What Happened: Coffee is quickly becoming the go-to drink for Pakistan’s youth, replacing traditional chai in homes, campuses, and workplaces. But despite rising demand, the coffee industry is held back by outdated policies and high import duties.
What you need to know: While tea is taxed at 13%, instant coffee faces up to 53% in duties—making it expensive for everyday consumers. This unfair treatment slows investment and growth. Instant coffee is not a luxury item; it’s part of daily life for many. By lowering duties on bulk instant coffee, the government can reduce prices, support businesses, and align with trade goals. Pakistan’s Pothohar region even has the right climate to grow coffee locally. With global coffee supply shrinking due to climate change, this is a chance for Pakistan to step in.
Also: Encouraging formal trade and local production will create jobs, boost tax revenue, and expand access. Coffee is more than a trend—it’s a growing industry. The youth is ready. Now policymakers need to act.