Olive Policy Targets Pakistan’s $4 Billion Edible Oil Import Bill

August 25, 2026Zayn0

 

Development & Policy | August 2026 | 4 min read

 

⚡ Quick Takeaways

  • PM Shehbaz Sharif launched the Pakistan National Olive Value Chain Policy.
  • Pakistan spends around $4 billion annually on edible oil imports.
  • The government aims to move from olive cultivation to processing, branding and exports.
  • Pakistan will send 100 young agricultural graduates to Italy for advanced olive training.
  • Officials say more than 7 million olive plants are now growing across the country.

Pakistan’s new olive policy is being framed as both an agriculture reform and an import-saving strategy, with the government trying to turn a growing crop base into a complete edible oil and export value chain.

$4 Billion Import Bill 100 Graduates 7 Million Olive Plants
Annual edible oil imports remain a major pressure on foreign exchange Young agriculture graduates will be trained in Italy at government expense Pakistan’s planted olive base is now large enough to support value-chain planning

Policy Aims to Reduce the Edible Oil Import Burden

Prime Minister Shehbaz Sharif has launched the Pakistan National Olive Value Chain Policy with the aim of turning the country’s olive sector into a stronger source of domestic edible oil, rural income and export earnings. The policy comes at a time when Pakistan continues to spend heavily on imported edible oil, creating pressure on foreign exchange and household food costs.

Speaking at the launch ceremony, the prime minister said Pakistan spends around $4 billion every year on edible oil imports. He said even saving $400 million annually through higher domestic production would be a major achievement for the country. He also expressed confidence that Pakistan could move toward edible oil self-sufficiency within a few years if practical work is done quickly.

The message from the ceremony was that planting olive trees alone will not be enough. Pakistan now needs a full value chain that can turn olives into quality oil, packaged products, local brands and exportable goods. That means better nurseries, disease-free planting material, modern processing units, certified laboratories, farmer training, marketing systems and stronger links between growers and businesses.

Italy Training Plan Adds Technical Support

The prime minister thanked Italy for its long-running support in developing Pakistan’s olive sector and announced that the government would send 100 young agricultural graduates to Italy at its own expense. The graduates will receive advanced training in olive cultivation, production, processing and marketing.

This training plan is important because Pakistan’s olive sector is still developing technical depth. Farmers need better advice on varieties, orchard care, irrigation, pruning, pest control, harvesting and oil extraction. Processors also need support on storage, quality standards, packaging and branding if Pakistani olive oil is to compete in regional and international markets.

Italian Ambassador to Pakistan Ugo Ciarlatani said the new policy reflected more than seven decades of bilateral cooperation. He highlighted the $100 million Pakistan-Italy Debt Swap Program, which helped establish olive orchards in different parts of the country. He also said Italy’s Olive Culture Project had supported laboratories and nurseries, assisted business groups and trained more than 700 stakeholders.

Policy Note: The policy’s success will depend on how quickly training, processing, certification and market access reach ordinary growers.

Olive Sector Moves From Orchards to Markets

Pakistan now has more than 7 million olive plants, according to the Italian ambassador. This planted base gives the country a stronger starting point, but commercial success will depend on how much fruit reaches reliable processing channels and whether farmers receive fair returns.

Italy is also supporting technical and vocational education through a €20 million capacity-building program focused on high-value agriculture, including olive cultivation and production. This can help Pakistan build a trained workforce for nurseries, farms, mills, laboratories and export businesses.

Federal Minister for National Food Security and Research Rana Tanveer Hussain said the government would provide disease-free seeds and use technology to reduce crop losses. He added that Pakistan’s membership in the International Olive Council would strengthen research, training, technology transfer and quality certification. These areas are essential because olive oil markets depend heavily on trust, grading and consistent standards.

Policy Area Current Focus Expected Benefit Status
Import reduction Raise domestic edible oil output Lower pressure on foreign exchange Priority
Farmer income Support growers with training and inputs Better rural earnings Positive
Processing Develop oil extraction and value addition More local brands and products Needed
Exports Target South, East and Central Asian markets New foreign exchange earnings Planned
Quality control Research, labs and certification Higher consumer and export confidence Critical

Exports Could Open New Regional Opportunity

National Food Security and Research Secretary Amer Ali Ahmed said Pakistan aims to begin exporting olive oil to markets in South, East and Central Asia. This is an ambitious target, but it fits the policy’s wider goal of making olive production a business ecosystem rather than a small crop program.

The prime minister also distributed shields to olive growers and experts and visited stalls displaying locally produced olive products. Growers Abdul Jabbar of Loralai, Quratul Ain Irfan of Mardan and Yaqoob Izhar of Chakwal also spoke at the event, showing that olive cultivation is already active in different regions.

For Pakistan, the opportunity is clear but the execution challenge is serious. The country must make sure farmers are not left with fruit they cannot process, mills are not built without quality supply, and export promises are not made before certification systems are ready. If the value chain is built carefully, olives could help reduce imports, support rural families and give Pakistan a new high-value agriculture identity.

Disclaimer: This article is based on official statements and current media reporting. Project timelines, export targets and support measures may change as the policy is implemented.

 

Zayn

Leave a Reply

Your email address will not be published. Required fields are marked *

Prove your humanity: 6   +   3   =  

Search & have fun

Search anytime for whatever you need, for your business, fun or personal needs. LCCI helps you find it easy and fast.

Search & have fun

Search anytime for whatever you need, for your business, fun, or personal needs. LCCI helps you find it easy and fast.

Explore

Users

LCCI

Copyright © 2025 LCCI  All Rights Reserved.
Developed by TARGET MARKETING (PVT) LIMITED

Copyright © 2025 LCCI  All Rights Reserved.
Developed by TARGET MARKETING (PVT) LIMITED.