Required for the biosynthesis of sulfolipid-1 (SL-1), a major mycobacterial cell wall lipid (PubMed:17259623, PubMed:17592143, PubMed:22194604). Catalyzes the acylation of trehalose-2-sulfate by adding the palmitoyl group at the 2'-position to yield the intermediate trehalose-2-sulfate-2'-palmitate (SL659) (PubMed:17592143, PubMed:22194604). 2-O-sulfo-alpha,alpha-trehalose + hexadecanoyl-CoA = 2-O-sulfo-2'-O-hexadecanoyl-alpha,alpha-trehalose + CoA kcat is 0.4 min(-1) with trehalose-2-sulfate as substrate. kcat is 0.19 min(-1) with palmitoyl-CoA as substrate. Null mutant does not produce SL-1 (PubMed:17259623, PubMed:17592143). Disruption of the gene does not alter the virulence of M.tuberculosis in mice (PubMed:17592143). Belongs to the PapA acyltransferase family.