In a strategic move to capitalize on the end of import restrictions, the Pakistani business community has unveiled plans to strengthen the local food industry. Encouraged by the recent dollar crisis and aiming to reduce reliance on imports, several Pakistanis, primarily associated with the food industry, have entered into joint venture (JV) agreements, with a significant number of deals being struck with counterparts from Thailand.
The Lahore Chamber of Commerce and Industries (LCCI) highlighted that Pakistan’s heavy dependence on Thai imports, particularly for halal food options, necessitated exploring alternative avenues. Zafar Mehmood, Senior Vice President of LCCI, explained, “Pakistan imports a substantial amount of human as well as pet food from Thailand not only due to its affordability but also due to limited options for halal food.” He further emphasized the challenges faced in importing goods, including convoluted payment processes involving third countries and credit arrangements. With trade restrictions easing, many importers have now decided to establish local units of the same companies that previously supplied them.
Among the extensive range of Thai food products imported by Pakistan, pet foods and processed food for humans, such as chicken sausages, carbonated and non-carbonated drinks, candies, and jellies, rank high. The Islamabad Chamber of Commerce and Industry’s representative, Ch Mohammad Ali, revealed the urgency faced during the summer as customers, including commercial clients, demanded these items while imports were significantly reduced.
A ray of hope emerged at the recently concluded THAIFEX — Anuga Asia 2023, where numerous JV agreements were sealed. This platform provided Pakistani businesses with opportunities to establish stronger ties with their Thai counterparts and explore avenues for expanding local production units.
As Pakistan’s business community embraces the end of import restrictions, the country’s food industry is poised for growth, with increased domestic production expected to meet the rising demand for halal and processed food products. With the collaborative efforts between Pakistani and Thai businesses, this strategic move not only promises to bolster the local economy but also ensures a wider range of food options for consumers within Pakistan.
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