ISLAMABAD – June 29, 2025: Pakistan’s edible oil industry is in deep crisis due to a severe shortage of US dollars in commercial banks, leading to major delays in the clearance of import documents. As a result, international suppliers are now hesitant to accept new orders from Pakistan, raising fears of an impending shortage of cooking oil and ghee across the country.
Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Umer Rehan, stated that importers are unable to open Letters of Credit (LCs) or retire existing documents, resulting in multiple edible oil shipments being stuck at ports. He warned that the current delays could lead to serious supply disruptions in the domestic market.
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Pakistan meets over 85% of its annual edible oil demand—approximately four million metric tonnes—through imports. With current payment delays extending up to two to three weeks, domestic manufacturers are facing raw material shortages, and demurrage charges on vessels continue to rise.
International suppliers, mainly from Malaysia and Indonesia, are reportedly reluctant to dispatch new consignments due to payment risks. The ongoing crisis has already caused edible oil prices to increase by Rs. 10 per kg in the local market, with industry insiders predicting a further hike of Rs. 25–30 per kg if the situation persists.
Industry stakeholders have called on the government, the State Bank of Pakistan, and the Ministry of Finance to urgently intervene by allocating foreign exchange for essential imports and ensuring immediate clearance of pending shipments. Without prompt action, the country may face a serious shortage of edible oil in the coming weeks.
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