Cost of edible oil imports increasing in Pakistan

ISLAMABAD — Pakistan imports the lion’s share of edible oil from Malaysia, around 1.3 million tonnes, in the form of palm oil, to meet domestic demand, said Nasir Ibrahim, a senior member of the Pakistan Vanaspati (edible oil) Manufacturers Association (PVMA) on September 8.

“Pakistan's major oil seed crop is cottonseed, which constitutes 60 to 75 percent of total domestic production,” he said. Other oils consumed by Pakistanis include grapeseed, mustard, sunflower and canola. According to the PVMA, the country registered a record 151,000 tonnes in edible oil import orders for the third quarter of this year, with Malaysian imports topping the list.

“Edible oil imports cost more than US$1 billion annually,” Ibrahim said.

Despite being a predominantly agricultural country, Pakistan does not encourage sufficient seed cultivation to meet its edible oil needs. Most arable land is sown with other crops.

“If we want to save billions in foreign exchange, we must cultivate edible oil seeds on a larger scale,” said Professor Dr. Iftikhar Ahmad Khan of Faisalabad Agriculture University, discussing the country’s inability to meet its own edible oil demand. The government would have to provide financial incentives and technical assistance to the agricultural sector to achieve that objective.

To make optimal use of land currently producing oil seeds, Khan proposes that the government invest in new technologies and research. “There is also a need to [encourage] the private sector [to do more] research and development [on] hybrid seeds, biotechnology and [agro] bio-labs” he stated.