Unity Foods Limited is navigating one of the most turbulent periods in its recent history. Singapore-based Wilmar International, which holds roughly 49% of Unity through subsidiaries, recorded a $150 million loss provision linked to its investment in the Pakistani edible-oil and staples company earlier this year.
Wilmar said it became aware during 2025 that Unity was struggling to service certain bank facilities, a development the company described as unanticipated since Unity’s most recent public financial statements had indicated profitability and material liquid assets. Because this gap between reported performance and actual financial strain was so significant, it triggered a rapid sequence of governance changes. There are further rumors circulating on X about a FIA FIR for alleged Rs 44 Billion+, but there remains anything concrete to go on:
#Unity Foods Limited just got slammed with an FIA FIR for alleged Rs 44 Billion+ fraud — fake loans to the CEO's mother, diverted rights-issue proceeds, cooked books, circular asset stripping, and liens on company deposits for insider deals.
Former CEO, CFO & directors all…
— 4x 🇵🇰 (@4xpakistan) August 30, 2026
Founder and long-time CEO Muhammad Farrukh Amin stepped down in December 2025, moving into a non-executive director role. Under a shareholders’ agreement signed December 21, 2025, Wilmar assumed management control of Unity Foods with immediate effect. A Wilmar-approved CEO and CFO were subsequently appointed, but the new CEO resigned on February 13, 2026, just weeks into the role. Two independent directors also stepped down around the same period, temporarily leaving the board without required quorum.
Unity Foods has confirmed it remains party to multiple civil proceedings between its sponsors, some of which the Sindh High Court directed toward mediation in March 2026, appointing retired Justice Mansoor Ali Shah. Since that mediation attempt, however, litigation has continued through formal court channels. By August, the court dismissed one suit challenging a regulatory show-cause notice while ruling a separate dispute subject to mandatory arbitration.
VIS Credit Rating Company suspended Unity Foods’ entity ratings in early March 2026, citing the ongoing litigation and related uncertainties. The share price has reflected this turmoil directly, with UNITY falling approximately 50% year-to-date and more than 60% over the past twelve months, trading near multi-year lows.
Company statements have repeatedly stressed commitment to transparency while noting that certain matters remain sub judice, limiting further public comment. Wilmar has sought guidance from Pakistani regulators on possible next steps, including whether an independent investigation or the appointment of an administrator might be appropriate.
Since the details are murky, we cannot say for sure what is at play here. What we can assume is that Unity is facing risks resulting from joint-control arrangements between local promoters and large foreign strategic investors, as financial and governance expectations diverge.
