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Pakistan Business Leaders Urge Indonesia to Delay B40 Biodiesel Implementation



Doc. Special / Secretary General of CPOPC, Rizal Affandi Lukman attending the Pakistan Edible Oils Conference (PEOC) in Pakistan.
Pakistan Business Leaders Urge Indonesia to Delay B40 Biodiesel Implementation

InfoSAWIT, KARACHI – The Pakistan Edible Oils Conference (PEOC), an annual event that brings together global vegetable oil market experts, has highlighted the dynamics of supply and demand for vegetable oils, particularly in the Pakistani market. The conference focused on Indonesia's dominance in palm oil and the negative perceptions surrounding this product in Pakistan.

Pakistan relies on imports for 83% of its vegetable oil needs, with 76% of that supply coming from palm oil. Indonesia plays a dominant role, supplying 90%-92% of Pakistan's palm oil needs, while the remainder is sourced from Malaysia.

In his opening speech, PEOC CEO Abdul Rasheed Jan Mohammad conveyed an important message to Indonesia regarding the planned implementation of B40, which involves increasing the palm oil-based biodiesel blend to 40%. He urged Indonesia not to rush the transition from B35 to B40, emphasizing the importance of stable palm oil supplies for food security in Pakistan.

"Pakistan is heavily dependent on Indonesian palm oil to meet domestic needs. This supply stability is crucial for our food security," Abdul Rasheed stated in information obtained by InfoSAWIT on January 22, 2025.

Despite palm oil's dominance in the domestic market, Pakistan's Federal Minister for Industries and Production, Rana Tanveer Hussain, expressed concerns about the negative perceptions of palm oil among the Pakistani public. He noted that this stigma could affect consumer preferences and pose challenges for the industry. To address this issue, Rana Tanveer expressed willingness to engage with relevant ministries to raise awareness about the benefits of palm oil.

"We need to change this perception. Palm oil is a vital component of the national food supply chain, and the government is ready to help improve this image," Rana Tanveer stated.

As one of the world's largest palm oil importers, Pakistan faces significant challenges in maintaining a stable supply while addressing negative perceptions. On the other hand, Indonesia's dominance in meeting this demand presents opportunities for closer cooperation between the two countries.

With substantial palm oil consumption, PEOC 2025 is expected to produce strategic recommendations to ensure supply stability and improve public perception of palm oil as an essential part of Pakistan's food security. (T2)


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