Donkey prices soar in Pakistan due to China's demand for ejiao
Abdul Rasheed is in a fix these days. Tiger, his donkey and the only source of income, died in an accident last week.
Staring at the prospect of dire poverty, Mr. Rasheed is undecided about buying a new one as donkey prices have soared in Karachi and other parts of Pakistan. 'A donkey now costs as high as ₹2,00,000 in the market, way too high than ₹30,000 eight years ago,' Mr. Rasheed said.
Hundreds of poor wage earners such as Mr. Rasheed, who are dependent on donkeys as their only source of livelihood, now face a tough competition from high-value buyers from China.
The reason for this sudden surge in donkey prices has been a growing demand from China to source these animals from Pakistan. Reason: China's multi-billion-dollar ejiao industry.
Ejiao is a gelatin used in traditional Chinese medicine, made by stewing and concentrating donkey skin. It is widely used in clinics for its biological advantages of being anti-fatigue, immunity-improving properties, for tumour suppression, and for its anti-anaemia effect.
For animal rights advocates, China's interest in sourcing donkeys, particularly for their hide, is not new.
Mr. Rasheed said despite having good contacts in Karachi's Lyari, the largest donkey market in the country, the cheapest healthy donkey available is for ₹1,55,000. 'Where can I get that sort of money? And even if I manage something, I am not sure whether the animal will not die out on me before I have recovered the money,' Mr. Rasheed, whose annual income is less than ₹4,00,000, said.
Donkeys are an integral part of many industries. Poor wage workers use their donkeys or donkey carts daily to load structural iron and other heavy stuff and transport them across several miles every day in all kinds of terrain. A journey of an hour or more earns Samad, another wage worker, a daily income between ₹1,500 and ₹2,000, almost half of which is spent on the donkey's upkeep.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
Ringfencing India? After Pakistan and Afghanistan, now China holds a tri‑nation meet with Bangladesh. What it means
China recently hosted Bangladesh and Pakistan for talks in Kunming. The meeting aimed to boost cooperation in trade and connectivity. A working group will explore joint projects. This follows a similar China-Pakistan-Afghanistan meeting. India is concerned about China's growing influence in the region. Security ties between Bangladesh, Pakistan, and China are also under scrutiny. Tired of too many ads? Remove Ads Why China, Bangladesh, Pak meeting matters for New Delhi What Pakistan, China, Bangladesh agreed in the meet Focus area Planned cooperation Economy & trade Joint projects in industry, digital economy and maritime logistics Connectivity Exploration of Belt and Road links—potentially an eastward spur of CPEC People's welfare Agriculture, climate action, health, education and youth exchanges Follow‑up A working group to translate the Kunming understandings into pilot projects Bangladesh's quiet pivot towards Pak, China Former Bangladesh military intelligence chief end 12-day China trip Tired of too many ads? Remove Ads Meeting comes after China, Afghanistan, Pakistan meet last month China on Thursday brought Bangladesh and Pakistan together for an inaugural trilateral dialogue in Kunming, barely a month after hosting a similar meeting with Pakistan and Afghanistan. The closed‑door talks, led by Chinese Vice‑Foreign Minister Sun Weidong, agreed to set up a working group for 'good‑neighbourly, equal and mutually trusted' cooperation, signalling Beijing's intent to knit India's neighbours more tightly into its strategic India, the move feeds a long‑running concern that China is cultivating a ring of friendly states along the subcontinent's periphery. New Delhi already objects to the China‑Pakistan Economic Corridor running through Pakistan‑occupied Kashmir. Now, with Bangladesh's interim leadership warming to Beijing—and exploring closer ties with Islamabad—the prospect of a three‑way framework on trade, infrastructure and security raises fresh questions about India's strategic Acting Foreign Secretary Ruhul Alam Siddique joined Sun at Kunming, while Foreign Secretary‑designate Amna Baloch represented Pakistan via video. The gathering came soon after Dhaka's Chief Adviser Muhammad Yunus publicly asked Beijing for economic help and discreetly revived contact with Islamabad—moves that have already drawn attention in New another development that has raised red flags within India's security establishment, Major General (Retd) Rezzakul Haider Chowdhury, former Bangladesh military intelligence chief and a convicted figure in the 2004 Chittagong arms smuggling case, reportedly concluded a 12-day trip to Guangzhou, China, on June 18. His visit coincided with that of Bangladesh's interim National Security Adviser Dr Khalilur Rahman, who reportedly sought Beijing's help to arrange a backchannel meeting with Pakistan's ISI chief. Indian agencies view this synchronised movement of high-level security actors—linked to past anti-India plots—as a signal of a deeper and potentially coordinated security alignment between Beijing, Islamabad, and follows a May meeting in which China, Pakistan and Afghanistan agreed to extend CPEC into Afghan territory. India had protested that any third‑country role in CPEC infringes on its sovereignty. The new Bangladesh‑Pakistan‑China line‑up suggests Beijing is applying the same template to India's eastern Thursday's statements highlighted 'true multilateralism' and insisted the talks were 'not directed at any third party', the meeting comes at a time of heightened tensions in South Asia:India's May strikes on terror camps in Pakistan and PoK, which prompted Beijing's vocal support for Islamabad.82 per cent of Islamabad's defence imports already come from agencies are probing reports that Dhaka's interim National Security Adviser has sought a Beijing‑brokered meeting with Pakistan's ISI chief.
