Pakistan imported $9.16 billion worth of food in FY26, accounting for 13.2 percent of the country’s total import bill.
Productivity and Processing Shortfalls
Official data shows the food import bill rose about 11.7 percent from $8.2 billion in the previous year.
Palm oil alone accounted for roughly $3.79 billion, remaining the single largest item.
Sugar imports jumped dramatically, reaching around $175 million after the government allowed large-scale purchases to meet domestic shortages.
Tea, pulses and other items also added to the rising bill.
Analysts note that Pakistan possesses one of the world’s largest contiguous irrigation networks and significant cultivable land.
Yet yields remain low in several key crops while post-harvest losses and limited processing capacity continue to hurt output.
Food exports meanwhile declined sharply to about $5 billion from over $7 billion a year earlier, widening the food trade deficit.
Structural Reforms Needed Across the Value Chain
Economic Policy & Business Development highlighted that the core problem is not land scarcity.
It is weak productivity, inadequate processing facilities, limited value addition and inefficient markets.
Without stronger research, better seed varieties, improved storage and modern agro-processing units, import dependence will persist.
Experts argue that targeted incentives for oilseed cultivation, better crop forecasting and farmer-friendly policies could reduce the edible oil and sugar import burden.
Market reforms that improve farm-to-market linkages and reduce intermediaries would also help farmers earn more while boosting domestic supply.
Policymakers have been urged to treat agriculture as a complete value chain rather than focusing only on production.
Strengthening the entire chain—from input supply and cultivation to processing, packaging and export—offers the clearest path to cutting the food import bill.
Continued reliance on imports for basic food items places pressure on foreign exchange reserves and exposes the economy to global price shocks.
Addressing these structural weaknesses remains essential for long-term food security and external account stability.