The edible oil industry in Pakistan is nearing a critical point due to a significant shortage of US dollars within commercial banks. this shortage is causing delays in the processing of import documents for essential edible oil shipments, according to Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA).

In a statement released on Friday, Mr. Rehan stated that international suppliers are increasingly hesitant to accept new orders from Pakistan. This reluctance is further disrupting the supply chain and exacerbating the challenges faced by local manufacturers of vanaspati ghee and cooking oil.

“Several shipments of imported oil are currently stuck at ports as banks are not releasing the required documents,” he claimed. “If immediate action is not taken, the situation could escalate into a full-blown crisis for both the industry and consumers.”

He has urged Finance Minister Muhammad Aurangzeb and State Bank Governor jameel Ahmed to intervene promptly. He requests they direct commercial banks to expedite the clearance of import documentation to ensure the timely allocation of foreign exchange for thes essential imports.

Pakistan’s annual consumption of edible oil is approximately 4 million metric tonnes, with over 85% of the raw material being imported. Mr. Rehan warned that continued delays in the availability of foreign exchange could severely impede production, disrupt the domestic supply chain, and possibly trigger food insecurity for the general public.

“Several shipments of imported oil are currently stuck at ports as banks are not releasing the required documents.”

Background on Pakistan’s Edible Oil Imports