Time of India
2 hours ago
- Time of India
ICICI Bank once wanted to acquire HDFC, Deepak Parekh spills the secret
Deepak Parekh revealed Chanda Kochhar's merger proposal between ICICI and HDFC, predating HDFC's reverse merger. Parekh cited regulatory pressure from the RBI as the primary driver for the HDFC-HDFC Bank merger, emphasizing the need for larger Indian banks. Post-merger, ICICI Bank has outperformed HDFC Bank in key metrics like profit growth and net interest margin. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Former HDFC chairman Deepak Parekh has revealed that former ICICI Bank chief Chanda Kochhar once proposed a merger between ICICI and HDFC, well before HDFC's reverse merger with its own banking a conversation with Kochhar on her YouTube channel, Parekh recounted, "I remember you talking to me once. I remember it very clearly. It's never been talked about in public, but I'm willing to share it now. You said that ICICI started HDFC. 'Why don't you come back home?' That was your offer."Parekh said he declined the offer at the time, saying it "won't be fair" or "proper with our name and the bank and all."Parekh described the eventual HDFC-HDFC Bank merger, completed in July 2023, as a move driven by regulatory compulsions rather than business ambition. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding ₹5 lakh crore, as systemically important — well above the ₹50,000-crore threshold."RBI supported us and they pushed us into it to some extent and they helped us," Parekh said. However, he added that there were "no concessions, no relief, no time, nothing."Parekh also said the deal had been executed with extreme confidentiality. 'It was kept a secret. No one knew about it—when it hit the press in the morning, that's when everyone found out. The government was aware because RBI was in touch with them, and we kept it so close—just lawyers, due diligence, accountants,' he on the conclusion of the merger, Parekh called it "a sad day and a happy day." He added, "It's good for the institution. It's good for the country to have large banks. Look at how large Chinese banks are. We have to be bigger, larger in India."On April 4, 2022, HDFC Bank announced its plan to acquire mortgage lender HDFC in a deal valued at about $40 billion, creating one of the largest financial institutions in Indian history. The merger gave rise to a banking entity worth $172 billion, affecting tens of millions of customers and shareholders across both companies, along with their group insurance and asset management said Indian banks must grow through acquisitions in order to become stronger in the also listed key concerns for chief executives, including continuing uncertainty in supply chains, trade policies, and export the insurance front, Parekh described it as the "least understood product" and criticised "mis-selling by banks" which, he said, was driven by the lure of high upfront HDFC Bank , in April this year, crossed the ₹15 lakh crore market capitalisation mark — an elite milestone — a quieter shift has been unfolding in the private banking space. ICICI Bank has steadily pulled ahead of HDFC Bank on several key performance Bank is now seen as a frontrunner among private sector lenders in India. HDFC Bank, meanwhile, has been navigating the after-effects of the 2023 merger, which have affected its growth FY25, ICICI Bank recorded profit growth of 15%, while HDFC Bank's profits rose by 11%. Both banks registered similar net interest income (NII) growth, but ICICI had a stronger net interest margin (NIM) of 4.41% compared with HDFC Bank's NIM of 3.65%.ICICI Bank also reported 14% growth in both advances and deposits for FY25. HDFC Bank, however, saw its advances grow at nearly half the pace of its merger added a substantial loan portfolio to HDFC Bank but did not bring in a matching level of deposits. This resulted in a spike in the loan-to-deposit ratio (LDR) to over 100% post-merger. Although HDFC Bank reduced this figure to 96.5% by the end of FY25, it still faces pressure to either increase deposits or slow down contrast, ICICI Bank's LDR stood at a healthier 82.4% as of March to the elevated LDR, HDFC Bank deliberately slowed down its credit expansion during FY25 to maintain balance. The bank's management believes that improving systemic liquidity will help raise deposits going forward.A high LDR suggests a bank is lending a large proportion of its deposits, which can become a risk if too many depositors withdraw funds at once and liquidity tightens.
