Federal Minister for Maritime Affairs Qaiser Sheikh has stated that 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), where he was welcomed by PVMA Chairman Sheikh Umer Rehan, Port Qasim Authority (PQA) Chairman Moazzam Ilyas, PNSC Chairman Sultan Chawla, Palm Oil Supplier Association President Naveed Gilani, former PVMA Chairman Amjad Rasheed, senior PVMA members Masood Ahmed Pervaiz, Nasir Saleem, Ameen Dada, Basit Ikram, Ahmad Ghulam Hussain and Shakeel Ashfaq.
During the visit, 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 is interested 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. He assured 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 has 12 vessels and plans to acquire four more. He emphasized that alternative solutions, including chartering vessels, would be explored in consultation with the industry. The government will provide the necessary facilities if expanding jetty capacity improves the situation. 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 imports of edible oil amount to $4.5 billion annually, 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 a committee to address industry issues collectively and preferred 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 100 tons of cargo is often lost without accountability due to shipping shortages.
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 port delays result in demurrage payments to foreign companies and suggested that PNSC-chartered vessels could avoid these payments. The event also included speeches by senior PVMA members Amjad Rasheed and Shakeel Ashfaq, who highlighted additional challenges faced by the industry.
Photo Caption: PVMA Chairman Sheikh Umer Rehan presents a shield to Federal Minister for Maritime Affairs Qaiser Sheikh. Also present are PQA Chairman Moazzam Ilyas, PNSC Chairman Sultan Chawla, Palm Oil Supplier Association President Naveed Gilani, Amjad Rasheed, Ameen Dada, Nasir Saleem and others are present.
