Journal of Education and Social Sciences, Vol.

6, (February)
ISSN 2289-1552 2017

FACTORS REINFORCING PAKISTAN HALAL FOOD INDUSTRY TO BE THE WORLD

HALAL FOOD HUB

Syeda Hameeda Batool Gillani

Muhammad Mahmood Shah Khan
Farrukh Ijaz

ABSTRACT

Halal is becoming a universal sign for quality assurance and standard of living. The world market for halal goods and services
is rising into influential energy pitch of world commerce and finance. Halal products and Islamic Financial Services (IFS) have
market share of one trillion USD annually. The aim of this study was to survey the potential and expectations of halal food
producers, distributors and consultants anticipate in promoting Pakistan halal food industry as potential halal food hub. The
study explored the halal food producer’s awareness, perception, religious beliefs and the market strategies government adopted
to fortify the Pakistan halal food industry. Shariah compliance standards were also analyzed. The study found that Pakistani
food producers and distributers perceived that most of Muslim consumers prefer halal food items, and a proper advertising and
marketing strategy of Pakistan halal food could be a competitive advantage in this regard. Some policy actions are needed to be
established as governance of halal is unsystematic in Pakistan. This study will be of great significance to the policy makers,
marketers and food manufacturers in Pakistan.

Keywords: Halal, Government, Marketing, Food Industry, Pakistan

1. Introduction

Halal food industry is one of the fastest growing industry around the Muslim and non Muslim countries (Lada, 2009). The
growth in the Muslims consumer population makes halal food industry stands out; the religious beliefs fuel the acceptance of
halal foods and developed this industry. The concept of halal food quickly absorbed in global food markets (Alam, 2011). Most
of the Muslim state’s the consumption and producing of halal products complies by constitution (Jamal, 2003). Pakistan does not
adequately contributing in the progress of the halal food industry, although the resources are abundant in Pakistan as compare
with the other economically equivalent countries like Thailand and Malaysia that are promising halal centre in the constituency
(Alam, 2011). Malaysian government has established an organization for halal certifications named Jabatan Kemajuan Islam
Malaysia (JAKIM), all manufacturers are compelled to acquire halal certifications from JAKIM.

Pakistan’s private sector contribution in the development of the halal industry is noteworthy; in the tough situation of the
economy their efforts are distinguished. Homeland is suffering from energy crisis, terrorism attacks and government revenues
put burden on the commercial sectors. The lacks of modern technologies domestic producers face hurdles for international
placement in halal supplies. The demand of red meat boosts gradually and Pakistan has potential to compete this demand but the
international standards of meat export do not accomplish by the local meat producers. Third largest livestock country Pakistan
has 19th position in the exporting meat.

Over the last few years, government of Pakistan took some serious steps for the growth and development of halal industry. The
government had established agricultural and meat Market Company for halal meat processing set in the homeland. Pakistan is
enriching in the verities of cattle and world best classes of livestock are originated in the districts of all provinces of Pakistan.
Pakistan livestock is world third largest emergent sector and growing approximately at the rate of 4% annually, all the cattle
feeds are halal and the slaughtering method is purely on the word of Shariah law (halal). Nonetheless a long journey is ahead,
according to a consistent study human livestock ratio of Pakistan is 1:1 and need of the time is to utilized these natural resources
adequately.

1.1 Research Questions

The research questions are as follow:

•
•
Does Pakistan halal food industry have a potential to become global halal food hub?
What are the key drivers/variables that play an important and significant role in the promotion of Pakistan halal
industry to become halal food hub globally?

1.2 Research Objectives

The research study addresses the following research objectives:

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• To look at the level of awareness and perception of halal produces and manufacturers in the halal food industry of

•
Pakistan

•
To emphasize the government logistics provision role in the expansion of the halal food industry of Pakistan.

•
To investigate the role of Shariah compliance on the halal food industry of Pakistan
To examine the marketing strategies to promote the halal industry of Pakistan

1.3 Problem Statement

Halal food industry is a promising sector of global trade. Lot of studies and literature exposed the insist of halal goods and
services but all these studies mass the consumer perspective very few work has been done on the halal goods and services
producers insight. As for my best knowledge, there is no study that investigates the role of halal food producers; nix research is
on halal food producer’s viewpoint, especially to highlight their objective, problem, matters and issues. This study illustrates the
perspective of halal food producers of Pakistan and adds in turn to expose the attributes of Pakistan halal manufacturers and
prerequisite needed to get position in the rapidly growing halal food industry in trade liberalization pace.

