KARACHI: The cost of Pakistan edible oil imports has gone up immensely in the recent months. The country’s imports of cooking oil reached $3.56 billion in the first 11 months of the last fiscal year 2021-22.
According to latest data of the Pakistan Bureau of Statistics (PBS), the edible oil imports were 44% or $1.1 billion higher compared to $2.47 billion in the same 11 months of fiscal year 2020-21.
Besides, the price of cooking oil shot up close to Rs550 per liter in the domestic market compared to around Rs200 per liter in January 2019, according to the PBS.
The State Bank of Pakistan (SBP) in its latest quarterly report on the State of Pakistan’s Economy for the first quarter (Jul-Sept) of the just ended FY22, said “Pakistan’s reliance on imports of edible oil and oilseed meals to meet domestic demand has been increasing over the past two decades. Some 86% of domestic edible oil consumption in 2020 came from imports, up from 77% in 2000.”
Meanwhile, the pilot projects initiated for growing palm and soybean plants in the country failed to deliver satisfactory results, as a result, the country is increasingly relying on imports as the demand has been growing with population’s increase.
However, the latest pilot projects undertaken in Sindh to grow palm trees have shown promising results and studies suggest Balochistan also has the land and atmosphere to grow palm trees.
According to research, Punjab, Khyber-Pakhtunkhwa and Gilgit-Baltistan are among the regions suitable for soybean cultivation.
The central bank said in a research study that the pilot projects could go commercial if the government gave a policy and showed consistency as well.
Edible oil consumption in Pakistan has increased significantly over the past few decades – from 0.7 to 4.7 million tons between 1981 and 2020. The main demand drivers are rising population, dietary preferences and increase in per capita income, the central bank said in a research study.
