Pakistan’s food trade deficit widened sharply in the first nine months of fiscal year 2026, as rising import demand collided with a steep contraction in export earnings from major agricultural commodities. Food imports climbed 15.22 per cent to $7.09 billion in 9MFY26, up from $6.15 billion a year earlier, led by higher purchases of sugar, palm oil and other essential food items aimed at stabilising domestic supply and prices. At the same time, exports of raw food commodities fell 33.90 per cent to $3.80 billion, compared with $5.75 billion in the same period last year, reflecting broad-based weakness across nearly all major export categories.

The decline was led by rice, where both basmati and non-basmati shipments dropped sharply over the nine-month period, followed by steep contractions in vegetable exports and weaker performance in spices and tobacco. Fish and fish preparations posted modest growth, while fruit and meat exports recorded small gains, standing out as the only relatively resilient segments. On the import side, palm oil remained the dominant food import item, followed by pulses, tea, soya bean oil and sugar, according to Pakistan Bureau of Statistics data.

Sugar imports saw an exceptional surge, rising to 308,937 tonnes in 9MFY26 compared with just 2,673 tonnes a year earlier, an increase of 11,457.69 per cent. In value terms, sugar imports jumped 6,554.38 per cent to $174.744 million from $2.626 million, as the government moved to address domestic shortages and stabilise retail prices. During the period, sugar prices in retail markets remained volatile, fluctuating between Rs160 and Rs180 per kilogram across different cities, prompting authorities to step up imports to ensure market availability.

Palm oil imports increased 17.49 per cent to $3.023 billion from $2.573 billion, while volumes rose 12.81 per cent to 2.809 million tonnes, reflecting higher domestic consumption of edible oil and ghee. Imports of pulses rose 24.19 per cent to $624.38 million, while soya bean oil imports declined sharply by 56.75 per cent to $108.68 million. The import bill for other food items increased 37.77 per cent to $2.244 billion.

Tea imports rose 1.95 per cent to $485.93 million, and imports of milk, cream and infant milk food increased 5.11 per cent to $105.38 million. Analysts said the divergence between rising imports and falling exports underscores growing reliance on external food supplies, driven by domestic supply constraints and uneven agricultural output, particularly in pulses and other staple categories.