1.4 Motivation of Study

Institutional theory offers a suitable explanation that grounds the motivation to implement halal food certification. The highly
institutionalized halal industry comprising government regulations, Muslim demands for Shariah compliance foods, and intense
marketing competition instigate halal food implementation. Consequently, as research has emphasized on the demand-side of the
halal food chain, management theories, specifically the Institutional Theory, is hardly applied. Hence, this study ascertains the
factors that motivate firms to implement Pakistan halal food as potential halal food hub, and observe the Institutional Theory on
why business enterprises engage in halal food. As proposed by Zakaria and Abdul-Talib (2010) and Abdul-Talib and Abd-Razak
(2013), apart from understanding consumer requirements, it is equally important for firms to recognize the market factors or the
external environments and understand the ‘why’ and ‘how’ market forces influence organizational conducts.

1.5 Sequence of Study

The study comprised of five chapters. Chapter 1 presents an overview concerning Pakistan halal food industry promotion,
potential and emerging global halal food hub. Chapter 2 consists upon a precise literature review. Chapter 3 depicts methodology
of this research, includes study design, sample selection, profile of the respondents. Chapter 4 discloses the results and
interpretation of findings of this research. Lastly, Chapter 5 encloses conclusion, recommendations and limitations of this
research.

2 Literature Review

In the last few years, halal food and goods market grow consistently and reached to the level of about $635 billion per annum.
Reuters (2014) reported that the Halal food market is one of the largest consumer market in the world. This is 16.7% of the world
food industry as a whole (AbdulTalib and Abd-Razak, 2013). Muslims as follower of the divine religion are bound to intake only
permissible foods, beverages and even medicine should contain halal components. That is why the Muslims from entire world
boost up the demand for halal foods incredibly and assure their consumer power among the free market. Now the Muslims
consume pull towards multinational companies’ attention and halal foodstuff confine prominent niche in the Tesco, KFC,
McDonalds, Nestle and Liver brothers add halal goods in their product lines. These multinational companies lock in almost 90%
market share of the halal goods (A.a.A.-F, 2011).

The increase in the halal market speeds up after the extraction of oil and petroleum in Middle East countries that are Muslims
majority countries and the lifestyle of their public have been revolutionized and the demand for halal goods and services
accelerate (Kautonen, Gelderen & Fink, 2015). At present Gulf countries (Oman, UAE, Saudi Arabia, Kuwait, and Qatar),
including Malaysia, Indonesia, China, and India are big contributors of halal market and declare it promising market of the
future. Highly ranked non Muslim countries like Russia, and European countries exceedingly honored halal foods due to the
safety and moral values of the products approved by halal certifications and meet the international standards. The demand of
halal food is greater than the supply globally; even though Asian markets European markets are big niche for halal foods market.
The potential consumer of halal foods and goods are also observed in the Canada and America if the distributers fulfill the
international standards.

Pakistan government took serious steps to enter into the prospective halal business through endorse halal certification, halal logo,
and Shariah compliance of the production procedure, monitor by recognized bodies. Government officials tour the world in
search of prospective markets for halal food industry and get familiarity of advancement in halal industries. All the agencies
directly or indirectly associated with halal industry should coordinate each other for the evolution of national halal industry.
Pakistan government has established team of renowned Shariah scholars who control and regulate Pakistan Halal Authority, also
set standards in light of Shariah decree. The enthusiastic efforts are required to make Pakistan vision of “Promotion of Pakistan
Halal Industry as Potential Halal Food Hub”. The vision of seize initially Pakistan to the world best halal meat supplier and
then prospect the halal hub for entire commodities.

2.1 Awareness and Perception

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Consumer attitude towards selection of the product is thoroughly stimulated with the awareness of customer about the product.
(Brucks, 1985; Rao & Sieben, 1992) simply how much consumer is informed regarding the product porn and corns (Bettman &
Park, 1980; Alba & Hutchinson, 1987; Nunnally & Bernstein, 1994). Halal food products are wide range of local and
international brands that are processed under the keen supervision of the ethnic team, consumer decision of buying halal product
manipulate through this way and to get their trust (Rao & Monroe, 1988). Long term reminiscences about the product are
objective knowledge while instant information and discernment of the product is subjective knowledge and people usually make
decision of buying on their subjective explanations (Park et al., 1994). Particularly demand halal goods and services is the
objective knowledge of the consumers and which companies provide halal product is subjective knowledge.

