Pakistan has resumed the export of alcoholic beverages nearly 50 years after imposing restrictions on alcohol sales and exports, amid continuing economic pressures and rising foreign debt obligations.
According to reports, Pakistan’s only local alcohol producer, Murree Brewery, began exporting beer and other alcoholic products in April 2026 to countries including the United Kingdom, Japan, Portugal, and Thailand. The move is being viewed as part of the government’s broader effort to increase exports and strengthen foreign exchange reserves during an ongoing economic crisis.
Murree Brewery Export Manager Ramiz Shah said the company is initially focusing on strengthening its distribution network in overseas markets and plans to gradually increase production capacity. The company had previously limited its exports to non-alcoholic products such as juices, mineral water, and flavored beverages.
The company reported total revenue of approximately $100 million, or nearly 28 billion Pakistani rupees, during the previous financial year despite economic pressures.
Exports in the initial phase are being directed to countries that are not members of the Organization of Islamic Cooperation. These include the United Kingdom, Japan, Portugal, and Thailand. The company aims to gradually expand its presence in international markets and increase foreign currency earnings.
Reports stated that the Pakistan government approved alcohol exports in 2025, allowing Murree Brewery to re-enter foreign markets after decades of restrictions on such exports.
The policy change comes as Pakistan faces significant economic challenges and seeks additional sources of export income and foreign investment.
According to government figures, Pakistan’s total foreign debt stands at approximately $138 billion, including nearly $92 billion in government debt. Annual national income is reported at around $40 billion, while annual expenditure is estimated at approximately $58 billion. Estimates indicate that nearly $30 billion is spent annually on debt interest payments.
Alcohol restrictions in Pakistan began in 1977 when former Prime Minister Zulfikar Ali Bhutto banned alcohol sales in the country during a period of political unrest and protests.
Later that year, military ruler Muhammad Zia-ul-Haq assumed power and further tightened the policy by declaring alcohol fully prohibited under Islamic law, making both its sale and consumption illegal for Muslims. Limited licensing arrangements, however, continued for non-Muslim citizens and foreign nationals.
Between 1999 and 2008, during the rule of Pervez Musharraf, enforcement of the law reportedly became less strict, although the formal ban remained in place.
During that period, illegal alcohol trade and smuggling reportedly increased, resulting in revenue losses for the government and other social concerns.
Analysts cited in reports said Pakistan’s decision to resume alcohol exports is primarily driven by economic pressures, including declining foreign exchange reserves, increasing debt, fiscal deficits, and widening gaps between government income and expenditure.
The decision has also renewed social and religious debate in Pakistan. Religious organizations have argued that weakening restrictions on alcohol conflicts with Islamic values.
Some economists and analysts, however, have stated that illegal alcohol markets continued to operate despite the restrictions, and that the ban neither eliminated consumption nor resolved related social problems.
Reports also indicated that illegal alcohol production and narcotics trafficking expanded despite strict prohibitions, with incidents of deaths caused by toxic liquor reported on multiple occasions. Some studies further suggested that patterns of substance abuse changed after the 1970s, with increasing use of drugs such as heroin reported over time.
