Your morning cup is more than just aroma and taste — it’s about the market too! 

Whether you’re enjoying coffee at fancy coffee places in Lahore or brewing it at home in Karachi, you sip more than just coffee and flavor. A single sip is inclusive of several things: climate shifts, economy trends, demand fluctuations, etc.

It won’t be wrong to say that behind every steaming mug of coffee, there’s a complete backstage story. This story is the reason why the price of coffee in Pakistan has noticeably gone up.

The important question: what exactly affects the coffee prices in Pakistan? In this article, we break down these real factors that become the reason for the fluctuating prices. We will also discuss the tips through which you can save on your coffee budget. 

Factors Affecting Coffee Prices in Pakistan

Let’s dig deeper into why a simple coffee cup costs differently in Pakistan on every new visit to the cafe or the shop. 

1. Much of the coffee in Pakistan is outsourced from abroad. 

We know that Pakistan is not a country that supports coffee growth at a commercial scale. While the country does grow coffee in the cooler regions of Gilgit Baltistan and Swat, a major percentage of the beans is imported.

Pakistan imports the beans from major coffee-producing countries like Brazil, Vietnam, Colombia, and Ethiopia. If, due to climatic shifts or economic layoffs, the coffee bean yield and quality vary, the global coffee prices are directly influenced. So, if coffee beans get more expensive globally, we feel that locally. 

2. Weather and climate impact the harvests. 

Let’s just say that this point is an extension of the previous one. As humans, we cannot control the climate or the weather. So natural scenarios like droughts, floods, frost, pests (like coffee leaf rusts), etc., can successfully cause havoc on the coffee harvest.

No matter the type of coffee bean, under such circumstances, global coffee bean prices rise quickly. For instance, in the year when Brazil faced droughts and frost, the bean production was slashed. This pushed the coffee bean costs to new heights globally.

On the contrary, when the yield is high, the bean prices can also go down the scale. Hence, the coffee arriving in Pakistan will ultimately be sold at reasonable prices.

3. Trade rules and tariffs, customs fees, and taxes stir the wallet. 

Let’s not overlook the global reality: the trade rules and tariffs. Like all other things, foreign governments often add or reduce taxes and tariffs on coffee imports. This can either raise or reduce the global coffee price, and ultimately, the coffee prices in Pakistan.

For instance, recently, the U.S. imposed tariffs of up to 50% on Brazilian coffee — the largest coffee exporter. This affected the global prices, with pressure rippling throughout the global market, and eventually touching Pakistan’s coffee prices as well.

In Pakistan, imported coffee also faces import duties charges, customs fees, and sales taxes. Generally, a 20-30% markup is added to the product before they even hit the shelves. These combined costs push up the final price consumers pay. This makes imported coffee noticeably more expensive across the country. 

4. Prices swing due to speculators and future markets. 

To no surprise, coffee is also traded on the futures market. In this event, the traders bet on future supply, weather, or product demand. This can effectively result in wide price swings.

Recently, in futures market contracts, the prices of coffee have more than doubled, affecting its prices in every country of the world, and hence, Pakistan. Alternatively, it can so happen that in future markets, the final bets drop in value. The result? A drop in coffee prices around the world.

5. Supply chain dynamics affect the prices. 

Recently, supply chains have suffered damages due to chaotic global shipping. This has been occurring due to: 

• Container shortages 
• Longer routes (e.g. when avoiding conflict regions) 
• Rising fuel costs 
• Port delays 

These factors increase the cost of transporting coffee beans, affecting prices all the way to Pakistan. 

6. High demand is scaling up the coffee prices in Pakistan. 

It’s a common observation, as the demand grows, so do the prices.  

In a tea-first country like Pakistan, the coffee culture is still growing. With new local cafés opening every month and young professionals preferring cappuccino coffee over traditional ‘doodh patti,’ demand is rising faster than expected.

So, as the number of coffee-consuming people is increasing, the imports should naturally increase. Sadly, this is not the case in Pakistan! The coffee imports in the country are not changing in numbers, which is affecting the drink’s price countrywide. 

7. The exchange rates matter. 

Now comes something big: the USD to PKR exchange rates — something that affects far more than just electronics.

Pakistan buys coffee in U.S. dollars. As the currency weakens, the importers have to spend more rupees to buy the same amount of beans. The surge in cost is then passed down to the roaster and cafe owners, and eventually to the consumer. 

On the contrary, if the currency gains strength, the amount needed to be spent on coffee imports decreases. Eventually, the coffee prices in the country will decrease. 

8. Roasting, Packaging, and Branding add to the cost. 

True, in Pakistan, raw coffee beans are imported. But these become drinkable only after the beans undergo local processes: roasting, grinding, packaging, and branding. For these steps, equipment, electricity, and skilled labor are needed — all of which come at a certain cost in Pakistan.

Now, in a developing country like Pakistan, load shedding and increased fuel costs make it costlier to run roasting units. So, even if a local brand offers specialty blends or premium roasts, the prices are naturally higher.

9. Brand Premium and café pricing models also have a say.

Let’s face it: you don’t just pay for coffee; you pay for a complete package that’s inclusive of ambience, experience, and branding. A cup from a luxury best cafe in DHA Lahore will cost more than a cup from a roadside stall — even if the beans are sourced from the same supplier.

This markup then becomes a part of the business model. Rent, interior décor, staff training, and service all add to the coffee prices. So, consumers seeking a certain vibe, there is a certain high cost that they must pay.  

Smart Tips to Manage Your Coffee Budget in Pakistan 

If you’re a coffee lover feeling the budget pinch, here are some simple, practical tips: 

1. Brew at Home More Often: Buying whole beans and brewing at home can significantly reduce your cost per cup compared to café coffee. 
2. Buy in Bulk: Buying coffee in larger quantities from wholesale suppliers (especially online) can save money in the long run. 
3. Explore Local Roasters: Some local businesses offer excellent quality at more reasonable prices than imported big brands. For instance, CoffeeWagera is a local coffee brand selling excellent coffee. Supporting them saves money and boosts the local economy. 
4. Try Filter Coffee: It uses less coffee per serving compared to espresso-based drinks but still packs great flavor. 

The Last Sip

Coffee prices in Pakistan are like the foam on your cappuccino — they rise and fall depending on the underlying factors. From global trade to local roasting, many small things work together to affect what you pay for a small cup of coffee from a cafe.

Understanding the reasons helps you make better choices about how and where to spend your budget. So, the next time you wonder why your favorite cup of coffee suddenly costs more than before, remember that it’s a lot more than just a coffee cup.

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