'Ease of imports stifles investment in Pakistan’s agriculture sector'

Pakistan’s reliance on cooking oil imports highlights significant economic challenges, according to Bashir Jan Mohammed, Chairman of Dalda Foods. He pointed out that the ease of imports for the private sector has deterred local agricultural investment.

“Planting a new crop requires two to three years of sacrifice,” he said during a podcast with Kamran Khan, referencing Malaysia’s success in cultivating palm oil after the government subsidized farmers.

Last year, he said, Pakistan produced 700,000 tons of canola oil as palm oil prices soared to $1,800 per ton, compared to the $900 per ton cost of canola oil. However, with palm oil prices now at $750-$800 per ton, the situation has again become challenging.

As a member of the Oilseed Development Board since 1980, Bashir lamented that no government had taken the issue seriously until recently. “This is not just the government’s failure but ours as well, and its consequences will be felt for two to three years,” he noted.

Dalda Foods has taken proactive steps by acquiring land through the Special Investment Facilitation Council (SIFC) to cultivate canola. Bashir believes this will reduce Pakistan’s palm oil dependency by 25% within two to three years. He credited the Pakistan Army for initiating this effort through the SIFC, as previous governments had not approached the issue with the required urgency.

The edible oil industry, he added, has also fallen short in addressing the crisis. “There’s no doubt palm oil imports are a significant burden on Pakistan’s economy,” he said.

Mahathir Mohamad's role in Dalda Food's rise

Bashir Jan Muhammad, chairman of Dalda Foods and a prominent business figure, credits Malaysian leader Mahathir Mohamad for his company's remarkable success.

He revealed that he started his business in 1980 with a modest capital of PKR 450,000.

His turning point came during a visit to Malaysia, where he sought a meeting with Malaysia’s Federal Land Development Authority (FELDA).

After several unsuccessful attempts, Bashir visited FIMA Corporation, chaired by then-Prime Minister Mahathir Mohamad. Upon hearing Bashir’s story, Mahathir personally called FELDA officials and secured a meeting for him.

This pivotal interaction led to Malaysia's Deputy Prime Minister encouraging Bashir to start refining operations in Pakistan in collaboration with Malaysian firms.

Bashir began with a storage facility of 20,000 tons, which has now expanded to 300,000 tons. Over the years, he signed every agreement with Malaysian partners under Mahathir’s guidance, with the Malaysian leader even visiting Pakistan for key milestones. Today, Dalda Foods operates the largest palm oil refinery in Pakistan, alongside extensive storage and extraction facilities.

“Mahathir Mohamad was a great man who always supported us,” Bashir said. “He praised our efforts and ensured our agreements benefited both parties.” The partnership has flourished, consistently providing Malaysian stakeholders dividends of 30-40% annually.