Rising palm oil import prices worsen Pakistan’s trade deficit

Rising palm oil import prices have worsened Pakistan’s trade deficit as it tries to cope with rising inflation and its dependence on foreign loans grows . Edible oil is a staple food in Pakistan, and 80 to 90 percent of its total demand is met by palm oil imported from Indonesia and Malaysia, according to the Daily Times.

According to estimates by the United States Department of Agriculture (USDA), the per capita consumption of cooking oil in Pakistan is 24 kg. Palm oil imported into Pakistan is used to make a range of products such as vanaspati ghee, chocolates, soap and various bakery items. In addition, a developing country like Pakistan with a fragile economy, too dependent on international support and conditional programs from the International Monetary Fund (IMF), has been affected in many directions.

In addition, the inflation rate is skyrocketing and electricity becomes more and more expensive while gas has to be rationed. Palm oil importers and the Pakistan Association of Vanaspati Manufacturers (PVMA) have been very vocal about the recent increase in the import price of edible oils, especially palm oil, in the market, according to the Daily Times.

In addition to this, a record increase in fuel prices has hit the common man in Pakistan from all sides, making it a huge task to cope with daily expenses as the food security problem becomes more and more serious. Market sources predict that the country’s food import bill will increase further in the current 2021-22 fiscal year compared to last year. This is evident from the figures for the July-September quarter, which rose 66.11% to $ 18.74 billion from $ 11.28 billion in the corresponding months of last year.

Imports of edible oils have also seen a substantial increase in both quantity and value, according to the Daily Times. According to the news that comes out, negotiations between the government and industry stakeholders are still inconclusive as the rupee-dollar parity increases and to rationalize the duties and taxes on the import of edible oil, especially the palm oil, which accounts for 90 percent of the total. imports.

The government will be forced to take measures to modify trade agreements signed with Indonesia and Malaysia for preferential treatment with regard to the export of palm oil to Pakistan. Unless these corrective actions are taken, the middle and lower segments of the population will remain under relentless economic pressures. But right now, there isn’t enough light at the end of the economic tunnel, according to the Daily Times. (ANI)

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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