BRUSSELS, (Unib Rashid) – Pakistan imported food products worth $9.16 billion during fiscal year 2026, accounting for 13.2 percent of the country’s total import bill, despite agriculture contributing 23.4 percent to the national GDP, according to data shared by the non-governmental organization Economic Policy and Business Development (EPBDT).

An analysis released by the organization indicates that the country’s primary challenge is not the availability of agricultural land, but rather issues related to productivity, processing, value addition, and market efficiency. It emphasized that reducing reliance on imports would require structural reforms aimed at strengthening the entire agricultural value chain.

Agriculture remains one of Pakistan’s largest economic sectors, contributing 23.4 percent to GDP and employing nearly two-fifths of the workforce. The country also possesses one of the world’s largest interconnected irrigation systems. However, despite these advantages, Pakistan continued to rely heavily on imported food products during FY2026.

The report noted that Pakistan spent $3.79 billion on palm oil imports and $665 million on tea imports during the fiscal year. Meanwhile, sugar imports witnessed a sharp increase, rising from $4 million to $175 million within twelve months.

According to EPBDT, each figure in the import data reflects underlying issues such as yield gaps, high production costs, inadequate processing facilities, and the absence of value-added infrastructure, including industrial plants that were never developed.

The organization stressed that Pakistan does not face a shortage of land, but rather a challenge of improving productivity and processing capacity. As a result, the country continues to bridge this gap through costly imports.

EPBDT called for comprehensive reforms in the agricultural economy, warning that without improvements in productivity, processing, and value addition, Pakistan will remain dependent on food imports and continue to spend valuable foreign exchange to meet domestic demand.