KARACHI: The edible oil industry is on the brink of a major crisis due to a severe shortage of US dollars in commercial banks, which has led to delays in the clearance of import documents for edible oil shipments, warned Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan.

In a statement issued on Friday, Mr Rehan said international suppliers are becoming increasingly reluctant to accept new orders from Pakistan, further disrupting the supply chain and compounding the difficulties 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 urged Finance Minister Muhammad Aurangzeb and State Bank Governor Jameel Ahmed to intervene urgently and direct commercial banks to expedite the clearance of import documentation to ensure timely allocation of foreign exchange for essential imports.

Pakistan’s annual edible oil consumption stands at nearly 4m metric tonnes, with over 85pc of the raw material being imported. Continued delays in foreign exchange availability, he cautioned, could severely hamper production, disrupt the domestic supply chain, and risk triggering food insecurity for the general public.

Published in Dawn, June 28th, 2025