Pakistan: A Leader in Global Dairy Production

Pakistan ranks as the third-largest milk-producing country in the world, playing a pivotal role in its agrarian economy. The dairy industry not only provides significant employment opportunities but also forms a substantial part of the national GDP.

Milk Production and Processing

With approximately 49.6 million dairy cattle, Pakistan boasts an impressive annual milk production of 42 million metric tons. However, only about 5% of this milk, amounting 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 generate around 10,000 metric tons of cheese annually. Additionally, Pakistan produces approximately 160,000 metric tons of milk powder and 20,000 metric tons of whey to meet demands for long-shelf-life and diverse dairy products.

Key Dairy Enterprises

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

Exports and Imports

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

Significant Dairy Market Events

Recent developments, such as the partnership with Italy to improve dairy processing technologies, signify Pakistan's commitment to enhancing both quality and efficiency in the sector. These efforts, led by Federal Minister for National Food Security and Research, Rana Tanveer Hussain, focus on strategic alliances and knowledge transfer.

In 2024, imports from Belarus saw a threefold increase, underscoring strengthened trade relationships. Simultaneously, 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.

Another significant event involved the Competition Appellate Tribunal upholding an antitrust decision against Karachi's major dairy farmer associations concerning milk price collusion. Additionally, at the Dairy Olympics, Andrey Dvoychenkov, General Manager of NielsenIQ, highlighted the robust growth and international engagement of Pakistan's dairy industry.

Sources for this report include the Pakistan Bureau of Statistics, the Food and Agriculture Organization (FAO), local news outlets, and insights from Andrey Dvoychenkov of NielsenIQ.

Despite the complex India-Pakistan relations, current geopolitical tensions have had limited practical impact on the dairy sector.

Modified: 2025/05/18