The food export paradox

January 5, 2025

The government must adopt a proactive and holistic approach to revitalise the food export sector

The food export paradox


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e story of Pakistan’s food export sector is one of paradoxes: while boasting record-breaking breakthroughs, it remains overshadowed by systemic inefficiencies that threaten its long-term sustainability.

Reflecting on the recent data, one cannot help but feel a mixture of pride and apprehension. On one hand, we revel in the historic $8 billion export milestone achieved in the 2023-24 fiscal year, a 37 per cent leap over the previous year. On the other, we are haunted by the systemic inefficiencies that threaten to dismantle this fragile ascent. This duality encapsulates Pakistan’s struggle: a nation brimming with potential yet shackled by its infrastructural and policy shortcomings.

Ahmed Raza’s experience as a finance professional grappling with the challenges of fulfilling a major meat export order illustrates the broad issues plaguing our export sector. His inability to rely on organised farming infrastructure, coupled with soaring transportation costs, underscores a recurring theme: our export success often feels like a house of cards, vulnerable to collapse under the weight of inefficiencies. Despite a historic boom in meat exports to the Middle East, reaching $430.89 million, the lack of robust supply chains, quality standards and modernised practices continues to hold us back from realising our potential.

Such stories beg the question: is our recent success a product of strategic brilliance, or merely a fortunate alignment of external factors? It has been argued that while Pakistan’s meat exports to the Middle East surged to $430.89 million, this achievement was less a result of domestic reforms and more a consequence of external market dynamics. India’s restrictions on food exports, coupled with the disruption caused by the Ukraine crisis, opened the doors for Pakistani products to penetrate new markets. But reliance on the missteps of others is not a sustainable strategy. What happens when those doors inevitably close?

The story of Pakistan’s rice exports illustrates this vulnerability. Rice brought in an impressive $4 billion in 2023-24, bolstered by increased domestic production and favorable international conditions, such as India’s struggles with pesticide compliance in the European Union. Yet, the future of this success hangs in the balance as India, our main competitor, lifts its restrictions and aggressively re-enters the market. Pakistani rice exporters now face the daunting challenge of competing with Indian non-Basmati rice, which is $100 per ton cheaper.

The recurring acknowledgement of these issues without a meaningful intervention is frustrating. Stakeholders, from policymakers to industry leaders, frequently cite the need for improved supply chains, storage facilities and modern farming practices. Yet, these discussions often fail to translate into tangible results. For instance, while the Trade Development Authority of Pakistan has made commendable efforts to promote Pakistani products through international exhibitions and targeted marketing strategies, these initiatives cannot compensate for the lack of foundational infrastructure. Exporters need more than just platforms to showcase their products; they also need a system that ensures quality, efficiency and competitiveness.

The country stands at a crossroads. Pakistan’s food export sector can either become a cornerstone of prosperity or a cautionary tale of squandered opportunities.

The role of technology in addressing these challenges cannot be overstated. Modern farming techniques, digital tools and data-driven decision-making are essential for optimising production and meeting international standards. Pakistan lags behind in adopting these innovations. It is disheartening to see our exporters struggle with basic issues like operational efficiency and compliance with international standards, while other countries leap ahead by embracing technology and sustainable practices.

The disconnect between the administration’s aspirations and the realities on the ground is striking. Ambitious target setting - like $25-30 billion in food exports within a few years – is laudable. However, these ring hollow without a comprehensive strategy to address the sector’s deep-seated problems. High electricity and fuel costs, an unfavourable tax structure and exorbitant interest rates are just a few of the barriers that make it increasingly difficult for exporters to remain competitive. While the government’s efforts to explore new markets and trade routes are commendable, these initiatives must be accompanied by reforms that create an investor-friendly environment.

It is time for a paradigm shift. We must move beyond short-term fixes and reactive measures, adopting a proactive and holistic approach to revitalise the food export sector. This requires not only investments in infrastructure and technology but also a commitment to fostering collaboration among stakeholders. Farmers, exporters, policymakers and researchers must work together to identify and implement solutions that address the root causes of our challenges.

Education and training also have a pivotal role in this transformation. Farmers need access to knowledge and resources that enable them to adopt sustainable and efficient practices. Exporters must be equipped with the skills to navigate complex international markets and adhere to stringent quality standards. Moreover, fostering a culture of innovation and entrepreneurship within the agricultural sector can unlock new opportunities for growth.

Despite the odds, we have managed to achieve remarkable milestones, proving that the potential for greatness exists. However, potential alone is not enough. It is imperative that we channel our resources, energy and creativity into building a system that empowers our exporters and lifts our standing on the global stage.

The country is at a crossroads. Pakistan’s food export sector can either become a cornerstone of prosperity or a cautionary tale of squandered opportunities. We can continue to rely on external factors and fortuitous circumstances to sustain our export growth or take bold steps to address the systemic issues that have long held us back. The choice will determine the trajectory of our economy for years to come.

As we prepare for a new year, the question we must ask ourselves is: are we ready to embrace innovation, challenge outdated practices and commit to a future where Pakistan’s food exports symbolise its resilience and progress?


The writer is a policy analyst and researcher. She has a master’s degree in public policy from King’s College, London.

The food export paradox