Consumer perception and image build in peer group also impact on his buying decision and try to maintain their image through
the purchase of certain products (Govers & Schoormans, 2005). Muslim is socially bound in to the circle which highly influences
his attitude and lifestyle. To move beyond this circle may lead him to the phase of isolation. Halal consumption is the choice may
be to associate him with his peers, friends and relatives any maltreatment in buying non halal food may exile him from society.
Pakistani consumer awareness about the halal dietary based on the practice follows in their country (Jummani & Siddiqui, 2012).
The consumers consider halal logo and certification and confidently purchase such products having halal tags (Fariza, 2007).
Extremely faithful Muslims of the Pakistan have slightest awareness of the halal products. They merely think of the food item
they use for long time contain haram ingredients in the processing (Salman and Siddiqui, 2011). Brand is more than number and
symbol has capability to influence customers and build consumer perception and mind-set (Kotler & Amstrong, 2004). Brand
has strong imagination impact; communicate massage to consumer (Sungkar, 2009). Consumers’ acquaintance towards brand
decides the worth of the product in the market.

2.2 Marketing Strategies

Halal logo plays important role in Muslims consumers purchasing decision (Shafie et al., 2006). Despite of halal logo, Muslims
prefer to consume products and services from their own countries or Muslim countries (Shaari et al., 2017). Kotler et al. (2006)
highlighted that advertising is expressive thus allowing the firm to dramatize its product through the artful use of visuals, prints,
sounds, and color. Advertising spending is a signal of product quality for experience good (Moothy & Hawkin, 2005 and
Narasimhan, 2005). Halal logo on product is an indicator in particular to Muslims that the food can be consumed with
confidence. A study showed that halal logo is insufficient to customer as they also seek information on product ingredients (Dali,
Sulaiman, Samad, Ismail, & Alwi, 2007). Labeling also plays a role in providing necessary information for the consumers in
making purchasing decisions (Caswell, 2006 and Alwi, 2007). Numerous survey studies have been conducted in Malaysia to
investigate if halal certification increases consumer confidence in purchasing decision. Karijn Bonne and Verbeke (2008)
showed that Muslims customer in Belgium rather chose to buy non-halal meat from supermarket because it has information on
hygiene and control of the meat that is not available from halal meat sold by the Islamic butcher.

Yousaf and Malik (2013) study found that Pakistani universities students categorized as highly religious are more price
conscious in purchasing but regardless of religiosity level, they are quality conscious. Aziz and Vui (2012) performed a survey
study on non-Muslims in Klang Valley also reported that other than halal awareness and halal certification, their purchase
intention are influenced by marketing promotion and brand. Their findings suggest that brand plays a role in determining the
confidence level of the consumer on the halalness of the product (Mohayidin and Kamarulzaman, 2014). With the advancement
of technology, websites is being one of the popular means in reaching the consumers (Fill, 2007).

2.3 Shariah Compliance

Muslims are restricted to follow the teaching of Islam and spend their lives according to divine principles of Quran and Sunnah.
The dietary sets are clearly mentioned in Islam (Tieman and Hassan, 2015). Muslims should obey and intake permissible things
only (Hussaini, 1993). Muslim countries execute and pursue the divine rules of Islam to facilitate Muslims live and practice their
verve as pure as philosophy of Islam instructed (Nawi and Nasir, 2014). To consume halal food and live pure life is religious
obligation on all Muslims, they face difficulty while grocery in stores irrespective of live in Muslim country or non Muslim
country, because there are very few products have indications that they are permissible for Muslim consumers (Riaz, 2003). To
get the trust of the Muslim consumer Shariah compliant halal label is necessitated, halal label help in making choice of buying.
Halal label has sound impact on the decision making of the muslam consumers; customers trust on the decree behind these halal
labels, a full Shariah compliant procedure work and take responsibility of the protection of hteir faith. That is why halal
certification role become crucial for the trade among Muslims (Awan et al., 2015).

2.4 Provision of Government Logistics to Pakistan Meat Producers

In today’s business environment companies are seeking to find the key successful strength in the organization to remain
competitive. Therefore, logistics is an activity which can be considered by the industry players. Logistics management is "the
systemic, strategic coordination of the traditional business functions within a particular company and across businesses within
the supply chain. Its main objective is to improving the long-term performance of the individual companies and the supply chain
as a whole' (Mentzer, 2001). According to Tieman (2012), the halal supply chain approach is important to guarantee the halal
integrity at the point of consumption. Due to that matter, logistic service providers were created a service called as halal supply
chain services to meet the demand from halal industries throughout the world (Jaafar et al., 2011).

