Pakistan is mainly dubbed as an agricultural country yet most unfortunate that it is spending over $4b annually on import of edible oil, thus causing a significant drain in our foreign exchange reserves. Given rising population, this situation cannot be left unaddressed and corrective measures are need of the hour in order to uplift agriculture sector in such a manner that could meet all food requirements of our population.
We have ample fertile land and other resources to grow more so that we can export these products including edible oil and earn a valuable foreign exchange but for this to happen, we have to show the will and make right kind of interventions. According to experts, different parts of Pakistan have the potential for production of olive, palm, sesame and canola oils. In recent years, cultivation of oil seeds have been carried out in some areas of Pothohar region as well Khyber Pakhtunkhwa and we believe there is a need of a sustainable long term policy by following the footsteps of countries such as Malaysia and Indonesia to significantly bolster edible oil production. Firstly it is important that local farmers are sensitised about immense benefits that they can accrue by cultivating oil seeds. For this purpose, awareness campaigns on a mass scale needs to be launched and then both federal and provincial governments must extend incentives such as provision of oil seeds to them at subsidized rates apart from ensuring that they also get due price of their produce.
At present, the country produces just 0.745 million tons of edible oil annually, which is only 8% of total demand of over 5 million tons. Due to State Bank of Pakistan’s (SBP) decision to curb Letters of Credit (LCs) and shortage of foreign exchange, the price of edible oil in the country has been steadily rising, making it increasingly difficult for people to procure the commodity. Achieving self-sufficiency will help keep prices of edible oil under check. We will ask relevant ministries especially the National Food Security and Planning and Development to sit with provincial stakeholders and prepare a robust roadmap for edible oil production.
