اقتصاد النظم الزراعية والغذائية

FAO analysis highlights strategic policy reform to narrow Pakistan’s healthy diet gap

03.03.2026

At the National Results Dissemination Workshop on the Integrated Roadmap for Sustainable Food Systems Transformation that took place on 11 February 2026 in Pakistan, the Food and Agriculture Organization of the United Nations (FAO), provided new evidence on how Pakistan can strategically repurpose agricultural policies to improve access to healthy diets. The analysis was developed jointly by FAO’s Agrifood Economics and Policy Division (ESA) and the Food and Nutrition Division (ESN), in close collaboration with the FAO Pakistan Office and partners at Aga Khan University in Karachi.

Building on FAO’s broader analysis of structural imbalances in Pakistan’s food system, ESA Director, David Laborde delivered a presentation on how economic modelling can guide policy reform by identifying the most effective pathways to close nutrient availability gaps.

The analysis drew on a quantitative review of current food supply gaps and surpluses relative to the National Food-Based Dietary Guidelines (2018), as well as household consumption patterns across provinces and income groups, presented by ESN Director, Lynnette Neufeld.

ESN Director Lynnette Neufeld delivering a presentation on food supply gaps and surpluses

Presenting the food supply analysis, Neufeld emphasized that “supply may constrain consumption for several nutritious food groups, including vegetables, fruits and pulses, while other food groups such as cereals, sugar and oils are available in excess relative to what is needed for a healthy diet.”

She further noted that the findings raise concerns about inequities in access to several nutritious food groups by Province, economic strata, and in rural vs urban areas, while the consumption of energy-dense snack foods and sweets is high across the country, even among the poor and in rural areas.

Rather than simply recommending increased spending, the approach emphasized policy repurposing: improving how existing public resources, currently estimated at around USD 6.6 billion annually in agricultural support – are allocated to deliver access to healthy diets essential for nutrition outcomes.

Laborde stressed that in a context of fiscal constraints and multiple crises, “the issue is less to change the purpose of policies, but to ensure proper management of trade-offs and remove unintended consequences.”

ESA Director David Laborde presents at the workshop

Quantifying the impact of reform options

Using a global economic model covering 141 countries and 65 sectors Laborde evaluated four main policy scenarios for Pakistan:

  • Reducing food losses across sectors by 50 percent
  • Reducing fruit and vegetable losses by 50 percent
  • Increasing productivity in deficit sectors by 25 percent
  • Reallocating public support from wheat to fruits and vegetables

The results showed that reducing food loss is the most impactful and cost-effective intervention, with the largest improvements in food availability and an eight percent reduction in the cost of healthy diets.

Improving fruit and vegetable productivity would increase domestic availability by 12 percent and boost exports, while also reducing existing subsidy costs by 15 percent due to shifts in specialization.

In contrast, simple reallocation of subsidies from wheat to horticulture would have more limited effects, increasing fruit and vegetable availability by about five percent while reducing wheat availability and raising wheat imports

Markets matter

FAO’s analysis shows that Pakistan’s food markets are highly integrated nationally, especially along the Islamabad–Punjab–Khyber corridor. Integration varies by product, with strong price transmission for perishables and weaker links for some processed and storable goods.

As a result, policy reforms can have rapid, widespread price effects and must be carefully designed to avoid disruptions.

Strategic implications

This collaborative set of analyses highlights that transforming Pakistan’s food system is not about producing more food, but producing the right food, reducing losses and aligning incentives with nutrition goals.

Workshop discussions emphasized the need to move beyond foods high in dietary energy – the focus on food security policies – toward a nutrition-sensitive approach that enables access to healthy diets for all.

Key recommendations include prioritizing food loss reduction, combining subsidy reform with targeted productivity investments, strengthening policy coherence, and integrating demand-side measures to promote healthier consumption.

By linking fiscal reform, market dynamics and nutrition outcomes, FAO’s analysis offers a practical roadmap for advancing Pakistan’s food system transformation in line with the “Four Betters” – Better Production, Better Nutrition, Better Environment and Better Life.