FBR Proposes Duty-Free Livestock Imports to Boost Pakistan’s Meat Exports

According to draft amendments to the Customs Rules, 2001, issued through SRO 1752(I)/2026 on October 7, eligible livestock imports would be exempt from customs duty, additional customs duty, regulatory duty, sales tax, federal excise duty and withholding tax.

The FBR has invited objections and suggestions on the proposed amendments within seven days of their publication in the official Gazette.

The proposed framework establishes two categories of operations. Track A would cover the importation, fattening and re-export of live animals, while Track B would allow imported livestock to be fattened, slaughtered and processed into meat and meat products for export.

Track B would become effective once the final rules are notified, whereas Track A would require separate clearance under the Export Policy Order.

Under the proposed conditions, eligible operators would need authorisation from Customs and the relevant animal health authorities. They would also be required to maintain animal identification and traceability records and provide financial security against deferred duties and taxes.

The draft rules stipulate that cattle must be exported or slaughtered within 180 days of release from quarantine. Sheep and goats would have to be exported or processed within 120 days. Extensions could be granted under specified conditions.

New livestock facilities and expansion projects would be allowed 24 months to become operational, with a possible extension of another 12 months.

Participating projects would also have to meet minimum export requirements. Under Track A, at least 80% of imported animals would need to be exported, while Track B operators would be required to export at least 80% of production by value. The prescribed export ratios would have to be maintained for five financial years.

The proposed scheme would also permit duty-free imports of animal feed, veterinary medicines, vaccines and other approved inputs required for fattening, provided these materials were used exclusively for livestock covered by the programme.

Meat and meat products would have to be exported within 120 days of slaughter.

However, operators could divert up to 10% of imported animals, or an equivalent quantity of meat, to the domestic market after obtaining prior approval and paying the applicable duties, taxes and surcharge.

The draft amendments also establish permissible mortality limits of 3% for cattle and 5% for sheep and goats. Operators would be subject to quarterly reporting requirements, customs audits and penalties for violations of the rules.

The FBR would subsequently issue detailed operating procedures through customs general orders, covering approved entry and exit points, animal identification standards and electronic monitoring arrangements.