Palm oil is Pakistan’s largest food import item with a 30 percent share in agro imports and the country’s second-biggest import after petroleum. The bulk imports are a consequence of Pakistan’s increasing per capita consumption of edible oil, and the inability to produce adequate quantities of edible oil domestically.
Is palm oil a burden for Pakistan?
Thus, palm oil can be a burden for Pakistan if imported without intervention on an international level and can be a breather if the crude palm is imported and utilized effectively to meet the edible oil requirements until Pakistan becomes self-sufficient in oilseed production and solvent extraction.
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.
How much palm oil does Pakistan import in October 2023?
The numbers meant that Pakistan depended on palm oil imports. Though they decreased up to 2,24 million tons or equal to 2,1 billion US dollar in October 2023, Pakistan would still become the potential interesting country. Eddy also told the increasing trade in Pakistan and emphasized to get trade cooperation with the country.
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.
How much palm oil does Indonesia export to Pakistan?
Eddy Martono, Chairman of the Indonesian Palm Oil Association (IPOA), provided insights into the trade dynamics, revealing that in 2022, Indonesia exported 2.78 million tons of palm oil and its derivatives to Pakistan, amounting to a total value of 3.1 billion US dollars. The numbers meant that Pakistan depended on palm oil imports.