Mushroom Farming Takes Root as a Growing Livelihood in Pakistan’s Northwest

Rising demand and heavy imports are pushing mushroom farming into Pakistan’s overlooked agri-economy.

Fri Jan 09 2026
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PESHAWAR, Pakistan: Young Zeeshan Khattak, an MPhil scholar in Soil and Environment Sciences at the University of Agriculture, Peshawar, had never imagined that dabbling in mushroom farming would turn him into a successful entrepreneur.

“Like many other students, I also dreamt of pursuing my career as an agriculturist by searching for jobs, but during my higher education, I learned about mushroom farming and its prospects for the economic uplift of growers,” Khattak shares.

Humble beginnings, big dreams

Launching the initiative at a small scale within two rooms of his home in 2021, Khattak now runs three medium-sized farms — in Peshawar, Charsadda and Abbottabad — catering to different local markets.

“Mushroom farming — the modern method of cultivating spore-bearing fruiting bodies of fungi — is sprouting as a promising source of livelihood while also introducing a highly nutritious food to local diets,” he explains.

He believes that the mushroom industry has the potential to become a multi-billion-rupee business. “If products are exported after value addition, they can generate substantial financial returns and create thousands of jobs.”

Expanding product range

Starting with oyster mushrooms — prized for their delicate and meaty texture — Zeeshan’s firm now offers a diverse range of products, including button mushrooms, milky mushrooms, mushroom pickles, cookies, and powdered supplements marketed for bodybuilders, the elderly, and patients with diabetes or hypertension.

Mushroom farming — the modern method of cultivating spore-bearing fruiting bodies of fungi — is sprouting as a promising source of livelihood while also introducing a highly nutritious food to local diets.”- Zeeshan Khattak, a mushroom entrepreneur

Registered with Pakistan Council of Scientific and Industrial Research (PCSIR) and Khyber Pakhtunkhwa Food Authority, the firm is developing mushroom supplement tablets tailored for individuals with diabetes and high blood pressure.

“Introducing mushrooms into organic pickles has been a game-changer, boosting both production and market demand,” Khattak tells WE News English.

He harvests 80 to 100 kilograms of mushrooms daily, supplying them to local markets at Rs400 per kilogram. Shopkeepers sell them for Rs600 per kilogram, while prices in Islamabad run even higher. Khattak saves around 30 to 40 per cent in distribution costs, giving him a competitive edge.

Exploring untapped markets

Zeeshan notes that awareness of mushroom’s nutritional benefits is still in its infancy — roughly 0.5 million people consume mushrooms in Pakistan’s 225 million population.

According to the statistics shared by UMDIS — a Ukrainian organisation providing market data and support to mushroom producers — Pakistan imported $1.54 million worth of mushrooms in 2022, with zero exports.

Mushroom sales grew by 11.5 per cent from 2003 to 2021, highlighting that domestic supply is barely scratching the surface, while the rest is fulfilled by imports from China, accounting for 99 per cent ($1.54 million) of the market.

Mushroom

New horizons across borders

Sher Muhammad — a pioneer in mushroom farming from Peshawar — suggests exploring Afghanistan’s market, which could open new vistas and bring economic benefits to both countries.

“Mushroom farming is a low-investment skill with minimal competition, perfect for unemployed youth seeking income-generating opportunities,” says Shah Khalid, a Charsadda-based farmer.

Khalid learned the trade from Sher Muhammad and now produces 10 to 15 kilograms of fungi daily, with demand steadily rising each year.

Mushrooms are nature’s gift — organic, nutritious, and loaded with health benefits. They boost immunity, support gut and brain health, and provide essential nutrients like B vitamins, potassium, and copper. Their antioxidant and anti-inflammatory properties are a bonus, with potential anticancer benefits.” – Dr Maimoona, a PhD scholar.

The growing production and demand for mushrooms is matched by increasing recognition of their health benefits, highlighting why the crop is gaining popularity among both farmers and consumers.

“Mushrooms are nature’s gift — organic, nutritious, and loaded with health benefits,” says Dr Maimoona, a PhD student at Quaid-i-Azam University, Islamabad. “They boost immunity, support gut and brain health, and provide essential nutrients like B vitamins, potassium, and copper. Their antioxidant and anti-inflammatory properties are a bonus, with potential anticancer benefits.”

Building local livelihoods

Recognising mushroom farming’s potential for poverty alleviation and women’s empowerment, several non-governmental organisations are training local communities in skill development.

In February 2025, National Integrated Development Association (NIDA-Pakistan) trained 20 individuals — four women and 16 men — in once militancy-plagued Bara tehsil of Khyber tribal district. Each participant received 100 bags of mushroom-growing substrate free of cost, and all have successfully started small-scale home farms, says Maryam Samad, Project Officer at NIDA.

Growing market demand

“In just three to four years, mushrooms have become a staple in our shop, and demand keeps climbing,” says Abdul Aziz, a vegetable shop owner in Firdous area of Peshawar. “The farm owner delivers fresh mushroom flushes daily, and the entire stock is sold out before evening.”

In just three to four years, mushrooms have become a staple in our shop, and demand keeps climbing. The farm owner delivers fresh mushroom flushes daily, and the entire stock is sold out before evening.” – Abdul Aziz, vegetable shop owner.

This growing appetite at the retail level is also reflected in the increasing number of small-scale growers entering the market.

“There is no official data on mushroom farmers, but hundreds are engaged in small-scale production,” notes Rashid Aman, Manager-KP, Small and Medium Enterprises Development Authority.

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