The federal government has approved the import of genetically modified (GMO) soybeans, granting licenses to 39 companies. This landmark decision aims to support the poultry sector, which relies heavily on soybean as a protein source for feed.
It is a big win for soybean importers in Pakistan, who have been running from pillar to post trying to have their imports approved by the government. In Pakistan, nearly 90% of the import of oilseeds is constituted by palm and soybean oilseeds. In a special report for the financial year 2022, the State Bank of Pakistan included a section on rising palm and soybean imports. According to the report, Pakistan’s palm and soybean-related imports stood at $4 billion, rising by 47 percent year-on-year, compared to compound average growth of 12.3% in the last 20 years.
The share of soy and other oilseeds in this has been growing. There is a clear indication that as people climb social and financial brackets, their preferences change towards cooking oil over Vanaspati Ghee, which is the main source of cooking oil used in Pakistan. Edible oil consumption in Pakistan has increased significantly over the last few decades: from 0.7 to 4.7 million tonnes between 1981 and 2020. The main demand drivers are rising population, dietary preferences and increase in per capita income. According to the recent SBP report: Pakistan’s per capita edible oil consumption is already higher compared to economies with similar income levels. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