Many researchers focus on the process of supply chain from the point of origin to the point of consumption (Van et al, 2012);
Tieman, 2009a, 2009b; Lodhi, 2010). However, Tieman (2009a, 2009b) and Lodhi (2010b) emphasis the supply chain must

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comply with the Shariah law general principles and Islamic dietary. The difference between traditional supply chain and halal
supply chain is that, the traditional supply chain focus on cost reduction whereas halal supply chain concern on to maintain the
halalness of product (Omar & Jaafar, 2011). In an effort to overcome the lack of information on product, Anir, Mohd, Nizam and
Masliyana (2008) have shown the needs of RFID- a halal tracking system, so that customers can locate product efficiently than
via Short Messaging System (SMS) or halal website (e-Halal). A rugged RFID tag with a unique ID attaches to each cow’s ear,
allowing herders to track a particular animal as well as take temperature readings. These tags could have also contained
vaccination records or any other special information (e.g. “this cow is kosher”). There is no guarantee that halal products are
really halal at the point of consumption without applying halal supply chain services. Tieman (2011) and Bahrudin et al. (2011)
mentioned that it is very important to the manufacturers to maintain the halal integrity in throughout the supply chain as a
fundamental effort to prevent consumer fraud regarding halal quality of the products.

3. Research Methodology

3.1 Research Design

The research study is specifically designed to determining the factors that plays an important part in the promotion of Pakistan
halal food industry with major emphasis on the Pakistan’s halal meat and poultry sector. The primary data is used for addressing
the research problems fulfilling the objectives of the study. The information collected for all variables is collected with the help
of research instrument. The primary data is collected from the meat and poultry producers, halal food certification authorities,
consultants, export managers, suppliers, distributors, traders, government officials and Chief Executive Officers (CEO’s) of the
respective companies or the individuals are involved in halal food practices through designing an appropriate research instrument
within region of Lahore, Pakistan. A sample size of 150 respondents has been used for the study. However, out of 150
questionnaires distributed; only 115 questionnaires were properly filled up and analyzed. This represents a response rate of
76.67%. The poultry and meat sector was chosen for the study as it holds major percentage of livestock of Punjab, Pakistan as
shown in Table 3.1. The gathered data is processed with the help of using the Microsoft Windows Excel (MS Excel) and
Statistical Package for the Social Sciences (SPSS) software, after proper coding of the questions for convenience to enter data in
the software’s.

Table 3.1: Livestock Production

Product Pakistan Punjab Percentage
Milk 21.199 MT 26 MT 62%
Beef 1.549 MT 0.589 MT 43%
Mutton Meat 0.578 MT 0.283 MT 49%
Poultry Meat 0.601 MT 0.333 MT 70%
Source: Economic Survey of Pakistan, 2010-2011

3.2 Data Variables, Constructs and Items

Table 3.2: List of Variables Used for Study

Sr. # Variable/Construct Earlier Studies
1 Awareness & Perception Ahmad et al. (2013); Yunos et al. (2013); Siad et al. (2013);
Abdul Aziz et al. (2012); Golnaz et al. (2009)
2 Marketing Strategies Yunos et al. (2013); Anbali (2012); Abdul Aziz et al. (2012);
Mohayidin and Kamarulzaman (2014)
3 Shariah Compliance Anbali (2012); Wilson (2011); Golnaz et al. (2009); Tieman and
Hassan (2015)
4 Government Provision Anir et al. (2008)

3.3 Reliability and Validity of the Questionnaire

Table shows the output of the Reliability Statistics results.

Table 3.3: Reliability Statistics

Cronbach’s Alpha Cronbach’s Alpha Based on Number of Items
Standardized Items
.832 .831 24

In this case alpha is slightly above .8, and is certainly in the region indicated by Kline (1986), so this probably indicates good
reliability. As a final point, it’s worth noting that if items do need to be removed at this stage then you should re-run your factor
analysis as well to make sure that the deletion of the item has not affected the factor structure (Table 3.4). In order to conduct a
reliable factor analysis the sample size needs to be big enough (Costello & Osborne, 2011). Since the sample size in this study is
115, the Kaiser-Meyer-Okin (KMO) measure of sampling adequacy signals sample size to be large enough to reliably extract
factors. The KMO value falls within the category (KMO=0.687), which means that it is fair to extract the factors from the given
data set.

Table 3.4: Reliability Analysis of Constructs

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Variables No. of Items Cronbach Alpha

Value
Awareness and Perception 08 .875
Marketing Strategies 06 .578
Shariah Compliance 06 .690
Provision of Government Logistics 04 .888

