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Pakistan has unveiled a comprehensive two-phase strategy to rein in its annual $3.8 billion palm oil import bill, according to a policy document prepared by the Ministry of National Food Security. The plan is designed to curb the country's heavy dependence on imported edible oils while scaling up domestic oilseed production.
The strategy comprises a five-year short-term plan covering 2026 to 2031, followed by a ten-year long-term programme. Together, both phases are projected to deliver combined import-substitution benefits running into billions of dollars.
Under the first phase, the government intends to accelerate the production of sunflower, canola, rapeseed, sesame, and soybean. The five-year plan is estimated to generate import savings of $3.45 billion and create economic benefits worth approximately Rs967 billion. A key milestone is raising domestic sunflower output to 2 million tonnes to strengthen the country's edible oil supply base.
The second phase focuses on expanding the land area dedicated to oilseed cultivation over a ten-year horizon. According to the ministry's document, the long-term strategy is expected to generate import-substitution benefits exceeding $7 billion and stimulate economic activity worth approximately Rs1,965 billion.
As part of the broader National Oilseed Policy, the government has also proposed imposing a regulatory duty of up to 40 percent on imported edible oil. The measure is intended to support local oilseed production and encourage greater investment in domestic edible oil manufacturing.
The urgency of the plan reflects Pakistan's current food trade imbalance. The country meets only about 10 percent of its total edible oil requirement through domestic production, with the remaining 90 percent sourced from imports. The total annual import bill for food items exceeds $7 billion, placing sustained pressure on foreign exchange reserves and the wider economy.
By expanding oilseed cultivation, improving farm-level productivity, and leveraging tariff protection, the proposed two-phase strategy aims to reduce Pakistan's dependence on imported edible oil, conserve foreign exchange, and strengthen national food security.
Source: Samaa TV