Breakthrough project in Sindh turns Pakistan into palm oil producing country

The site of a pilot oil palm plantation in Sindh's Thatta district on July 24, 2020. (Photo courtesy: Sindh's Environment, Climate Change and Coastal Development)
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Updated 30 November 2020
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Breakthrough project in Sindh turns Pakistan into palm oil producing country

  • Oil content of palm fruit from Sindh's plantation in Thatta is 2 percent higher than the world average
  • Pakistan consumes 4.5 million tons of edible oil a year, of which some 90 percent is imported, mainly from Malaysia and Indonesia

KARACHI: Pakistan’s southeastern Sindh province has successfully completed a pilot oil palm cultivation and extraction project, putting the country on the list of palm oil producers. 
An oil extraction facility at the site of the pilot oil palm plantation in the province’s southern Thatta district produced its first oil last week. The development is seen as a breakthrough for the South Asian nation which is heavily dependent on palm oil imports.

“The palm oil extraction is being done as a test run at the moment and the results are wonderful and very encouraging,” Muhammad Aslam Ghouri, secretary of Sindh’s Environment, Climate Change and Coastal Development which is running the project, told Arab News on Friday.

The Rs25 million ($157,000) pilot project started in 2016 on 50 acres of coastal land. 

“In 2016, Malaysian experts came here and they studied everything including soil and environment and they certified that the fruit is very good,” Ghouri said. “The oil content of the palm fruit is 2 percent higher than the world average.” 




Machinery for oil extraction is being installed at the site of the oil palm project in Thatta, Sindh, on July 24, 2020. (Photo courtesy: Sindh's Environment, Climate Change and Coastal Development)

The yield from the fertile soil is also encouraging as even 60 palm trees can be grown on each acre.

Pakistan consumes around 4.5 million tons of edible oil a year, of which some 90 percent is imported, mainly from Malaysia and Indonesia — the world’s biggest producers of the commodity.

While the Thatta oil extraction facility can produce only up to two tons of oil a day, Ghouri believes the reliance on imports can be greatly reduced if the Sindh project is expanded.

Seeing the project as a “game changer” for the province and country, the Sindh government has already allocated an additional 1,600 acres for palm cultivation, which it further plans to expand to 3,000 acres. 

Ghouri said that ECC&CD has already invited farmers and private firms to show the “success story” and encourage them to invest and join the industry.
“Seeing the success of this pilot project we can safely say that in future when there is investment in this sector, private parties come in to start palm plantation and invest in oil extraction mills as we have shown that it can be done. Then this (less reliance on imports) can happen.”




An oil palm from Sindh's plantation in Thatta on July 24, 2020. The oil content of the plantation's palm fruit is 2 percent higher than the world average. (Photo courtesy: Sindh's Environment, Climate Change and Coastal Development)

Oil traders, however, say that there is a long way ahead before Pakistan will be able to offset the imports of the staple commodity. 
“It is a step in the right direction that has a potential to substitute palm oil imports and save foreign exchange, but it would take time to make any meaningful contribution as the country imports on an average 100,000 tons of palm oil per month,” Ismail Wali, an oil trader at Jodia Bazaar in Karachi, told Arab News.
Farmers are less enthusiastic as they remember a similar initiative being undertaken in 1996 to develop the country’s vast coastal belt into an oil palm cultivation hub. For two decades the project was neglected, causing huge losses. 
“We had imported expensive samplings of palm and planted over an area of 400 acres in Mirpur Sakro, Thatta district,” Mumrez Khan, a former oil palm farmer, told Arab News.

“We had to abandon the plantation in 2009 due to lack of support and required guidance from the government.” 


Pakistan explores ferry shipping to boost trade with Yemen, regional markets

Updated 12 December 2025
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Pakistan explores ferry shipping to boost trade with Yemen, regional markets

  • Pakistan commerce minister meets Yemeni envoy to discuss enhancing trade cooperation
  • Yemeni ambassador calls for reviving bilateral agreements, strengthening trade mechanisms

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan said on Friday that his ministry is exploring the possibility of introducing ferry-based shipping services with Yemen to cut freight costs and boost bilateral, regional trade. 

Pakistan has been attempting to enhance its ferry-based services with Middle Eastern countries in recent months. Islamabad granted its first-ever ferry service license to an international operator, Sea Keepers, for routes connecting Pakistan with Iran and Gulf Cooperation Council (GCC) countries in August. Last month, Pakistan’s federal cabinet approved a ferry service to Oman from the southwestern port of Gwadar to boost trade and tourism.

Khan met Yemen’s Ambassador to Pakistan, Mohammed Motahar Alashabi, in Islamabad on Friday where both sides discussed enhancing trade and economic cooperation between the two countries.

“Jam Kamal highlighted the importance of creating efficient, low-cost logistics channels for small and medium enterprises and informed H.E. Alashabi that the ministry is examining the introduction of ferry-based small shipping services to reduce freight costs and improve turnaround time for regional trade,” the commerce ministry said. 

“Both sides expressed confidence that sustained dialogue, improved logistics, and revival of formal cooperation mechanisms will help unlock new opportunities for trade and investment between Pakistan and Yemen.”

Alashabi expressed Yemen’s desire to expand commercial engagement with Pakistan, the commerce ministry said, stressing that Yemen continues to regard Islamabad as a “trusted partner” despite logistical and regional challenges in recent years.

He said nearly 300 Yemeni students are studying in Pakistan, highlighting strong people-to-people ties and confidence in Pakistan’s educational institutions. He stressed the need to revive bilateral agreements and strengthen mechanisms to boost trade between the nations. 

Kamal said Pakistan placed a lot of emphasis on expanding trade with regional and nearby markets, adding that Pakistan’s growing entrepreneurial and SME sectors could benefit from improved access to close-proximity markets such as Yemen, Somalia, Ethiopia, and Oman.