Pakistan has become the fourth largest market for cooking oil after China, India and United Arab Emirates and third largest importer of the commodity at globe, experts said at a conference on Saturday. Increasing imports of the edible demands setting up of one more import terminal at sea ports, they said at a one-day conference on Pakistan Edible Oil Conference (PEOC) and exhibition held at a local hotel.
“The import of crude and refined cooking oil has increased to 2.6 million tons per annum in Pakistan, while the country imports 2.2 million tons oil seeds every year,” Abdul Rashed Jan Muhammad, Chief Executive Officer, POEC said at the conference. The imports help the country meets around 75% domestic needs. Remaining 25% need is met through locally produced banola and mustered oils.
Pakistan imports crude and refined cooking oils (palm and palm olein) mainly from Malaysia and Indonedia, while it imports soybean oil from North America and Brazil. Experts said that Pakistan has so far invested Rs50 billion in import, processing and storage industries of the edible oil. And they estimated a similar quantum of investment in the years to come. “The revival of the local economy, increased disposable income, surging demand of cooking oil and population have created avenues for more investment in the {edible oil} industry in the country,” said SM Muneer, Chief Executive Officer, Trade Development Authority of Pakistan, who was chief guest of the conference.
Sheikh Amjad Rafique, a speaker in the conference, said Malaysia has imposed taxes on export of the oil to Pakistan. “This is negation of Free Trade Agreement (FTA) between Pakistan and Malaysia,” he said. He demanded of the Pakistan’s government to engage with Malaysia government to remove this anomaly in FTA and exploit full benefit of the agreement in place. In addition to this, POEC-CEO added, approximately 30% cost of the import of the oil is comprised of taxes that importers pay at Pakistan’s sea ports. “The government should rationalize the taxes,” he said.
Zubair Tufail, President, Federation of Pakistan Chambers of Commerce and Industry, said that per capital consumption of cooking oil in Pakistan is the highest one at world across.
He said Malaysia and Indonesia remained two big sources of import of the oil into the Pakistan. “The two counties should open their markets for Pakistani products to create balance of trade with Pakistan,” he said. He asked Malaysia and Indonesia to increase investment in the edible oil industry in Pakistan, as they can take benefit of transit trade to Afghanistan and Central Asian Counties via Pakistan.
Dr. James Fry, Chairman of LMC, which is a research institute of UK, said fluctuation in production, demand and price of edible oils has a direct link with crude fuel oils at world. “The production and supply of palm oil would increase in 2017,” he said. Exports also spoke at the conference were from the countries, including USA, France, Malaysia and Indonesia.
The conference was jointly organized by Pakistan Vanaspati Manufacturers Association (PVNA), All Pakistan Solvent Extractors Association (APSEA), Pakistan Edible Oil Refiners Association (PEORA) and Pakistan Soap manufacturers Association (PSMA).