Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has issued a stark warning regarding a significant crisis facing the edible oil industry in Pakistan due to a severe shortage of US dollars in commercial banks.
In a recent statement, Rehan highlighted that the unavailability of dollars has caused delays in the clearance of import documents for edible oil shipments. This scenario has led to international suppliers becoming increasingly hesitant to accept new orders from Pakistan, resulting in a disrupted supply chain that exacerbates the struggles of local manufacturers producing vanaspati ghee and cooking oil.
He noted, “Several shipments of imported oil are currently stuck at ports as banks are not releasing the required documents, causing unnecessary delays.” Rehan urged that if immediate action is not taken, the situation risks escalating into a full-blown crisis for both the industry and consumers.
To prevent further deterioration, he has called upon the government, particularly Finance Minister Senator Muhammad Aurangzeb and State Bank Governor Jameel Ahmed, to intervene promptly. “The authorities must instruct commercial banks to expedite the clearance of import documentation and ensure timely availability of foreign exchange for essential imports,” he emphasized.
With Pakistan’s annual edible oil consumption nearing 4 million metric tons—over 85% of which is imported—Rehan warned that ongoing delays in foreign exchange allocation could significantly disrupt production dynamics and destabilize the domestic supply chain, potentially leading to food insecurity for the general public.
He strongly urged the government to prioritize foreign exchange availability for critical imports like edible oil, stressing the importance of protecting food security and maintaining industrial sustainability in the country.Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has raised serious concerns over the severe shortage of US dollars in commercial banks, warning that the edible oil industry is heading toward a major crisis.
In a statement, he said that the unavailability of dollars has led to delays in the clearance of import documents for edible oil shipments. As a result, international suppliers are increasingly reluctant to take new orders from Pakistan, disrupting the supply chain and worsening 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, causing un-necessary delays ” said Sheikh Umer Rehan. “If immediate action is not taken, the situation could escalate into a full-blown crisis for both the industry and consumers.”
He urged the government, particularly Finance Minister Senator Muhammad Aurangzeb and State Bank Governor Jameel Ahmed, to intervene without delay. “The authorities must instruct commercial banks to expedite the clearance of import documentation and ensure timely availability of foreign exchange for essential imports,” he added.
Highlighting the scale of the issue, Sheikh Umer Rehan noted that Pakistan’s annual edible oil consumption stands at nearly 4 million metric tons, with over 85% of the raw material being imported. He warned that continued delays in foreign exchange allocation could significantly disrupt production and destabilize the domestic supply chain, ultimately leading to food insecurity for the general public.
He called on the government to prioritize foreign exchange availability for critical imports like edible oil, emphasizing the need to protect food security and industrial continuity in the country.
