The Pakistan Poultry Association has warned that Pakistan could face a chicken shortage within weeks after the government decided to retain a Federal Excise Duty (FED) of Rs10 on day-old chicks, a move the industry says is raising costs and disrupting production.

In a statement, the association said the levy increases expenses at the very start of the production cycle, prompting some breeders to divert fertile eggs for sale as table eggs instead of hatching them. The development, it said, could reduce chick placement and lead to supply constraints in the coming weeks, with implications for prices and access to affordable protein.

Industry representatives cautioned that a shortage could emerge within six to eight weeks if the trend continues, potentially pushing retail chicken prices higher. They said the impact would be felt most by low-income households that rely on poultry as a primary source of protein.

The association said Punjab, which serves as the country’s main poultry production hub, would be particularly affected. It warned that small and medium-sized farms face the risk of closure due to rising costs, which could lead to job losses, reduced rural incomes and broader economic pressure in farming communities.

PPA Chairman Abdul Basit described the duty as a regressive measure that affects both producers and consumers. He said the tax adds pressure to an industry already grappling with higher input costs.

Dr FM Sabir said the sector is facing mounting challenges from elevated electricity tariffs and feed prices, warning that continued cost pressures could make chicken and eggs unaffordable for large segments of the population.

The association has called for the immediate withdrawal of the FED and urged the government to consult industry stakeholders to develop a stable policy framework aimed at ensuring affordable protein supplies and the long-term sustainability of the poultry sector.