Pakistan’s edible oil import bill projected to reach $6 billion in FY26

Pakistan’s edible oil import bill is projected to reach $6 billion in fiscal year 2025-26 as domestic production continues to meet only about 10% of the country’s total requirements, according to the Pakistan Economic Survey.

The high dependence on imported edible oil places pressure on Pakistan’s foreign exchange reserves and leaves domestic prices exposed to fluctuations in international commodity markets.

The survey said the share of local production in meeting edible oil demand was expected to remain broadly unchanged from the previous fiscal year.

To reduce dependence on imports, the government has submitted a Comprehensive Plan for Enhancing Indigenous Production of Edible Oil for Import Substitution.

The plan targets an increase in domestic self-sufficiency to 27% in the short term, 40% over the medium term and 70% in the long term.

However, the Economic Survey did not specify binding deadlines, funding allocations or implementation arrangements for achieving the targets.