Thus, palm oil can be a burden for Pakistan if imported without intervention on an international level and can be a breather if the crude palm is imported and utilized effectively to meet the edible oil requirements until Pakistan becomes self-sufficient in oilseed production and solvent extraction.
Why does Pakistan import palm oil?
Palm oil is Pakistan’s largest food import item with a 30 percent share in agro imports and the country¡¯s second-biggest import after petroleum. The bulk imports are a consequence of Pakistan¡¯s increasing per capita consumption of edible oil, and the inability to produce adequate quantities of edible oil domestically.
Does Pakistan import palm oil from Indonesia?
Pakistan imports 75 percent of palm oil products from Indonesia under the Preferential Trade Agreement, whereas it imports 25 percent of palm oil products from Malaysia under the Free Trade Agreement. Despite these agreements, Pakistan faces high export duties on crude palm oil and increasing prices of refined palm oil.
Should Pakistan replace refined palm oil with crude oil?
Pakistan can save a tremendous amount of import bills if it replaces refined palm oil with crude oil as Pakistan is currently capable of refining 1.5 million tons of crude oil annually. Malaysia has 8 percent export duty while Indonesia has 14 percent export duty on crude oil.