4. Data Results and Findings

4.1 Descriptive Statistics

Table 4.1 shows the descriptive statistics of the respondents with respect to problem statements in the polar question form.
Almost 75% of the respondents are of the opinion that the people (or Muslims) choose food only that is halal in every aspect and
not on the basis of other factors like taste, price or convenience. 81% respondents believe that the individuals will not make
further buying regarding a particular brand if reservations and uncertainties about the product is raise by their peers, friends and
family. 89% thinks that the demand of the halal meat (poultry, beef, and mutton) is aroused worldwide and it’s a positive sign for
a country like Pakistan, which is enriched in the meat production to be a halal meat hub within the globe. The 73% of the
respondents believed that Pakistan meat production units are capable to meet this increasing demand of meat worldwide if
government and consultancy organizations play their role effectively in promoting Pakistan as a potential halal food producer.
70% of the respondents observe that food goods that come from other Muslim countries are halal. 71% of the respondents
believe that halal not only means about the slaughtering of an animal as per Shariah guidelines but it is something further than
that. Also, 32% respondents appreciated the efforts of government on the active role in the recognition and acceptance of halal
certification by the Similarly, 75% respondents thinks that meat producers of Pakistan did not understand quality control and
assurance standards and to tackle that latest technology or tracking systems (about 88% respondents opinion) installation by the
government plays effective role in the judgment of product production and processing nature.

Table 4.1: Descriptive Statistics – Polar Statements

Statement Yes No
People choose only halal food 74.4 25.6
A consumer will not buy a food product, if doubts are raised about it by their friends and 80.9 19.1
family circle
Is demand for halal meat arises around the world 89.9 1.1
Pakistan meat units capable to fulfill increasing demand 73.1 26.9
Food items from Muslim countries is halal 70.4 29.6
Food items with Islamic names are halal 22.6 77.4
Halal, only about slaughtering aspect 81.5 18.5
Halal certification by Pakistan is recognized worldwide 32.2 67.8
Meat producers understand Hazard analysis and quality assurance systems 24.4 74.6
Halal tracking system should be installed by government so that customers can locate 87.8 12.2
product efficiently

4.2 Testing the Hypothesis

4.2.1 Awareness and Perception for Halal Meat Products (One Sample T-test)

H1: Awareness and Perception of people about halal products (meat) is increased over the time period.

Mean score of statement regarding Pakistan livestock has potential to meet the needs of world halal meat requirements is 4.05
and have a standard deviation of 1.105. Pakistan meat production units are capable to fulfill the increasing demand of halal meat
around the world as the mean value is 3.78 at the 5% level of significance. This shows that people believes that Pakistan has
enormous resources and huge potential of livestock to cater the day today challenging demand of worldwide halal meat market as
the value of mean score is higher from the test value of 3. The findings of one sample T-test also indicates that non Muslim meat
producers have captured the halal meat demand at large comparative to Muslim countries, more specifically from Pakistan as the
mean value is above the test value of 3 with a standard deviation of 0.875. This shows that government of Pakistan, halal
consultancy firms and different regional certification agencies are not contributing much positive for the development of the
sector as compared to the Brazil, France, America and European countries which is also supported from the earlier literature.

Table 4.2: Awareness and Perception (One Sample T-Statistics)

Test Value = 3
Sig.
N Mean Std. Deviation (2-tailed)
Pakistan livestock has potential to meet the need of 0.000
115 4.05 1.105
world halal meat requirement.

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Pakistan meat production units capable to fulfill 0.000

115 3.78 1.241
increasing demand of halal meat.
Non Muslim meat producers have captured the halal 0.000
115 3.67 .875
meat demand at large.
Using preservation in food product is acceptable. 115 2.46 1.020 0.015
Internationally Pakistan halal meat is acceptable brand 0.000
115 3.33 .988
name.
Pakistan delivers prime quality meat in competitive 0.023
115 3.54 1.011
price in world meat market.
Multinational food chains receipt Pakistan’s meat for 0.000
115 3.52 .841
halal food products preparation.
Pakistan meat is predominantly perceived as halal can 0.000
115 3.45 1.002
knock out Non Muslim meat producers.

On the other hand, the mean score of question about the use of preservation in food products is not acceptable as the mean value
is less than 3.00; this is due to the non acceptance of it under the Shariah dietary laws. Similarly, for Pakistan as internationally
acceptable name delivers high quality meat to the foreign countries in competitive prices. This indicates that people believes that
Pakistan can compete with any international available brand with respect to its high quality premium products available in
economical prices to meet the demand of the consumers and if government takes positive measures it can easily knock on non
Muslim meat producers. As the p-values of all these five items are less than 0.01, the above stated results are all statistically
significant. So, it can be concluded that awareness and perception of people about halal products market (meat market) is
increased over the time period. So we fail to reject the null hypothesis that the awareness and perception of people about halal
products is increased over the time.

