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The Founding Chairman of the Salt Manufacturers Association of Pakistan (SMAP), Ismail Suttar, has expressed deep concerns over the recent announcement by the Chief Minister of Punjab Maryam Nawaz Sharif regarding a potential ban on the export of raw pink Himalayan salt.

While chairing a meeting to review proposals on getting maximum revenue from the export of pink salt on Saturday, the CM had directed the authorities concerned to prepare a plan for setting up value-added industry for the pink salt. “Ban the export of raw pink salt,” she had said during the meeting.

Suttar voiced his disappointment, calling the announcement “immature” and criticising the lack of consultation with key stakeholders in the salt industry.

“It is very unfortunate to witness repeated mistakes by the government, leading the industry towards a destructive path,” said Suttar. “I am surprised at such a remark from the Office of the Chief Minister without considering the opinion of the salt industry stakeholders.”

Pink salt export: PM witnesses signing of JV between PMDC and Saltworks

According to SMAP, the industry had been expecting a meeting with the Punjab government to discuss the implications of such a ban before any decision was finalised.

Suttar stressed that private industry stakeholders should be included in discussions that have significant economic consequences.

“We are already drowning in debt and cannot afford politicised decisions,” he stated, highlighting that 70% of Pakistan’s mining activities were conducted by the private sector, while only 30% were under government-run entities like the Pakistan Minerals Development Corporation (PMDC).

“Yet this minority gets to make decisions for everyone, regardless of whether it suits them or not.”

Suttar was of the view that value addition in minerals takes time, investment, and research, drawing a comparison with Indonesia’s trade minister, Muhammad Lutfi, who spent a year consulting stakeholders before implementing a ban on raw nickel exports.

He argued that such an approach allows industries to properly adjust to new market demands, unlike abrupt decisions that could harm Pakistan’s salt industry.

While SMAP was not opposed to the idea of increasing value-added exports, Suttar insisted that the government should focus on other high-value minerals like lithium, rare earths, bromine, and sulfate of potash, which hold greater export potential.

According to the association, the concern is not about whether a ban on raw salt exports is beneficial but about the government’s approach.

“We request the government to keep concerned stakeholders in the loop before making any unreasonable decisions that could jeopardise the country’s remaining exports,” said Suttar.

$130 per metric ton customs value fixed on Pink Rock Salt’s export

According to the Punjab government, raw pink salt is currently sold by lessees at around $20 per ton, while its price in international markets exceeds $10 per kilogram.

The government estimates that banning raw salt exports and developing the value-added industry could generate up to $13 billion over the next 3-5 years, as opposed to the current $5 million annual revenue.

Despite the government’s optimistic outlook, industry leaders like Suttar remain skeptical, urging the government to take a more consultative approach before implementing policies that could have far-reaching consequences for Pakistan’s struggling economy.

Comments

200 characters
Az_Iz Sep 15, 2024 07:48pm
Value added exports is the way to go. Correct decision by the government.
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NotSurprised Sep 15, 2024 07:48pm
It's funny there is a 'salt manufacturers assoc'. No manufacturing is involved. Even if you just grind and package it, its simplest process of value addition. Seems desire to underinvoice exports only
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