Hindustan Times
2 hours ago
- Hindustan Times
Trump's policy curbs: New innovation order and India's strategic rise
The flows of globalisation were once imagined catalysing a new world order based on leveraging trade, talents and innovation. However, what is now being witnessed under the second term of President Donald Trump in the US is a reversal of such flows. While the US seeks to Make America Great Again, a reduced role of the world's most powerful actor in pushing such flows not just create a vacuum for other actors in the international system, but also lead the system to suffer several strains. Policies under Trump 2.0, in the form of tariffs and visa restrictions, as well intended as they may be for America's safeguarding of its sovereignty and prowess, are disrupting traditional economic and talent flows. Iran Israel War Live Updates: President Donald Trump said Iran should have signed a deal with the United States. (AFP) Extremely high tariffs, such as the proposed 100% duties on BRICS countries, aim to reshore manufacturing to the US, but they also risk increasing costs, while companies are pushed to seek alternatives outside China. How well this pans out for the US as well as other economies is something that is to be watched out for. Restrictions on H1-B visas and optional training programs, similarly, limit access to global talent, potentially creating skill gaps in US tech sectors. While it is the sovereign right for the US to decide what role it wants to play in the existing world order, other countries need to look out for themselves and turn adversities into opportunities. Disruptions to innovations in the US have been driving innovation to other hubs, as companies and talents seek environments with fewer restrictions and lower costs. Countries like India, Germany and Canada have been emerging as alternative hubs. In fact, the US's tightened visa policies have already led to a 15% rise in Indian student applications to Canadian Universities and increased interest in Germany's no-tuition public universities. In June this year, speaking in New Delhi, German ambassador to India, Philipp Ackermann stated that there are already 50,000 Indian students in Germany and the country is keen to welcome more. Meanwhile, US tech giants, which have been reliant on foreign talent, could face labour shortages, prompting companies to expand research and development centres abroad, particularly in India, where local talent, owing to the positive demographic dividend that India has; is abundant and costs are competitive. What this sort of decentralisation of innovation could lead to is a reduction of the US's dominance in tech, and could create a more multipolar innovation landscape. India, in fact is uniquely positioned to capitalise on these shifts owing to its robust IT sector, growing manufacturing capabilities and strategic alignment with US interests, particularly in countering China's influence. The push under Trump 2.0 to reduce reliance on Chinese tech firms, aligns with India's own efforts to limit Chinese influence in cybersecurity and telecommunications. As US forms diversify away from China, India is positioned as a prime destination for investment in semiconductors, 5G and AI. Indian tech giants such as Infosys, Wipro and TCS, could see increased demands as US companies expand operations in India. Additionally, restrictive H1-B policies may drive Indian tech professionals to build domestic startups, and help India in reducing brain drain, while further fostering India's own Silicon Valleys. In any case, US companies, seeking alternatives to Chinese manufacturing have been increasingly turning to India, particularly in auto components, pharmaceuticals and chemicals for example. In the realm of education and talent development, India can capitalise on the opportunity created by visa restrictions in the US, by expanding its own higher education system. Joint degree programmes with US institutions, potentially ties to Fulbright-Nehru scholarships can go a long way in attracting talents and fostering innovative ecosystems. The process has already started, as foreign Universities, are increasingly establishing a presence in India, driven by the National Education Policy (NEP), and the University Grants Commission regulations of 2023. Top global Universities, that are ranked in the top 500 globally or in specific subjects are to set up branch campuses, and to collaborate with Indian institutions. The path ahead for India however has challenges as well, and India has to navigate potential trade wars and further visa restrictions that can strain its $ 254 billion tech sector, which relies heavily on the US market. Diplomatic statecraft will be more crucial than ever to maintain strong bilateral ties, particularly given Trump's transactional approach. Preparing itself through further investments in education and tech is a necessity for India to navigate these challenges. Trump 2.0's restrictive policies, while immensely challenging should also be seen as a catalyst for global innovation, with India poised to emerge as a leading actor. Leveraging its tech prowess, manufacturing potential and through educational reforms, India can envisage turning these curbs into opportunities which will strengthen its economic and strategic standing. This article is authored by Sriparna Pathak, professor, China Studies and International Relations, Jindal School of International Affairs, OP Jindal Global University, Sonipat.