4.2.2 Marketing Strategy for Halal Meat Products (One Sample T-test)

H2: Marketing strategies for promotion of halal products plays an important role in the increase demand of halal products

Table 4.3: Marketing Strategy (One Sample T-Statistics)

Test Vale = 3
Std. Sig.
N Mean Deviation (2-tailed)
Halal logo alone either stamped on the product
packaging or displayed on the wall is insufficient. 115 3.94 .698 0.024

People chose to buy non-Halal meat from supermarket

because it has information on hygiene and control of the 0.161
115 2.10 1.029
meat

Is demand for halal meat credence (belief) arises

worldwide 115 4.52 .501 0.000
Government search out prompt position in world halal
meat trade expo exhibitions. 115 2.91 1.252 0.033
Muslim consumers have less concern on the halal status,
instead emphasized more on other factors such as price 0.000
115 1.45 1.251
and environment.

Successfulness of halal certified product relies on how

well the consumer understands the principles of halal 115 4.54 .740 0.000
and its benefits to the consumer.

From the Table 4.3, we can see that the mean scores of halal logo alone stamped on the product is insufficient (mean value is
3.83), people prefer non halal food due to additional informational available on its packaging (mean value is 2.10), worldwide
demand for the meat credence (4.52 mean value), government support in trade expo exhibitions (mean value is 3.10), Muslims
concern regarding the halal status of product (mean value is 1.45) and the successfulness of halal certified products relies on how
well the consumer understands principles of halal (mean value of 4.54) are above the test value of 3 respectively, except the two
items. This indicates that a proper information based marketing and advertising campaign is needed to guide people about the
benefits of halal products which are permissible in Shariah. As these results are highly significant at 5% significance level, so by
accepting the null hypothesis, it can be concluded that marketing strategies plays an important role in the increase demand of
halal products.

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4.2.3 Shariah Compliance for Halal Meat Products (One Sample T-test)

H3: Shariah compliance plays an important role in the promotion of halal products

The role of Shariah compliance and standards in the products halal development and authenticity plays an important role as the
one sample t values of all the items are above the mean value of 3. The findings of the instrument found that the halal
certifications are not only improve the export opportunities or attract foreign investments in Pakistan but also build confidence
among consumers about the product they are buying. People perceive that the halal meat should be certified as halal by the sole
authentic agencies/authorities and not other private firms or consultants should provide such verifications. However, the value of
three items is insignificant as we can see in the Table 4.4 at the 5% level of significance, which can be due to biased results by
the producers, suppliers and distributors of the halal product (meat) respondents, not depicting the actual findings observing their
way of doing the business.

Table 4.4: Shariah Compliance (One Sample T-Statistics)

Test Vale = 3
Std. Sig.
N Mean Deviation (2-tailed)
The only aim of the halal certification is to improve export
opportunities for local manufacturer’s as well as attract 115 3.19 1.054
foreign investments in Pakistan. .053
Beside HIRC and HDC, private institutes can be authorized
115 3.15 .984
to produce the halal's logo. .110
Pakistan meat label halal is certified by authentic halal
115 3.66 .759
certified bodies. .000
Pakistan halal meat packaging carried out Shai’ah & ISO
compliance like management, environmental and related 115 3.56 .890 .000
certifications.
Pakistan halal Certification is recognized worldwide. 115 3.14 1.059 .161
Meat producers understand Hazard Analysis and Critical
115 3.02 1.214
Control Point (HACCP) system. .878

4.2.4 Government Provision for Halal Meat Products (One Sample T-test)

H4: Provision of government plays an important role in the promotion of halal products worldwide

The findings of the Table 4.5 shows that role of government in promoting the halal food industry of Pakistan is not satisfactory
to represent in global halal meat industry of Pakistan, as the mean value is less than 3, that is, 2.78. Similarly, producers and
exporters are not satisfied with the tax and subsidiary relief that is provided to the meat exporters to compete in the international
market but recently with the involvement of political personalities like Hamza Shahbaz Sharif (son of Muhammad Shahbaz
Sharif, Chief Minister of Punjab-Pakistan and nephew of Muhammad Nawaz Sharif, Prime Minister of Pakistan), in the livestock
and meat exporting business, there are few relaxation in the policies. Besides that, Shafay Hussain (son of Shujhaat Hussain,
Chairperson PML-Q) is also in the poultry export business since 2012.

Table 4.5: Provision of Government (One Sample T-Statistics)

Test Vale = 3
Std. Sig.
N Mean Deviation (2-tailed)
Government of Pakistan support meat exporters to
115 2.78 1.162
represent Pakistan in global halal meat market. .000
Government gives tax and tariff relief (subsidiary)
115 3.01 1.013
to meat producers. .000
Government trade officials negotiate trade
115 2.91 1.216
agreements for Pakistan halal meat industry. .019
Government gives assistance to cargo service
companies for swift delivery of meat to the 115 3.22 1.300 .000
destination.

