The import of palm oil is gradually shifting from Malaysia to Indonesia where import of the said product has surged to 68 per cent of the total imports during last six months under Indonesia-Pakistan Preferential Trade Agreement (IPPTA). Industry sources told Business Recorder here on Tuesday that keeping in view the import potential of Palm Oil, Malaysia signed Preferential Trade Agreement (PTA) with Pakistan namely Malaysia Pakistan Closer Economic Partnership (MPCEPA) with 15% Margin of Preference (MoP) in customs duty.
Resultantly, the Malaysian Palm Oil import to Pakistan has touched 1.9 Million Metric Tons ie 95% of total imports. The imports from Malaysia remained persistent till end of 2012, when an Indonesia-Pakistan Preferential Trade Agreement (IPPTA) with similar Margin of Preference was also inked. Consequently, the major shift in favour of Indonesia was observed and as of now the imports of palm oil products from Indonesia surged to 68 percent whereas share of Malaysia stood at 32 percent.
Experts also said that although ghee and cooking oil industry import palm oil to the tune of US $1.6-1.8 billion per annum, but the exports from Pakistan could not increase significantly despite the fact that 15% Margin of Preference (MOP) was granted by both countries to Pakistani exporters of Rice, Sea-food, made up textile articles, cotton yarn, man-made filament and yarn in addition to many other tariff lines and even on trade in services and Economic Co-operation. Despite the fact that Malaysia and Indonesia has offered MoP wide range of items to Pakistan but still cumulative exports are struggling around US $430 per annum. The huge trade gap is indeed cause of great concern for the Ministry of Commerce in general and Pakistani industry in particular. The FPCCI and Pakistan-Malaysia and Pakistan-Indonesia Joint Business Councils can play effective role in reducing the trade imbalance.
The importers of palm oil has provided an exceptional opportunity for Pakistani export-oriented industry by arranging 15% MoP, if still exports do not grow with this incentive then re-visiting the National Industrial Policy is recommended. Recently, Pakistan Vanaspati Manufacturers Association (PVMA) delegation visited Malaysia to discuss the price & trade barriers and allied issues causing declining trend of palm oil imports to Pakistan on the side-lines of international price out-look conference held in Kuala Lumpur.
The PVMA delegation led by Sheikh Abdul Razzak arranged a meeting with representatives of Palm Oil Refiners Association of Malaysia (PORAM), Malaysian Palm Oil Council (MPOC) and Government of Malaysia subsidiaries such as Malaysian Palm Oil Board (MPOB) and Ministry of Plantation, Industries and Commodities (MPIC). For the duration of talks, it was resolved to address key issues in sequence to promote bilateral trade specially export of Palm Oil to Pakistan. The important issues are system abuse by local legal firm with respect to out-turn weight discrepancy, frequency of shipping service between Pakistan and Malaysia, revival of Palm Oil Credit Payment Arrangement (POCPA) and export duty imposed by Malaysia on crude palm oil.
They added that the ghee/cooking oil industry of Pakistan is performing extra-ordinarily by fulfilling 100% national requirement of around 3.2 Million Metric Tons, besides contributing Rs 100 Billion to national exchequer directly and indirectly in the shape of duty, taxes and other levies. The existing 4.5 Million Metric Tons of installed production capacity can be utilised by enhancing exports to Afghanistan and Central Asian Republics provided the government should remove restrictive measures on export of products.
See more latest news From Asia on Automobile,Technology, Agriculture, Finance, Lifestyle, Healthcare
Resultantly, the Malaysian Palm Oil import to Pakistan has touched 1.9 Million Metric Tons ie 95% of total imports. The imports from Malaysia remained persistent till end of 2012, when an Indonesia-Pakistan Preferential Trade Agreement (IPPTA) with similar Margin of Preference was also inked. Consequently, the major shift in favour of Indonesia was observed and as of now the imports of palm oil products from Indonesia surged to 68 percent whereas share of Malaysia stood at 32 percent.
Experts also said that although ghee and cooking oil industry import palm oil to the tune of US $1.6-1.8 billion per annum, but the exports from Pakistan could not increase significantly despite the fact that 15% Margin of Preference (MOP) was granted by both countries to Pakistani exporters of Rice, Sea-food, made up textile articles, cotton yarn, man-made filament and yarn in addition to many other tariff lines and even on trade in services and Economic Co-operation. Despite the fact that Malaysia and Indonesia has offered MoP wide range of items to Pakistan but still cumulative exports are struggling around US $430 per annum. The huge trade gap is indeed cause of great concern for the Ministry of Commerce in general and Pakistani industry in particular. The FPCCI and Pakistan-Malaysia and Pakistan-Indonesia Joint Business Councils can play effective role in reducing the trade imbalance.
The importers of palm oil has provided an exceptional opportunity for Pakistani export-oriented industry by arranging 15% MoP, if still exports do not grow with this incentive then re-visiting the National Industrial Policy is recommended. Recently, Pakistan Vanaspati Manufacturers Association (PVMA) delegation visited Malaysia to discuss the price & trade barriers and allied issues causing declining trend of palm oil imports to Pakistan on the side-lines of international price out-look conference held in Kuala Lumpur.
The PVMA delegation led by Sheikh Abdul Razzak arranged a meeting with representatives of Palm Oil Refiners Association of Malaysia (PORAM), Malaysian Palm Oil Council (MPOC) and Government of Malaysia subsidiaries such as Malaysian Palm Oil Board (MPOB) and Ministry of Plantation, Industries and Commodities (MPIC). For the duration of talks, it was resolved to address key issues in sequence to promote bilateral trade specially export of Palm Oil to Pakistan. The important issues are system abuse by local legal firm with respect to out-turn weight discrepancy, frequency of shipping service between Pakistan and Malaysia, revival of Palm Oil Credit Payment Arrangement (POCPA) and export duty imposed by Malaysia on crude palm oil.
They added that the ghee/cooking oil industry of Pakistan is performing extra-ordinarily by fulfilling 100% national requirement of around 3.2 Million Metric Tons, besides contributing Rs 100 Billion to national exchequer directly and indirectly in the shape of duty, taxes and other levies. The existing 4.5 Million Metric Tons of installed production capacity can be utilised by enhancing exports to Afghanistan and Central Asian Republics provided the government should remove restrictive measures on export of products.
See more latest news From Asia on Automobile,Technology, Agriculture, Finance, Lifestyle, Healthcare
Follow me on twitter for more Daily updates
For more reports from Asia www.search.dowellresearch.com
For any Market research consulting services www.dowellresearch.com
No comments:
Post a Comment