Palm oil imports hit record $2.22 billion in 7MFY26:report

Palm oil imports into Pakistan reached a record high of $2.22 billion during the first seven months of the fiscal year 2026, driven by increased domestic demand and adding pressure to the country’s external sector.

Record Palm Oil Imports Strain Pakistan’s Economy

Data from the State Bank of Pakistan (SBP) and Topline Securities shows that palm oil imports totaled $2,222 million from July to January, surpassing the previous peak of $2.10 billion recorded during the same period in the fiscal year 2023. This continues an upward trend observed over the past several years.

Palm oil is a critical component of Pakistan’s edible oil imports and represents a significant portion of the country’s overall food import costs. The consistent rise in import volumes highlights Pakistan’s reliance on imported edible oils, as local oilseed production is insufficient to meet domestic needs.

The increase in palm oil imports has significantly contributed to the overall rise in the country’s food import bill, which reached $4,926 million during the first seven months of FY26. Palm oil accounted for a substantial portion of this total.

Over the past decade, palm oil imports fluctuated, with values generally remaining below $1.2 billion between fiscal years 2013 and 2020. However, imports began to rise sharply from fiscal year 2021, exceeding $1.9 billion in 7MFY22 and reaching $2.10 billion in 7MFY23. Despite some moderation in FY24 and FY25, imports have now reached a new high.

This surge in imports occurs as Pakistan manages its external account, working to stabilize foreign exchange reserves and reduce the current account deficit. Higher food import bills, particularly for essential commodities like palm oil, limit the country’s financial flexibility, as these imports are largely unavoidable.

Demand for palm oil remains strong due to its use in cooking oil and ghee production, even during economic downturns. Any sustained increase in global prices or domestic consumption is likely to further increase the import bill, continuing to put pressure on Pakistan’s balance of payments in the coming months.