Breaking the Import Trap: A Roadmap for Pakistan’s Oilseed Sector

This policy brief titled ‘Breaking the Import Trap: A Roadmap for Pakistan’s Oilseed Sector’ has been completed by The Pakistan Business Council (PBC) as part of “Grow More/Grow Better” pillar of its “Make-in-Pakistan” thrust. This policy brief aims to explore the potential of transforming Pakistan’s edible oil sector from a heavily import-dependent industry into a resilient, self-sustaining component of the agri-food system. The brief discusses the long-standing challenges, presents promising opportunities, and advocates for targeted reforms to position oilseeds as a strategic lever for import substitution, rural income growth, and export development.

Pakistan’s edible oil sector presents both a long-standing vulnerability and a major untapped opportunity. The country remains heavily dependent on imports, with edible oil imports regularly crossing USD 3 to 4 billion annually and meeting over 85% of domestic consumption. This import dependence exposes Pakistan to global price shocks, foreign exchange pressures, and supply risks.

Historically, oilseed development in Pakistan has faced multiple challenges: limited institutional capacity, lack of policy continuity, poor seed quality, weak farmer-market linkages, and an underdeveloped value chain. Oilseed crops such as rapeseed-mustard, sunflower, soybean, and cottonseed have been cultivated in varying degrees, but their productivity remains below potential. Farmers have often favored wheat and other Rabi crops due to government price support and greater income certainty.

Despite these challenges, Pakistan holds significant opportunities to scale domestic oilseed production. With improved seed systems, better agronomy, and market linkages, yields for rapeseed-mustard and sunflower can be significantly improved. Soybean, while still at a small scale, holds strong potential to serve Pakistan’s expanding poultry, livestock, and feed sectors. One of the most promising frontiers is oil palm cultivation in Pakistan’s coastal belt, particularly in Balochistan. Favorable climatic conditions, alluvial soils, and controlled irrigation provide a rare opportunity to develop a high-yield, year-round oil palm industry near Karachi’s processing and export hubs. Intercropping options, such as ginger, can further enhance returns.

Pakistan’s growing olive oil sector is also gaining traction, with over 5 million olive trees planted across multiple provinces. Supported by international partnerships, modern processing mills, and growing export activity, olive oil offers an emerging complementary pillar to Pakistan’s broader edible oil strategy.

To fully realize this potential, the brief recommends a set of targeted actions:

• Strengthen institutional capacity and coordination across federal and provincial levels.
• Improve seed development for improved access to good quality seeds.
• Deliver oilseed-specific farmer extension and agronomic advisory services.
• Invest in post-harvest infrastructure and modern oilseed-specific machinery.
• Develop oil palm clusters in Balochistan’s coastal belt.
• Scale up direct procurement models to improve farm-level prices.

With sustained commitment, oilseeds can become a national success story — reducing Pakistan’s import dependence, improving rural livelihoods, expanding exports, and building a more resilient agri-food system.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness.