- The government plans to increase production and exports by 2030 through agricultural clusters.
- 5.5 million trees have already been planted, with support from the province and the state budget.
- The sector continues to struggle with barriers: low profitability and a lack of modern equipment.
Pakistan bets on olives – government wants to cut imports and expand exports
Pakistan has unveiled a new strategy for the development of the olive sector, the National Olive Value Chain Policy, with an implementation plan until 2030. The document, currently awaiting approval from the federal government, envisages a comprehensive market reform: increased production, improved processing, a training system, private sector involvement and intensive export promotion. An extension of the olive development programme to 2026 with a budget of R637 million is also envisaged.
The authorities see olives as a way to reduce costly imports of edible oils, which cost as much as $3.33 billion in 2023/24 – 90% of domestic demand is met by foreign supplies. Olive oil alone cost Pakistan US$19m for 4,000 tonnes. Under the 13th Five Year Plan (2024-2029), the olive sector is expected to play a key role in exports, especially through the creation of export clusters for agricultural and industrial products.
New hope for farmers – 5.5 million olive trees and provincial support
Pakistan’s olive sector is growing rapidly – farmers in the three main provinces (Punjab, Balochistan and Khyber Pakhtunkhwa) have already planted around 5.5 million olive trees. The first significant investment in modern plantations began between 2012 and 2016 as part of a debt swap agreement with Italy. Today, local authorities actively support the sector by providing farmers with seedlings and drip irrigation equipment free of charge or on preferential terms.
However, the development of the sector faces significant barriers: low profitability of production, lack of modern equipment, limited access to credit and quality inputs. Despite this, the government remains optimistic – it sees olives as a strategic raw material that can not only replace imports, but also make Pakistan a significant player in the global olive oil market.