KARACHI: The speakers at the two-day Pakistan Edible Oil Conference highlighted the need to initiate palm oil plants cultivation in the coastal areas of Sindh to increase domestic production of edible oil and to reduce import bill and trade deficit.

The PEOC is being organized in support of Pakistan Vanaspati Manufacturers Association (PVMA), Pakistan Soap Manufacturers Association (PSMA), Pakistan Edible Oil Refiner Association (PEORA), All Pakistan Solvent Extractors’ Association (APSEA), Indonesian Palm Oil Association (IPOA), Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC).

It is the sixth edition of this conference with an aim to promote edible oil industry keeping in view the increasing trade relations with brotherly countries of Indonesia and Malaysia.

All major stakeholders from government and private sector in Pakistan are participating in this conference while high-level delegations from Indonesia and Malaysia have also become the part of this conference to promote edible oil business and to increase bilateral trade with Pakistan.

Caretaker Federal Minister for Commerce and Industries Dr Gohar Ejaz while speaking as a chief guest at the inaugural session of the PEOC invited the private sector to come forward to help the government in self-reliance especially in agriculture sector.

He noted that Pakistan is an agricultural country and it should meet domestic needs through local production.

He said Pakistan is facing huge trade deficit with almost all trading partner countries and the total trade deficit had increased to $43 billion.

The minister suggested palm oil tree cultivation in the country to meet local consumption demand and said the government is ready to allocate required land to cultivate palm oil trees. He said Indonesia and Malaysia are ready for joint venture with local companies for plantation of palm oil tree in Pakistan.

Federal Secretary, Ministry of National Food Security and Research, Muhammad Mahmood, in his speech pointed out that a comprehensive National Oilseed Policy is underway to achieve self-sufficiency in edible oil production, targeting 70 percent of the country’s requirements by 2035.

He said the Oilseed Sector plays a crucial role in the country’s economy, given that over 88 percent of the total edible oil is imported in Pakistan, leading to substantial foreign exchange expenditure.

In the fiscal year 2022-23, Pakistan imported 3.333 million tons of edible oils, spending $4.001 billion and additionally $01 billion on edible oil seed for crushing purpose of poultry meal and edible oil, he said. “Our per capita consumption is 19kg annually, 3kg higher than neighboring countries”, he added.

He pointed out that the government is actively working to reduce the country’s reliance on imports. The area under oilseed crops is growing slowly but it has own challenges. Pakistan has been in substitution transition for decades now and still struggling.

He said the “National Oilseed Enhancement Program” has boosted average yields by 30 percent in the last four years. Financial incentives for sesame and sunflower growers have resulted in incremental increases in production and exports, showcasing the success of strategic interventions.

Secretary Ministry of NFS&R said that the “Promotion of Olive Cultivation on Commercial Scale in Pakistan (Phase-II)” project aims to strengthen local olive nurseries, provide processing facilities, and promote value-added products.

Copyright Business Recorder, 2024

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