Sheep and goat production is one of the major economic activities under the arid and semi-arid condition of Pakistan. The country has 53.8 million goats and 26.5 million sheep. The main purpose of raising these small ruminants in the country is meat production. The small ruminants share about 40% of total red meat produced in the country. It has been observed that in the last several years the overall per capita consumption of the animal food products is increasing. Overall annual growth rate of goats in Pakistan is 4%, which is the highest in Asia. Pakistan ranks third in Asia in small ruminant population. Some famous sheep and goat breeds of Pakistan which have potential for mutton production will be discussed in the paper. There is no feedlot fattening system functioning in the country on a commercial level. The indicators suggest that there are good prospect for sheep and goat to be used as meat animals. In order to meet the increasing demand of mutton locally as well as for export, feedlot operations are required to be introduced among the farmer communities and in the private sector in Pakistan.