Tuesday, January 6, 2026

Pakistan Household Survey HIES 2024-25 Raises More Questions Than It Answers

Recently released HIES 2024-25 household integrated economic survey by Pakistan Bureau of Statistics (PBS)  raises more questions than it answers. For example, it shows that Pakistani households are buying lower amounts of basic food ingredients like wheat, meat and eggs in the last four years, implying that people are eating less to cover other expenses, like electricity and gas. But it doesn't explain why the households have reported significantly lower purchases of these items than production reported recently by the PBS. What is the source of this discrepancy? Is the data flawed? Or, is it missing a new trend toward less home cooking? Is the young urbanized population buying more  prepared foods? Are they ordering out more often using ubiquitous food delivery services?  Let us try and understand it in more detail. 

21% Pakistanis Buy Tandoori Nan. Source: Gallup Pakistan


Data Discrepancy: 

There is a significant discrepancy in household data for per capita monthly consumption of basic food ingredients like wheat, meat and eggs. For example, the HIES 2024-25 reports 6.59 Kg of wheat consumption per capita per month, which translates into 79 Kg per person per year. The wheat production data from PBS shows 30 million tons or 120 Kg per capita in 2025.  We know that Pakistan did not export wheat last year. So what happened to the 41 Kg per capita difference? It is 30% of the total production reported, too large to be explained away as waste in the system. It was most probably bought by food businesses and eventually consumed by Pakistani households. There are similar discrepancies in meat, eggs and other food data, with reported household consumption being far below production. 

Household Food Items Purchase Data. Source: HIES 2024-25 

Prepared Foods:

A 2025 Gallup survey revealed that 21% of Pakistanis buy tandoori naan. Pakistan's prepared food market is experiencing robust growth, with the Convenience Food sector valued at $6.91 billion in 2025, projected to grow at 5% annually, driven by Ready-to-Eat (RTE) meals and frozen foods, especially RTE/RTC (Ready-to-Cook) products like frozen snacks. Key trends include rising demand for time-saving, convenient options due to urbanization, growing health consciousness (organic/natural), and dominance by flexible packaging, with online delivery also expanding rapidly.

Urbanization in Pakistan. Source: World Bank

Urbanization:

The World Bank researchers have recently concluded that 88% live in urban areas. Their conclusion is based on satellite imagery and the Degree of Urbanization (DoU) methodology. The official Pakistani figures released by the Pakistan Bureau of Statistics (PBS) put the current level of urbanization at 39%. The source of this massive discrepancy is the government's reliance on administrative boundaries rather than population density and settlement patterns, according to the World Bank working research paper titled  "When Does a Village Become a Town?". 

Ultra-Processed Foods:

Ultra-processed foods (UPFs) like biscuits, sugary drinks, chips, and packaged snacks, are a growing concern in Pakistan. Such foods are contributing to rising obesity, diabetes, and heart disease. Obesity causes non-communicable diseases (NCD) which are now among the leading causes of death in Pakistan.

To deal with the obeseity crisis, several Pakistani pharmaceutical companies have started domestic production of generic versions of GLP-1 (Glucagon-Like Peptide-1) drugs Ozempic/Wegovy (Semaglutide) and Mounjaro/Zeptide (Tirzepatide). 

Food Delivery Services:

Pakistan's food delivery market is experiencing rapid growth, projected to hit $2.35 billion in 2025, driven by high smartphone penetration, a young urban population, and increased convenience-seeking, with Foodpanda dominating but facing a growing trend of direct restaurant ordering and a demand for diverse, tech-enabled options despite past economic challenges.

Street Food Growth:

With rising urbanization, the street food sector in Pakistan is vibrant and growing. It is crucial for livelihoods and affordable food. Deeply embedded in culture, choices range from savory samosas and chaat to bun kebabs, pakoras, pani puri, and biryani, popular for convenience and taste.

Fast Food Boom:

Pakistan’s fast food industry is experiencing rapid growth, making it the 8th largest fast food market globally. With a large consumer base, the demand for fast food continues to grow, contributing to the economy in significantly. The industry’s annual growth rate stands at 20%, highlighting its rapid expansion and increasing consumer preference for quick-serve meals.

Summary:

The HIES 2024-25 report recently issued by Pakistan Bureau of Statistics implies that Pakistani households are eating less to save money to pay for rising energy bills. I think this is misleading for two reasons: 1. It does not explain why reported household consumption figures are significantly lower than per capita production of these food items and 2. It completely ignores the impact of rapid urbanization that is causing Pakistanis to change their eating habits, such as consuming increasing amounts of prepared foods. 

Related Links:

Haq's Musings

South Asia Investor Review

Pakistanis Happier Than Neighbors

Tipping Point: Pakistan Middle Class Grows to 55% of the Population

Karachi Safety Ranking Rising

Urbanization in Pakistan Highest in South Asia

Agriculture Sector in Pakistan

Karachi is World's Fastest Growing Megacity

Karachi's Human Development Index

Pakistan Rising or Failing: Reality vs Perception

Pakistan's Trillion Dollar Economy Among top 25

CPEC Myths and Facts

Gwadar Port

Riaz Haq's Youtube Channel

PakAlumni Social Network


4 comments:

Anonymous said...

Brofessor sb,

A part of the wheat production is also used up as seed and there is wastage as well, both because of mishandling and in conversion process- from wheat to flour, and from flour to bread. In addition, some wheat gets smuggled to Iran and Afghanistan. So the overall availability may be what the survey says.

Also, I am sure aware that Pakistan now ranks lower than IND on the Global Hunger Index especially after 2022 onwards.

Regards

Anonymous said...

This analysis makes sense. My own experience among DHA friends has been shift to premium grains like Oats, Quinoa, Pasta etc. And my mom’s shopping basket has seen dramatic reduction in wheat and eggs while fruits like Kiwi and blueberries are a staple. Reduction in milk is a surprise though. May be it’s being sold as milkshake on food panda?

Riaz Haq said...

Anon: "A part of the wheat production is also used up as seed and there is wastage as well, both because of mishandling and in conversion process- from wheat to flour, and from flour to bread. In addition, some wheat gets smuggled to Iran and Afghanistan. So the overall availability may be what the survey says"

The difference between 120 Kg wheat production per person and 79 Kg household consumption per capita is too large to be explained the way you suggest it. It's 33%. Other data from private sources like Gallup shows that prepared food consumption (as opposed to home cooking) is rising significantly among Pakistanis, particularly among the urban youth. Anecdotal evidence also supports it with vibrant and growing street food and fast food sectors. The urbanization trend is driving it.

Anonymous said...

Annon,

"Also, I am sure aware that Pakistan now ranks lower than IND on the Global Hunger Index especially after 2022 onwards.".

Thanks for the info.

Now, please enlighten the readers about happiness index, gini index, racism index, suicide rate and average IQ levels too.

Also, please let us know how many were lynched in India today (vs Pakistan).

G. Ali