4.3 Factor Analysis

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Factor analysis is a statistical method used to describe variability among observed, correlated variables in terms of a potentially
lower number of unobserved variables called factors. With factor analysis, the construct validity of a questionnaire can be tested
(Rattray & Jones, 2007). The factors that explain the highest proportion of variance the variables share are expected to represent
the underlying constructs. This is shown in Annexure – A

5. Conclusion and Recommendations

Food is a vital component for livelihood. Halal rules are not only concerned on safety, hygiene, and wholesomeness of the foods,
but also provide an excellent platform for healthy eating. Additionally, the place, equipment, and process of slaughtering and
storing animals most focus on halal rules. Halal practices are perceived as a sensitive issue among food producers and operators
as there are many variations on the halal definitions. There are currently around 1.7 billion Muslims in the world and within the
Muslim societies meat of all kinds is presumed to be halal without any label. The problem crops up in non-Muslim countries. So,
Muslims look for products labelled as halal.

The study found that Pakistani food producers and distributers perceived that most of Muslim consumers prefer halal food items
while making decision of purchasing Provision of Halala Toyyibann food is the basic right of every Muslim, larger number of
Muslims discontinue buying if uncertainties are raised about a food item for consumption by their fellow beings or family that
the products are not halal or containment in process. The Pakistani food producers are firmed that now demand for halal meat
credence (belief) arises worldwide and Muslims as well as non-Muslims are well aware of the permissibility of the food
consumption in Islam. They are confident Pakistan meat production units capable to fulfill increasing demand of halal meat.
People do not believe that food items coming from Muslim countries are necessarily halal and the food substances with Islamic
names are not inevitably halal. The analysis shows that food producers are aware about the Muslim world food consumer market
and the conviction of the Muslim consumers towards the Pakistan’s food products. The results were also supported by the earlier
studies of Hussaini (1984), Donna (2000) and Tieman (2012).

The study finds that most of the respondents advocate Halal tracking system to be installed by government so that customers can
locate product efficiently. The study finds out that non Muslims meat producers are ruling on halal meat world market and
readily carry out the increasing demand. The halal certification is not only requiring for export purpose but also to fulfill the
religious obligations, hence supporting the argument of Nawi and Nasir (2014). An appropriate group of meat producers do not
want subsidiary or tax/tariff relief rather they want financial assistance by government and banks. The availability and provision
of Islamic financial assistants are very much crucial for the halal businesses to maintain their every day functions and o
accomplish a Shariah-compliant certificate. The findings of the study conclude that there are several barriers that obstacle
Pakistan halal food market to cater the world halal food market competition. Export of the halal slaughter animal required
slaughter processing in proper, hygiene and sanitized form but export quality is lacking truly in this way. This is not the fault of
the public but it is the responsibility of the government to provide logistic support to the farmer and trained them to understand
the international standards and keep their animals in hygiene and sanitized environment and process their product in higher
standards. Another obstacle is the lack of knowledge of the local produce about the international prospect markets for their
product sale point. Pakistan has opportunity to study their method and utilize their intrinsic human and natural resources.
Muslims of the west trying to attain systematic procedure of the halal industry good and services provision; which is a good sign
for the promotion of industry as depicted by Bahrudin et al. (2011).

Halal food industry of Pakistan needs innovation, progression and expansion; technologies are there to shore up halal foods
efficient supply chain that assures the halalness of the product from farm to fork. Just to develop the halal food industry, Pakistan
can gear up the industries of pharmaceutical, leather, medicine, poultry feeding, fishing, tourism and restaurants. Need of time is
to engage local farmer with technology and train them time to time, so do they familiarize with scientific methods of production
and manufacture. Halal food market is not only the Muslim countries it is the entire Muslim world which means Muslims where
ever live in the world have right to access halal good and services. Pakistan exporters have huge market for delivering their halal
products. Halal certification and halal logos issuance authorities should be nominated and established constitution for the halal
standards so that world trust on the Pakistani halal brand. Pakistan government and the local halal food producers have to join
hand together for the promotion and potential of halal food hub. Government and the food distribution channels should come
across the wide range of the world food market and take initiative to become emerging halal food hub. Government of Pakistan
should hold up food industry and build up the confidence of the food producers. Government gives incentives to the food
producers generally and meat exporters specifically to compete global market. One of the means to educate is through
commercial or advertisement so that the business owners could promote their halal brands to the consumer. Food producers and
suppliers should also involve in halal education.

