Rising demand and soaring prices of cooking oil raised Pakistan's edible oil import bill to $4.5 billion in fiscal year 2021-22, according to government sources. Pakistan is the world's third largest importer of palm oil after India and China. Total cooking oil imports add up to 3.7 million tons while the total annual edible oil consumption is about 5 million tons. Pakistan's palm oil imports are the second biggest commodity import after more than $20 billion in energy imports, accounting for a significant chunk of Pakistan's growing trade and current account deficits.
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| Sources of Palm Oil Imports in Pakistan. Source: Dawn |
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| Pakistan Palm Oil Consumption Growth. Source: NationMaster |
Pakistan's edible oil consumption has been rising over the years. It is now about 24 Kg per person which is among the highest in the world, according to analysts quoted by Dawn newspaper. Combined with rising prices, the total imports of palm oil could exceed $6 billion next year. It could further worsen the country's balance of payments problems. Is Pakistan doing anything to try to grow oil palms in the country? Researchers at the Institute of Business Administration (IBA) in Karachi have studied it and reported the following:
"Based on our research, visits and interviews it was determined that in Pakistan there are ample opportunities and favorable conditions for growing oil-palm trees. Report findings suggest that the coastal belt of Sindh has proven capability of growing oil-palm trees with a per acre yield comparable to that in major oil palm growing countries due to plenty of fertile land, irrigation water courses, supply of fertilizers, and skilled farmers available in this part of land".
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| Pakistan Food Imports. Source: TDAP |
Sindh Coastal Development Authority (CDA) has recently announced plans to plant 60,000 oil palm trees on an area of 1,000 acres in the current fiscal year. An earlier project in 2020 showed that the oil content of palm fruit from Sindh's plantation in Thatta is 2% higher than the world average.
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| Per Capita Wheat Consumption in Pakistan vs World. Source: Abdul Mottaleb et al |
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| Per Capita Edible Oil Consumption in Pakistan. Source: Pakistan Growth Story |
Southern Indian state of Telangana has launched a much more ambitious project to plant palm oil trees on 2 million acres of land in the next four years. To achieve this goal, the state has plans to build large dams and irrigation canals and import millions of germinated sprouts.
Riaz Haq
Olive oil production target set at 4,600 tons
https://tribune.com.pk/story/2517148/olive-oil-production-target-se...
LAHORE:
Pakistan Horticulture Development and Export Company (PHDEC) conducted a webinar on "Good Agricultural Practices of Olive for High Yield and Good Quality".
Pakistan, which has a large area of land suitable for growing olive trees, has been producing olive since 2010. Currently, it produces about 861 tons of table olive per year, all of which is consumed domestically.
Pakistan has set a target of producing 4,600 tons of olive oil by 2030 to substitute imports. The main areas fit for olive cultivation are Balochistan, Khyber-Pakhtunkhwa and Punjab, in addition to Azad Jammu and Kashmir and Gilgit-Baltistan.
Pakistan has 10 million acres of land suitable for olive cultivation, which is almost twice as much as that in Spain, the world's largest olive oil producer. The webinar was held to educate olive growers and key farm workers.
Deputy Project Director Centre of Excellence for Olive Research and Training, Barani Agricultural Research Institute Chakwal, Dr Muhammad Azhar Iqbal shared the current area and production of olive in Pakistan and the growth trend in the last 10 years.
He highlighted the nutritional value and antioxidants in olive fruit and the varieties being cultivated in Pakistan compared to global varieties.
Speaking about the domestic and global yield per acre, he briefed the audience that the soil of Potohar region in Punjab was best suited for the olive crop.
Iqbal cited the unavailability of olive saplings, agronomic practices, crop research, pre- and post-harvest issues and the lack of oil extraction facilities as major challenges. He explained the reasons of low production, impact of malpractices and lack of knowledge of the recommended production technology.
Iqbal emphasised that olive growers should adopt modern production techniques and the government should provide funds and facilities for oil extraction in different olive producing areas.
A large number of growers, processors, exporters, researchers and representatives of the academia participated in the webinar.
Jan 24, 2025
Riaz Haq
In fiscal year 2025, Pakistan imported a staggering 3.2 million tonnes of palm oil, worth a total of $3.4 billion, with Indonesia supplying the lion’s share. This makes palm oil one of the country’s most critical imports, integral not just to food production, but to the broader economy. Indonesia, the world’s largest producer, has become Pakistan’s primary partner in a trade that’s so essential that its disruption could leave Pakistan’s bustling food markets—and the manufacturing sector—reeling.
While it might seem like just another commodity, palm oil’s importance runs deeper than its role in frying up crispy snacks. It touches nearly every part of Pakistan’s consumer landscape. From the vanaspati ghee that graces every kitchen to the packaged snacks lining grocery store aisles, palm oil has woven itself into the very fabric of daily life. For a country that imports over 80% of its edible oils, the stability of the palm oil supply is crucial, especially in a region where food prices are volatile and household budgets are stretched thin.
https://ukragroconsult.com/en/news/can-pakistan-use-palm-oil-for-mo...
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Yes, Pakistan is moving towards producing its own domestic palm oil, with pilot projects in Sindh province showing encouraging results. This initiative aims to reduce the country's heavy reliance on imports, supported by international partnerships, particularly with Indonesia. While challenges remain, the country is exploring large-scale cultivation and developing a strategy to decrease its dependence on foreign oil sources, notes UkrAgroConsult.
Key developments:
Pilot projects: A successful pilot project in Sindh province has demonstrated the feasibility of local palm oil production. An extraction facility produced its first oil from a pilot plantation that started in 2016.
International collaboration: Pakistan is collaborating with Indonesia on palm oil production, a strategic partnership that includes technical and research cooperation.
Strategic goal: The government is developing a roadmap to eliminate or significantly reduce its reliance on imported vegetable oils, which currently meet about 70% of its needs.
Investment and job creation: Experts estimate that cultivating thousands of hectares could attract significant investment and create new jobs in refining, logistics, and training.
Economic and food security: The push for domestic production is driven by the need to enhance food security and build economic resilience against fluctuating global commodity markets.
Sustainability efforts: The projects align with a growing industry focus on sustainability and are being developed with considerations for environmental and social impacts.
Nov 13, 2025
Riaz Haq
China’s canola bet in Pakistan targets $4 billion oilseed import bill
https://profit.pakistantoday.com.pk/2026/02/16/chinas-canola-bet-in...
Cooking oil is the kind of purchase that feels too ordinary to carry national consequences. It is there in every kitchen, measured in litres and rupees, bought in tins that last a month or a week depending on household size, and argued over in the same way groceries always are: price first, then taste, then whatever people have started calling “healthy” this year.
Yet behind that routine sits a number that refuses to behave like a routine. Pakistan imports about 90% of its edible oil and spends roughly $4 billion a year on it. In a country where dollars are never a neutral input, that bill is not just a food story. It is an annual claim on foreign exchange that shows up in trade data, in policy improvisation, and eventually in the price of everyday meals.
The question is not whether Pakistan wants to be less dependent. It is whether it can be. And in the pitch being made by Chinese companies operating under the broader arc of China–Pakistan economic cooperation, the route to “self-reliance” is not a single breakthrough crop or a one-off subsidy. According to Zhou Xusheng, country director of Wuhan Qingfa Hesheng Agricultural Development Company, which is working in Pakistan on seed and agri-technology projects with local partners including Evyol Group, the answer is seeds, machines, and a supply chain that keeps more value inside the farm gate.
on Tuesday