In the bustling kitchens of Pakistani homes, from the hum of deep fryers to the sizzling sound of pakoras and samosas, a surprising foreign ingredient plays a starring role: Indonesian palm oil. But behind its ubiquity in daily life, there’s a much larger economic story unfolding. It stretches far beyond the cooking pot and into the heart of Pakistan’s consumer goods sector.
In fiscal year 2025, Pakistan imported a staggering 3.2 million tonnes of palm oil, worth a total of $3.4 billion, with Indonesia supplying the lion’s share. This makes palm oil one of the country’s most critical imports, integral not just to food production, but to the broader economy. Indonesia, the world’s largest producer, has become Pakistan’s primary partner in a trade that’s so essential that its disruption could leave Pakistan’s bustling food markets—and the manufacturing sector—reeling.
While it might seem like just another commodity, palm oil’s importance runs deeper than its role in frying up crispy snacks. It touches nearly every part of Pakistan’s consumer landscape. From the vanaspati ghee that graces every kitchen to the packaged snacks lining grocery store aisles, palm oil has woven itself into the very fabric of daily life. For a country that imports over 80% of its edible oils, the stability of the palm oil supply is crucial, especially in a region where food prices are volatile and household budgets are stretched thin.
But as with most global commodities, palm oil has its detractors. Its health effects, environmental impact, and the ethics of its production have become contentious issues, fueling debates that extend far beyond the frying pan. Still, it remains a fixture of Pakistan’s food industry, with no clear alternative in sight. But in recent times Indonesian palm sellers have been making a new pitch: using palm oil as biofuel. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
