Pakistan to receive edible oil shipments from Indonesia, Malaysia

Pakistan to receive edible oil shipments from Indonesia, Malaysia

Pakistan to receive edible oil shipments from Indonesia, Malaysia

Russia becomes India’s second-biggest oil exporter (credits:google)

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ISLAMABAD: Ten shiploads of edible oil from Indonesia and Malaysia will arrive in Pakistan within the next two weeks to avoid shortage of the commodity in the country.

The major development was achieved after Prime Minister Shehbaz Sharif held a telephonic conversation with Indonesian President Joko Widodo on June 10.

Upon the direction of the prime minister, a Pakistani delegation held successful negotiation with the Indonesian ministry of trade for the import of edible oil.

Minister for Commerce and Production Syed Murtaza Mahmood met his Indonesian counterpart Mr Muhammad Lutfi in Jakarta. The visiting delegation also included Pakistan Vanaspati Manufacturers Association chairman Tariqullah Sufi and Rashid Jan Muhammad.

A shipload of 30,000 metric tons edible oil would sail for Pakistan today (Tuesday) A total of 0.25 million metric tons of edible oil is being supplied to Pakistan from Indonesia.

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The objective of the visit was to minimize the impact of the recent decision of the Government of Indonesia to ban the export of palm oil on Pakistan’s economy and ensure the steady flow of the commodity in the Pakistani market.

Pakistan is the third-largest importer of Indonesian Palm Oil. In 2021, Pakistan had imported 2.78 million tonnes of palm oil from Indonesia.

The minister underscored that Pakistan was heavily dependent on Indonesian palm oil. He informed the Indonesian minister of the situation of edible oil in Pakistan and mentioned the ban adversely affected edible oil stocks in Pakistan.

READ MORE: Indonesia issues around 302,000 tonnes of palm oil export permits

He informed that even after the ban was lifted on 23 May, exporters are still facing regulatory and logistical bottlenecks. He urged his Indonesian counterpart to facilitate the earliest resumption of palm oil shipments to Pakistan.

The Indonesian minister assured that Indonesia attached great importance to its relations with Pakistan and was ready to ensure an uninterrupted flow of palm oil to Pakistan. He further stated the first shipment of palm oil to Pakistan was expected to sail the next day.

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The Indonesian minister also assured that Pakistan would be the first country to which the commodity will be exported, after the promulgation of new export regulations.

Both discussed bilateral economic and trade relations. Minister Mahmud underscored the urgency of bridging the huge trade imbalance between the two countries.

The two ministers identified SMEs, agriculture, tourism, industrial joint ventures, and other non-traditional sectors as possible areas of collaboration. Minister Lutfi agreed to visit Pakistan to discuss these issues with his Pakistani counterpart.

Minister Mahmud also met Minister of Industries Mr Agus Gumiwang Kartasasmita and exchanged views on bilateral cooperation in the industrial sectors, particularly in the production of e-vehicles, cell phones, electronics, and agro-based industries.

He highlighted the potential of investment in Pakistan in various sectors, and opportunities emerging from SEZs. He invited the Indonesian businessmen and entrepreneurs to invest in Pakistan.

The visit was timely to secure the resumption of the export of Indonesian Palm Oil to Pakistan and avoid a shortage of the commodity in the market. Two shipments of palm oil carrying 30,000 and 27,000 would leave for Pakistan today. Another 8 shipments are expected to reach Karachi before the end of June 2022.

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