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Pakistan Household Survey HIES 2024-25 Raises More Questions Than It Answers
Recently released HIES 2024-25 household integrated economic survey by Pakistan Bureau of Statistics (PBS) raises more questions than it answers. For example, it shows that Pakistani households are buying lower amounts of basic food ingredients like wheat, meat and eggs in the last four years, implying that people are eating less to cover other expenses, like electricity and gas. But it doesn't explain why the households have reported significantly lower purchases of these items than production reported recently by the PBS. What is the source of this discrepancy? Is the data flawed? Or, is it missing a new trend toward less home cooking? Is the young urbanized population buying more prepared foods? Are they ordering out more often using ubiquitous food delivery services? Let us try and understand it in more detail.
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| 21% Pakistanis Buy Tandoori Nan. Source: Gallup Pakistan |
Data Discrepancy:
There is a significant discrepancy in household data for per capita monthly consumption of basic food ingredients like wheat, meat and eggs. For example, the HIES 2024-25 reports 6.59 Kg of wheat consumption per capita per month, which translates into 79 Kg per person per year. The wheat production data from PBS shows 30 million tons or 120 Kg per capita in 2025. We know that Pakistan did not export wheat last year. So what happened to the 41 Kg per capita difference? It is 30% of the total production reported, too large to be explained away as waste in the system. It was most probably bought by food businesses and eventually consumed by Pakistani households. There are similar discrepancies in meat, eggs and other food data, with reported household consumption being far below production.
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| Household Food Items Purchase Data. Source: HIES 2024-25 |
Prepared Foods:
A 2025 Gallup survey revealed that 21% of Pakistanis buy tandoori naan. Pakistan's prepared food market is experiencing robust growth, with the Convenience Food sector valued at $6.91 billion in 2025, projected to grow at 5% annually, driven by Ready-to-Eat (RTE) meals and frozen foods, especially RTE/RTC (Ready-to-Cook) products like frozen snacks. Key trends include rising demand for time-saving, convenient options due to urbanization, growing health consciousness (organic/natural), and dominance by flexible packaging, with online delivery also expanding rapidly.
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| Urbanization in Pakistan. Source: World Bank |
Urbanization:
The World Bank researchers have recently concluded that 88% live in urban areas. Their conclusion is based on satellite imagery and the Degree of Urbanization (DoU) methodology. The official Pakistani figures released by the Pakistan Bureau of Statistics (PBS) put the current level of urbanization at 39%. The source of this massive discrepancy is the government's reliance on administrative boundaries rather than population density and settlement patterns, according to the World Bank working research paper titled "When Does a Village Become a Town?".
Ultra-Processed Foods:
Ultra-processed foods (UPFs) like biscuits, sugary drinks, chips, and packaged snacks, are a growing concern in Pakistan. Such foods are contributing to rising obesity, diabetes, and heart disease. Obesity causes non-communicable diseases (NCD) which are now among the leading causes of death in Pakistan.
To deal with the obeseity crisis, several Pakistani pharmaceutical companies have started domestic production of generic versions of GLP-1 (Glucagon-Like Peptide-1) drugs Ozempic/Wegovy (Semaglutide) and Mounjaro/Zeptide (Tirzepatide).
Food Delivery Services:
Pakistan's food delivery market is experiencing rapid growth, projected to hit $2.35 billion in 2025, driven by high smartphone penetration, a young urban population, and increased convenience-seeking, with Foodpanda dominating but facing a growing trend of direct restaurant ordering and a demand for diverse, tech-enabled options despite past economic challenges.
Street Food Growth:
With rising urbanization, the street food sector in Pakistan is vibrant and growing. It is crucial for livelihoods and affordable food. Deeply embedded in culture, choices range from savory samosas and chaat to bun kebabs, pakoras, pani puri, and biryani, popular for convenience and taste.
Fast Food Boom:
Pakistan’s fast food industry is experiencing rapid growth, making it the 8th largest fast food market globally. With a large consumer base, the demand for fast food continues to grow, contributing to the economy in significantly. The industry’s annual growth rate stands at 20%, highlighting its rapid expansion and increasing consumer preference for quick-serve meals.
Summary:
The HIES 2024-25 report recently issued by Pakistan Bureau of Statistics implies that Pakistani households are eating less to save money to pay for rising energy bills. I think this is misleading for two reasons: 1. It does not explain why reported household consumption figures are significantly lower than per capita production of these food items and 2. It completely ignores the impact of rapid urbanization that is causing Pakistanis to change their eating habits, such as consuming increasing amounts of prepared foods.
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Riaz Haq
Is Pakistan poultry industry (2nd largest after textiles) part of its informal economy?
