Comprehensive Two-Stage Plan Formulated to Cut Edible Oil Imports and Boost Local Production as Palm Oil Bill Reaches $3.8 Billion
ISLAMABAD: In a major strategic move to reduce rising import bills, Pakistan palm oil import bill has reached a massive size of $3.8 billion in the country, which has led the government to draw a comprehensive two-stage roadmap to reduce edible oil imports and aggressively promote domestic agricultural production.
The strategy, which was developed by the Ministry of National Food Security, is a short-term plan for use over the next five years (2026-2031) that aims to significantly boost sunflower, canola, sesame and soybean production and yield.
The multi-billion dollar savings and economic benefits are significant.The savings and economic benefits are massive – in the billions of dollars.
The cost savings in imports due to the shortterm intervention are estimated to be Rs 3.45 billion and the estimated economic benefits in the broader economy are estimated at Rs 967 billion.
The second phase is a long term plan of 10 years and its main objective is to increase the land under cultivation at the national level. The overall import substitution benefit from the long-term effort is expected to be greater than USD7 billion and about Rs1.965 trillion of economic activity is expected to be generated.
Sunflower Targets and Proposed Regulatory Duties
The recently approved guidelines call for increasing sunflower production to 2 million metric tons. Moreover, the National Oilseed Policy suggests the implementation of a regulatory burden of up to 40 per cent on imported edible oil to wean the country from its dependence on foreign oil.
Pakistan is currently self-sufficient in the production of edible oil only 10 per cent and imports 90 per cent as per official figures. The entire value of food imports is in excess of $7 billion, and the strategy is designed to preserve key foreign currency resources and reduce dependence on foreign markets.