Pakistan’s Olive Oil Production Achieves Important Level

Pakistan's domestic Olive Oil Production is projected to reach 716 tons this year, according to a administration survey seen by ProPakistani.

Key points

• The survey additionally records 205, 929 plants in Azad Jammu and Kashmir, 117, 958 in Islamabad Capital Territory, 92, 296 in Gilgit-Baltistan, and 129, 384 in Sindh.
• The policy targets expanding Pakistan's total cultivated olive area to 100, 000 acres and tree population to 10 million by 2030.
• A administration survey notes that 7.64 million olive plants have been planted throughout 60, 456 acres in 131 districts nationwide.
• But one wonders why they have not seen Pakistan Olive Oil on the shelves near them.
• Administration has even distributed millions of saplings for free and offered an upward of 67% subsidy on plants and drip irrigation systems.

When the Pakistan Agricultural Research Council began working with the Italian administration to introduce Olives in the country and develop best cultivation practices, and then in the early 2000s, researchers began working on Wild Olive species to turn them into fruit-bearing varieties, the work to promote Olive trees and their products in Pakistan has been happening at some level since 1986.

For context, the five-year project after the debt swap agreement with Italy in 2006 to bundle olive cultivation with economic development of rural areas was moved under PARC after devolution of PODB and was completed in 2012, and afterwards years saw multiple projects to scale the commercial cultivation of Olives in Pakistan. PM Orders National Livestock Vaccine Plant at NARC. From Research to 7.6 Million Olive Plants.

These include everything from importing, distributing, and planting millions of saplings to oil extraction equipment, both under administration research institutions like the Center of Excellence for Olive Research & Training (CEFORT) and supporting private businesses as well. Administration has even distributed millions of saplings for free and offered an upward of 67% subsidy on plants and drip irrigation systems.

Notably, the policy targets expanding Pakistan's total cultivated olive area to 100, 000 acres and tree population to 10 million by 2030.

Ongoing projects fall under the National Olive Value Chain Policy 2024-2030, under which the Administration has established the Pakistan Olive and Olive Oil Council (POOC) under the Pakistan Oilseed Board to bring together farmers, processors, and the administration, and has additionally rolled out the national certification trademark 'PakOlive', with only Olive oils that follow the strict regulations and quality checks allowed to carry this label.

Notably, a administration survey notes that 7.64 million olive plants have been planted throughout 60, 456 acres in 131 districts nationwide. Balochistan accounts for the largest share, with 3.20 million plants (41.9%) spread throughout 24, 620 acres in 31 districts.

While Khyber Pakhtunkhwa has 1.66 million plants (21.7%) throughout 14, 690 acres in 32 districts, punjab follows with 2.24 million plants (29.3%) throughout 17, 000 acres in 31 districts.

Meanwhile, the survey additionally records 205, 929 plants in Azad Jammu and Kashmir, 117, 958 in Islamabad Capital Territory, 92, 296 in Gilgit-Baltistan, and 129, 384 in Sindh. Farmers Lose Rs. 3.5 Trillion After Harvest.

Consequently, the national Olive Oil production that began at 19 kg in 2016 has grown to almost 716 tons in 2026, with Olive fruit production estimated at 7, 412 tons according to the administration survey seen by ProPakistani.

These numbers are still particularly small if we look at them from an import perspective or in comparison to the vast Olive Oil or Edible Oil market, for that matter, but for an industry that didn't even exist before, this is substantial.

While imports have dropped 33 percent in volume from the 2021 peak of 4, 479 tons to 2996 tons in 2025, olive oil exports have additionally shown robust expansion over the last few years, growing from mere 9 tons in 2020 to 249 tons in 2025, a 27-fold volume expansion in just five years.

In practice, the administration survey estimates that Pakistan has approximately 4 million hectares of land with olive-growing potential, alongside millions of wild olive plants. Unlike traditional oilseed crops that compete for prime arable land and high water resources, olives thrive in diverse agro-ecological zones, particularly on rain-fed (barani), marginal, and degraded lands, so that's where the administration has been focusing. The survey additionally reports the installation of 51 olive oil extraction units nationwide. Balochistan has 23 units, followed by Khyber Pakhtunkhwa with 16, Punjab with nine, Islamabad with two, and Azad Jammu and Kashmir with one (2.0%).

