Rebound of Pakistan's Edible Oil Market Strengthens Prospects for Malaysian Palm Oil
Pakistan's edible oil and fats market delivered a strong performance in 2025, with total consumption rising to 5.5 million tonnes from 5.04 million tonnes in 2024—an increase of approximately 9.1%. The growth was broad-based, supported by recovering consumer demand, stabilising international prices and renewed confidence across the supply chain.
Import volumes reflected similar upward momentum. Total oils and fats imports increased from 3.14 million tonnes in 2024 to 3.87 million tonnes in 2025, representing a year-on-year rise of around 23%. Palm oil retained its dominant position, accounting for 91% of total oils and fats imports in 2025, compared with 94% in 2024. The marginal shift in share does not signal weakening palm oil demand; rather, it reflects the parallel expansion in oilseed imports, which surged from 1.79 million tonnes to 2.95 million tonnes—growth of more than 64% within a single year.
A significant part of the oilseed increase was driven by the resumption of genetically modified (GMO) soybean imports for domestic crushing. Following regulatory approval in February 2025, Pakistan imported approximately 2.5 million tonnes of GMO soybeans by year-end, levels not seen since 2021. This development restored much-needed stability to the local crushing industry and the poultry sector, both of which had experienced input supply constraints in previous years.
Steady international palm oil prices were a key factor underpinning the consistent import performance throughout 2025. Unlike periods characterised by sharp price volatility, the relative stability observed during the year enabled importers to maintain regular purchasing patterns without the disruptions typically associated with fluctuating markets. Activity strengthened further in the final quarter, as buyers moved to build forward stocks ahead of anticipated price increases in early 2026.
This positive momentum carried into the new year. Imports in January 2026 reached approximately 430,000 tonnes, representing a 24% increase compared with the previous month. The rise was partly driven by seasonal demand ahead of Ramadan and Eid—periods that traditionally generate a marked uplift in cooking oil consumption across Pakistan.
Pakistan ranks as the third-largest single-country buyer of palm oil in the world, and its market continues to expand. As domestic consumption rises and the country's food manufacturing sector develops further, demand for quality edible oils is expected to deepen. Malaysian palm oil, with its established reputation for quality and supply reliability, maintains a meaningful presence in this market. With the sector firmly on a growth trajectory, there is considerable scope to further strengthen Malaysia's position and capture a larger share of this important and fast-growing palm oil destination.