ISLAMABAD: Growing demand in China for Ejiao, a traditional medicine made from donkey hides, is opening a new export opportunity for Pakistan, with the country preparing to supply donkey meat and hides to the Chinese market.
According to Bloomberg, China’s declining donkey population has prompted buyers to look for supplies from countries including Pakistan, Brazil and Australia.
Pakistan has a donkey population of more than 6 million, while donkey meat is consumed in China and donkey hides are used to produce Ejiao, a traditional Chinese medicine. China’s Ejiao market was valued at approximately $7.8 billion in 2021.
Pakistan and China signed a protocol in October 2024 covering quarantine requirements for the export of donkey meat and hides. This was followed by efforts to establish donkey breeding, slaughtering and processing facilities in Gwadar. In May 2026, the Economic Coordination Committee (ECC) approved the export of donkey meat from Gwadar North Free Zone, subject to the destination country’s import requirements.
In July 2026, Chinese entrepreneur Andy Liao’s Hangeng Group established a donkey slaughterhouse in Gwadar and began exports to China. The company plans to process up to 216,000 donkeys annually and aims to increase its daily slaughtering capacity to 800 donkeys within the next few months.
The company has invested RMB 5 million, or around $740,000, in a digital traceability system designed to track each animal from the farmer to the Chinese buyer, helping ensure transparency, food safety and regulatory compliance.
According to Liao, Hangeng Group has invested around $50 million in Pakistan over the past six years and currently employs about 500 local workers and nine Chinese managers.
Liao said the business could generate around $5 million in monthly foreign exchange earnings within six months, potentially rising to $7 million per month within two years.
In July 2026, Pakistan and China also discussed an annual export target of 200,000 donkeys, covering meat, bones and hides. For fiscal year 2026-27, exports are estimated at around 15,000 tonnes of meat, 20,000 tonnes of bones and 216,000 tonnes of hides, potentially generating $375 million to $400 million in annual foreign exchange earnings.
