Abida Shaheen
Islamabad: Pakistan has returned to the Canadian canola market in a major way, purchasing more than half a million tonnes of the oilseed during the first six months of 2026 after virtually disappearing as a buyer for three years.
Pakistan imported 506,656 tonnes of Canadian canola between January and June, making it the world’s fifth-largest destination for Canadian canola so far this year, behind China, the European Union, Japan and Mexico.
The revival marks a significant turnaround for a market that had been effectively closed to Canadian suppliers between 2023 and 2025 as Pakistan overhauled its regulatory requirements for genetically modified crops.
“We were basically shut out of the market from 2023 to 2025 while Pakistan was making changes to its import requirements for genetically modified crops,” said Chris Davison, president of the Canola Council of Canada.
Pakistan’s regulatory framework was updated in late 2025, followed by the completion of the required government approvals, paving the way for trade to resume.
The scale of the comeback is striking. Canadian canola shipments to Pakistan totalled just 165,128 tonnes in 2025, while there were no imports recorded in 2023 and 2024. Before the interruption, Pakistan had been an important but highly variable market for Canadian suppliers, with annual purchases over the previous decade ranging from 267,016 tonnes in 2022 to 1.35 million tonnes in 2016.
The renewed trade received an additional boost in July when Pakistan and Canada signed a new phytosanitary protocol governing Canadian canola exports to Pakistan. The agreement is expected to make market access more predictable and facilitate smoother shipments between the two countries.
For Canada’s canola industry, the development comes at an important time.
Pakistan’s population of about 259 million, a predominantly young demographic and an expanding middle class make it an attractive long-term market for vegetable oils and other agricultural commodities.
“We’re happy to see Pakistan back importing canola and we look forward to that continuing in the future,” Davison said.
The return of Pakistan is also welcome news for Canadian growers at a time when global demand, domestic processing capacity and production prospects are all shaping the outlook for the 2026-27 marketing year.
Western Producer markets analyst Bruce Burnett described Pakistan’s return as “obviously good news”, noting that competing vegetable oils such as palm oil and soybean oil are currently trading at relatively strong prices.
That could improve the appeal of canola for Pakistani buyers, particularly because of its comparatively high oil content.
A timely boost for Canadian supplies
Canada is entering the new marketing year with substantial canola supplies. Statistics Canada is forecasting 21.6 million tonnes of production in 2026, although some market analysts expect the final crop to be smaller once harvesting gets under way.
Canada also carried 1.73 million tonnes of canola stocks into the new marketing year from the previous campaign.
Burnett expects production to fall short of the official forecast. If that happens, Canada’s ending stocks could also fall below Agriculture Canada’s current projection of 1.5 million tonnes, particularly if export demand from Pakistan and other major markets remains strong.
Agriculture Canada currently expects Canadian canola exports to reach 8 million tonnes in 2026-27, down from an estimated 9.1 million tonnes in the marketing year that has just ended.
Even with the projected decline, exports will remain a crucial outlet for Canadian production.
“The export market remains a critical part of the canola industry,” Davison said.
At the same time, Canada’s domestic crushing industry is expanding rapidly. Domestic canola crush is forecast at 13.7 million tonnes in 2026-27, up from 12.5 million tonnes a year earlier, as increased processing capacity in Regina and Yorkton comes into operation.
That combination of stronger domestic demand and renewed export buying could tighten Canada’s canola balance sheet.
For Pakistan, meanwhile, the reopening of Canadian supplies provides another source of edible oil at a time when global vegetable-oil prices remain firm. For Canada, Pakistan’s return represents more than a rebound in shipments: it restores a sizeable South Asian market that could become increasingly important as the country’s food demand grows.
After three years on the sidelines, Pakistan is once again buying Canadian canola — and the early numbers suggest it has returned as a serious customer.
