Pakistan’s edible oil crisis is worsening as shipments of cooking oil and ghee remain stuck at Port Qasim. For over a week, no consignments have been cleared, raising concerns about potential shortages and price hikes. The clearance process has completely halted, leaving the country vulnerable to supply disruptions.
Edible Oil Shipments Stalled
The backlog at Port Qasim has created a bottleneck for edible oil imports. According to Sheikh Omar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association, 8 to 10 ships carrying over 70,000 metric tonnes of palm oil are stranded, unable to unload their cargo. The terminal has no available space, worsening the crisis.
The lack of clearance is increasing financial pressure on importers. Heavy demurrage charges and fines on delayed shipments are adding to their burden. Importers are already facing billions of rupees in losses, and if the situation persists, the impact will extend to consumers through higher prices.
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Customs System Failure Delays Shipments
Another major factor contributing to the crisis is the suspension of the customs software (PSW), which has stalled the clearance of goods. Without this system functioning, importers cannot process shipments, further deepening the supply chain crisis.
Rehan emphasized that the delay in clearance is not just a logistical issue but a serious economic threat. If the backlog continues, Pakistan could face a severe shortage of cooking oil and ghee, leading to price spikes and disruptions in food supply.
Economic Impact of the Crisis
The crisis at Pakistan’s ports is exposing long-standing inefficiencies in the country’s import system. Port Qasim plays a crucial role in handling essential commodities, but persistent clearance delays threaten economic stability. A prolonged shortage of edible oil could impact households and businesses, particularly the food industry, which relies heavily on a steady supply.
The government must take immediate action to resolve clearance issues, restore customs operations, and ease congestion at the ports. Without urgent intervention, the edible oil crisis could escalate, affecting millions of consumers across the country.
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