JVs with Thai food firms signed
ISLAMABAD: The Pakistani business community plans to boost the local food industry, taking advantage of an end to import restrictions.
The recent dollar crisis encouraged local production units leading several Pakistanis, mostly affiliated with food industry, to sign JV agreements. Most of such deals were concluded with their counterparts from Thailand.
“Pakistan imports significant amount of human as well as pet food from Thailand not only because it is cheap but also because there are limited options for Halal food,” said Zafar Mehmood, senior vice president of the Lahore Chamber of Commerce and Industries (LCCI).
He added that due to restriction on imports people had to adopt various means like making payments from a third country or taking credits but these were all cumbersome procedures.
“Now when trade has started to ease, many importers have decided to establish local units of the same companies who used to supply us,” he said.
Apart from pet foods, Pakistan also imports large quantities of processed food for humans from Thailand, including chicken sausages, carbonated and non-carbonated drinks, candies and jellies etc.
Ch Mohammad Ali of the Islamabad Chamber of Commerce and Industry, said, “We faced a serious challenge this summer as customers, including some commercial clients, were demanding these items but imports were down.”
He added that a large number of JV agreements were concluded in the recent THAIFEX — Anuga Asia 2023.
Published in Dawn, July 2nd, 2023