Pakistan’s cooking oil and ghee sector has grown into a massive Rs 2,500 billion annual industry, making it one of the country’s most critical consumer markets. Edible oil is one of Pakistan’s most significant agricultural imports, with palm oil accounting for about 31% of total agricultural imports. Edible oil, including palm and soybean oil, constitutes roughly 42% of agricultural imports.
Pakistan is the world’s 8th largest consumer of edible oil. An average Pakistani consumes 18 kilograms of ghee/cooking oil per year, which is 6 times higher than an average of 3 kilograms per capita across Europe.
Market Size and Consumption
Total oil consumption in 2025/26 is forecast to reach 5.13 million tons, marking a 5 percent increase compared to the estimated usage in 2024/25. This increase in oil consumption is driven by population growth and higher demand for edible oils.
Pakistan Vanaspati Manufacturers Association (PVMA) consists of 151 members who are the manufacturers of the Vegetable Ghee/Cooking Oil in all the four provinces of Pakistan. PVMA members contribute to the national exchequer up-to Rs. 572 Billion directly or indirectly in the shape of duty/taxes and other levies.
The consumption of cooking oil and ghee in Pakistan stands out compared to other nations due to the country’s large population and diverse culinary preferences. Factors such as population growth, dietary habits, urbanization, and rising disposable income contribute to significant oil consumption.
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Import Dependence
Pakistan relies heavily on imports to meet domestic demand. Domestic oilseed production supplies less than 20 percent of Pakistan’s edible oil demand, with the remainder imported (mainly palm oil) or derived from imported soybeans and rapeseed.
Palm Oil Dominance
Due to its lower cost, palm oil dominates the edible oil market, accounting for more than 75 percent of consumption. It is widely used both at home and in the food processing industry. Pakistan is one of the largest importers of palm oil, predominantly sourced from Indonesia. It is the 3rd major importer of oil palm from Indonesia.
Palm oil imports increased by 24.28% during the same period. Pakistan imported 2.182 million metric tons of palm oil costing $2.350 billion in 7mFY26, compared with 1.887 million metric tons valued at $1.885 billion a year earlier.
Import Bill Impact
During 2024, it spent around 4.08 billion USD on importing palm oil and other vegetable oils. This massive import bill puts significant pressure on Pakistan’s foreign exchange reserves.
Between July and January 2025-26, the country imported 85,771 metric tons of soyabean oil worth $94.991 million to meet domestic demand. In the corresponding period of the previous fiscal year, imports stood at 94,991 metric tons valued at $164.550 million, showing a 42% decline in soybean oil imports.
The oil market relies heavily on imported palm oil, with local sources accounting for less than 20% of total consumption.
Local Production Capacity
There are more than 150 manufacturers, which are the part of the Pakistan Vanaspati Manufacturers Association that produce vegetable ghee and cooking oil. In 2011, these companies had combined production capacity of 2.8 million tons, which increased to 3.9 Mln MT in 2022.
IFFCO Pakistan has the distinct advantage of being the state’s only multinational company in the edible oils and fats industry. It has the largest edible oil refinery, processing, and packaging lines for cooking oil, canola oil, ghee, fats, and margarine.
Hamza Vegetable Oil Refinery & Ghee Mills Pvt, in a brief period of less than 20 years, has championed quality assurance and customer satisfaction to emerge as one of the top two market leaders in the Edible Oil and Ghee industry in Pakistan.
Price Trends and Volatility
The market experienced significant price volatility throughout 2024-2026. The Utility Stores Corporation reduced prices of essential items, including cooking oil, ghee, and others, by up to 10% across Pakistan. The price reduction affected over 800 items, with decreases ranging from Rs 8 to Rs 200 in September 2024.
However, by November 2024, the price of cooking oil went up from Rs 530 to Rs 560 after an increase of Rs 30 whereas the rate of ghee reached Rs 550. The Market dealers stated that the price of Karachi branded ghee has reached Rs 500 with staggering hike of Rs 120 in last one month.
The cost of essential food items continues to rise in Pakistan as cooking oil and ghee prices have increased sharply in 2026. Market sources confirm that both A-brand and B-brand cooking oil and ghee have recorded noticeable price hikes across major cities, including Lahore, Karachi, and Islamabad.
Major Players
The market features several prominent brands. Dalda Foods Limited (DFL), one of Pakistan’s leading cooking oils and Banaspati manufacturing and selling companies, was established in July 2004.
Under its marketing name of Sufi Banaspati & Cooking Oil it has introduced international standards of production and packaging to its industry. IFFCO Pakistan has a loyal consumer base for its brands Golden Sun, Evolin, Aghaaz, and Hayat.
Petrosin Edible Oil Division has edible oil plants with an annual production capacity of more than 100,000 tons. Since its establishment in 1968, AW Group of Industries has experienced remarkable growth, transforming from humble beginnings into a leading industry. AW Group has become a major provider of high-quality edible cooking oil and banaspati.
Future Outlook
Pakistan imported 860,260 tonnes of oil palm from Malaysia in 2024, a 14.2% increase from 2023. Pakistan has to import 4 million tons of palm oil in 2025, which will cost around 3.5 billion USD.
The government continues exploring domestic solutions. Pakistan has approximately 80 million wild olive trees (Olea cuspidata) and 5 million cultivated olive trees. The government has set an ambitious target to plant more than 50 million olive trees across 10 million acres by 2026.
Despite these efforts, Rising import costs, supply issues, and market instability remain key drivers of inflation in essential food items. The sector will continue depending heavily on imports while domestic production capacity gradually expands.