08/05/2008 (Reuters), Kuala Lumpur - Pakistan's palm oil imports in the July-September period are likely to climb 40 percent from the previous quarter as the country gears up for strong demand during the Muslim holy month of Ramadan.

Pakistan is expected to buy around 350,000 tonnes of palm oil during the period versus an estimated 250,000 tonnes in the April-June quarter, Rasheed Janmohammad, vice chairman of the Pakistan Edible Oil Refiners Association, told Reuters.

"As soon as the market stabilises, I foresee Pakistan will start buying because Pakistan is not very well covered from June onwards," he said. "For June, we still have to buy 60,000 to 70,000 tonnes."

The South Asian nation, which meets a bulk of its edible oil demand through imports, has reduced palm imports in recent weeks due to price volatility.

"Definitely prices have come down and there should be buying, but people don't have the confidence as everybody is worried that the market may go down further," Janmohammad said in a telephone interview.

"I think the buying will pick up by mid-May or by end of May."

Pakistan annually consumes around 3 million tonnes of edible oils, but only produces 500,000-600,000 tonnes of cottonseed, rapeseed and sunflower oils a year.

Traders said Janmohammad's estimate of a 40 percent increase in exports for July-September quarter was higher than expected.

"This increase is quite substantial, normally we take a ballpark figure of 20 percent rise in demand during Ramadan," said S. Paramalingam, executive director of Malaysian broker Pelindung Bestari Sdn Bhd, which deals often with South Asia.

Benchmark Malaysian crude palm oil futures jumped 3.3 percent on Thursday due to record crude oil prices and fears of a shortage in global vegetable oils following renewed threats by Argentine soy farmers to resume strike action.

And news on strong Pakistani demand for vegetable oils helped underpin the rally in prices, traders said.

Paramalingam added: "This means that not just Pakistan, but India and the entire Middle East region are going to step up purchases in the coming months."

Janmohammad said Pakistan this week bought 3,000 tonnes of RBD Palm Olein from Malaysia at $1,290 percent per tonne cost and freight (C&F) for delivery in May and June.

Pakistan bought 98,675 tonnes of palm oil in March and 107,390 tonnes in April from Malaysia, according to cargo surveyor Societe Generate de Surveillance.

Pakistan buys a mix of refined and crude palm oil from Malaysia and Indonesia, the world biggest palm producers.