A four-acre industrial plot in Gwadar has been allotted to Shahzad and Shao (Private) Limited, a joint venture between Pakistani and Chinese investors, to set up a donkey hide processing plant. The company will focus on extracting gelatin from donkey hides, a key ingredient in traditional Chinese medicine and several pharmaceutical products.

The land grant was confirmed on 12 June 2026 by the Gwadar Development Authority (GDA) under the Sino-Pak Livestock Value Chain Development Initiative, a component of the China-Pakistan Economic Corridor (CPEC). The project aims to tap into Pakistan’s growing donkey population and export processed gelatin to China, where demand for donkey-hide gelatin (ejiao) has surged in recent years.

What the plant will do

- Process donkey hides into pharmaceutical-grade gelatin for export to China and regional markets.
- Create direct and indirect jobs in Gwadar, including roles in livestock sourcing, hide processing, and logistics.
- Boost local income for donkey rearers, many of whom operate small herds in Balochistan and Punjab.

The plant is expected to begin operations by mid-2027, pending final environmental and safety clearances from the Pakistan Environmental Protection Agency (Pak-EPA) and the Gwadar Port Authority. The GDA has not disclosed the lease terms or the investment size, but officials say the project aligns with Gwadar’s push to diversify beyond port-based industries.

Why Gwadar?

Gwadar’s free-zone status and proximity to China make it a strategic location for export-oriented livestock processing. The Gwadar Industrial Estate already hosts food processing, seafood, and pharmaceutical units, but this is the first major animal-hide venture in the area. The project also ties into Pakistan’s broader goal of increasing non-traditional exports under the National Livestock Development Policy 2025.

Balochistan, where most of Pakistan’s donkeys are raised, stands to benefit directly. The province is home to an estimated 1.2 million donkeys, according to the Livestock and Dairy Development Department Balochistan (2025 data). Farmers in districts like Kalat, Khuzdar, and Lasbela could see higher earnings if the plant sources hides locally instead of exporting raw hides to China.

What this means for farmers and exporters

- Higher prices for donkey hides: Processed hides fetch 30–50% more than raw hides in international markets.
- New market access: Pakistani gelatin could enter China’s ejiao industry, currently valued at over $12 billion annually.
- Supply chain risks: If demand outstrips supply, donkey populations in Balochistan could face pressure, raising ethical and sustainability concerns.

The project has drawn cautious optimism from livestock associations. Allah Ditta, president of the Balochistan Livestock Farmers Association, told Naya Pakistan that while the plant could boost incomes, "farmers need guarantees that the company will buy hides at fair prices and not exploit middlemen."

Regulatory and environmental hurdles

The plant must comply with Pakistan’s Animal By-Products Rules 2023 and international hygiene standards for gelatin production. The Pak-EPA has flagged concerns about waste disposal and odor control, given Gwadar’s residential proximity to industrial zones. The GDA has pledged to conduct a public hearing before granting final approvals.

What’s next for readers

- Farmers in Balochistan and Punjab: Monitor announcements from the Livestock Departments of both provinces for procurement tenders. The Pakistan Agricultural Research Council (PARC) will publish guidelines on donkey rearing best practices by August 2026.
- Exporters and investors: Watch for updates from the Board of Investment (BOI) on tax incentives for livestock processing under CPEC.
- Consumers: The plant’s output will not affect domestic gelatin prices immediately, but long-term supply could stabilize local pharmaceutical and food industries.

Key contacts and resources

- Gwadar Development Authority (GDA): www.gwadar.gov.pk | +92-86-4150101
- Balochistan Livestock Department: www.balochistanlivestock.gov.pk | +92-81-9201301
- Pakistan Environmental Protection Agency (Pak-EPA): www.environment.gov.pk | +92-51-9208051

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What you should do now
1. If you rear donkeys in Balochistan or Punjab, register with your local livestock department to stay informed about procurement opportunities.
2. Check the GDA website for updates on environmental clearances and job postings.
3. Follow the BOI’s CPEC updates for potential tax breaks or subsidies for allied industries (feed suppliers, transporters).

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This project is a test case for Pakistan’s ability to add value to raw agricultural exports. If successful, it could pave the way for similar ventures in hides, wool, and dairy—turning Pakistan’s livestock sector from a cost center into a revenue driver.