Pakistan’s oldest brewery wins rare approval to export alcohol after decades-long ban
The move marks a rare regulatory concession as the government seeks new sources of foreign exchange amid a prolonged economic crisis.
In a country where alcohol is officially banned for most of the population, Pakistan’s oldest brewery, Murree Brewery, is exporting its beers and spirits overseas for the first time in nearly half a century.
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RAWALPINDI, Pakistan: In a country where alcohol is officially banned for most of the population, Pakistan’s oldest brewery, Murree Brewery, is exporting its beers and spirits overseas for the first time in nearly half a century.
The move marks a rare regulatory concession as the government seeks new sources of foreign exchange amid a prolonged economic crisis.
For Murree Brewery, it took decades of lobbying to persuade authorities to reissue export permits.
SMALL DOMESTIC MARKET
Inside the brewery, production lines are busier than they have been in decades.
Workers are preparing batches of local beer destined not for the small domestic market of non-Muslims and foreigners – the only groups legally allowed to purchase alcohol in Pakistan – but also for customers abroad.
The export approval marks a historic milestone for the brewery, allowing it to ship alcoholic beverages to select international markets outside the 57-member Organisation of Islamic Cooperation.
The company established in 1860 has used the last few months to test the waters, and is now hoping foreign orders begin to stack up.
Isphanyar Bhandara, chief executive of Murree Brewery, said: “We have already done experimental exports to Japan, to the United Kingdom and to Portugal, and of course a lot of interest has been generated and we are in touch with a lot of countries.”
Bhandara is the third generation of his family to run this business, which was set up by the British in the 19th century.
Over the years, as regulations tightened and domestic demand remained limited, the company pivoted toward non-alcoholic and halal-certified beverages for Pakistan’s mass market, while maintaining a small, licensed alcoholic line.
TARGETING GLOBAL MARKETS
Murree Brewery is casting its net wide, with a particular focus on Central and East Asia – especially Japan – as well as Europe and the United States.
The owners aim to rebuild the brand in markets where regulatory clearances are secured and where they anticipate strong commercial demand.
Economists told CNA there is significant untapped export potential, particularly given Pakistan’s extremely low domestic consumption.
Syed Ali Ehsan, chief development officer of the Policy Research Institute of Market Economy, a Pakistani public policy think tank, said: “I think a portion of that competitiveness also comes from the fact that Pakistan also has indigenous local produce from which these alcohols will be made.”
Pakistan is also home to Hui Coastal Brewery and Distillery, a China-run operation that began production in 2021, largely to serve Chinese workers in the country. But it is restricted to domestic sales and does not have export rights.
Analysts believe if the government further liberalises the sector and allows more players access to international markets, Pakistan could carve out a niche in the global drinks industry.
But industry insiders caution that building a significant international presence will take time.
For now, the sector remains small and tightly regulated, and the government has not outlined any specific revenue targets for alcohol exports.
