Solvent factories to close operations from February 10

The solvent industry of Pakistan, while protesting over the recent decision of the government to include edible oil in DTRE (Duties and Tax Remission for Exports) list, has announced that as many as 67 factories of the solvent industry would close down their operations from February 10, 2004.
Haroon Rashid, Senior Vice-Chairman All Pakistan Solvent Extractors Association (APSEA), told newsmen, after a meeting of the executive committee of the association here on Saturday, that this decision has created a crisis-like situation for solvent sector, therefore all the factories engaged in this business would observe a strike from Feb 10, to press the authorities concerned for acceptance of their demands.
"This decision, which was reportedly made to carry out export of edible oil to Afghanistan, is definitely based on mala fide intentions and its prime objective is to provide financial benefits to some particular businessmen," he added.
He said that the government has allowed duty-free and GST-free import of palm oil under DTRE rules, which has made local solvent industry totally non-viable.
Haroon maintained that the annual consumption of palm oil in Afghanistan is only 20,000 tonnes, but in a period of less than two months around 13 businessmen have imported 60,000 tonnes of palm oil which caused loss of Rs 1.02 billion to the national exchequer.
He said that the country has to pay the second largest import bill for the import of palm oil or pamoline.
At a time when farmers of Pakistan have cultivated sunflower over a record area, this decision would discourage sunflower growers, as the solvent extractors would not be able to pay good price of produce to sun flower growers.
"Our strike would not only stop the edible oil supply in the market but it would also create a crisis-like situation in poultry industry, which takes poultry food from the solvent industry.
He was of the view that the National Accountability Bureau (NAB) must be asked to hold inquiry to check tax evasion, which is likely to deprive the national exchequer from at least an amount of Rs 7 billion per year.
"We fear that genuine businessmen would be compelled to join this back-door channel instead of keeping up good business practices," he added.
He gave a list of importers, who imported edible oil under DTRE. This list includes the names of Kareem Ghee Karachi, Amjad Rashid Multan, Hussain Dawood, Sohail Vegetable Peshawar, Waheed Hafeez, Alhamd, Farooq Ghee, Chiniot Enterprises, Bilour, Peshawar, Pan Asia, Ghauri Ghee, Mardan, Chashma Ghee D.I. Khan.