The Pakistan Vanaspati Manufacturers Association (PVMA), led by its Chairman Sheikh Umer Rehan, held a meeting with Federal Minister for Commerce Jam Kamal Khan, highlighting critical challenges facing the edible oil industry and proposing measures to enhance its sustainability and global competitiveness.
At a recent meeting, Sheikh Umer Rehan emphasized the critical need for a comprehensive edible oil policy to mitigate Pakistan’s significant dependence on imports, which currently fulfill 90 percent of the nation’s edible oil demand.
“A robust policy is essential to boost local production and shield the economy from global market disruptions,” he emphasized.
Rehan expressed concern over Indonesia’s new legislation mandating that 40 percent of palm oil be diverted to biodiesel production.
He explained that this policy has disrupted global supplies, causing price hikes that significantly impact Pakistan, the third-largest importer of palm oil globally. “The rising prices and reduced availability of palm oil from Indonesia pose severe risks to Pakistan’s food security and local industries,” he warned.
The chairman called on the government to leverage Pakistan’s status as a major importer to negotiate favorable terms with global suppliers. He also urged a reduction in import duties and taxes on edible oil sourced from Malaysia and Indonesia to stabilize prices for local consumers.
The PVMA proposed expanding export opportunities for Pakistani edible oil products to markets in the Middle East and the United States through sea routes.
Highlighting barriers in the existing Free Trade Agreements (FTA) and Preferential Trade Agreements (PTA) with Malaysia and Indonesia, Mr. Rehan called for a reduction of at least 50% in import duties on soybean and sunflower during Prime Minister Shehbaz Sharif’s upcoming visit to these countries.
