ISLAMABAD: Despite promising possibilities and plentiful resources, Pakistan’s food sector has yet to reach its full potential.
So, by improving processing skills and focusing on value addition, Pakistan has a significant opportunity to increase its food product exports.
Waheed Ahmed, Vice-President of the All Pakistan Fruit & Vegetable Exporters Importers and Merchants Association, told WealthPK that the food and beverage processing sector is Pakistan’s second largest industry after textiles. “It contributes 27% of the value-added production and 16% of employment in the manufacturing sector.”
“The food sector faces challenges in processing and value addition,” he went on to say. “These obstacles are the result of a lack of processing facilities, a competent staff, and new technologies. Approximately 30% of fruits and vegetables go to waste due to neglect and a lack of processing facilities, posing a substantial barrier to food exports.”
According to the Trade Development Authority of Pakistan (TDAP), the food products market has grown at a compound annual rate of around 6% over the last five years. During this time, the potato chip market increased by 14.2%, biscuits by 9.1%, and confectionery products by 9.4%.
Waheed Ahmed emphasized the necessity of foreign direct investment in the promotion of food exports. “With a significant inflow of FDI into the food sector, the country will get modern technology, learn best practices and witness improvements in labour skills.”
Between 2013 and 2023, Pakistan’s processed food and beverage sector received a total of $1.8 billion in foreign direct investment. The United Kingdom, the Netherlands, and the United States were the major investors in this sector, accounting for over 80% of total FDI inflows into the processed food and beverage business.
Waheed Ahmed noted that Phase II of the China-Pakistan Economic Corridor placed a strong emphasis on poverty alleviation and agriculture. “The entry of dairy and meat products into the Chinese market marks a substantial step forward in fostering economic development and generating additional employment opportunities in Pakistan.”
In a summary, there is a big opportunity to increase food product exports by improving processing capacities and focusing on value addition.
