Pakistan: A Leader in Global Dairy Production

Pakistan holds the position as the third-largest milk-producing country in the world, playing a pivotal role in its agrarian economy. The dairy sector not only offers significant employment opportunities but also contributes notably to the national GDP.

Milk Production and Processing

With approximately 49.6 million dairy cattle, Pakistan's annual milk production reaches an impressive 42 million metric tons. However, only about 5% of this milk, equating to approximately 2.1 million metric tons, is processed formally to serve urban areas through structured distribution networks.

Cheese, Milk Powder, and Whey Production

Pioneer producers in Pakistan generate around 10,000 metric tons of cheese annually. Additionally, the country produces about 160,000 metric tons of milk powder and 20,000 metric tons of whey to satisfy the demand for long-shelf-life and diverse dairy products.

Key Dairy Enterprises

Prominent companies such as Engro Foods, Nestlé Pakistan, and Haleeb Foods are instrumental in ensuring the widespread availability of dairy products. Significant dairy farms like JK Dairy Farms and Nishat Dairy (Pvt) Ltd. play crucial roles in supplying milk for processing and retailing.

Exports and Imports

Pakistan exports approximately 40,000 metric tons of dairy products annually to neighboring regions and the Middle East. Simultaneously, it imports about 50,000 metric tons of value-added dairy products, including cheese and flavored milk, to meet domestic demand.

Significant Dairy Market Events

Recent developments include a partnership with Italy to improve dairy processing technologies, highlighting Pakistan's commitment to enhancing quality and efficiency. These efforts are led by Federal Minister for National Food Security and Research, Rana Tanveer Hussain, focusing on strategic alliances and knowledge transfer. In 2024, imports from Belarus increased threefold, emphasizing strengthened trade relationships. The imposition of an 18% general sales tax (GST) on packaged milk has sparked discussions with Federal Minister Ahsan Iqbal by the Pakistan Dairy Association about necessary fiscal reforms.

Additionally, the Competition Appellate Tribunal upheld an antitrust decision against Karachi's major dairy farmer associations concerning milk price collusion. At the Dairy Olympics, Andrey Dvoychenkov, General Manager of NielsenIQ, underscored the robust growth and international engagement of Pakistan's dairy industry.

Despite the complex India-Pakistan relations, current geopolitical tensions have had limited practical impact on the dairy sector. Continued herd expansion and gradual productivity gains are expected to drive growth, with Pakistan playing a significant role in the expansion of milk production capacities across Asia.

Modified: 2025/07/27


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