Major business associations in Pakistan have voiced concerns over the Ministry of National Health Services’ proposal to enforce Front-of-Pack Warning Labels on packaged food items.
Industry leaders, including representatives from the Pakistan Poultry Association (PPA), Pakistan Dairy Association (PDA), Pakistan Business Council (PBC), and the Overseas Investors Chamber of Commerce and Industry (OICCI), argue that the policy could destabilize the formal food industry, potentially drive consumers to informal, unregulated markets, and lead to unfair tax burdens.
The PPA, in letters to the Ministry of Science and Technology, highlighted that existing food labels in Pakistan already meet international standards, such as those set by the USDA and Codex Alimentarius, providing clear nutritional information. They argued that the proposed warning labels could unnecessarily alarm consumers, pushing them away from safe, regulated packaged food towards less reliable, loose alternatives.
The PDA shared similar concerns, noting that over 90% of packaged dairy products in Pakistan comply with safety regulations. However, the group warned that such labels could inadvertently encourage consumers to turn to unregulated, potentially unsafe options.
The PBC, which represents leading local and multinational businesses, emphasized that the policy would disproportionately burden the formal sector, while the informal sector, which includes loose food items and outlets like hotels and restaurants, operates without similar scrutiny or regulation.
“Imposing harsh labels and taxes on the formal sector, while overlooking informal competitors, is unfair,” the PBC stated, urging the government to focus on formalizing the economy rather than further penalizing regulated businesses.
The controversy began following a meeting on April 29, 2025, convened by the Pakistan Standards and Quality Control Authority (PSQCA), which the business groups claim lacked meaningful consultation.
The OICCI, representing foreign investors, criticized the session as “authoritarian,” claiming that there was no opportunity for stakeholders to discuss the implications of the proposal. The groups also expressed surprise at the plan, which they said resembled “cigarette-style warnings” despite there being no international precedent for applying such labels to products like dairy, poultry, or biscuits.
The business community also expressed concerns that the warning labels could trigger significant tax hikes, including a proposed increase in federal excise duty (FED) from 20% to 50% by 2029.
Industry leaders argued that this would negatively impact the formal food sector, already burdened with 18% sales tax and 20% FED. Drawing comparisons to tobacco taxation, they pointed out that food products, unlike tobacco, provide essential nutrients and should not be subject to such steep taxes.
The OICCI further criticized the PSQCA for bypassing consultations with scientists, industry experts, and academic representatives. “This isn’t how policies should be made,” a representative said, noting that in other countries, multi-stakeholder discussions are essential for shaping such regulations.
The PDA and PPA have requested urgent meetings with the health services ministry on May 16 or 17 to propose alternatives to the warning label policy. They stress their commitment to public health while also aiming to support industry growth. The PBC has suggested a collaborative approach, urging the ministry to create a fair playing field and implement the policy gradually.
