Pakistan imported a record 3.482 million tonnes of palm oil in FY26. The shipments cost $3.785 billion and added pressure to the country’s food import bill.
In FY25, Pakistan imported 3.214 million tonnes worth $3.4 billion, according to Pakistan Bureau of Statistics data. The volume rose by 8.36 percent, while the dollar cost increased by 11.54 percent during FY26.
The published figures put the average import price at $1,078 per tonne, compared with $1,056 in FY25.
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Pakistan Vanaspati Manufacturers Association Chairman Sheikh Umer Rehan linked the increase to population growth and rising demand for ghee and cooking oil. He also cited reduced availability of domestic oilseed crops, including cottonseed.
Rehan said edible oil consumption had increased from four million tonnes five years ago to 4.8 million tonnes.
“Despite this growth, no edible oil policy has been made since independence,” he complained.
The Pakistan Economic Survey 2025-26 estimates domestic edible oil production at only 0.55 million tonnes. Local output meets around 10 percent of national requirements. This leaves Pakistan heavily dependent on imported edible oil and oilseeds.
Tax Shift Raises Industry Concerns
Rehan said the Federal Board of Revenue was pressuring manufacturers to pay general sales tax on retail prices. Previously, manufacturers paid GST on the ex-mill price.
“Instead of creating a business-friendly environment and reducing the cost of doing business, the FBR is creating complications for taxpayers,” he said.
The FY27 budget expanded the Third Schedule of the Sales Tax Act. It added vegetable and animal fats and oils sold in retail packing.
The measure places ghee and cooking oil under a Maximum Retail Price-based sales tax mechanism. The industry previously paid the tax on the ex-mill price.
Rehan warned that the mechanism would increase the industry’s tax burden and raise consumer prices. He said ghee and cooking oil could become Rs10 to Rs15 more expensive per kilogram.
The PVMA had earlier urged the government to reduce taxes on the edible oil and ghee sector. It argued that tax relief would ease pressure on consumers already struggling with elevated food costs.
Consumers Already Paying More
Sensitive Price Index data show that five litres of cooking oil now cost between Rs2,975 and Rs3,110 nationally. A year earlier, the same pack sold for Rs2,800 to Rs3,000.
The average price of a 2.5kg ghee pack has increased to between Rs1,500 and Rs1,565. It previously ranged from Rs1,425 to Rs1,485.
Meanwhile, one kilogram of ghee now costs Rs590 to Rs610, compared with Rs550 to Rs580 last year.
The record palm oil bill came as Pakistan’s total merchandise imports reached $69.761 billion in FY26, an increase of 8.14 percent. PBS listed palm oil among the leading imports in June, when shipments were valued at Rs67.155 billion.
