In order to guarantee that there are sufficient supplies of palm oil in the market before Ramadan, the State Bank of Pakistan (SBP) will give the edible oil industry top priority when releasing letters of credit (LCs).According to sources, the decision was made at a meeting to review the availability of vegetable ghee/cooking oil and ensure sufficient supplies and stable prices, which was presided over by Minister for Industries and Production Syed Murtaza Mahmud. The minister sought information from the State Bank of Pakistan regarding the status of prior directives, in particular the status of the LCs clearance problem (SBP). According to information given to the forum on a weekly basis by the Pakistan Vanaspati Manufacturers Association (PVMA), last week saw the release of about 60,000 metric tones (MT) of palm oil. The SBP representative said that edible oil was high on their priority list and that they issued the LCs in accordance with the dollar amounts that were available. The PVMA Chairman reported that ghee costs are declining as a result of the release of palm oil stock last week. The forum was informed by the Secretary of the Ministry of Industries and Production (MOI&P) about the supply of vegetable ghee and cooking oil in the markets. The provincial representatives responded that there are adequate supplies of vegetable ghee and cooking oil in each province, and that the costs of local brands are decreasing. Provincial officials constantly keep an eye on the market’s supply, stock, and prices for ghee and oil. The following decisions were made after thorough discussion with all parties involved:-
I) The Federal Board of Revenue (FBR) and SBP would make sure that palm oil was cleared from the ports and would also make it easier to import palm oil by speedily opening/retiring LCs. II) The Ministry of Industries and Production will regularly provide SBP with updated information (bank- and company-specific) on outstanding LCs that it receives from PVMA. (III) Regular stocktakes of vegetable, ghee, and cooking oil, as well as price tracking, would be made by provincial governments. (IV) The provincial governments would make sure that elements engaged in hoarding and profiteering were dealt with effectively. (V) In light of the supply of imported palm oil and the need to clear stocks, the industry will rationalize the market prices for vegetable ghee and cooking oil and willingly lower those prices.
