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  • Are palm oil imports inevitable in Pakistan?
  • Palm oil imports are inevitable for Pakistan at least for the next 10 to 15 years given the demand-supply gap of edible oil, but increasing prices of refined palm oil and Pakistan's dependence on palm oil finished products can lead to a drastic spur in the Agro import bill.
  • What is the palm oil refining industry in Pakistan?
  • In 2006, the palm oil refining industry in Pakistan started Malaysian-Pakistan joint venture company i.e. Mapak Edible Oils in Port Qasim. Since then the industry has grown and Pakistan at this moment has more than 15 palm oil refineries with a total production capacity of more than 5,250 tons/day.
  • Why is palm oil a natural and economic choice for Pakistan?
  • Amid rising demands of edible oil and stunted local production, palm oil is a natural and economic choice for Pakistan due to its affordability, accessibility, and availability.
  • Why does Pakistan import palm oil & soybeans?
  • Pakistan’s major imports of palm oil and soybean are a result of increasing per capita consumption of edible oil currently standing at 24 kg (Rehman, 2020). The agriculture sector struggles to cater to the domestic demand for edible oil and is highly dependent on the imports of oilseeds and refined palm oil.
  • 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.