Yes, a significant portion of Pakistan's poultry industry operates within the informal (or unorganized) economy, though it also contains a modern, organized corporate segment. [1, 2]
Key Characteristics of the Sector
Unorganized Marketing Channels: The majority of broiler and egg marketing channels operate in the unorganized or informal sector, accounting for a large share of daily sales. [1, 2]
Slaughter and Processing: Only 5% to 6% of poultry slaughterhouses, processing, and value-addition activities take place within the organized sector. Most live birds are sold through local wet markets and uncertified neighborhood shops. [1]
Tax and Regulatory Reach: Much of the informal poultry network operates outside the formal tax net and strict regulatory frameworks, which contributes to local price volatility and supply shocks. [1]
Micro and Household Scale: A substantial amount of small-scale animal farming and poultry rearing occurs at the household level, representing a core part of informal rural livelihoods and home-based economic activities. [1]
The Organized Side: Alongside the informal market, Pakistan has a multi-billion-rupee commercial foundation with large, vertically integrated corporations (such as K&N’s, Sabroso, Big Bird, and Sufi Foods) that manage modern feed mills, hatcheries, and controlled-environment farms. [1, 2]
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Pakistan's poultry industry is the country's second-largest industry after textiles, functioning as a vital source of affordable animal protein and employment.
Key Statistics & Production
• Global Rank: Pakistan is the 11th-largest poultry producer in the world.
• Output: Produces approximately 2.5 billion kg of poultry meat and over 26–28 billion eggs annually.
• Employment: Supports and employs around 1.5 million families nationwide.
• GDP Contribution: Contributes roughly 1.3% to 1.5% to the national GDP and a major share of agricultural value-added.
• Meat Share: Poultry makes up over 40% of Pakistan's total meat production.
Structure & Operations
• Integration: Dominated by commercial feed mills, hatcheries, breeding farms, and broiler/layer operations with strong vertical integration.
• Housing: The vast majority of commercial broiler farming (97–98%) uses modern, environmentally controlled housing rather than open-sided sheds.
• Growth Rate: The sector has expanded at an average annual growth rate of roughly 8.1% over the past decade.
Core Challenges
• High Feed & Input Costs: Volatility in global grain and feed ingredient prices directly spikes local production costs.
• Disease Management: Susceptibility to outbreaks like Avian Influenza (H5N1, H7N3, H9N2), Gumboro, and Hydropericardium Syndrome (HPS).
• Export Deficit: Despite massive domestic output, poultry exports remain low (estimated between $4 million and $24 million), constrained by cold-chain logistics, sanitary standards, and international compliance gaps.
• Price Fluctuations: Retail chicken and egg prices experience sharp seasonal and feed-driven swings.
yesterday
Riaz Haq
Street food in Pakistan is experiencing rapid economic growth, formalization, and urban expansion, driven by urbanization and a massive informal food sector. Food and Agriculture Organization +1
Economic Scale & Impact
• Market Value: The Pakistani street food and informal food sector is valued at $5 to $6 billion, while the broader informal economy reaches roughly $450 billion. Frontiers +1
• Employment: Street vendors and informal food workers employ around 2.5 million people nationwide, with Karachi alone generating PKR 45 billion annually. ResearchGate
• Affordability: Snacks and meals range from $0.30 to $1.25 (80 to 350 PKR) for items like bun kebabs, samosas, and chaat, making them essential for urban middle- and lower-income households. Food and Agriculture Organization +1
Infrastructure & Formalization
• Dedicated Food Streets: Cities are actively investing in pedestrianized, organized food streets to boost night-time economies and tourism. Recent developments include a 39-shop food street project in Okara (costing PKR 800 million) and modernizations in Peshawar’s Chowk Yadgar, Sindhi Muslim in Karachi, and Lahore's Fort Road Food Street. Facebook·Tribune Trends +1
• Vendor Schemes: Local governments (such as in Punjab) have begun introducing standardized model handcarts and licensing initiatives to provide street vendors with legal recognition, clean infrastructure, and protection from harassment. YouTube·DawnNews English
Popular Items & Modern Trends
• Staple Favorites: BBQ items account for roughly 25% of street food consumption, followed by biryani and pulao (18%), and burgers or bun kebabs (15%). Classic snacks include gol gappay, pakoras, samosas, and jalebi. Google Arts & Culture +2
• Fusion Innovations: Urban centers and digital creators are popularizing modern fusion twists—such as chaat tacos, pizza burgers, and matka biryani—alongside traditional probiotic and fermented options like lassi, achar, and kanji.
yesterday
Riaz Haq
yesterday