KARACHI: Sheikh Umar Rehman, Chairman of the Pakistan Vanaspati Manufacturers Association has urged the Ministry of Industry to create rules and regulations for establishing new ghee factories, similar to those in the sugar industry.
Positive signs are emerging for Pakistan's export sector. Local companies have begun preparations to export ghee to the United Arab Emirates and African countries.
He added that the demand for ghee in Pakistan is 4.5 million tons, and the country imported 3.2 million tons of palm oil last year to meet the remaining demand.
After the budget, ghee prices across the country increased by ten rupees per kilo, but further price hikes are not expected due to the turnover implementation.
The ghee companies contribute over 700 billion rupees in taxes to the national treasury.
Sheikh Umar Rehman stated during a media briefing that a delegation will soon meet with Federal Minister of Finance Muhammad Aurangzeb.
Sheikh Umar Rehman mentioned that currently, ghee is only being exported to Afghanistan via road, while exports by sea are not possible due to restrictions. However, they are seeking to discuss the lifting of these restrictions with the finance minister, emphasizing that local ghee companies can generate substantial foreign exchange.
He pointed out that the main issue facing ghee companies is the sales tax under section 8-B, resulting in over 100 billion rupees being stuck with the government.
Rehman noted that there are currently 148 ghee companies operating in the country, and 100 mills are sufficient for domestic needs.
Copyright Business Recorder, 2024
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