The notions discussed throughout this paper extend the halal food awareness, knowledge, contribute to the existing halal body of
literature, and emphasize institutional isomorphism as a prominent management theory pertinent in halal research. This study is
of great importance for the food manufacturers, distributors, suppliers and marketers in Pakistan. This study is an initial point for
the marketers to promote and create awareness among the consumers and to understand the need of halal food certification
through an accredited body because many local and imported food products available in Pakistan have halal logo but it has no
traceability. This paper also serves as a basis for future studies and attracts more academic arguments to further fine-tune the
suggested propositions. Furthermore, the research findings would be able to assist the want-to-be global entrepreneurs to create a
competitive advantage position in their product offerings. The study also draws the attention of the policy-makers to a point that
actors such as breeders, slaughterhouses, certifying agencies, retailers, consumers, and religious representatives are in most cases
have different stakes in and viewpoints on halal production and processing, which may jeopardize the economic potential of the
halal market in the future.

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APPENDIX – A (Rotated Factor Matrix)

Factors
Constructs Items 1 2 3 4

Pakistan livestock has potential to meet world halal meat requirement. 0.745
Pakistan meat production units capable to fulfill increasing demand of halal 0.712
meat.
Non Muslim meat producers have captured halal meat demand at large. 0.681
Awareness Using preservative in food product is acceptable. 0.677
and Internationally Pakistan halal meat is acceptable brand name. 0.653
Perception
Pakistan m.eat is predominantly perceived as halal can knock out Non Muslim 0.646
meat producers.
Multinational food chains receipt Pakistan’s meat for halal food products 0.524
preparation.
Pakistan delivers prime quality meat in competitive price in world meat market. 0.394
Is demand for halal meat credence (belief) arises worldwide. 0.857
Halal logo alone either stamped on the product packaging or displayed on the 0.818
wall is insufficient.
Government search out prompt position in world halal meat trade expo 0.803
exhibitions.
Marketing
Muslim consumers have less concern on the halal status, instead emphasized 0.745
Strategies
more on other factors such as price and environment.
People chose to buy non-Halal meat from supermarket because it has 0.610
information on hygiene and control of the meat.
Successfulness of halal certified product relies on how well the consumer 0.495 0.332
understands the principles of halal and its benefits to the consumer.
The only aim of the halal certification is to improve export opportunities for 0.756
local manufacturer’s as well as attract foreign investments in Pakistan.

Beside HIRC and HDC, private companies or institutes can be authorized to 0.643
produce the halal's logo.
Shariah Pakistan meat label halal is certified by authentic halal certified bodies. 0.613
Compliance Pakistan halal meat packaging is carried out Shai’ah and ISO compliance like 0.576
management, environmental and related certifications.
Pakistan halal Certification is recognized worldwide. 0.500
Meat producers understand Hazard Analysis and Critical Control Point 0.451
(HACCP) system.
Government of Pakistan support meat exporters to represent Pakistan in global 0.687
halal meat market.
Provision of Government gives tax and tariff relief (subsidiary) to meat producers. 0.306 0.511
Government
logistics to Government trade officials negotiate trade agreements for Pakistan halal meat 0.449
producers industry.
Government gives assistance to cargo service companies for swift delivery of 0.477
meat to the destination.

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APPENDIX – B (Respondents Profile)

Gender

Table B1: Demographics – Respondents Gender

Gender Frequency Valid Percent Cumulative Percent
Male 106 95.65 95.65
Female 7 4.35 100.00

Age

Table B2: Demographics – Respondents Age

Age in Years Frequency Valid Percent Cumulative Percent
Less than 18 years 3 2.61 2.61
18 to 21 years 7 6.09 8.70
22 to 25 years 14 12.17 20.87
26 to 29 years 21 18.26 39.13
30 to 33 years 37 32.17 71.30
More than 33 years 33 28.70 100.00
Total 115 100

Role in Halal Industry

Table B3: Respondents Role in Halal Industry

Role Frequency Valid Percent Cumulative Percent
Government Agent 7 6.09 6.09
Producer 19 16.52 22.61
Exporter 22 19.13 41.74
Distributor 29 25.22 66.96
Consultant 24 20.87 87.83
Others __________ 14 12.17 100.00
Total 115 100

Education/Qualification

Table B4: Demographics – Education/Qualification

Education Frequency Valid Percent Cumulative Percent
Diploma 36 31.30 31.30
Bachelors 23 20.00 51.30
Masters 14 12.17 63.48
Postgraduate 4 3.48 66.96
Professional Certification 11 9.57 76.52
Others __________ 27 23.48 100.00
Total 115 100

Syeda Hameeda Batool Gillani

Research Associate, Institute of Islamic Banking,
University of Management and Technology,
Lahore, Pakistan
[email protected]

Muhammad Mahmood Shah Khan

Director, Institute of Islamic Banking,
University of Management and Technology,
Lahore, Pakistan

Farrukh Ijaz
Academics Officer, Institute of Islamic Banking,
University of Management and Technology,
Lahore, Pakistan

43