Pakistan's Biggest Food Import: Palm Oil Worth $4.5 Billion Worsens Trade Deficit

[RiazHaq]

Pakistan's Biggest Food Import: Cooking Oil Worth $4.5 Billion Worsens Trade Deficit

Rising demand and soaring prices of cooking oil raised Pakistan's edible oil import bill to $4.5 billion in fiscal year 2021-22, according...

www.southasiainvestor.com

Rising demand and soaring prices of cooking oil raised Pakistan's palm oil import bill to $4.5 billion in fiscal year 2021-22, according to government sources. Pakistan is the world's third largest importer of palm oil after India and China. Pakistan's palm oil imports are the second biggest commodity import after more than $20 billion in energy imports, accounting for a significant chunk of Pakistan's growing trade and current account deficits.

Sources of Palm Oil Imports in Pakistan. Source: Dawn

Pakistan's edible oil consumption has been rising over the years. It is now about 24 Kg per person which is among the highest in the world, according to analysts quoted by Dawn newspaper. Combined with rising prices, the total imports of palm oil could exceed $6 billion next year. It could further worsen the country's balance of payments problems. Is Pakistan doing anything to try to grow oil palms in the country? Researchers at the Institute of Business Administration (IBA) in Karachi have studied it and reported the following:

"Based on our research, visits and interviews it was determined that in Pakistan there are ample opportunities and favorable conditions for growing oil-palm trees. Report findings suggest that the coastal belt of Sindh has proven capability of growing oil-palm trees with a per acre yield comparable to that in major oil palm growing countries due to plenty of fertile land, irrigation water courses, supply of fertilizers, and skilled farmers available in this part of land".

Sindh Coastal Development Authority (CDA) has recently announced plans to plant 60,000 oil palm trees on an area of 1,000 acres in the current fiscal year. An earlier project in 2020 showed that the oil content of palm fruit from Sindh's plantation in Thatta is 2% higher than the world average.

Southern Indian state of Telangana has launched a much more ambitious project to plant palm oil trees on 2 million acres of land in the next four years. To achieve this goal, the state has plans to build large dams and irrigation canals and import millions of germinated sprouts.

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Pakistan's Biggest Food Import: Cooking Oil Worth $4.5 Billion Worsens Trade Deficit

Rising demand and soaring prices of cooking oil raised Pakistan's edible oil import bill to $4.5 billion in fiscal year 2021-22, according...

www.southasiainvestor.com

 

[Maula Jatt]

I wonder if we can import substitute palm oil and/or substitute it with some other oil we are surplus in like olive oil

 

[jamal18]

Don't we have enough land to grow and make our own?

 

[Maula Jatt]

Don't we have enough land to grow and make our own?

I don't think so, Palm trees are more of a tropical country phenomen
We are not a tropical country

Out of 3 big importers only India is in the tropics

Or can Sindh, Balochistan produce enough palm oil?

 

[hussain0216]

Sindh Coastal Development Authority (CDA) has recently announced plans to plant 60,000 oil palm trees on an area of 1,000 acres

Southern Indian state of Telangana has launched a much more ambitious project to plant palm oil trees on 2 million acres of land in the next four years

Yep, sounds about right, we always think small, let a problem fester until it's too late

 

[Maula Jatt]

Yep, sounds about right, we always think small, let a problem fester until it's too late

They won't even get the 60k palm trees right

They're corrupt and incompetent - if they were competent you'd still tolerate em

 

[Sayfullah]

I don't think so, Palm trees are more of a tropical country phenomen
We are not a tropical country

Out of 3 big importers only India is in the tropics

Or can Sindh, Balochistan produce enough palm oil?

Sindh has many areas where palm oil trees can grow. Many times the Gov will launch a pilot project grow a few trees then abandon it later even though it was successful. Government tried convincing local farmers to plant them and sold them seeds/saplings but that’s all they did and didn’t support any farmer so those crops failed because without government support it’s not possible.
Many areas of sindh have proven to be able to grow palm oil trees and there have been successful palm oil trees grown in sindh.

Sindh Coastal Development Authority (CDA) has recently announced plans to plant 60,000 oil palm trees on an area of 1,000 acres in the current fiscal year. An earlier project in 2020 showed that the oil content of palm fruit from Sindh's plantation in Thatta is 2% higher than the world average.

They’ve been doing such projects for a while now just to abandon or neglect it few years later even when it gives high yields.

 

[White privilege]

Itna shoq hai tou koi aur tel istemal karlo, aziz hum watnon.

