Edible Oil Industry in Trouble as Banks Don’t Provide Dollars
Pakistan’s edible oil industry is on the verge of a major crisis due to a significant shortage of US dollars in commercial banks, warned Sheikh Umar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA). He expressed deep concern over the banking system’s inability to process foreign exchange transactions promptly, which is now disrupting vital edible oil imports.
According to Rehan, the delay in clearing import documents and the unavailability of dollars have hindered the supply of raw materials, placing massive pressure on local manufacturers. International suppliers have already begun cutting shipments to Pakistan, further tightening the situation for vanaspati and cooking oil producers.
He stated that multiple shipments of edible oil are currently held up at ports due to banks’ failure to release the required documentation. “The government must act immediately. Finance Minister Senator Muhammad Aurangzeb and State Bank Governor Jameel Ahmad should intervene to ensure timely clearance of import paperwork and make US dollars available without delay.”
Rehan pointed out that Pakistan’s annual edible oil consumption is around 4 million tons, with more than 85% of the raw materials sourced through imports. A disruption in the supply chain due to foreign exchange issues could severely impact both production and market availability, leading to price hikes and shortages that would directly affect consumers.
He urged the government to prioritize essential food-related imports when allocating foreign currency reserves. “If immediate steps are not taken,” he warned, “the entire food security framework of the country could be at risk.
