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  • Are palm oil prices stabilizing in Pakistan?
  • International palm oil prices have stabilized, having hit record highs last year. Pakistan’s import unit cost for palm oil in December 2022 at $1,043/ton was the lowest in 21 months – having hit a high of $1646/ton six months ago. Import quantities have largely remained unchanged for 1HFY23 despite significant increases in retail prices.
  • What is the export price of palm oil from Pakistan?
  • The export price of Palm Oil from Pakistan reached its highest point in 2022, at $0.65 per kilogram. Looking ahead, it is likely that the export price of Palm Oil from Pakistan will continue to increase in the coming years, with an estimated price of $0.70 per kilogram in 2023 and $0.75 per kilogram in 2024.
  • What is the palm oil refining industry in Pakistan?
  • In 2006, the palm oil refining industry in Pakistan started Malaysian-Pakistan joint venture company i.e. Mapak Edible Oils in Port Qasim. Since then the industry has grown and Pakistan at this moment has more than 15 palm oil refineries with a total production capacity of more than 5,250 tons/day.
  • Should Pakistan replace refined palm oil with crude oil?
  • Pakistan can save a tremendous amount of import bills if it replaces refined palm oil with crude oil as Pakistan is currently capable of refining 1.5 million tons of crude oil annually. Malaysia has 8 percent export duty while Indonesia has 14 percent export duty on crude oil.
  • Are palm oil imports inevitable in Pakistan?
  • Palm oil imports are inevitable for Pakistan at least for the next 10 to 15 years given the demand-supply gap of edible oil, but increasing prices of refined palm oil and Pakistan's dependence on palm oil finished products can lead to a drastic spur in the Agro import bill.
  • Why are palm oil prices so high?
  • The gulf between retail and international prices has never been wider than today. Rebased to July 2021 – palm oil prices have gone up by 69 percent versus a drop of 8 percent in spot prices. Increased distribution costs (190% increase in diesel and petrol prices) and rupee-dollar parity appear the main culprits.