Pakistan's Murree Brewery Resumes Beer Exports After Nearly 50-Year Ban

Murree Brewery, Pakistan's oldest brewery, has recommenced exporting beer after a prohibition that lasted nearly five decades. Founded in the 19th century during British colonial rule and acquired by a Pakistani family in 1947, the company began shipping its products overseas following a significant shift in national export policy.

Navigating Domestic Prohibition

Alcohol consumption remains prohibited for Pakistan's Muslim majority, though exceptions are made for non-Muslims and foreigners. Murree Brewery has operated within this unique framework for decades, navigating a stringent prohibition imposed in 1977 by then-Prime Minister Zulfikar Ali Bhutto, which was later tightened under Gen. Muhammad Zia-ul-Haq.

While the brewery was permitted to maintain domestic operations, the 1977 ban specifically prevented it from exporting alcoholic products. According to Murree Brewery's CEO Isphanyar Bhandara, the export ban was primarily intended to prevent an Islamic country from being perceived as exporting a "vice."

"The export ban was intended to prevent an Islamic country from being seen as exporting a 'vice.'"

The Bhandara family, who belong to Pakistan's Parsi minority, has owned and managed the brewery for three generations. Both Isphanyar Bhandara and his father, Minocher Bhandara, consistently lobbied the government over many years for permission to resume exports.

A Pivotal Policy Shift

A crucial policy change occurred in 2022, which authorized alcohol exports to countries that are not members of the Organisation of Islamic Cooperation (OIC). Following a series of governmental approvals, Murree Brewery dispatched its first post-ban shipment to the United Kingdom in the spring, subsequently exporting to Portugal and Japan. The company now aims to broaden its international sales reach to markets including the United States and Canada.

Bhandara attributes the government's decision primarily to economic factors, highlighting the potential for Pakistan to generate much-needed revenue from these overseas transactions. The domestic market for alcohol is inherently limited, given that non-Muslims constitute less than 4% of Pakistan's approximately 250 million population.

Diversification and Future Outlook

Over the years, Murree Brewery has successfully diversified its product line, producing non-alcoholic beverages such as juices, bottled water, and fruit-flavored malt drinks, many of which are already exported. These established relationships with international distributors are expected to significantly facilitate future beer sales. Since 2020, the company has exported alcohol-free products to over a dozen countries.

Despite facing recent local competition from the Chinese-run Hui Coastal Brewery, which began operations in 2021, Murree Brewery reported its best year on record in 2025, exceeding $100 million in annual revenue. The CEO indicated that while he hopes for increased export demand, the company intends to remain cautious about expanding production capacity, acknowledging the unique context of operating in an Islamic country.