Pakistan’s agricultural sector has long been the backbone of its economy, contributing nearly 22.9% to the Gross Domestic Product (GDP) and employing 38.5% of the labor force. With an ever-growing demand for food products across international markets, there is an opportunity to expand food exports significantly to generate much-needed foreign exchange. However, despite immense potential, Pakistan’s food export performance has not yet reached its desired heights. The latest figures reveal a mixed picture, showing both growth and challenges, while experts argue that policy reforms and infrastructure development can help unlock this sector’s true value.
According to the Pakistan Bureau of Statistics (PBS), food exports in the fiscal year 2023-24 stood at approximately $5.2 billion, marking an increase of 7.5% from the previous year. Major contributors to these exports were rice, fruits, vegetables, meat, and seafood. Rice, being the star performer, accounted for $2.6 billion, driven by demand in markets like China, the Middle East, and parts of Europe. Pakistan exported over 4.5 million tons of rice, with basmati rice fetching premium prices due to its superior quality. Fruit and vegetable exports brought in $870 million, with mangoes, oranges, and potatoes as the dominant products. However, experts note that post-harvest losses, limited cold chain infrastructure, and outdated farming practices restrict the export volume to its full potential.
Dr. Asif Ali, a leading agricultural economist, highlights the structural inefficiencies in the food production and export sectors. He points out that while Pakistan has a competitive edge in producing high-quality food items, challenges such as poor logistics, insufficient warehousing, and limited market access hinder growth. “We are exporting products like rice and mangoes at competitive rates, but value addition remains almost nonexistent. For instance, processed mango pulp or ready-to-use rice products could significantly increase export revenues,” Dr. Ali emphasizes. He further stresses that addressing these bottlenecks will make Pakistan more competitive in global markets.
In the seafood segment, Pakistan generated $470 million in exports during 2023-24, primarily to China, Thailand, and the Middle East. While the fisheries sector shows promise, the lack of modern facilities and quality control measures limits its growth. Similarly, the meat export sector, worth around $400 million, relies heavily on Gulf countries, particularly Saudi Arabia and the UAE, where demand for Pakistani beef and mutton remains robust. Yet, experts argue that Pakistan’s inability to meet international health and safety standards restricts access to premium markets in Europe and North America. Addressing such regulatory challenges could open up new avenues for Pakistani meat exports.
Focusing on wheat and sugar, Pakistan presents a unique case. In 2023-24, wheat production touched 28 million tons, a figure that allowed partial exports, particularly to Afghanistan and other regional markets. However, erratic weather patterns and water shortages pose recurring challenges to sustainable wheat production. Similarly, sugar exports were valued at $240 million in the previous year, benefiting from surplus production. Still, stakeholders stress that export restrictions, often imposed to control domestic prices, create uncertainty for international buyers. Experts recommend a balanced approach that ensures food security while fostering long-term export partnerships.
Chela Ram Kewlani, Chairman of the Rice Exporters Association of Pakistan (REAP), underscores the importance of diversifying markets and enhancing product quality. “Pakistan’s rice has immense demand globally, but we need to shift from traditional markets to untapped regions such as Africa and Latin America. The government should also incentivize exporters by offering tax relief and access to affordable credit, which would boost competitiveness,” Kewlani suggests. He adds that improving irrigation systems, adopting modern farming techniques, and reducing production costs will benefit farmers and exporters alike.
On the policy front, the government has taken steps to facilitate food exports, but much work remains to be done. The Trade Development Authority of Pakistan (TDAP) has launched initiatives to promote Pakistani food products through trade fairs and exhibitions, with notable success in the Gulf Cooperation Council (GCC) region. Similarly, special economic zones are being developed to attract investment in food processing and packaging industries. Yet, challenges such as energy shortages, lack of modern infrastructure, and bureaucratic hurdles continue to slow down progress.
International trade analysts argue that Pakistan must embrace a multi-pronged strategy to boost food exports. This includes promoting value-added products, ensuring compliance with global food standards, and leveraging free trade agreements (FTAs) to access new markets. According to a report by the State Bank of Pakistan, the country’s food processing sector remains largely untapped, with processed food exports contributing less than 5% of total food exports. Investing in this area could substantially enhance revenues, especially in high-demand categories like canned fruits, frozen vegetables, and organic food products.
Climate change presents yet another challenge to Pakistan’s food production and export sector. Unpredictable weather patterns, floods, and droughts have repeatedly affected crop yields in recent years. The devastating floods of 2022 alone caused agricultural losses of over $4 billion, impacting rice, wheat, and cotton production. Experts urge the government to prioritize climate-smart agriculture, including the adoption of resilient crop varieties, better water management practices, and advanced irrigation systems.
On the global front, Pakistan faces stiff competition from regional players like India, Thailand, and Vietnam, particularly in rice exports. India, for instance, exported over 20 million tons of rice in 2023, far surpassing Pakistan’s 4.5 million tons. Similarly, countries like Mexico and Brazil dominate fruit exports through innovative packaging, branding, and quality assurance. To compete effectively, Pakistan must focus on building a strong brand identity for its food products while ensuring consistent quality and supply.
Dr. Shaista Rahman, an agricultural development expert, calls for public-private partnerships to address systemic challenges. “The private sector can play a pivotal role in upgrading infrastructure, introducing modern technology, and providing training to farmers. Meanwhile, the government should focus on facilitating exporters by streamlining policies, reducing tariffs, and improving trade logistics,” she states. Dr. Rahman also emphasizes the importance of farmer education and access to affordable inputs, which would increase productivity and export potential.
While challenges persist, the outlook for Pakistan’s food exports remains optimistic, provided targeted measures are taken to overcome hurdles. With global food demand rising, particularly in regions like the Middle East, Africa, and Asia, Pakistan has the opportunity to position itself as a reliable supplier of quality food products. If the government, industry players, and policymakers work collectively to address logistical, regulatory, and production-related issues, food exports could emerge as a significant driver of foreign exchange earnings.
In conclusion, Pakistan’s food production and export sectors possess vast untapped potential that can contribute to economic stability and foreign exchange reserves. By focusing on value addition, improving infrastructure, and ensuring compliance with international standards, Pakistan can unlock new markets and boost export revenues. With the right mix of policy reforms, investment, and innovation, the country’s food exports can become a cornerstone of its economic growth, offering sustainable benefits for farmers, businesses, and the nation at large.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance.