Palm oil imports climbed to an all-time high of $2.22 billion during the first seven months of FY26, reflecting a sharp increase in domestic demand and adding to pressure on Pakistan’s external sector.
Data compiled by the State Bank of Pakistan (SBP) and highlighted by Topline Securities show that palm oil imports reached $2,222 million in 7MFY26, marking the highest level recorded for the July–January period. The latest figure surpasses the previous peak of $2.10 billion recorded in 7MFY23 and continues the upward trajectory seen over the past few years.
Palm oil is a key component of Pakistan’s edible oil imports and constitutes a significant share of the country’s overall food import basket. The steady rise in volumes underscores the country’s heavy reliance on imported edible oils to meet domestic consumption needs, as local oilseed production remains insufficient to bridge the gap.
The increase in palm oil imports has played a central role in lifting the overall food import bill. During 7MFY26, total food imports rose to $4,926 million. The jump in palm oil alone accounts for a substantial portion of that total, reinforcing its weight in the country’s import structure.
Over the past decade, palm oil imports have fluctuated, with a notable dip between FY13 and FY20, when 7MFY import values remained largely below $1.2 billion. However, the trend shifted sharply upward from FY21 onward. Imports crossed $1.9 billion in 7MFY22, surged to $2.10 billion in 7MFY23, and, despite some moderation in FY24 and FY25, have now reached a new record.
The surge comes at a time when Pakistan is closely managing its external account amid ongoing efforts to stabilize foreign exchange reserves and contain the current account deficit. A higher food import bill, driven by essential commodities such as palm oil, limits the room for adjustment, as such imports are largely non-discretionary.
With palm oil forming a staple input for cooking oil and ghee production, demand tends to remain resilient even during periods of economic slowdown. As a result, any sustained increase in global prices or domestic consumption is likely to translate directly into a higher import bill, keeping pressure on the country’s balance of payments in the months ahead.
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