Food-Processing Sector

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Agri-Business and Food-Processing Sector

Agriculture accounts for 22.9% of the GDP in Pakistan and generates around 37.4% of the overall employment in the country.

REVENUE PROJECTION

Key Statistics

30.5M

Arable land in hectares

47%

National Land

35

Different varieties of vegetables

29

Different varieties of fruits

5th

Largest Milk producer in the world

4th

Largest Mango producer in the world

15th

Largest Citrus producer in the world

225M

Livestock population

Star

Key food crops: wheat, rice, sugarcane, and maize

Agriculture Base

With a strong agricultural base Pakistan is poised to offer very lucrative business opportunities in the food processing industry. With an Export Oriented Approach, there exists significant potential of the food products exports in the international market especially to Asia. The food and beverage industry in Pakistan has witnessed a significant influx of foreign direct investment (FDI), amounting to $38.5 million USD over the years. This FDI has contributed to the growth and development of the sector.

potential sectors for investment

income tax

Frozen Foods

income tax

Value Addition in major food crops

income tax

Edible oils & fats

income tax

Beverages

income tax

Fruits, dairy, vegetable & intermediate value adding products

income tax

Agri food processing

Agricultural Advantages

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Fruits and vegetables: abundant availability of raw materials, skilled low-cost labor, growing domestic consumer demand, and proximity to key markets like China, Central Asia, Asia, and the Middle East.

  • Citrus
  • Mangoes
  • Tomatoes
  • Potatoes
  • Food Crops
  • Dates

Livestock: 14.36% contribution in GDP, growth sector, 225 million animals

  • Meat
  • Milk
  • Dairy Products

INCENTIVES & ELIGIBILITY

INCENTIVES:

The Ministry of National Food Security and Research has launched its first ever National Food Security Policy with the goal to promote a sustainable food production system by achieving an average growth rate of 4% per annum. Similarly the government of Pakistan Government has introduced two schemes to encourage investment in the industry.

  • Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises
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ELIGIBILITY:

  • Fruits, vegetables and food processing & packaging and dates processing units

SEZ Fiscal Incentives

FOR DEVLOPERS:

  • One-time custom duties exemption on import of Capital Goods
  • Income Tax exemption for 10 years from the date of signing of Development Agreement.
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FOR CO DEVLOPERS:

  • Co-developers eligible for concession and exemptions available to the developers of SEZs, subject to relinquishment of the same by the developer, and endorsement by the respective SEZA.

For Zone Enterprises:

  • One-time custom duties exemption on import of Capital Goods
  • Income Tax exemption for 10 years from the date the developer certifies that the zone enterprise has commenced commercial operation.
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SEZ General Incentives:

  • Gas, electricity, and other utilities will be provided at the doorstep to the zone enterprises.
  • Captive power generation permissible to Developers of the Zones.
  • Major investors both national and international: logos of some of the existing companies.