Pakistan’s Edible Oil Industry In Crisis Amid Dollar Shortage

Date: June 28, 2025 | NewsMakers Web Desk

Pakistan’s edible oil industry is on the verge of a major crisis due to a severe shortage of US dollars in commercial banks, which is causing significant delays in the clearance of import documents for vital oil shipments. The warning comes from Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), who has urged immediate intervention from top government authorities.

In an official statement released on Friday, Mr. Rehan revealed that multiple shipments of imported edible oil are currently stuck at Pakistani ports because banks are unable to release the necessary documents. He cautioned that if urgent steps are not taken, the crisis could intensify, severely impacting both manufacturers and consumers.

Foreign Suppliers Losing Confidence

Rehan also highlighted that international suppliers have grown increasingly hesitant to accept new orders from Pakistan, citing the ongoing payment uncertainties. “This reluctance is further straining the supply chain and threatening the survival of local manufacturers of vanaspati ghee and cooking oil,” he noted.

Call for Government Action

The PVMA chairman called upon Finance Minister Muhammad Aurangzeb and State Bank Governor Jameel Ahmed to step in immediately. He urged them to direct commercial banks to prioritize the clearance of essential import documents and ensure timely allocation of foreign exchange for crucial raw material imports.

Food Security at Stake

Pakistan consumes nearly 4 million metric tonnes of edible oil annually, and over 85% of the raw materials for this demand are imported. Rehan warned that prolonged delays in foreign exchange availability could lead to production halts, supply shortages, and potentially trigger a food security crisis for the general public.

“The edible oil industry forms a vital part of the national food chain. Disruption at this scale risks inflation, hoarding, and shortages in basic kitchen commodities,” he added.

As the economic pressure mounts and the rupee continues to struggle, stakeholders across the board are urging swift and decisive action to avoid yet another supply chain shock in Pakistan’s fragile economy.