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. 

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. 

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.

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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Comment by Riaz Haq 21 hours ago

Nestle announces $60m additional investment in Pakistan, to expand operations in country

https://www.dawn.com/news/1968435

Nestle on Thursday announced that it would invest an additional $60 million in Pakistan and would also “undertake a robust expansion of its operations in the country”.

The development came as Finance Minister Muhammad Aurangzeb met Remy Ejel, the executive vice president and chief executive officer for Asia, Oceania, and Africa at Nestle, on the sidelines of the World Economic Forum (WEF) in Davos, according to a statement issued by the finance ministry.

https://x.com/kschehzad/status/2014290099211751513?s=20

The ministry said Aurangzeb chaired a high-level business roundtable on the sidelines of the WEF, bringing together chief executive officers and senior leaders of leading global corporations to discuss Pakistan’s reform trajectory, investment climate, and long-term growth potential.

“The roundtable formed part of the government of Pakistan’s ongoing engagement with multinational investors to promote policy predictability, economic formalisation, and sustainable, export-oriented growth,” it said.


“A major highlight of the discussion was the announcement by Ejel … of an additional investment of $60 million in Pakistan. Ejel stated that Nestle will undertake a robust expansion of its operations in the country, reaffirming its long-term commitment to Pakistan,” the statement said.

“He further announced that Nestle intends to use Pakistan as a regional manufacturing and export hub, exporting products to 26 countries from Pakistan. Expressing strong confidence in Pakistan’s economic outlook, Ejel foresaw robust growth in Nestle’s business in Pakistan in the coming years,” the statement said.

According to the finance ministry, the announcement builds on the company’s recent engagement with the minister in Islamabad, where the company had “outlined its strategy centered on localisation, advanced manufacturing, sustainability, and agricultural transformation”.

The statement further said that Ejal noted that Pakistan’s demographic profile, growing nutrition needs, and underpenetrated value-added food segments closely mirrored successful growth trajectories seen in Southeast Asia.

Meanwhile, Aurangzeb welcomed the announcement and described it as a “strong vote of confidence in Pakistan’s economic reforms and formalisation drive”.

“He reaffirmed the government’s commitment to strengthening the tax ecosystem, ensuring policy consistency, and facilitating responsible long-term investment through continued engagement with the private sector, including via the Tax Policy Office established within the Finance Division,” the statement said.

The minister also emphasised that Pakistan offered compelling opportunities in affordable nutrition, climate-resilient dairy, localised sourcing, and export-oriented manufacturing, and reiterated the government’s resolve to position Pakistan as a competitive base for regional production and global value chains.

Azerbaijan’s Socar signals investment in Pakistan’s oil and gas sector
A separate handout by the ministry said that following the high-level business roundtable chaired by Aurangzeb, the State Oil Company of the Republic of Azerbaijan (Socar) announced that it was set to finalise its investment in Pakistan’s oil and gas sector in February.

https://x.com/Financegovpk/status/2014294512278048786?s=20

The announcement was made by Socar’s president, Rovshan Najaf, during the roundtable, the statement said.

Socar viewed Pakistan as a natural long-term energy partner, pointing to the country’s market depth, rising energy demand, and reform momentum in the oil and gas sector, the statement quoted him as saying.

He added that Socar’s planned investment would build on its existing commercial footprint in Pakistan and expand cooperation across the energy value chain, it said.

He noted that the company was already in a commercial engagement in Pakistan through Socar Trading, providing Pakistan with flexible liquefied natural gas arrangements.

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