KARACHI: Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan has urged the government to urgently implement a comprehensive edible oil policy aimed at boosting local production and reducing the country’s heavy reliance on imports. Such a policy, he emphasised, is crucial for mitigating the impact of global market fluctuations.
Pakistan depends on imports for 90 per cent of its edible oil needs, making it the third-largest palm oil importer globally. Domestic production accounts for only 10 per cent of the country’s total demand.
Mr Rehan expressed concern over recent developments in Indonesia, the world’s largest palm oil producer, where new legislation mandates that 40pc of palm oil be diverted for biodiesel production. This shift has disrupted global supplies, pushing prices higher and creating challenges for import-dependent countries like Pakistan.
“The reduction in global supply and rising prices, particularly from Indonesia, pose significant risks to Pakistan’s edible oil industry,” he warned, adding that without preemptive measures, these issues could severely impact local industries and lead to shortages.
The PVMA chairman called on Prime Minister Shehbaz Sharif and Minister for Commerce Jam Kamal Khan to prioritise the issue, stressing its importance for food security.
He also recommended that Pakistan leverage its position as a major importer to influence global pricing and urged the government to introduce policies that incentivise local production and investment in the edible oil sector.
Published in Dawn, November 17th, 2024
