CPO Gets More Expensive, Pakistan’s Trade Balance in Deficit

Foto by Hendra/sawitfest 2021
CPO Gets More Expensive, Pakistan’s Trade Balance in Deficit

InfoSAWIT, ISLAMABAD – Expensive crude palm oil (CPO) makes Pakistan’s trade balance deficit. That is why the government of Pakistan tries to solve inflation and the increasing foreign loan.

Vegetable oil is one important food source in the country. 80 to 90 percent of the total vegetable oil demands are from palm oil which is imported by Indonesia and Malaysia.

According to United States Department of Agriculture, palm cooking oil consumption per capita in Pakistan reached 24 kilograms. Palm oil is used in many products, such as, vanaspati ghee, chocolate, soap, and other bread products.

As quoted from Daily Times, the developing country, such as, Pakistan with fragile economy really depends on international supports and conditional program from International Monetary Fund (IMF) that the country gets many sides economic impacts. The increasing inflation, expensive power, and gas needs must be fulfilled by limit.

It is predicted, food material imports in Pakistan will drastically increase in 2021 – 2022 if compared to the previous period. This is known from the increasing food need value in July – September 2021 that increased 66,11% to be US$ 18,74 billion while last year in the same period, it reached only US$ 11,28 billion.

Until now, the negotiation between the government and stakeholders in Pakistan has no agreement for rupee exchange to dollar gets increasing and also for duty and tax rationalization on vegetable oil imports, namely palm oil which reached 90% of the total imports.

As quoted from Asian News International (ANI), the government is in force to take action on modifying trade agreement which was signed with Indonesia and Malaysia to get special treatment about palm oil exports to Pakistan. (T2)