Pakistan : Palm oil accounts for 70-75pc of edible oil consumption
Pakistan relies on palm oil for 70–75% of edible oil use, making stable import rules vital for food security and SMEs. The Council of Palm Oil Producing Countries urges predictable, science-based policies and recognition of sustainability standards to avoid supply shocks and price volatility.
LAHORE: Palm oil accounts for 70–75 percent of Pakistan’s edible oil consumption and it is a key input for ghee, cooking oil, and processed foods, which underpin SMEs contributing about 40 percent to GDP and 25 percent to exports.
Stable import rules and predictable sustainability requirements help the industry invest gradually in improved practices without sudden cost shocks that would be passed on to households.
Trade regulations can either fragment markets or strengthen resilience. Predictable, science-based, and inclusive policies, supported by producer–consumer dialogue, help stabilize global supply chains, protect food security, and ensure sustainability efforts are rewarded rather than penalized.
Council of Palm Oil Producing Countries (CPOPC) Secretary General Izzana Salleh, in an interview with the Business Recorder, said that trade regulations in importing countries significantly shape global palm oil markets. Policy decisions, particularly, sustainability and climate-related rules, directly influence market access, trade volumes, and supply chain dynamics.
For instance, regulatory restrictions in Europe have reduced demand there, redirecting trade flows toward Asia, where countries such as India, China, and Pakistan now account for the majority of global imports.
“Such regulations also influence price stability. When trade frameworks are unpredictable or restrictive, they increase market volatility and food costs, particularly in import-dependent economies,” she said, noting that affordability concerns are especially relevant for countries relying heavily on palm oil for domestic consumption and food manufacturing.
Responding to a question about aligning Pakistan’s import policies with sustainability standards without burdening consumers, she said Pakistan can achieve this by recognizing internationally accepted national sustainability systems already implemented in producing countries, including ISPO and MSPO, as well as widely adopted voluntary certification schemes. This approach would ensure traceability and responsible production while avoiding duplicative compliance requirements that could raise import costs.
She emphasized that collaboration is preferable to unilateral trade measures. Pakistan can work with producing nations and platforms such as CPOPC to enhance policy coordination, technical exchanges, and information-sharing rather than imposing restrictions that may disrupt supply chains and escalate prices.
Speaking about her organization’s broader approach, she said CPOPC seeks to reframe the global narrative around palm oil by moving discussions away from adversarial positions toward shared priorities between producing and consuming countries. The focus, she explained, is to position palm oil within a wider economic and developmental context — encompassing food security, price stability, energy needs, and rural livelihoods — rather than treating it solely as a contested commodity.
“We ground our engagement in data and real-world consumption patterns. In Pakistan, palm oil remains central to maintaining affordable cooking oil prices and sustaining small and medium-sized food enterprises,” she said, adding that supply uncertainty can have immediate consequences for consumers.
In this context, CPOPC acts as a convener rather than a commercial entity. “By facilitating structured dialogue, countering misinformation with credible evidence, and building mutual understanding, we seek to ensure that sustainability objectives, trade continuity, and consumer affordability progress in a balanced and mutually reinforcing manner,” she added.
Addressing future demand, the Secretary General said policy support and collaboration between Pakistan and CPOPC should prioritize long-term stability, regulatory predictability, and inclusive engagement rather than fragmented or short-term interventions.
Pakistan’s palm oil demand currently stands at approximately 4.5 million tonnes and is projected to exceed 5 million tonnes well before 2030. This growth trajectory makes forward planning, regulatory transparency, and early communication on policy adjustments essential. CPOPC can contribute by serving as a trusted bridge between producing and consuming countries, sharing policy insights and anticipating regulatory developments to minimize supply disruptions and price volatility.
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Source : Business Recorder
