Business

Coffee Culture in Pakistan: A Brewing Opportunity Being Held Back by Policy

Despite Soaring Popularity, Coffee Faces Challenges Due to Lack of Local Industry and Government Support

Coffee, once considered a niche luxury in Pakistan, is now emerging as a mainstream beverage, especially among the younger generation and urban professionals. Over the past decade, cafés have sprouted in major cities like Lahore, Islamabad, and Karachi, offering everything from creamy cappuccinos to trendy cold brews. Coffee is no longer just a beverage—it has become a lifestyle statement. Yet, despite this cultural shift, Pakistan remains largely unprepared to capitalize on the economic opportunities presented by the coffee boom.

The Rising Tide of Coffee Enthusiasm

The popularity of coffee in Pakistan has grown significantly, driven by changing lifestyles, exposure to global trends, and the rise of café culture. With the increasing influence of Western media, digital connectivity, and international travel, young Pakistanis are embracing coffee as part of a modern, cosmopolitan identity.

Coffee shops have become informal co-working spaces, dating venues, and social hubs, particularly for students and professionals. Brands like Gloria Jean’s, Tim Hortons, and Coffee Planet have tapped into this demand, while local chains and independent cafés are also thriving. From espressos to frappés, coffee is now a central part of urban life.

Yet, even as demand soars, Pakistan continues to rely almost entirely on imported coffee, both in raw and finished forms. According to trade data, Pakistan imported over $80 million worth of coffee products in 2023, a figure that continues to rise year over year. And that’s just the beginning.

No Local Infrastructure to Meet Demand

Despite growing domestic consumption, Pakistan lacks any significant coffee production or processing infrastructure. Unlike countries in Latin America, Africa, or Southeast Asia where coffee cultivation is supported as a key agricultural export, Pakistan has not invested in coffee farming or manufacturing facilities.

There are no local coffee plantations, and no major roasting or packaging units exist that can compete with imported brands. Most cafés depend on imported beans or pre-ground coffee, making operations expensive and vulnerable to currency fluctuations and supply chain disruptions.

This over-reliance on imports not only widens the trade deficit but also leaves a massive untapped market unexplored. If Pakistan were to invest in developing a local coffee ecosystem, it could reduce import bills, generate employment, and open up export opportunities.

Policy Gaps and Uneven Government Support

One of the major reasons for this gap is the lack of government policy to support the coffee sector. Tea, on the other hand, enjoys significant backing. The government offers tax incentives and logistical support to businesses involved in tea blending and packaging. In fact, tea is deeply rooted in Pakistan’s social fabric and political history—having become a national favorite during British colonial rule.

Tea enjoys cultural reverence and political patronage, while coffee is still seen by many policymakers as a niche or elitist beverage. This perception has stifled investment and innovation in the coffee space.

To move forward, policymakers must recognize coffee not just as a drink for the privileged few but as a growing economic opportunity. A comprehensive policy framework is needed to encourage investment in coffee plantations (especially in suitable regions like Balochistan or Khyber Pakhtunkhwa), roasting units, packaging plants, and barista training centers.

Creating a Local Coffee Economy

Investing in a homegrown coffee value chain could have far-reaching benefits. For starters, it would create employment across various sectors—from agriculture and logistics to hospitality and marketing. Thousands of jobs could be created, particularly for youth and women, in rural and urban areas alike.

Moreover, local manufacturing and assembly of coffee products would make them more affordable and accessible to the broader population. As prices decrease, coffee would no longer remain limited to urban elites but could become part of mainstream consumer culture across the country.

Export potential is another area worth exploring. Neighboring countries such as Iran and Afghanistan, as well as parts of Central Asia, could become markets for locally produced Pakistani coffee—if the government builds capacity and quality standards through relevant institutions.

Education, Innovation, and the Entrepreneurial Spirit

The entrepreneurial spirit in Pakistan’s food and beverage industry is strong, but it needs support. Coffee startups are emerging, experimenting with local roasting and blends, but they face regulatory bottlenecks, import taxes, and lack of access to financing.

Barista training, coffee roasting education, and agronomic research related to coffee cultivation are also virtually nonexistent in the country. Setting up public-private partnerships and vocational training programs could help bridge this skills gap and prepare a workforce ready to serve in a competitive coffee industry.

Academic institutions, too, can play a role by introducing food science and agribusiness programs focused on coffee research, sustainability, and innovation. Such initiatives would not only meet domestic needs but also build global competitiveness.

A Wake-Up Call for Policy Makers

Pakistan stands at the edge of a significant opportunity. The demand for coffee is rising, the cultural tide is shifting, and the business case is compelling. But unless there is timely policy intervention, Pakistan will remain a passive consumer rather than an active participant in the global coffee economy.

Supporting this emerging industry is not just about coffee; it’s about economic diversification, youth employment, and entrepreneurial growth. As the government looks for ways to boost exports and reduce trade deficits, the coffee sector should no longer be ignored.

It’s time to brew a strategy that includes coffee in the national economic and cultural plan.

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