InfoSAWIT, KARACHI - Pakistan, as the big vegetable oil consumer in the world, seriously faces issues in fulfilling its domestic needs. It was told by Abdul Rasheed Janmohammed, CEO Westbury Group in Pakistan Edible Oil Conference (PEOC).
He thought, Pakistan would need about 4,5 million tons vegetable oil per year but the country’s production reached 0,75 million tons only. As the substitute, about 3 million tons or about 90% palm oil should get imports, namely from Indonesia.
Chairman of Indonesian Palm Oil Association (IPOA), Eddy Martono delivered description that for instance, in 2022, palm oil and its derivative product exports from Indonesia to Pakistan reached 2,78 million tons or equal to 3,1 billion US dollar.
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 InfoSAWIT, 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)