Major business groups in Pakistan have raised concerns over the Ministry of National Health Services' plan to enforce the condition of Front-of-Pack Warning Labels on packaged foods. These groups argue that the move - potentially linked to future taxes - could destabilise the formal food industry while giving an unfair advantage to the unregulated informal sector.
Among those voicing opposition to the condition are the Pakistan Poultry Association (PPA), Pakistan Dairy Association (PDA), Pakistan Business Council (PBC) and Overseas Investors Chamber of Commerce and Industry (OICCI). The controversy stems from a meeting held on April 29, 2025 by the Pakistan Standards and Quality Control Authority (PSQCA), which business lobbies say lacked meaningful consultation.
According to the OICCI, which represents foreign investors, the session was "authoritarian," with no opportunity for the stakeholders to discuss the proposal's objectives. Industry representatives were surprised over the plan, which they say mirrors the "cigarette-style warnings" without evidence of global precedence.
In letters written to the Ministry of Science and Technology, the PPA highlighted that the existing food labels in Pakistan already comply with the international standards like the USDA and Codex Alimentarius, providing full nutritional details. They contended that the proposed warnings, unseen globally on products like biscuits, dairy or poultry items, could scare away consumers from the safe, regulated packaged food.
The PDA echoed similar views, stressing that over 90% of packaged dairy products in Pakistan meet safety norms, but the labels may push consumers towards untested, loose and substandard alternatives. The PBC, which represents the top local and multinational firms, warned that the policy widens the gap between the formal and informal sectors. While packaged food, having a small share in Pakistan's market, faces strict taxes and regulations, loose products and Horeca (hotels, restaurants and cafes) outlets operate without scrutiny.
"Burdening the formal sector with harsh labels and taxes, while ignoring the informal players, is unfair," the PBC stated, urging the government to focus on formalising the economy.
Adding to concerns are reports that the warning label policy could trigger steep tax hikes, including an increase in federal excise duty (FED) from 20% to 50% by 2029. Industry leaders called it a recipe that will shut down the formal sector, noting that they already pay 18% sales tax and 20% FED. Comparisons were drawn to tobacco, a universally recognised harmful product taxed similarly for decades, unlike the nutrient-rich food like dairy.
The OICCI emphasised that global practices weren't considered, with the PSQCA allegedly bypassing consultations with scientists, academia, and industry experts. "This isn't how policies are made," a representative said and pointed to countries where multi-stakeholder dialogues shape such regulations.
"Our members are of the view that the April 29 meeting was not a consultative exercise and that the industry did not have the opportunity to deliberate the objective of this proposal and how this is pertinent in the context of Pakistan. We have been informed that a meeting of the technical committee has been called on May 13 (Tuesday). It is pertinent to mention that the industry has not been provided with adequate time to prepare meaningful input on the matters to be discussed," the OICCI stated in its letter.
The PDA and PPA have requested urgent meetings with the health services ministry on May 16 or 17 for presenting alternatives. At the same time, they stress their commitment to public health without undermining industry growth.
Meanwhile, the PBC proposed a collaborative roadmap, urging the ministry to ensure a level playing field and gradual implementation. "Force-fitting foreign models without adapting to Pakistan's context will backfire," they cautioned and advocated for solutions that balance consumer safety and economic sustainability.
The business lobbies unanimously seek a pause on the proposal, demanding inclusive talks to protect Pakistan's food security, formal industry and consumers. With the new budget announcement looming, the ball lies in the government's court to either choose confrontation or collaboration, the members of business lobbies warned.
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