For context, the supporting infrastructure listed in the survey includes three value-addition laboratories, six fruit-processing units, five weather stations, nursery tunnels and a national reference laboratory. Together, these facilities indicate that the government's olive development program extends beyond plantation to include research, nursery development, processing and quality backing.

During a recent media briefing for the PAC Agri Connections 2026 event, ProPakistani learned that Italian delegates who visited Pakistan lately considered Pakistani olive oil from the Balochistan region to be of international quality.

ProPakistani additionally learned that while 100 kg of harvested olives can yield around 12 to 14 kg of olive oil in different parts of the world, olives from Balochistan are reportedly yielding around 18 kg of oil per 100 kg of fruit. Combined with the positive feedback on its quality, this suggests that Pakistan's olive oil industry has the potential to compete with established producers.

For context, the olive market extends far beyond cooking oil and table olives, encompassing a diverse array of value-added derivatives such as olive-based personal care products (soaps, lotions, and skin care), olive spreads and tapenades, health supplements, olive leaf tea, and industrial pomace by-products like secondary frying oil, biomass fuel pellets, and animal feed. Govt to Announce Fair Wheat Rates Shortly.

Nevertheless, according to the Pakistan Olives Market Study. It we will talk more concerning at the end, traditional food items continue to command the vast majority of consumer demand.

While olive-based care products create up the remaining 11% to 12% (for imported retail sales specifically, olive oil accounts for 68%, table olives 30%, and olive spreads/care items 2%, in consumer surveys, olive oil captures the largest share at 50% to 56% of regular consumption, followed by table olives at 32% to 39%.

But one wonders why they have not seen Pakistan Olive Oil on the shelves near them. The difficulty is that economies of scale, local distribution, and the value chain are still in their highly early stages.

"The primary bottleneck is branding, packaging, and marketing since most of our farmers are not equipped in that area, and there is no corporate involvement for now. Production numbers are still modest, but they are growing, and Olive Oil is the future of Pakistan", remarked Awais Khan, CEO National Alliance for Safe Food, talking to ProPakistani.

Awais continued that the administration has an overarching plan to promote self-sufficiency in edible oils and reduce dependence on imports, including sesame and other oilseeds.

For context, the biggest challenge to the expansion remains the massive capital investment and long payback period. While the extended break-even horizon stretches to almost 10 years, according to the government's own policy documents, Oive trees do not yield fruit or generate financial returns during their first 4 years.

Additionally, administration policy interventions have been focusing on regions with marginal and under-utilized land, but access to agricultural extension and technical guidance in such areas remains limited.

State-backed initiatives (such as federal PSDP projects) historically operate under fixed 5-year project lifespans. It means when project windows expire, backing and momentum can diminish before planted groves reach full commercial fruition.

Notably, a 2023 Market Study of the Domestic Olive Oil Market done under the Expansion for Rural Advancement and Sustainable Progress (GRASP) project observed that 74% of the consumers preferred imported olive oils while a mere 26% favor locally produced options, and that 3 out of every 4 products in retail are internationally sourced. Govt Wheat Policy Has Failed Again.

As there's a common myth that it's not good for high-temperature cooking, while its higher cost compared to alternatives additionally limits its apply, according to the study, Olive oil constitutes only 0.3% of the country's edible Oil imports.

According to Report, the challenges to local consumption are additionally compounded by the absence of quality testing facilities, a lack of coherent pricing, which often makes local products more expensive than imported ones, little or no participation from commercial players for value addition, limited employ of appropriate harvesting tools, inadequate oil extraction infrastructure and improper packaging.

While the importance of branding can be understood from the fact that 71% attributed brand reputation as particularly notable, cost sensitivity additionally remained a challenge, with 73% of consumers considering it particularly notable.

While things look promising for now, along with the above challenges, there is one more thing worth acknowledging.

Meanwhile, the largest share of Pakistan's olive plantations is concentrated in Balochistan and Khyber Pakhtunkhwa, where the security situation remains murky at best and as we have learnt, Olive Oil infrastructure investment has long payback period. How this affects the expansion and long-term sustainability of the sector remains to be seen.

For now, the numbers are encouraging; building a commercially viable industry will require sustained investment, a functioning value chain, and the ability to keep these projects going long enough to deliver on their promise. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

In short, pakistan's Olive Oil Production Achieves Important Level is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.