Tariq Aziz Kolachi
Pakistan imports 85% of its total domestic demand of edible oil and spends Billions of Dollars annually on import in spite of the fact that it has not only the potential of catering domestic needs but also the capability of exporting it to the global market and increase its foreign exchange reserves. In the last Fiscal Year 2024-25, the imports of edible oil costed Pakistan a huge amount of $3.74 billions that's the largest burden on its Foreign Exchange Reserves, second to petroleum imports only. In the first half of the current FY 2025-26 the trend has been increasing consistently. Thus widening the gap between domestic production and rising population demand. Following is a table based on the data from the Pakistan Bureau of Statistics showing the total imports of edible oil during the FY 2024-25 :
| Category | Import Value (USD) | Quantity (Metric Tonnes) |
| Palm Oil | $3.4 Billion | 3.21 Million |
| Soybean Oil | $344 Million | 321,107 |
| Total Bill | $3.74 Billion | 3.53 Million |
Unfortunately, the production, processing and exporting facilities for oil seeds and related value added services are very limited. Only few areas of the country produce oil seeds and translate those into edible oil. In the first seven months of the current FY 2025-26, from July-January, following imports gave a major dent to the Foreign Exchange Reserves of the country:
| Category | Import Value (USD) |
| Palm Oil | $2.35 Billions |
| Soybean Oil | $94.99 Millions |
| Total Bill | $3.74 Billion |
It's not only the responsibility of the federal government to promote the trend of common oil seeds like mustard, sesame, cottonseed, rapeseed, sunflower, castor, soya beans, olive oil, peanuts etc but also the provincial governments are supposed to launch campaigns in areas where the weather conditions support the production of oil seeds. Following table shows the Province-wise production of oil seeds in Pakistan:
| Province | Major Crops Produced | Approx. Share of Production | Key Characteristics |
| Punjab | Cottonseed, Rapeseed, Sunflower, Sesame | 75% | The Punjab leads in almost all oilseed categories. There is visible shift from wheat to rapeseed. |
| Sindh | Cottonseed, Mustard, Sunflower | 20% | Major contributor of cottonseed and early-season sunflower. High yields in lower Sindh. |
| KPK | Mustard, Canola, Groundnut | 3% | Production is mostly for local/traditional use (mustard oil). Recent push for olive oil in certain districts. |
| Balochistan | Mustard, Rapeseed | 2% | Limited by water availability; production is mostly concentrated in Nasirabad and Jaffarabad divisions. |
The consumption trend of edible oil is ever-increasing, consequently, the imports will continuously be increasing in the years to come. Pakistan's total annual edible oil consumption is approximately 4.5 to 5.0 million metric tonnes (MMT). Pakistan has one of the highest per capita consumption rates in the world, at approximately 22 kg to 24 kg per person annually. For comparison, the global average is around 18 kg. Although, there is no authentic and audited data of consumption available, however, the estimated Province-wise data based on certain surveys, economists and industry bodies like Pakistan Vanaspati Manufacturers Association (PVMA) are shown in the following table:
| Province | Estimated Annual Consumption | % of National Total | Key Consumption Driver |
| Punjab | 2.4 – 2.6 Million Tonnes | 53% | Largest population; home to the majority of the country's 150+ ghee and oil mills. |
| Sindh | 1.1 – 1.2 Million Tonnes | 24% | Highly urbanized (Karachi/Hyderabad/ Sukkur); high demand for branded oils and industrial food use. |
| KPK | 0.6 – 0.7 Million Tonnes | 14% | Traditional preference for mustard oil in rural areas, though palm-based ghee dominates. |
| Balochistan | 0.2 – 0.3 Million Tonnes | 5% | Lower population density; consumption is concentrated in urban hubs like Quetta and Gwadar. |
| Other (ICT/AJK/GB) | 0.2 Million Tonnes | 4% | Steady urban growth in Islamabad and surrounding regions. |
Experts suggest that with the right infrastructure, Pakistan could transition from an importer to a self-sufficient producer. The consistent government policies and involvement of both federal and provincial governments are imperative for sustainable growth of production of oil seeds. The following table suggests the areas with the potential of specific oil seeds in different regions across the country:
| Oilseed Crop | High-Potential Areas | Climate/Soil Suitability |
| Canola & Rapeseed | Potohar Plateau (Rawalpindi, Chakwal, Jhelum), Central Punjab (Faisalabad, Sargodha). | Thrives in cool winters; can replace wheat in areas with lower water availability. |
| Sunflower | Coastal Sindh (Badin, Thatta), Southern Punjab (Multan, Bahawalpur, Lodhran). | Requires moderate water; ideal for the "Zaid Rabi" season (spring) in rice and cotton belts. |
| Olive Oil | Potohar Region, Khyber Pakhtunkhwa (Swat, Dir, Nowshera), Balochistan (Loralai, Quetta, Zhob). | Known as the "Olive Valley"; millions of wild olives already exist here, awaiting grafting. |
| Oil Palm | Coastal Belt of Sindh & Balochistan (Thatta, Sujawal, Gwadar, Lasbela). | Tropical climate with high humidity; proximity to the sea is essential for palm growth. |
| Soybean | Northern Punjab and KPK (Hazara division). | Requires specific temperatures and humidity; currently being piloted in Faisalabad research centers. |
| Sesame | Thal Desert (Bhakkar, Layyah) and South Punjab. | Highly drought-tolerant; thrives in sandy loam soils with minimal water. |
This is also the responsibility of the representative organisations of farmers to create awareness among the peasants and farmers and encourage them to plant as much oil seeds as they can.
