Market participants across the vegetable oils complex gathered for a one day Pakistan Edible Oil Conference earlier this week, with presentations showing the growing need for imported edible oil in the Pakistani market. Pakistani crude and refined cooking oil imports have soared to 2.6mn t/yr, Westbury Group Chief Executive Rasheed Jan Mohammad said at the conference.
“Revival of the local economy, increased disposable income, surging demand for cooking oil and rising population have created opportunities for more investment in the edible oil industry in Pakistan,” said Trade Development Authority of Pakistan Chief Executive SM Muneer.
Participants at the conference expressed the need for Pakistan to continue investing in new and improved import terminals and facilities to allow ease of access for edible oils into the Pakistani market, news sources said this week. Pakistan feed 75% of domestic edible oil demand through imported edible oils. Rs50 bn ($477.5mn) has already been invested in import terminals and storage facilities for edible oils, with similar levels of investment expected to be seen in the coming years.
Felda Global Ventures Holding Berhad (FGV) Group President and CEP Dato’ Zakaria Arshad also presented at the conference, announcing its intentions to build a new Multipurpose tank terminal in Pakistan, the company said in a press release on Saturday. FGV became a leader in Pakistani edible oil imports through their first joint venture with Westbury Group in 1993, building Bulking Installation and terminals for handling and storage of edible oils. Almost 98% of edible oil imports into Pakistan now go through those terminals.
FWQ Enterprise (Private) Ltd, the Pakistani subsidiary of FGV is currently building the new tank terminal and warehouse facility, with a capacity of 30,000t. The tank terminal can be used to store ethanol, molasses, edible oils, and other products.
“The first 15,000 MT storage tanks have been installed in June 2016 and the remaining 15,000 MT will be completed by 2017, with the potential to increase its capacity to 38,300 MT to meet future demand. The Terminal is projected to cost FWQ Rs326 million (RM13 million) to be funded through internally generated resources,” said Group President and Chief Executive Officer, Dato’ Zakaria Arshad.