Pakistan’s Palm Oil Imports Reach Record $3.8 Billion in FY2025-26
KARACHI: Pakistan imported a record volume of palm oil during the fiscal year 2025-26 (FY26), reflecting growing domestic demand for edible oil and ghee.
According to data released by the Pakistan Bureau of Statistics (PBS), the country imported 3.482 million tonnes of palm oil worth $3.785 billion during FY26. In comparison, imports in FY25 stood at 3.214 million tonnes, valued at $3.4 billion.
Import Volume and Prices Increase
The PBS data shows that the average import price of palm oil reached approximately $1,078 per tonne in FY26, compared with $1,056 per tonne in the previous fiscal year.
The increase reflects both higher import volumes and a modest rise in average import prices.
Industry Cites Rising Demand
Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan said growing consumption of cooking oil and ghee has contributed to the increase in imports.
He noted that edible oil consumption in Pakistan has risen from around 4 million tonnes to approximately 4.8 million tonnes over the past five years. He also pointed to lower domestic production of oilseed crops, including cottonseed, as a factor increasing reliance on imported palm oil.
Industry Raises Tax Concerns
The PVMA has expressed concerns over changes to the sales tax mechanism introduced in the FY27 federal budget.
According to the association, the revised tax collection method for ghee and cooking oil could increase costs for manufacturers and may affect retail prices.
Industry representatives have called for measures to support the edible oil sector and reduce the overall cost of doing business.
Cooking Oil Prices Show Moderate Increase
Recent data from the Sensitive Price Index (SPI) indicates that cooking oil and ghee prices have recorded a gradual increase over the past year.
Market prices vary by brand and location, but consumers have generally seen modest increases in the cost of commonly used edible oil products.
Growing Importance of Edible Oil Imports
Pakistan continues to rely heavily on imported palm oil to meet domestic demand for cooking oil and ghee.
Industry experts say future trends in global palm oil prices, exchange rates, domestic demand, and government policy will remain key factors influencing import costs and retail prices in the country.
