(MENAFN- EIN Presswire) EINPresswire/ -- The Indonesian Palm Oil Association (IPOA) has reaffirmed Indonesia's commitment to supporting Pakistan's food security through a steady and affordable supply of palm oil. With over 90 percent of Pakistan's edible oil needs met through imports, and around 75 percent of that sourced from Indonesia - valued at more than US$2.5 billion annually - the partnership remains central to ensuring price stability and everyday access for millions of Pakistani households.
A Vital Link in Pakistan's Food Economy

Palm oil is an essential part of Pakistan's food landscape. It is used in ghee, margarine, confectionery, noodles, and bakery products, as well as in everyday cooking - from parathas to mithai. Its high heat tolerance, long shelf life, and affordability make it the preferred choice for both households and the food industry.

Local oilseed production currently meets less than 10 percent of national demand, leaving Pakistan exposed to global price shocks. Indonesia's consistent palm oil exports help offset these risks by maintaining a stable supply chain. This reliability ensures that essential foods remain affordable for consumers and viable for producers across the country.

Partnership Beyond Trade

The Indonesia - Pakistan relationship in palm oil has grown beyond commodity exchange into a strategic collaboration that supports economic resilience. The Pakistan - Indonesia Preferential Trade Agreement (PTA), implemented in 2013, formalized tariff concessions that deepened bilateral cooperation. Under this framework, Indonesian palm oil exports have anchored Pakistan's food manufacturing and contributed to broader trade reciprocity in textiles and agriculture.

In recent years, both countries have explored opportunities for local oil palm cultivation. Pilot projects in Sindh and Balochistan, supported by Indonesian partners and Sindh Agriculture University (SAU) Tandojam, are assessing the potential for local production. Experts estimate that cultivating 60,000 hectares of oil palm could attract US$30 million in investment and create new value chains across refining, logistics, and agronomic training. These initiatives also serve as platforms for research collaboration and policy dialogue, highlighting the potential of South - South cooperation in advancing regional food security and technology exchange.

Palm Oil and Public Awareness

Despite its importance, palm oil is often misunderstood. Scientific studies highlight its balanced composition - about 50 percent saturated, 40 percent monounsaturated, and 10 percent polyunsaturated fatty acids - providing a stable energy source suited to traditional high-heat cooking. It also contains vitamin E compounds (tocopherols and tocotrienols) and beta-carotene, a precursor to vitamin A, which support eye health and immunity.
By presenting these facts, IPOA aims to build a more informed understanding of palm oil's role in sustaining affordable, nutritious diets and supporting Pakistan's food supply chain.

“Indonesia and Pakistan share more than a trade relationship - we share a commitment to resilience,” said Dr. Fadhil Hasan, Head of Foreign Affairs Division at the Indonesian Palm Oil Association.“Palm oil plays an essential role in ensuring affordable and reliable food access for millions of families in Pakistan. Through continued partnership, investment, and knowledge exchange, we can strengthen this foundation for generations to come.”

Continuing this momentum, the Indonesian Palm Oil Association (IPOA/GAPKI) will participate in the 8th Pakistan Edible Oil Conference (PEOC), scheduled for 9-10 January 2026 in Karachi. The event will bring together key stakeholders across the oils and fats sector, food industry, trade, refining, policy and allied value chains to explore avenues for strengthening palm oil collaboration and sustainable growth. IPOA's participation reflects Indonesia's ongoing commitment to dialogue, partnership, knowledge exchange and shared progress with Pakistan's edible oil industry.

Building a Resilient Future Together

The Indonesia - Pakistan palm oil partnership today represents a shared approach to food security - linking producers, industries, and consumers through stable trade and mutual growth. Looking ahead, both nations are expanding dialogue on investment facilitation, research cooperation, and sustainable supply chain management to build long-term resilience against market volatility.

Each shipment of palm oil reflects collaboration between two nations working toward a common goal: nourishing communities, supporting livelihoods, and ensuring that affordability and stability remain at the heart of regional cooperation. Through continued engagement and knowledge sharing, Indonesia and Pakistan are setting the stage for a stronger, more connected, and food-secure South Asia.

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