PUTRAJAYA, Aug 27 (Bernama) -- Pakistan, a major palm oil importer, wouldcontinue to import more than 50 percent of its total edible oilconsumption despite the country's efforts to promote local oilseeds hasbeen gaining momentum, the International Palm Oil Congress (PIPOC) 2003was told Wednesday.

Presently, Pakistan imports about 53 percent of its edible oilconsumption, Mian Maqbool-Ur-Rehman from Vanaspati Manufacturer'sAssociation, Pakistan (VMAP) said Wednesday.

He said the increase in demand will be in line with the sizable populationof 146 million with a growth rate of 2.1 percent. The country's populationhas been projected to reach 217 million by the year 2020.

"With expanding population, economic recovery of the country and growth inthe real per capita income, the oils and fats consumption in the country,will continuously increase," he said when presenting a paper entitled:"Challenges and Opportunities for Palm Oil in Pakistan Market."

Currently, the per capita consumption on an average has remained below 15kg. This intake level by world standard is not enough and needs to beincreased to provide more vegetable oils to the poor working class and themasses to meet their basic minimum food and energy requirements, Maqboolsaid.

The intake level should at least be maintained at a minimum of 15 kg percapita and based on that, VMAP has projected the demand for vegetableghee/cooking oil in 2003 to be 2.23 million tonnes in 2003, 2.27 milliontonnes in 2004, 2.31 million tonnes in 2005, 2.34 million tonnes in 2006and 2.39 million tonnes in 2007.

Palm oil including crude palm oil is the major vegetable oil imported andconsumed in the country, taking up a 82 percent share of the annual totalimport of oils from 1996 to 1997. The imports rose to 94 percent in 2002,he said.

"As such, we see a steady market in Pakistan for palm oil," said Maqbool.

Furthermore, there is scope for Pakistan to have fat splitting oroleochemicals plant to convert palm products into better raw material forthe soap industry of the nation.

"Palm products can also substitute to a large extent Pakistan's import oftallow which averages around 85,000 tonnes annually," he said.

On opportunities, Maqbool said there was excess capacity of Vanaspatighee/cooking oil in Pakistan and "this potential can be and is being usedto export palm oil to Afghanistan and also to the Central Asian countries.This trade opportunity is likely to result in greater import andconsumption of palm oil in Pakistan."

Food industry projects such as shortening, margarine, and confectionaryfats, offer another potential for greater use of palm oil in Pakistan.

"The present trend of acceptance and increased production of low transVanaspati offers extra potential for palm oil to be used without or withminimum hydrogenation to produce low trans fat in Pakistan," he said.

In view of such opportunities, Maqbool suggested that Malaysia couldassist in the creation of more opportunities for palm oil in Pakistan byimproving the logistics.

These could include keeping stocks of palm oil in Karachi Port for Ex-Tankdeliveries, extending export credit on easy terms to the Pakistan buyersas well as entering into joint ventures for palm based value addedproducts, he said.

"Pakistan's liberal import policy allows the import of palm oil by anyonewithout limit," he added.

-- BERNAMA