card Scheme offer subsidized loans to smallholders. Under the China-Pakistan Economic Corridor (CPEC), modern abattoirs and dairy hubs are being developed to improve processing and exports. Digital solutions, including mobile livestock advisory services by PARC, and gender-inclusive models such as women-led dairy cooperatives under the Benazir Women Agriculture Workers Program, are creating new avenues for innovation and empowerment.

Successful case studies such as Punjab’s model dairy farms, Sindh’s goat breeding program, and KP’s community-managed rangeland restoration demonstrate that sustainable, inclusive approaches can overcome structural barriers and enhance the long-term viability of Pakistan’s livestock sector.

Conclusion

The livestock sector is central to Pakistan’s rural economy, contributing significantly to national GDP, employment, food security, and women’s empowerment. Despite its immense economic and social value, the sector faces multifaceted challenges ranging from disease outbreaks and poor breeding practices to environmental degradation and limited market infrastructure. These issues not only constrain productivity but also threaten the sustainability of rural livelihoods and the country’s food systems.

To ensure long-term viability, Pakistan must adopt a multi-pronged approach that integrates modern veterinary care, climate-smart farming techniques, and inclusive policies. Strategic investments in disease prevention, improved breeds, efficient feed systems, and digital tools can significantly enhance productivity while reducing environmental impact. At the same time, expanding access to credit, infrastructure, and extension services particularly for women and smallholders—can foster a more equitable and resilient livestock economy.

Successful local initiatives already offer a blueprint for scalable solutions. By aligning policy, technology, and community engagement, Pakistan can transform its livestock sector into a model of sustainable development. Ultimately, the future of rural prosperity depends on recognizing livestock not just as an economic asset, but as a pillar of environmental stewardship and social well-being. The path forward requires commitment, innovation, and inclusive action across all levels of governance and society.

References: Pakistan Economic Survey; FAO; PARC; Ministry of Climate Change; World Bank; Benazir Income Support Program; Trade Development Authority of Pakistan; (Ministry of Climate Change; IUCN; PCRWR; Livestock Department Punjab; Sindh Poultry Association

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

The writer is affiliated with the Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan.

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