Minister for setting up new jetty for edible oil after consultations

KARACHI: Federal Minister for Maritime Affairs, Qaiser Sheikh, has stated that the proposal for establishing a dedicated new jetty for edible oil is feasible and will be considered after consultations with all stakeholders.

He emphasized that importing edible oil through Pakistan National Shipping Corporation (PNSC) vessels would help save valuable foreign exchange. Additionally, he confirmed that tax exemptions for FATA and PATA would not be extended in the upcoming budget. He made these remarks during his visit to the Pakistan Vanaspati Manufacturers Association (PVMA).

Qaiser Sheikh announced the formation of a committee comprising representatives from PVMA, Port Qasim, PNSC, and the Ministry of Maritime Affairs to address industry concerns and formulate solutions. He also revealed that MERSK Lines has expressed interest in investing $2 billion in Pakistan’s port and shipping infrastructure.

He acknowledged that demurrage charges at ports were causing significant financial losses to the industry and assured that the government and the Ministry of Maritime Affairs were committed to resolving these issues. With the presence of PQA Chairman Moazzam Ilyas and PNSC Chairman Sultan Chawla, he said solutions could be developed through mutual consultation.

Qaiser Sheikh stated that PNSC currently has 12 vessels and plans to acquire four more. He emphasized that in consultation with the industry; alternative solutions would be explored, including chartering vessels. If expanding jetty capacity improves the situation, the government is willing to provide the necessary facilities. He also assured PVMA members that steps would be taken to ensure the release of their blocked payments at utility stores.

PVMA Chairman Sheikh Umer Rehan highlighted that the vanaspati manufacturing sector is the second-largest tax-paying industry in Pakistan, contributing PKR 800 billion annually. He stated that edible oil imports amount to $4.5 billion each year, primarily sourced from Indonesia and Malaysia. However, current shipments operate on a cost-and-freight basis, leading to delays and additional demurrage charges.

He urged for a committee to address industry issues collectively and expressed a preference for importing palm oil through PNSC ships. He pointed out that Pakistan’s annual edible oil demand stands at 3.5 million tons and is projected to exceed 5 million tons in the next five years. He also noted that the shipping sector incurs charges of $40–50 million annually and that due to shipping shortages, 100 tons of cargo is often lost without accountability.

Sheikh Umer Rehan stressed the need to increase the number of berths at Karachi Gateway Terminal and Port Qasim, as only one jetty is currently used for unloading edible oil, causing delays. He urged the government to allocate berths on a “first-come, first-served” basis. He also mentioned that 70% of land in the Port Qasim Industrial Zone remains unutilized and suggested that land allocated to inactive industries should be reclaimed and reassigned to serious investors. He stated that PVMA members from Punjab are interested in acquiring land at Port Qasim but face high costs and limited availability.

Port Qasim Authority Chairman Moazzam Ilyas clarified that MW-1 Jetty is designated for rice exports, while the capacity for edible oil imports is 3.5 million tons, which is currently underutilized.

He urged stakeholders to maintain transparency and avoid corruption.

PNSC Chairman Sultan Chawla assured that the corporation is committed to supporting PVMA and other industrial stakeholders, and arrangements are being made to secure funding for new vessels.

He added that with stakeholder consultation, chartering vessels or adopting alternative measures will be considered to save foreign exchange.

Palm Oil Supplier Association President Naveed Gilani pointed out that delays at ports result in demurrage payments to foreign companies and suggested that if PNSC chartered vessels, these payments could be avoided.

The event also included speeches by senior PVMA members Amjad Rasheed and Shakeel Ashfaq, who highlighted additional challenges faced by the industry.

Copyright Business Recorder, 2025