Ghee & cooking oil industries issue severe scarcity warning
Due to commercial banks’ refusal to give US dollars to edible oil importers, the ghee and cooking oil industries issued a severe scarcity warning on Friday for the domestic market.
The sector has also alluded to impending commodity crises in the nation’s local marketplaces.
Sources close to the matter told that the State Bank of Pakistan (SBP) had heard from the sector about the need for ghee and cooking oil in the local market. To meet the country’s demand for edible oil, the industry has warned the Governor SBP that Pakistan is heavily dependent on imports—more than 90% from other countries.
Since the middle of September, commercial banks have refused to help edible oil importers arrange and provide US dollars. As a result, all shipments that have been imported are stuck, and foreign suppliers are under pressure to fulfil their contractual obligations as soon as possible or risk facing penalties like late payment surcharges and the cancellation of future shipments.
The current state of affairs is not encouraging and is harming Pakistan’s reputation in international trade, but it might also lead to a shortage of this essential food item in the home market. The problem is probably going to get worse during the forthcoming Ramadan month.
Ghee & cooking oil industries issue severe scarcity warning
The SBP’s prompt action and directive to all commercial banks to give priority and provide USD to edible oil importers is inevitable and desperately needed, to avert the impending crises. The industry believes it is morally and legally required to alert SBP as soon as a crisis develops and has offered the urgently required solution.
