Innovation, digital economy and challenges in Pakistani market

In a podcast with Kamran Khan, Aamer Rasool Paracha, Chairman and CEO of Unilever Pakistan, shared insights on the country’s economy, addressing challenges while fostering growth across diverse markets.

"When Unilever entered this region, concepts like packaged goods didn’t exist," Paracha said. "We introduced quality standards and educated consumers, from washing clothes with detergent powder to brewing tea with tea bags."

The company’s growth mirrors the region’s population boom—from 400 million in the subcontinent in 1947 to over 1.8 billion today. Unilever leveraged this demographic shift to solidify its market presence, acquiring brands like Brooke Bond, Bestfoods, and Knorr.

However, economic fluctuations and inflation have presented challenges. Paracha highlighted the cumulative 75% inflation over the past three years, describing its impact on the middle class as unprecedented. "Consumers are compromising by buying lower-standard products or smaller quantities," he said.

Unilever has adapted by localizing 99.9% of its production in Pakistan and increasing local raw material sourcing from 25% to 60%. Still, reliance on imported essentials like palm oil remains a hurdle. The pandemic further exposed vulnerabilities in global supply chains, spurring the company to prioritize local alternatives.

Paracha also addressed issues like intellectual property protection and taxation. "Counterfeit products account for 8%-10% of our sales," he noted, while lamenting the uneven playing field with undocumented operators.

Looking ahead, Paracha advocates for a digitized economy to foster efficiency and inclusivity. He praised initiatives like the State Bank’s RAAST system for facilitating digital payments but called for expanded internet infrastructure and policy reforms.

Despite challenges, he remains optimistic about Pakistan’s economic potential. "The private sector thrives on merit and performance," Paracha concluded. "With the right policies, we can sustain growth for decades to come."