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Reason Revealed Behind Pakistan Substantial Meat Export Losses

Reason Revealed Behind Pakistan Substantial Meat Export Losses

Pakistan is incurring a monthly loss of $1.5 million due to the omission of actual freight charges in meat exports to Dubai. Customs Intelligence Karachi has communicated this issue to the Customs Collectors at various airports, highlighting the need to rectify the non-inclusion of real freight expenses in meat exports to the UAE.

The Minimum Export Price, determined by the All Pakistan Meat Exporters & Processors Association, comprises the meat value and height charges. Remittances for meat exports are based on the C&F value. With Dubai’s ban on sea exports from Pakistan since October 10, 2023, the demand for transporting meat from Pakistan to Dubai via air has surged.
Read more : Pakistan Resumes Refrigerated Meat Exports To UAE

Despite a 55 percent increase in air freight from $766/ton on October 7, 2023, to $1,187/ton in December 2023, unscrupulous exporters have neglected to adjust their pricing. The exporters continue to sell meat at $3.9/kg, a rate set in March 2023 when freight costs were even lower at $713/ton.

Pakistan exports around 3,575 tons of meat to Dubai, and the failure to account for the 55 percent increase in freight is causing the country to lose $1.5 million in foreign exchange every month. The Customs Intelligence and Investigation Directorate in Karachi has urged Customs Collectors to ensure that actual freight expenses are accurately declared when exporting meat from the country.