 

[Imran Khan]

our stupid habbits

 

[Kharral]

Pakistan's Biggest Food Import: Cooking Oil Worth $4.5 Billion Worsens Trade Deficit

Rising demand and soaring prices of cooking oil raised Pakistan's edible oil import bill to $4.5 billion in fiscal year 2021-22, according...

www.southasiainvestor.com

Rising demand and soaring prices of cooking oil raised Pakistan's palm oil import bill to $4.5 billion in fiscal year 2021-22, according to government sources. Pakistan is the world's third largest importer of palm oil after India and China. Pakistan's palm oil imports are the second biggest commodity import after more than $20 billion in energy imports, accounting for a significant chunk of Pakistan's growing trade and current account deficits.

​

Sources of Palm Oil Imports in Pakistan. Source: Dawn

Pakistan's edible oil consumption has been rising over the years. It is now about 24 Kg per person which is among the highest in the world, according to analysts quoted by Dawn newspaper. Combined with rising prices, the total imports of palm oil could exceed $6 billion next year. It could further worsen the country's balance of payments problems. Is Pakistan doing anything to try to grow oil palms in the country? Researchers at the Institute of Business Administration (IBA) in Karachi have studied it and reported the following:

"Based on our research, visits and interviews it was determined that in Pakistan there are ample opportunities and favorable conditions for growing oil-palm trees. Report findings suggest that the coastal belt of Sindh has proven capability of growing oil-palm trees with a per acre yield comparable to that in major oil palm growing countries due to plenty of fertile land, irrigation water courses, supply of fertilizers, and skilled farmers available in this part of land".

Sindh Coastal Development Authority (CDA) has recently announced plans to plant 60,000 oil palm trees on an area of 1,000 acres in the current fiscal year. An earlier project in 2020 showed that the oil content of palm fruit from Sindh's plantation in Thatta is 2% higher than the world average.

Southern Indian state of Telangana has launched a much more ambitious project to plant palm oil trees on 2 million acres of land in the next four years. To achieve this goal, the state has plans to build large dams and irrigation canals and import millions of germinated sprouts.

Related Links:

Haq's Musings

South Asia Investor Review

Pakistan's Expected Demographic Dividend

Pakistan's Social Sector

World Bank: Pakistan Reduced Poverty, Grew Economy During Covid19 Pandemic

Surging Global Food Prices Amid Covid Pandemic

Pakistan's Balance of Payments Crisis

Panama Leaks in Pakistan

Olive Revolution in Pakistan"

Nay Pakistan Sehat Card: A Giant Step Toward Universal Healthcare

Prime Minister Imran Khan's Effectiveness as Crisis Leader

India in Crisis: Unemployment and Hunger Persists After Waves of Covid

Riaz Haq's Youtube Channel

PakAlumni Social Network

Pakistan's Biggest Food Import: Cooking Oil Worth $4.5 Billion Worsens Trade Deficit

Rising demand and soaring prices of cooking oil raised Pakistan's edible oil import bill to $4.5 billion in fiscal year 2021-22, according...

www.southasiainvestor.com

An overwhelming majority of establishment is of Teli biradri and we are still not self sufficient in edible oil ?

Teli sarey Jernail, Judge, Bureaucrat te real estate magnate ban gaye ne te Tel kithu poora hona aey.

Anni pee raii aur kutti chat raii aey

 

[jamal18]

I don't mean specifically Palm oil. How about corn oil, or any vegetable oil?

I believe that Olive oil would be too expensive.

 

[Wood]

I wonder if we can import substitute palm oil and/or substitute it with some other oil we are surplus in like olive oil

Palm oil is preferred by restaurants and street vendors because it is cheap. Olive oil on the other hand is expensive.

There is no economically viable alternative to Palm oil for poor countries. Pakistan can invest to produce palm oil domestically, but that will also come with environmental impact. Generally, environmentalist frown upon Palm trees as it usually comes at the price of deforestation.

 

[Iron Shrappenel]

I wonder if we can import substitute palm oil and/or substitute it with some other oil we are surplus in like olive oil

We can really double down on olive growth. It suits potohar region and we might even have export potential

T

our stupid habbits

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View attachment 867920

Technically this shouldn't be palm oil though...

 

[Indos]

Olive oil is the solution for Pakistan. Olive oil as far as I know is match with Pakistan climate which is quite dry with less rain, something similar with Palestinian land where olive oil farming is quite large.

Palm oil is preferred by restaurants and street vendors because it is cheap. Olive oil on the other hand is expensive.

There is no economically viable alternative to Palm oil for poor countries. Pakistan can invest to produce palm oil domestically, but that will also come with environmental impact. Generally, environmentalist frown upon Palm trees as it usually comes at the price of deforestation.

All farming is responsible on deforestation dude, no where on Earth you can easily add land except by expensive reclamation project.

 

[ziaulislam]

Don't we have enough land to grow and make our own?

We do