Pakistan is developing a roadmap to eliminate imports of vegetable oils

Edible oils account for the largest share of Pakistan’s food imports, amounting to a staggering $3 billion a year, fueled by demand that has more than doubled over the past two decades. However, domestic production remains negligible, illustrating a systemic governance problem, Pakistan’s dependence on imported edible oil, especially palm oil, highlights the alarming neglect of local oilseed production, Business Recorder reported.

The State Bank of Pakistan report highlighted the lack of a consistently implemented oilseed policy as the root cause of financial imbalance, leading to a cascade of problems. Lack of government support discourages farmers from cultivating them and inefficient oil extraction methods exacerbate the problem, the report said. Experts have compiled a list of recommendations to the government to reduce dependence on imported oilseeds.

Competing demands for arable land and the dominance of staple crops leave little room for oilseeds. Even when they are cultivated, their yields are well below potential due to sub-optimal farming practices and limited access to specialized machinery for planting and harvesting. The situation is also exacerbated by a shortage of high-quality seeds suited to local conditions, analysts list the problems.

Historically, Pakistan has struggled to build institutional support for oilseed development. The dissolution of the Pakistan Edible Oil Corporation in 1979, followed by the unsustainable operation of the Pakistan Oilseeds Development Board, reflects an inconsistent approach to this critical sector. Although the council was reconstituted in 2021 under a new name, its current impact remains negligible.

Strategic policy on vegetable oils should prioritize domestic production of oilseeds such as sunflower, rapeseed and soybeans. Unlike palm oil, which takes at least 10-15 years to generate substantial returns, these crops offer shorter-term solutions, the report said. While the current outlook for domestic palm oil production is bleak, in the long term Pakistan cannot ignore the potential of oil palm cultivation. Analysts cite the success of Malaysia’s and Indonesia’s palm oil strategies, but also urge not to ignore the country’s agro-climatic peculiarities.

“While it is unrealistic to expect complete self-sufficiency in edible oil production, reducing import bill by even a small fraction would significantly ease Pakistan’s economic burden. This is a challenge that policymakers can no longer afford to ignore,” the report summarizes.

Earlier, it was reported that the government of Pakistan conducted the first sowing of rapeseed on an area of more than 0.85 million hectares and sunflower on an area of more than 0.77 million hectares this year.

Tags: Pakistan, soybean, sunseed, rapeseed, edible oils