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Pakistan registered a record-breaking influx of palm oil, with imports reaching 3.482 million tonnes valued at $3.785 billion in Fiscal Year 2026 (FY26). This marks a significant increase compared to FY25, when the country imported 3.214 million tonnes worth $3.4 billion.
Data from the Pakistan Bureau of Statistics (PBS) indicates that the average price per tonne of imported palm oil also saw a slight rise, standing at $1,078 in FY26 against $1,056 in FY25.
Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), attributed the heightened palm oil imports to an escalating demand for ghee and cooking oil. He linked this surge to Pakistan's growing population and diminished local crop yields, such as cottonseed. Rehan highlighted a substantial increase in overall edible oil consumption, which has climbed to 4.8 million tonnes from four million tonnes five years prior. Despite this expansion, he lamented the absence of a dedicated edible oil policy in Pakistan since its independence.
Rehan also voiced concerns over challenges faced by the local industry, specifically citing pressure from the Federal Board of Revenue (FBR) to collect General Sales Tax (GST) based on retail price, a departure from the previous ex-mill price method. He criticised the FBR for 'creating complications for taxpayers' instead of fostering a 'business-friendly environment' and reducing operational costs.
The PVMA chief warned that a new sales tax mechanism, set to be implemented with the FY27 budget, would further exacerbate the situation. This mechanism expands the scope of the Third Schedule, shifting sales tax collection on ghee and cooking oil to a model based on the Maximum Retail Price (MRP), which is expected to significantly amplify the industry's tax burden. Consequently, this change is projected to push up the prices of ghee and cooking oil by Rs10-15 per kilogram.
The PVMA had previously appealed to the government to reduce taxes on the edible oil and ghee sector in the budget, aiming to alleviate financial pressure on the public. Recent data from the Sensitive Price Index (SPI) shows a modest year-on-year increase in retail prices: a 5-litre bottle of cooking oil now ranges from Rs2,975-3,110 (up from Rs2,800-3,000), 2.5kg ghee from Rs1,500-1,565 (up from Rs1,425-1,485), and 1kg ghee from Rs590-610 (up from Rs550-580). Source: Dawn