Should Pakistan replace refined palm oil with crude oil?
Pakistan can save a tremendous amount of import bills if it replaces refined palm oil with crude oil as Pakistan is currently capable of refining 1.5 million tons of crude oil annually. Malaysia has 8 percent export duty while Indonesia has 14 percent export duty on crude oil.
What is the palm oil refining industry in Pakistan?
In 2006, the palm oil refining industry in Pakistan started Malaysian-Pakistan joint venture company i.e. Mapak Edible Oils in Port Qasim. Since then the industry has grown and Pakistan at this moment has more than 15 palm oil refineries with a total production capacity of more than 5,250 tons/day.
Can Pakistan produce palm oil?
Although the cost of production of palm oil in Pakistan shall be very high in comparison to Malaysia’s and Indonesia’s, yet it is feasible, because of the production of crude palm oil, refineries shall start processing and Pakistan shall be able to cater its domestic palm oil requirements to a great extent.
Why does Pakistan prefer refined oil over crude oil?
Despite the capacity, Pakistan only imported 190 thousand tons of CPO and imported 3.3 million tons of RBD palm oil in FY 2020-2021 (WeBOC). One reason for preferring the import of refined oil over crude oil is skyrocketing export duties on crude palm oil.