PALMOILMAGAZINE, KARACHI – Abdul Rasheed Janmohammed, CEO of the Westbury Group, highlighted significant challenges faced by Pakistan, the world’s largest consumer of vegetable oil, during the Pakistan Edible Oil Conference (PEOC).
According to Janmohammed, Pakistan’s annual requirement for vegetable oil stands at approximately 4.5 million tons, but the country’s domestic production falls significantly short at 0.75 million tons.
To compensate for this shortfall, Pakistan heavily relies on imports, with approximately 90% of the required 3 million tons being palm oil, primarily sourced from Indonesia.
Also Read: Palm Oil Production Growth in Indonesia, Yet Exports Anticipated to Drop by 4% in 2024
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. 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. “Pakistan is a potential country. I believe that this would keep developing. We have to notice and develop more cooperation trade which delivers advantages for both countries,” Eddy said, as in the official statement to Palmoilmagazine.com, Tuesday (16/1/2024).
Pakistan is unable to independently fulfill its vegetable oil needs. Trade agreement with Indonesia would be strategic key to escalate palm oil export volume to Pakistan, create opportunities for both countries which would be delivering profits. But there are some aspects to be considered to face the challenges. (T2)
