Although the cost of production of palm oil in Pakistan shall be very high in comparison to Malaysia’s and Indonesia’s, yet it is feasible, because of the production of crude palm oil, refineries shall start processing and Pakistan shall be able to cater its domestic palm oil requirements to a great extent.
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.
Is palm oil a burden for Pakistan?
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.
How much crude oil does Pakistan Eat?
Pakistan is capable of consuming 1.5 million tons of crude oil but only a thousand tons were imported in 2020. The crude will not only produce refined palm oil but will also produce palm fatty acid distillate (PFAD) and palm stearin which are major imports of Pakistan.
How much palm oil does Pakistan import a year?
According FY2020-2021(WeBOC), Pakistan imported 3.5 million tons of palm oil including refined oil and crude oil. Approx. 190 thousand tons of crude oil and 3.3 million tons of refined oil were imported. Pakistan currently has the capacity to refine 1.5 million tons of crude palm oil annually.
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.