By Azeem Ahmed Khan

Pakistan's edible oil and oilseed import bill continued its upward trajectory during the first 11 months (July–May) of FY2025–26, rising by 11.1% year-on-year to US$5.522 billion, compared with US$4.971 billion in the corresponding period of FY2024–25, according to the official data available with Wealth Pakistan.

The import bill had already recorded a significant increase in the previous year, climbing from US$4.190 billion in FY2023–24 to US$4.971 billion in FY2024–25, reflecting an annual growth of 18.6%.

Rising domestic demand is expected to push the country's edible oil and oilseed import bill to US$6 billion by the end of the fiscal year 2025-26.

Palm oil continued to dominate Pakistan's edible oil imports. Palm oil imports stood at 3.279 million tons during July-May 2025-26, compared with 3.213 million tons a year earlier and 2.997 million tons in 2023-24.

Soybean oil imports, however, declined to 0.098 million tons from 0.321 million tons last year, while imports under other edible oils edged down to 0.090 million tons from 0.093 million tons in 2024-25. Overall, edible oil imports during the period amounted to 3.457 million tons.

At the same time, the country increased oil extraction from imported oilseeds, reflecting higher crushing activity. Total edible oil extracted from imported oilseeds reached 0.848 million tons during the fiscal year 2025-26, compared with 0.542 million tons in 2024-25 and 0.597 million tons in 2023-24. This was achieved by crushing an estimated 3.693 million tons of imported oilseeds, up from 2.163 million tons last year.

Soybean contributed the largest share to the increase, with oil extraction rising to 0.528 million tons from 0.274 million tons a year earlier. Canola oil extraction also increased to 0.306 million tons from 0.256 million tons, while sunflower and other oilseeds produced 0.014 million tons of oil.

Direct edible oil imports of 3.457 million tons, together with 0.848 million tons of oil extracted from imported oilseeds, lifted the country's total imported edible oil availability to 4.305 million tons during July-May 2025-26. Local production is estimated at 0.550 million tons, taking the country's total edible oil availability to 4.855 million tons during the period.

The report notes that unchecked imports are suppressing demand for locally produced oilseeds and exerting pressure on foreign exchange reserves.

The oil sector holds immense importance in the country's economy, as the nation spends a sizable amount of foreign exchange on edible oil and oilseed imports to meet the demand of ghee/cooking oils and meal for human consumption and the poultry industry, respectively.

Credit: INP-WealthPk