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From arid fields to liquid gold, a decade of accelerated olive cultivation in Pakistan
Experts estimate that around 10 million acres of land nationwide are suitable for olive farming. The prime regions include Khyber Pakhtunkhwa, Balochistan, and the Potohar area of Punjab
- PUBLISHED: Fri 14 Aug 2026, 4:02 PM
- By:
- Munawar Chaudhary
Pakistan’s premium quality olives have acclaimed a prized distinction from the United Arab Emirates. Pakistani extra virgin olive oil outperformed competitors as a startup secured a gold medal at the 2026 Dubai International Olive Oil Competition last month.
The journey of olive oil production in Pakistan started over two decades back. With concerted efforts of stakeholders, it is gradually developing into a new crop that has the potential to transform our perspectives on agriculture, employment, and imports in this part of the world. Over a decade and half ago, olive trees were primarily a governmental initiative. Today, they have integrated into nurseries, factories, startups, and even international award events. The narrative of Pakistan’s olive industry is one of gradual planting, rigorous training, and growing optimism.
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This initiative did not emerge overnight. Various national and and provincial institutions began experimenting with Mediterranean olive varieties in the 1980s. However, the significant momentum occurred over the past twenty years. With foreign funding and technical assistance by Italy, Spain and other countries, this process of achieving excellence advances further. The assistance has been utilised to establish nurseries, train farmers, install oil extraction machinery, and develop laboratories. Such support has instilled confidence in farmers that olives can thrive in Pakistan’s climate.
Pakistan possesses a considerable natural advantage. Experts estimate that around 10 million acres of land nationwide are suitable for olive farming. The prime regions include Khyber Pakhtunkhwa, Balochistan, and the Potohar area of Punjab. These regions feature arid conditions, rocky terrain, and limited water supply, which are ideal for olive trees. Olives require minimal water and can flourish in areas having relatively cold as well as warm-to-hot temperatures . This is particularly significant for a nation grappling with water scarcity and climate challenges.
The statistics illustrate the progress made. Government initiatives under the Public Sector Development Programme and Annual Development Programme have facilitated olive plantations across more than 12,000 hectares. A national initiative approved in 2021 aims to cultivate olive trees on 75,000 acres. In Potohar, Punjab, now referred to as “Olive Valley,” approximately 1.2 million plants have been cultivated. Nationwide, nearly 7 million olive plants have been planted to date. The ultimate goal is much larger, targeting 1.3 billion plants, but the initial progress is evident.
What distinguishes the past decade, when olive plantation accelerates, is that the trees are now bearing fruit, and that fruit is being processed into oil. In 2016, Pakistan produced less than 20kg of olive oil. By 2023, production had reached 121,000kgs. In Potohar alone, more than half the trees started bearing fruit after 2019. The 2024 projection was about 1,415 tonnes of olive oil worth Rs4.416 billion. This is still small compared to country’s needs, but the growth rate is fast.
To facilitate this, Pakistan has established a foundational industry. Currently, the nation boasts a fairly large network of olive oil extraction facilities, fruit processing plants, nurseries, meteorological stations, and laboratories dedicated to quality testing. Among these, one laboratory specialises in sensory evaluation, assessing taste and aroma to align with international standards. From a single entrepreneur a decade ago, the sector has expanded to encompass over one hundred startups and many businesses focused on olive products. Thousands of women and youth have received training in pruning, harvesting, oil extraction, and packaging, resulting in job creation in rural areas, not just urban centers.
The quality of the products has also seen significant enhancement. Pakistani extra virgin olive oil has begun to earn accolades, with a startup from Pakistan securing a gold medal at the 2026 Dubai International Olive Oil Competition. The previous year, it achieved silver at the New York International Olive Oil Competition and garnered recognition in both London and Berlin. For an emerging industry, such acknowledgments are crucial for facilitating export opportunities.
The primary motivation behind the government’s promotion of olive cultivation is straightforward: to replace imports. Pakistan on average allocates over $3 billion annually for edible oil imports, with the total import expenditure nearing $4.5 billion. Although olive oil currently constitutes a minor fraction of this total, an increase in local production could alleviate the strain on foreign currency reserves. Conversely, officials project that, at full capacity, the olive sector could even yield more than $3 billion each year from olive oil exports. This is the rationale behind initiatives like the “50 Million Olive Tree Tsunami,” of one of the previous governments aimed at transforming barren and underutilized land into productive resources.
Pakistan continues to import olive oil, yet the trend is shifting. In 2021, imports reached a peak of 4,479 tonnes valued at $13.12 million. By 2024, this figure had decreased to 2,050 tonnes worth $9.57 million. The primary suppliers remain Spain, Italy, and Turkey, with Spain being the largest provider of both virgin and non-virgin olive oil.
The drop in imports is linked to higher confidence in local oil. Three years ago, Pakistan also stopped importing olive saplings on large scale because local nurseries could meet demand.
Pakistan has a viable opportunity to cut its $9.57 million olive oil import bill by half through coordinated domestic production, according to Dr Azhar Iqbal, Centre of Excellence for Olive Research and Training (CEFROT), Chakwal, Punjab and widely known as “Dr Olive” for his untiring and unmatched services to the sector. He told this scribe that while imports have declined by around 49 per cent since 2019, the country remains heavily dependent on foreign suppliers, with Spain alone accounting for nearly 72 per cent of the total volume.
Dr Iqbal, one of the pioneers of olive development in the country, said a structured import-substitution strategy can convert this demand into a local market opportunity. “Even a 25 per cent substitution means replacing 513 tonnes with Pakistani olive oil. At 50 per cent, we can substitute 1,025 tonnes annually,” he noted.
He stressed that achieving this requires four key interventions: expanding certified local production, improving processing and quality assurance, building Pakistani olive-oil brands, and strengthening farmer-processor-market linkages.
“Pakistan’s agro-ecology, especially in Balochistan, KP and Punjab, is suitable for olive cultivation. What we need now is certification, branding, and quality control so that consumers trust local oil as much as imported brands,” Dr Iqbal added.
The Olive Research Institute has been leading efforts to develop high-yield orchards and train farmers. Dr. Iqbal said that with policy support and investment in processing, Pakistan can reduce its forex outflow and create rural livelihoods while positioning Pakistani olive oil as a premium domestic product.
Despite advancements, the sector is generally confronted with significant challenges. The first issue is awareness. Numerous farmers remain uninformed about the proper care for olive trees, the optimal harvest times, and the correct methods for oil storage. The second challenge is financial. The installation of drip irrigation and solar tube wells requires substantial investment, and small-scale farmers often rely on loans. The third concern is quality control. Without adequate testing and packaging, olive oil struggles to compete in international markets.
The fourth issue is coordination. Occasionally, high-quality fruit is produced but fails to reach a mill promptly to extract quality oil, or the oil is not bottled and branded effectively.
The future trajectory will hinge on three key factors. First, scale. How can Pakistan speedily realised the potential of achieving the mark of having orchards at 10 million suitable acres. To satisfy local demand and achieve export objectives, the rate of plantation growth must accelerate significantly. Second, market linkages. Farmers require assured buyers, while companies need reliable quality. The existing mills and startups are a promising beginning, but further investment in bottling, branding, and cold storage is essential. Third, policy support. Farmers need subsidies for equipment, accessible credit, and insurance against crop diseases. Laboratories must gain accreditation to ensure that Pakistani oil is accepted internationally without the need for additional testing.