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Debt-Stricken Pakistan Resumes Alcohol Exports After Nearly Fifty Years to Boost Revenue

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Islamabad (Pakistan): Pakistan, currently grappling with a severe economic crisis, has resumed the export of alcohol after a hiatus of nearly half a century. Murree Brewery, the nation’s sole local producer, began shipping beer and other alcoholic beverages in April 2026 to international markets including the United Kingdom, Japan, Portugal, and Thailand. According to company officials, this initial phase focuses on establishing global distribution networks with plans to scale production in the near future. This significant policy shift comes as the federal government seeks unconventional revenue streams to manage a staggering external debt that has placed immense pressure on the national treasury.

The decision to permit these exports is rooted in Pakistan’s dire financial situation, where the country currently owes approximately $138 billion in external debt. For the 2026 fiscal year, the government faces a substantial gap between its projected income of $40 billion and an expenditure of $58 billion. A massive portion of this spending, nearly $30 billion, is dedicated strictly to interest payments on existing loans. By granting export licences in 2025, the administration has cleared a path for local manufacturers to supply countries that are not members of the Organization of Islamic Cooperation, aiming to tap into lucrative foreign markets that were previously off-limits.

Historically, the prohibition of alcohol sales to the Muslim population was initiated in April 1977 by then-Prime Minister Zulfikar Ali Bhutto amidst political unrest and pressure from conservative factions. These laws were further tightened and codified into Islamic law under the military rule of Zia-ul-Haq in 1979, making consumption a punishable offence for Muslims while allowing limited access for non-Muslims and foreigners through licensed vendors. While later leaders like Pervez Musharraf allowed for more relaxed enforcement, the ban on exports remained a firm fixture of Pakistani trade policy until the recent economic necessity forced a reconsideration of these long-standing restrictions.

Prior to the 1977 ban, Murree Brewery was an active exporter to countries such as India, Afghanistan, and the United States. In recent decades, the company survived by focusing on non-alcoholic products, including packaged juices, mineral water, and fruit-flavoured drinks, which generated roughly $100 million in revenue during the last fiscal year. The current return to alcoholic exports represents a full circle for the brewery, which was founded during the colonial era and has navigated various political climates for over a century. Historians and critics alike have noted that while the ban was intended to curb consumption, it often resulted in the growth of a black market and, in some cases, pushed individuals toward more dangerous substances.

As Pakistan navigates this complex intersection of religious law and economic survival, the resumption of alcohol exports serves as a pragmatic attempt to stabilize its precarious financial position. While religious organizations in the country continue to debate the morality of such trade, the government appears focused on the practical necessity of foreign exchange. By leveraging a local industry with deep historical roots—reaching back to the ancient brewing traditions of the Indus Valley Civilization—the administration hopes to carve out a new niche in the global market that can contribute to the long-term recovery of the Pakistani economy.

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