A road to sustainable economic growth in Pakistan is hinged upon building and diversifying the export potential. Pakistan is mainly an agrarian country and historically beyond textiles, agri-value-added exports have remained limited. However, lately, the focus is being built on food-based value-added exports. Pakistan’s food value chain has untapped potential to emerge as a significant contributor to global exports. Amid changing macroeconomic realities, the country faces both challenges and opportunities in transitioning from low-value exports to high-value, branded products.
The food processing sector in Pakistan is valued at $1.4 billion and has an annual retail growth rate of 10%, driven by rising urbanization and changing consumer preferences. However, much of this potential remains unrealized as exports are heavily skewed toward low-value, minimally processed goods, such as raw fruits, grains, and unbranded dairy products. Focusing on minimally processed, low-value goods limits Pakistan’s food exports compared to regional competitors, thereby constraining its competitiveness in the global market. India, by contrast, has diversified its export portfolio with high-value, branded products that appeal to a broader range of international markets. For Pakistan to enhance its position, it must pivot toward high-value processing, branded exports, and certification to better align with global quality expectations.
Having said that, the recent data on food exports is very encouraging. This is evident by the jump in 12M rolling food exports – up from $5.0 billion to $7.8 billion in the last twelve months. There is huge potential in dairy, fruits, and vegetables value-added products where due to the perishability nature amid the lack of a cold supply chain, the waste is very high. The focus of the commerce ministry is to tap the potential. “Pakistan can explore value-addition opportunities through fruits and vegetable processing, in particular in its top exported horticultural commodities, including citrus, mango, and potato”, stated the Pakistan export strategy – fruits and vegetables, paper 2023-27 prepared by the Ministry of Commerce. This objective is in line with the Strategic Trade Policy Framework (STPF) 2020-25.
Despite significant opportunities, the growth of Pakistan’s food exports is hindered by several barriers. Although Pakistan’s geographical position gives it access to high-demand markets like the Middle East and Central Asia, the food export sector faces infrastructural limitations, such as fragmented supply chains, limited cold storage, and a lack of international certification capabilities. For smaller exporters, these barriers make it challenging to compete on the global stage, where quality consistency and logistical reliability are paramount. Addressing these issues through public-private collaborations such as investment in cold chain infrastructure and streamlined regulatory processes—could enable more firms to expand internationally.
The shift in Pakistan’s macroeconomic environment has also led MNCs and local firms alike to prioritize exports as a strategy for growth and risk mitigation. This shift was highlighted in a recent event in Islamabad, where Nestlé Pakistan discussed its export strategies and reaffirmed commitments to align with the government’s vision for economic growth. The company unveiled its $50 million export vision for 2030, showcasing the broader potential for Pakistan’s packaged food sector to contribute to the country’s economic growth.
Jason Avanceña, CEO of Nestlé Pakistan, emphasized this pivot: “Since 2019, we have strategically focused on growing our export business, and the results have been outstanding. We have expanded from operating in a single country to a remarkable 26 countries today. This achievement is a testament to our close collaboration with trusted third-party importers, enabling us to introduce our brands in new geographies.”
High post-harvest losses—especially in perishable items like dairy and fruits—further restrict Pakistan’s export potential. Insufficient cold storage and transport infrastructure reduces the shelf life and quality of these goods, affecting their competitiveness. Addressing these gaps would require public-private cooperation, with targeted investments in quality control, cold chain logistics, and rural supply chains. Enhanced cold storage and logistics support could help exporters broaden their market reach, particularly for high-demand products in the Middle East and Central Asia.
Collaboration across the public and private sectors can address systemic challenges and foster innovation. Initiatives such as public-private partnerships (PPPs) to develop supply chain infrastructure and export development programs to assist smaller firms can have a transformative impact. Moreover, establishing innovation hubs focused on developing new products and sustainable practices can accelerate growth in high-value exports.
It’s good to see that MNCs like Nestle Pakistan are taking the initiative. A joint effort by big companies and the government can help address the bottlenecks to make the supply chain efficient which will help SMEs to move towards building food exports as well.
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