Indonesia agrees to resume palm oil export to Pakistan
ISLAMABAD – Indonesia has agreed to resume palm oil export to Pakistan during the visit of Federal Minister for Industries and Production Syed Murtaza Mahmud led a delegation to Jakarta.
Two shipments of palm oil carrying 30,000 and 27,000 have left for Pakistan on Tuesday. Another 8 shipments are expected to reach Karachi before the end of June 2022, says a press released received here on Tuesday from Jakarta. Upon the special instruction of Prime Minister (PM) Muhammad Shehbaz Sharif, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmud led a delegation to Jakarta from 12- 14 June 2022. The objective of the visit was to minimise the impact of the recent decision of the Government of Indonesia to ban the export of palm oil on Pakistan’s economy and ensure the steady flow of the commodity in the Pakistani market. Pakistan is the third largest importer of Indonesian palm oil. In 2021, Pakistan had imported 2.78 million tonnes of palm oil from Indonesia.
During the visit, Federal Minister for Industries and Production Syed Murtaza Mahmud met with the Indonesian Minister of Trade Muhammad Lutfi, Minister of Industry Agus Gumiwang Kartasasmita, and Coordinating Minister of Maritime and Investment Affairs Luhut Binsar Panjaitan. Representatives of the largest palm oil exporters to Pakistan and the Chairman of the Indonesian Palm Oil Association also called on the minister. In his interaction with the Indonesian minister of trade, while highlighting the strong historical and brotherly relations between Pakistan and Indonesia, Murtaza Mahmud underscored that Pakistan, being the third largest market for Indonesian palm oil, was heavily dependent on Indonesian palm oil. He sensitised the Indonesian minister of the situation of edible oil in Pakistan and mentioned that Indonesia’s decision to ban palm oil export for a month had adversely affected the stocks of edible oil in Pakistan. Even after the ban had been lifted on 23 May 2022, the exporters are still facing regulatory and logistical bottlenecks. He urged his Indonesian interlocutor to facilitate the earliest possible resumption of palm oil shipments to Pakistan by removing the bottlenecks. In response, the Indonesian minister assured that Indonesia attached great importance to its relations with Pakistan and was ready to ensure an uninterrupted flow of Indonesian palm oil to Pakistan.
| Two shipments of palm oil carrying 30,000 and 27,000 have left for Pakistan on Tuesday
He further stated that after completing the necessary formalities, the first shipment of palm oil to Pakistan was expected to sail within 24 hours. The minister further stated that he would ensure that the first shipment leaves the Indonesian port by the next day. The minister also assured that Pakistan would be the first country to which the commodity will be exported, after the promulgation of new export regulations.