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Nestlé Pakistan has officially upgraded its manufacturing operations to match global standards. The subsidiary of the Swiss giant, Nestlé SA, recently confirmed that its facilities in “Sheikhupura” and “Khanewal” are now fully automated. These plants are integrated with Nestlé’s worldwide systems, marking a significant leap in local manufacturing capabilities.
Tech-Driven Manufacturing & Sustainability
A delegation led by Nestlé Pakistan CEO Jason Avancena shared these updates with Federal Minister for Finance Muhammad Aurangzeb during a meeting on Monday. Avancena highlighted the company’s shift toward technology-driven manufacturing.
To reduce operational costs and greenhouse gas emissions, Nestlé is implementing several advanced solutions:
- Solar and biomass energy systems.
- Digital dashboards for real-time monitoring.
- Supply-chain automation.
- Environmentally improved packaging.
These upgrades position Pakistan’s operations on par with the company’s leading global plants. Furthermore, they strengthen the company’s long-term competitiveness in the region.
Nestlé’s localisation efforts have built significant economic resilience. The company revealed that it has reduced its import volumes by nearly half over the past three years. Imports dropped from approximately $150 million to around $76–80 million.
This strategy minimises exposure to foreign-exchange pressures. Simultaneously, it deepens integration with Pakistan’s local agricultural and manufacturing base. The Finance Minister commended these efforts, noting that they support the formal economy.
Nestlé: Strategic Plans for Davos
Looking ahead, Nestlé plans to announce its expanded investments on a global stage. The company is targeting the upcoming World Economic Forum (WEF) Annual Meeting in “Davos” for this showcase.
The investments will focus on sustainability, agricultural transformation, and production capabilities in infant and dairy nutrition. Additionally, Nestlé’s Executive Vice President for Zone Asia, Oceania, and Africa, Remy Ejel, intends to attend the event. He looks forward to a meeting with Prime Minister Shehbaz Sharif at “Davos”. Finance Minister Aurangzeb assured the delegation that the government would facilitate this meeting.
Focus on Tax & The Formal Sector
During the meeting, the Finance Minister reiterated the government’s resolve to clamp down on the informal sector. He cited the tobacco industry as a model of success, where improved enforcement increased formal-sector volumes. He suggested replicating this in other sectors, such as packaged juices, where informal players often operate outside the tax net.
Nestlé expressed readiness to work with the newly established Tax Policy Office. This collaboration aims to improve tax recovery and rationalise sector-specific anomalies. Moreover, the delegation discussed export challenges, particularly regarding the Afghanistan corridor. In response, the Minister advised exploring logistics partnerships to expand access to Central Asian markets.
