The newly-elected chief of Pakistan Sugar Mills Association (PSMA), Punjab Zone, Chaudhry Zaka Ashraf, has said that crushing season might delay if the government failed in timely implementation of the agreement it reached with sugar millers, recently.
"However, we are committed to start crushing as per announced schedule and are hopeful that the government would timely implement the agreement reached between the two sides," he told reporters after attending the 41st annual general meeting of PSMA at a local hotel here on Sunday. Punjab Governor Lieutenant-General Khalid Maqbool (Retd) was the chief guest on the occasion.
Counting the demands raised by the PSMA in its recent meetings with the government, he said they included extension in 31st October deadline set by SBP for adjustment of loans, imposition of 20-25 percent duty on sugar import instead of 15 percent, withdrawal of 15 percent tax on sugar exported to Afghanistan and equal distribution of 0.2 million tons of sugar quota among the sugar millers. Moreover, the Trading Corporation of Pakistan (TCP) must not release sugar stocks till 31st November 2006.
"Now the ball is in the government court and the start of the cane crushing depends on the government response." As a matter of fact these are not demands, but the hurdles, which the government has agreed with us to remove," he asserted.
To a question about retail price of the commodity, Chaudhry Zaka Ashraf said that government wants the retail price of sugar must not cross Rs 34 per kg while it is our ex-mill cost.
Earlier, addressing the AGM participants, the Punjab Governor Lieutenant-General Khalid Maqbool (Retd) said that realising the fact that export industry of Pakistan depends on agriculture, the government has taken impressive steps to improve basics of this sector, including water resource management, remodelling of canals, relining of water distributaries etc.
The government has paid much attention on building new water resources such as remodelling of Kachi Canal, Grater Thal Canal and Mirani Dam, which is near completion. The government has allocated a huge amount of over Rs 100 billion for the said projects, he pointed out.
Likewise, the government is providing subsidies for fertilisers and focusing on improvement of price management and supply side by establishing utility stores at Tehsil level, taxation policy and tariff structure for betterment of the industry. According to him, all industries are performing well however, textile sector could face some challenges this year.
Talking about the government revenue position, he said the CBR has recorded 27-28 percent increase in collection in the first quarter of the current financial year besides noting over 20 percent rise in the income tax returns, which indicates that things are improving.