Pakistan plans to become an important player in the global olive market

Pakistan has developed a “National Olive Value Chain Policy” and submitted it to the federal cabinet for approval, official sources told Dawn. The initiative is driven by Pakistan’s great potential to become a key player in the global olive market due to its favorable climatic conditions and growing demand for olive oil. The policy, along with an “Implementation Strategy and Roadmap” to 2030, prepared by the Ministry of National Food Security and Research, builds on existing government initiatives and offers a comprehensive approach to the development of the olive sector.

The policy aims to increase olive production, improve the quality of processing and training, involve the private sector, facilitate value chain management, promote domestic consumption and competitiveness in national and international markets. The strategy also proposes to extend the Olive Development Project under the Public Sector Development Programme (PSDP) for one year (2025/26) with a total budget of Rs. 637 million. This will support the achievements made, including continued olive planting, installation of drip irrigation systems, wild olive grafting, training of stakeholders and institutionalization of the sector.

Pakistan spent $7.57 billion on food imports in the 2023/2024 MY, of which $3.33 billion was spent on edible oils, as 90% of the country’s needs are met through imports. In particular, 4,000 tonnes of olive oil worth $19 million and 500 tonnes of olive oil products worth $3 million were imported. Oilseed production in the country faces numerous challenges such as low economic returns, inadequate support in the form of quality seeds, fertilizers, credit, and lack of modern technologies and machinery for harvesting and post-harvest processing.

Under the 13th Five Year Plan (2024/29), the olive sector will play an important role in the export category, in particular through the creation of export-oriented clusters for industrial and agricultural products. So far, farmers in Pakistan have planted about 5.5 million olive trees, mainly in the provinces of Balochistan, Punjab, and Khyber Pakhtunkhwa. The first significant investments in modern olive plantations began in 2012-2016 under the Pakistan-Italy debt swap agreement. The provinces are also actively supporting the sector by providing olive seedlings and drip irrigation equipment to farmers free of charge or on concessional terms.

Tags: Pakistan