KARACHI: Policymakers and industry leaders have stressed that Pakistan holds vast untapped potential in the global Halal economy, urging the country to align itself with the rapidly expanding trillion-dollar industry.
They were speaking at the Halal Reception held under the theme “Scaling Up Pakistan’s Economy Through Halal,” hosted by Al Baraka Bank (Pakistan) Limited and the Islamic Chamber of Commerce & Development (ICCD) at local hotel here on Wednesday.
Deputy Governor State Bank of Pakistan Saleem Ullah said the Halal industry is growing exponentially across the world.
“It is not only gaining traction among Muslims, but also attracting the attention of non-Muslim populations. This presents countries like ours with a huge opportunity,” he noted.
Citing figures, he said that in fiscal year 2025, Muslims around the world are expected to spend about USD 2.4 trillion on Halal trade and commerce, including food, fashion, travel, pharmaceuticals, and cosmetics. By 2028, this figure is projected to reach USD 3.5 trillion or more.
“I am optimistic that Pakistan will play its due role in the Halal industry, whether in food, fashion, cosmetics, pharmaceuticals, travel, or beverages,” he said. He added that Halal means compliance with Shariah principles, but it should also stand for quality, value for money, and consumer confidence.
“Halal should deliver both spiritual satisfaction and practical utility,” he stressed.
The deputy governor drew a parallel with Islamic finance, saying compliance with Shariah is necessary but not sufficient. Products and services must also be fair, equitable, and just.
“Meeting only the minimum requirements without ensuring justice and fairness does not fulfill the true spirit of Islamic finance. The real distinction between conventional and Islamic finance lies in equity and justice,” he said.
ICCD General Secretary Yousuf Khalawi said the scope of the Halal industry is vast. He recalled being invited by the Vice President of Brazil, the largest exporter of Halal products in the world. Brazil exports USD 24 billion annually in meat alone to Arab countries, not including cosmetics, pharmaceuticals, and other industries.
“Interestingly, the Vice President said they still wanted help to further develop their Halal industry. If the largest exporter in the world sees more potential, this speaks volumes about the opportunities ahead,” he said.
Khalawi also pointed to Halal tourism, noting that some non-Muslim countries are working to increase Muslim visitors despite already being top destinations. He cited an official who said his government was willing to support hotels in capacity-building programmes because the industry brings in billions in foreign exchange.
“In Pakistan, food and beverages are Halal by nature. Yet in non-Muslim countries, they must set up separate production lines for Halal products, which leaves room for error,” he added.
He emphasised that countries like Pakistan, Egypt, Turkey, or Saudi Arabia already have Halal production as the default.
Al Baraka Bank CEO Muhammad Atif Hanif highlighted four main sectors of the Halal economy.
“Number one is Halal protein, which includes all kinds of meat. The Halal protein consumption these days is USD 1 trillion a year, minimum. The largest exporter is Brazil with USD 10 billion a year, followed by Australia, Indonesia, and India with USD 4 billion each. Pakistan exports about half a billion dollars,” he said.
The second sector is Halal pharmaceuticals and cosmetics, with international trade worth USD 250 billion.
“Pakistan’s contribution is zero,” he noted. The third is Halal tourism. “If you Google Halal hotels and resorts, you will find a lot across the world. Even in Bangkok, most of the five-star hotels today are certified Halal. In Pakistan, everything is Halal, but there is not a single hotel or resort certified as Halal,” he added.
The fourth area is Halal fashion, described as a USD 400 billion industry. It includes classical Halal fashion such as abayas, prayer caps, and scarves, as well as modern Halal fashion, which allows women to be stylish while Shariah-compliant. He said Turkey is leading in this sector, while many Halal fashion products today are produced by China and Vietnam.
Muhammad Atif Hanif stressed that Halal fashion offers Pakistan a low-hanging fruit. “If we target just 5 percent of the industry in 5 to 10 years that is USD 20 billion. Pakistan’s entire textile export in 70 years of history and efforts is USD 20 billion today. So 5 percent of Halal fashion means doubling Pakistan’s textile sector in 5 years,” he said.
He recalled telling a State Bank presentation that Pakistan’s export goals of USD 50 billion and then USD 100 billion were small compared to the opportunities of the Halal economy.
“All Pakistan has to do is align its economy with the global Halal economy, and this is true,” he remarked.
Highlighting broader economic potential, he said Pakistan’s IT exports have grown to USD 4 billion annually, making the country the second largest supplier of IT workforce in the world. While Pakistan’s official GDP is USD 400 billion, he said it could easily be estimated at USD 1 trillion if undocumented activity is included. Overseas workers, he added, send USD 38 billion in home remittances annually, with actual flows estimated at USD 60 billion.
“With Halal, I think Pakistan cannot go wrong,” he said, stressing that the country needs to rebrand its exports and economy. He added that Pakistan’s rebranding had already been strengthened by recent developments. Referring to May 10, he said Pakistan had defeated a country six times larger despite much lower reserves and IT exports.
“We have defeated them mainly because of the help of Allah, our spirit, our commitment, our patriotism, and mainly because of technology,” he said.
“They were supposed to be the technology leaders in the world, but we have beaten them in technology. So it is established that Pakistan, like our friends in Air Force say, is second to none. That is how we should rebrand Pakistan, we should rebrand our exports, we should rebrand everything that we do,” he concluded.
Copyright Business Recorder, 2025
