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Pakistan Promotes Processed Food Industry: Sees Great Potential
Jun 20, 2007

Pakistan's food and allied products industry is considered to be Pakistan's one of the largest industry says Marketing Trade Development Authority of Pakistan.

As per the reports of Daily Times, Executive Director, Marketing Trade Development Authority of Pakistan, Riaz Khan, said that Pakistan's food and allied products industry is considered to be Pakistan's one of the largest industry. This industry accounts for approximately 27% of its value-added production and it holds a share of 16% of total employment by the manufacturing sector.

If Pakistan's food industry employs the latest innovative market and promotional strategies and policies, then it can enroll itself among the top exporters and capture a significant share in the foreign markets.

Riaz khan told that the food processing industry does a business of over $3 Trillion every year and Pakistan's contribution in this share is very small at present. In the last 10 years, there has been a phenomenal growth in supermarkets in the developing world; especially Asia and Latin America have experienced this growth in much larger quantities. The reason behind this is the rising income of consumers that has led to an increase in the demand for processed food products.

Developing countries offer large potential to food manufacturers. This potential is being recognized by both the food manufacturers and MNC's and they are taking their operations in those markets. These manufacturers have various methods through which they can sell their products and export is one of the methods, though less preferable. As investment abroad generates the maximum part of the foreign food sales, food processing companies like Nestle and Unilever are investing a major portion in Pakistan.

European union is the Pakistan's largest trading partner in both imports as well as exports, holding a share of about 30% followed by the United States and Japan.

Pakistan is taking various steps to support its agricultural exports. It has joined Cairns group of countries in the WTO negotiations. Further, the government is also providing facilities of processing, grading, packing and cold storage to growers to promote the private sector. As a part of its strategy, Pakistan has established Pakistan Horticulture Development Board to train and guide the farmers and exporters.

As per a research analysts at
RNCOS, " by meeting the requirements and standards of WTO, the Pakistani agricultural commodities can get more export opportunities due to market evolution, social changes and shift in consumer preferences for high value crops".

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