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With decades-long restrictions lifted, a Pakistani brewery has started exporting beer

RAWALPINDI, Pakistan – For the first time in nearly half a century, Pakistan's most iconic and enduring brewery is shipping its beer to international markets, marking a significant policy shift driven by economic necessity. Murree Brewery, a company that has navigated the complex landscape of alcohol prohibition in an Islamic republic for decades, has officially resumed exports, sending its first shipments to the United Kingdom, Portugal, and Japan.

This move ends a 47-year ban on alcohol exports, opening a crucial new chapter for the 19th-century institution. The decision underscores a pragmatic turn by the Pakistani government, which stands to gain much-needed revenue from overseas sales as the country grapples with economic challenges. For Murree, it represents a long-sought opportunity to expand beyond its severely restricted domestic market.

A Legacy Navigating Paradox

Murree Brewery's existence is a study in contrasts. Founded by the British during their colonial rule, it has operated continuously since the 1860s, becoming a household name and, as described by historian Ali Akbar Khan, "a landmark" in Pakistan.

The company's modern history has been defined by its ability to survive and adapt within a legal and social paradox.

• The Prohibition Era: In 1977, then-Prime Minister Zulfikar Ali Bhutto imposed a nationwide prohibition on alcohol for the country's Muslim majority. The ban was later tightened under military dictator Gen. Muhammad Zia-ul-Haq, who introduced harsh punishments, including lashings, for alcohol consumption.

• A Niche Existence: The prohibition laws included exceptions for sales to non-Muslims and foreigners. This carve-out allowed Murree Brewery to continue operating, but strictly for a limited domestic audience. The 1977 ban, however, explicitly forbade the export of alcoholic products. The rationale, according to CEO Isphanyar Bhandara, was that "an Islamic country should not be seen as exporting a vice."

• Parsi Ownership: The brewery was acquired in 1947, the year of Pakistan's creation, by the Bhandara family. As members of the country's tiny Parsi minority—descendants of Persian Zoroastrians—the family's non-Muslim status has been a significant factor in their ability to operate an alcohol business for three generations in an Islamic republic.

The Economic Rationale for Reform

The decades-long push to lift the export ban was a multi-generational effort led by the Bhandara family. Isphanyar Bhandara, who also serves as a member of parliament, continued the lobbying efforts initiated by his late father, Minocher Bhandara. The government's eventual reversal was not driven by a change in social ideology, but by stark economic realities.

"The government benefits if we export," Bhandara explains, pointing to the potential for significant tax revenue from international sales.

• Domestic Market Constraints: Pakistan's non-Muslim population, including Christians, Hindus, and Parsis, numbers only around 9 million people, or less than 4% of the total population of approximately 250 million. This small, permit-regulated customer base severely limits the domestic growth potential for any alcohol producer. While a large black market for alcohol exists, it operates outside the legal framework and provides no revenue for legitimate producers or the state.

• The Policy Shift: The breakthrough came with a 2022 change to Pakistan's export policy. The new regulations permit the export of alcohol to countries that are not members of the Organisation of Islamic Cooperation (OIC), a bloc of 57 nations. This cleared the path for Murree to seek the necessary government approvals, which were finally granted last year.

Executing the Global Push

Inside the company's sprawling industrial brick complex in Rawalpindi, where over 1 million cans of beer are produced monthly, the mood has shifted from cautious optimism to focused execution.

"Initially, we were not confident that all of the things will go smooth," admits Ramiz Shah, the company's export manager. However, the process has proven successful, paving the way for an ambitious global strategy.

• Initial Shipments: The brewery sent its first test shipment to the United Kingdom last spring. Following that successful trial, it has since completed orders to distributors in Portugal and Japan.

• Leveraging Existing Networks: Murree Brewery's expansion into non-alcoholic beverages—including juices, bottled water, and fruit-flavored malt drinks—provided a strategic advantage. The first international distributors for its beer in the U.K. and Japan were already importing the company's non-alcoholic products, creating established relationships and logistics channels.

• Future Markets: With the initial phase proving successful, Murree is now setting its sights on larger, more lucrative markets. The company is actively looking to expand its sales to the United States and Canada, where large South Asian diaspora populations represent a natural target audience.

The Bottom Line

The resumption of exports by Murree Brewery is more than a corporate milestone; it is a signal of economic pragmatism taking precedence in Pakistan's policy-making. By unlocking a new, high-potential revenue stream, the government aims to capture foreign exchange and tax revenue at a critical time.

For Murree Brewery, the move unlocks the door to global expansion, transforming it from a domestically-focused entity into a potential international player. The company's future now lies in a dual strategy: continuing to serve its niche, legally-defined market at home while aggressively pursuing growth and brand recognition abroad. The world will now get a taste of a brand that has, against all odds, endured for over 160 years.