Stronger Cooperation in Edible Oil Sector
Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has underscored the urgent need for Pakistan and Indonesia to deepen strategic cooperation in the edible oil and palm oil sector, calling it critical for economic stability, food security, and industrial growth.
He expressed these views during a high-level meeting with Indonesian Consul General in Karachi, Madzaker M.A., held at the Indonesian Consulate. The meeting brought together key stakeholders including Rashid Jan Muhammad and Ahmed Ghulam Hussain, focusing on strengthening bilateral trade, addressing industry challenges, and unlocking new investment opportunities.
Sheikh Umer Rehan: Indonesia Is Pakistan’s Most Strategic Edible Oil Partner
Speaking in detail on the importance of bilateral ties, Sheikh Umer Rehan emphasized that Indonesia remains Pakistan’s largest and most reliable source of palm oil, a commodity that forms the backbone of the country’s edible oil consumption.
“Nearly 90 percent of the palm oil consumed in Pakistan is imported from Indonesia, which clearly reflects the depth and strategic nature of this relationship,” he said.
He explained that Pakistan’s domestic production of edible oil is insufficient to meet national demand, forcing the country to rely heavily on imports. In this context, long-term cooperation with Indonesia is not merely a trade arrangement but a strategic economic necessity.
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Edible Oil: A Daily Necessity for Pakistan’s Economy
Sheikh Umer Rehan highlighted that edible oil is a basic household necessity in Pakistan, directly impacting inflation, cost of living, and food prices. Any disruption in supply or increase in costs has a direct effect on consumers and the broader economy.
“Indonesia, as the world’s largest producer of palm oil, and Pakistan, as one of its major importers, are naturally positioned as long-term partners,” he said, adding that strengthening this relationship can help ensure price stability and uninterrupted supply.
Trade Barriers Slowing Growth in Edible Oil Cooperation
While acknowledging decades of strong trade relations, the PVMA Chairman pointed out that administrative, tariff, and non-tariff barriers have slowed the pace of cooperation in recent years.
He noted that issues related to customs procedures, regulatory requirements, and technical standards have created challenges for businesses on both sides. According to Sheikh Umer Rehan, these obstacles can be resolved through structured dialogue, policy alignment, and regular consultation between governments and the private sector.
“Removing unnecessary trade and administrative barriers will benefit both Pakistan and Indonesia by improving efficiency, reducing costs, and encouraging higher trade volumes,” he added.
Investment Opportunities in Refining and Value Addition
Sheikh Umer Rehan also highlighted significant opportunities for Indonesian investment in Pakistan’s edible oil sector, particularly in palm oil refining, storage facilities, and value-added manufacturing.
He explained that setting up refining and processing units in Pakistan could:
- Reduce overall import and logistics costs
- Create new employment opportunities
- Strengthen Pakistan’s industrial base
- Improve supply chain resilience
He further noted that Indonesian palm oil meets international quality and sustainability standards, making it well-suited for Pakistan’s vanaspati and cooking oil industry.
Indonesia Ready to Share Expertise and Technology
Indonesian Consul General Madzaker M.A. reaffirmed Indonesia’s commitment to strengthening cooperation with Pakistan, stating that Indonesia is ready to offer technical assistance, training programs, and technology transfer in palm oil cultivation and processing.
He said enhanced agricultural and industrial collaboration would further deepen Pakistan–Indonesia economic ties and contribute to sustainable development in both countries.
Call for Joint Forums and Business Engagement
To institutionalize cooperation, Sheikh Umer Rehan proposed:
- Joint business forums
- Exchange of trade delegations
- Public–private sector collaboration
- New investment platforms for edible oil and agri-processing
He stressed that closer coordination between governments, industry associations, and private companies is essential to fully realize the potential of bilateral cooperation.
Shared Commitment to Strengthening the Edible Oil Sector
The meeting concluded with both sides reaffirming their commitment to close coordination and long-term collaboration aimed at strengthening Pakistan’s edible oil sector, improving trade efficiency, and expanding investment-led growth.
With leaders like Sheikh Umer Rehan advocating policy reforms and industry-driven solutions, Pakistan’s edible oil sector is well-positioned to benefit from deeper engagement with Indonesia in the years ahead.
