Pakistan taps donkey exports to China, targeting $375‑$400 million FX earnings
Pakistan has secured a protocol with China to export donkey meat, bones and hides, aiming for 200,000 donkeys annually and generating up to $400 million in foreign exchange by FY 2026‑27.
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Neutral · Watch
Donkey export venture boosts foreign exchange but has limited direct impact on listed PSX sectors; watch for broader economic effects.
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Sectors: Economy, Markets — Neutral · Watch. PSX tickers: OGDC, PPL, MARI, PSO, SNGP, ATRL. Donkey export venture boosts foreign exchange but has limited direct impact on listed PSX sectors; watch for broader economic effects.
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Open on Business Recorder## New Trade Protocol with China
In October 2024, Pakistan and China signed a protocol during Chinese Premier Li Qiang’s visit that set quarantine standards for exporting donkey meat and hides. The agreement paved the way for commercial shipments and attracted Chinese investment in Pakistan’s livestock sector.
## Infrastructure Development in Gwadar
The government announced in April 2025 that commercial donkey exports would be a priority under the China‑Pakistan Economic Corridor (CPEC). Chinese firms were permitted to establish breeding farms, slaughterhouses and processing plants within Gwadar’s Export Processing Zone. By May 2026, the Economic Coordination Committee approved the export of donkey meat from the Gwadar North Free Zone, aligning with China’s import regulations.
## Hangeng Group’s Operations
A Chinese entrepreneur, Andy Liao of Hangeng Group, launched a slaughterhouse near Gwadar in July 2026. The facility can process up to 216,000 donkeys a year, with plans to increase daily capacity to 800 animals. Hangeng invested RMB 5 million (≈ $740,000) in a digital traceability system to monitor each animal from farm to export, ensuring food‑safety compliance.
## Expected Economic Benefits
Hangeng’s CEO estimates the venture could earn $5 million a month in foreign‑exchange within six months, rising to $7 million after two years. The company has invested roughly $50 million in Pakistan over six years and employs about 500 local workers alongside nine Chinese managers.
## Export Targets and Revenue Projections
In July 2026, the Chinese and Pakistani prime ministers set an annual export goal of 200,000 donkeys covering meat, bones and hides. Projections for FY 2026‑27 suggest exports of 15,000 tonnes of meat, 20,000 tonnes of bones and 216,000 tonnes of hides, potentially delivering $375‑$400 million in foreign‑exchange earnings.
## Outlook
The initiative diversifies Pakistan’s export basket and strengthens trade ties with China, while creating jobs in Balochistan. Ongoing monitoring will be needed to assess regulatory compliance and market sustainability.