Pakistan's oldest brewery resumes alcohol exports amid economic crisis

Key Concepts

• Mari Brewery: Pakistan’s oldest brewery, now authorized for alcohol exports.
• Halal Products: Non-alcoholic products produced by Mari Brewery for the Pakistani domestic market.
• OIC (Organization of Islamic Cooperation): The 57-member organization whose markets are restricted for Pakistani alcohol exports.
• Bureaucratic Red Tape: Administrative hurdles hindering the growth of the Pakistani alcohol export industry.
• Indigenous Produce: Locally sourced raw materials used in alcohol production, contributing to potential cost competitiveness.
• China Coastal Brewery and Distillery: A newer Pakistani brewery limited to domestic consumption.

Pakistan’s Mari Brewery Gains Export Approval: A Detailed Overview

This report details the recent landmark decision allowing Pakistan’s oldest brewery, Mari Brewery, to export alcoholic beverages for the first time in nearly half a century. The move comes amidst a national ban on alcohol sales for most citizens, with legal access restricted to non-Muslims and foreigners. This shift presents a potential new revenue stream for the brewery and a cautious step towards international market participation for Pakistan’s tightly regulated alcohol industry.

Historical Context and Brewery Operations

Mari Brewery, established by the British in the 19th century, is currently run by the third generation of the Bandara family. Prior to the export approval, the brewery adapted to the domestic restrictions by pivoting to the production of non-alcoholic halal products catering to the Pakistani mass market. However, it maintained a small, licensed production line for alcoholic beverages. Previously, the brewery exported to Afghanistan and India, but current geopolitical conditions – specifically closed borders and regime changes – have altered those markets. As Mr. Bandara stated, “Our target right now is not India and Afghanistan… the borders are closed on the eastern border and and the western border is is a totally different regime mindset what we used to export.”

Export Strategy and Target Markets

Shipments are currently restricted to markets outside the 57-member Organization of Islamic Cooperation (OIC). Mari Brewery has already conducted “experimental exports” to Japan, the UK, and Portugal, generating significant interest from other potential buyers. The brewery is actively pursuing opportunities in Central and East Asia, with a particular focus on Japan, as well as Europe and the United States. The stated goal is to “rebuild the brand” and concentrate on markets with favorable regulatory environments and strong commercial demand.

Economic Implications and Industry Potential

Economists highlight the “immense untapped potential” of alcohol exports, given Pakistan’s extremely low domestic consumption. A key advantage cited is the availability of “indigenous local produce” which can contribute to cost competitiveness. This refers to locally sourced raw materials used in the brewing process. While Mari Brewery is currently the sole authorized exporter, the existence of China Coastal Brewery and Distillery – established in 2021 primarily to serve Chinese workers – demonstrates further potential. However, this second brewery is restricted to domestic production and lacks export rights.

Analysts suggest that liberalizing the sector and allowing more companies to participate in the international market could significantly strengthen Pakistan’s position in the global drinks industry. However, the industry remains “small and tightly regulated,” and building a substantial international presence is expected to be a gradual process. The government has not yet announced specific revenue targets for alcohol exports.

Challenges and Future Outlook

Despite the positive development, Mari Brewery acknowledges ongoing challenges, primarily stemming from “bureaucratic red tape.” The company emphasizes that securing export approval required “decades of lobbying.” The brewery is proceeding with “cautious optimism,” hoping that initial shipments will generate momentum and lead to sustained success. As stated by the reporter, Havupa, “for now it’s proceeding with cautious optimism in the hopes that the buzz created by initial shipments will ferment into lasting success.”