Pakistan meets only 10% of edible oil needs locally despite self-sufficiency push
Pakistan meets only 10% of edible oil demand through domestic production, with imports projected to cost $6 billion in FY2026. The government targets 27% short-term self-sufficiency through expanded oilseed cultivation, aiming to reduce import dependence, trade pressures and food security risks.
Pakistan’s domestic production is expected to meet around 10% of total edible oil requirements, leaving the country heavily dependent on imported edible oil and oilseeds despite ongoing efforts to boost local oilseed production, according to the Pakistan Economic Survey 2025-26.
The survey highlights edible oil as one of the country’s largest food import categories, placing considerable pressure on the national import bill and foreign exchange reserves.
According to the report, domestic production satisfies only a small portion of total edible oil demand, making Pakistan heavily dependent on imports.
The survey notes that total edible oil availability in the country stood at 4.17 million tonnes during July-March FY2026 and is projected at 5.36 million tonnes for the full year. Domestic production is expected to meet around 10% of total edible oil requirements, with the remainder met through imports of edible oil and oilseeds.
The country’s edible oil import bill remains substantial. Based on imports during July-March FY2026, the edible oil import bill is estimated at around $6.0 billion for the year.
According to the survey, reducing import dependence has become a strategic priority due to its impact on the trade balance and food security.
Pakistan’s population has reached approximately 252 million, increasing demand for food products, including cooking oil and related consumer goods.
The report notes that edible oil imports consume significant foreign exchange resources each year, making the sector an important focus of agricultural policy.
To address the challenge, the Pakistan Oilseed Department has submitted a “Comprehensive Plan for Enhancing Indigenous Production of Edible Oil for Import Substitution.”
The survey highlights efforts to increase domestic production of major oilseed crops, including cottonseed, rapeseed and mustard, sunflower and canola.
Expanding domestic oilseed production could help reduce import dependence while creating additional income opportunities for farmers.
According to the report, improving yields and expanding cultivation areas remain essential for achieving meaningful progress toward self-sufficiency.
The survey notes that Pakistan’s climate and agricultural conditions provide potential for increasing oilseed production in several regions of the country.
The plan sets an ambitious target of raising edible oil self-sufficiency to 27% in the short term, 40% in the medium term and 70% over the long term.
Officials believe that increasing local production would strengthen food security, reduce vulnerability to international price fluctuations and improve the country’s external balance.
The report points out that global edible oil markets often experience significant price volatility due to weather conditions, geopolitical developments and supply disruptions.
Heavy reliance on imports exposes Pakistan to these international market risks and can contribute to inflationary pressures when global prices rise.
According to the Ministry of Finance, promoting oilseed cultivation is part of a broader strategy to improve agricultural productivity, reduce import dependence and enhance value addition within the farm sector.
The survey emphasizes that achieving greater self-sufficiency will require sustained investment in agricultural research, quality seed development, farmer training and market support mechanisms.
With nearly 90% of edible oil requirements still met through imports, Pakistan faces a significant food security and trade challenge, while efforts continue to expand domestic oilseed production and reduce dependence on foreign supplies.
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Source : INP
