Cut in import bill: Need for promoting cultivation of palm oil plants stressed

KARACHI: Pakistan has become the third largest edible oil importer in the world after China and India as the per capita local consumption in Pakistan is 20kg which is much higher than other regional countries.

These views were expressed by Rasheed Janmohammed, a leading edible oil importer and CEO of Pakistan Edible Oil Conference while speaking at inaugural session of the two day event held at local hotel.

It is the sixth edition of PEOC, which is being organised with support of Pakistan Vanaspati Manufacturers Association (PVMA), Pakistan Soap Manufacturers Association (PSMA), Pakistan Edible Oil Refiner Association (PEORA), All Pakistan Solvent Extractors’ Association (APSEA), Indonesian Palm Oil Association (IPOA), Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC).

Palm oil cultivation to help cut import bill, trade deficit: speakers

The Caretaker Federal Minister for Commerce and Industries Dr Gohar Ejaz and Federal Secretary for Ministry of National Food Security and Research Muhammad Mahmood attended the mega event while Karachi Port Trust, Port Qasim Authority, Pakistan National Shipping Corporation and all other major stakeholders from government and private sector in Pakistan also participated in this conference. The high level delegations from Indonesia and Malaysia have also become the part of this conference to promote edible oil business and to increase bilateral trade with Pakistan.

Rasheed Janmohammed said Pakistan’s edible oil imports have grown to 4.50 million tons whereas the local production is only 0.75 million tons.

He was of the view that Pakistan should focus to cultivate palm oil plants in the country to increase local production to reduce import bill. He said coastal areas of Sindh province are best to cultivate Palm Oil plants.

The government had started cultivation of Palm Oil plants in coastal areas in 1996 but the project was under the supervision of government departments. He suggested that the government should invite private sector to initiate this project with all necessary facilities.

He thanked all the guests, government authorities, ports managements and foreign delegates who attended this very important conferment to boost edible oil trade.

Eddy Martono, Chairman of the Indonesian Palm Oil Association, while speaking at this conference said the Indonesia’s trade with Pakistan in 2022 recorded total exports for all products worth $4.3 billion and imports worth $188 million. Specifically, for palm oil trade, Indonesia exports more than 2.78 million tons of palm oil and its derivatives are worth $3.1 billion. As of October 2023, the Indonesian palm oil export to Pakistan has reached 2.24 million tons worth of $2.1 billion.

He said Pakistan is a potential market to Indonesia especially for palm oil. Both Indonesia and Pakistan have considerable trade potential that may be leveraged to benefit both parties.

“I will encourage Indonesia and Pakistan to keep up its collaboration in palm oil trade and sustainability through expediting the Indonesia – Pakistan Trade in Good Agreement”, he said.

He said Indonesia and Pakistan have had a preferential trade agreement since 2013, and the two countries are now negotiating to expand the agreement into a Trade in Goods Agreement. The Trade in Goods Agreement will cover all tariff lines between Indonesia and Pakistan to provide maximum benefits for both countries. “We do hope that both governments can expedite this agreement to be completed”, he said.

Copyright Business Recorder, 2024