Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has urgently called on the government to establish a comprehensive edible oil policy. Highlighting the country’s heavy reliance on imports, he emphasized the need to increase local production and mitigate the impact of global market fluctuations.

Rehan noted that Pakistan imports most edible oil, making it the third-largest palm oil importer worldwide. Domestic production accounts for only 10% of the total demand. He expressed concern over recent developments in Indonesia, the world’s largest palm oil producer, where new legislation has mandated diverting 40% blend of palm oil toward biodiesel. This shift has disrupted global supplies, increasing prices and creating challenges for import-dependent countries like Pakistan.

“The reduction in global supply and rising prices, particularly from Indonesia, pose significant risks to Pakistan’s edible oil industry,” Rehan warned. “Without preemptive measures, these issues could severely impact local industries and lead to shortages.”

He urged Prime Minister Shehbaz Sharif and Federal Minister of Commerce Jam Kamal Khan to prioritize the issue, framing it as a matter of food security. Rehan recommended leveraging Pakistan’s position as a major importer to influence global pricing and called for policies that incentivise local production and investment in the edible oil sector.

“Delays in formulating an effective policy could make importing oil unaffordable, creating the risk of shortages that would affect the entire country,” Rehan cautioned.

The PVMA chairman appealed for immediate consultations with stakeholders, including vanaspati manufacturers, to develop a comprehensive strategy. He assured the government of the industry’s full cooperation in addressing this critical issue.