Positive Developments for Pakistan’s Foreign Exchange and Economy
KARACHI: A promising development has emerged for Pakistan’s export sector, likely to enhance foreign exchange and bolster the country’s economy,
Local companies are gearing up to export ghee and oil to the United Arab Emirates and various African nations, which could potentially bring millions of dollars into the economy. Currently, ghee exports are restricted to road transport to Afghanistan due to a ban on sea exports.
Umar Sheikh, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), expressed optimism about resolving this issue in an upcoming meeting with Federal Finance Minister Muhammad Aurangzeb. He pointed out that Pakistan’s ghee industry has significant potential for generating foreign exchange but is currently impeded by Section 8B of the sales tax, which has left over PKR 100 billion tied up with the government.
Sheikh also highlighted the country’s reliance on palm oil imports, amounting to 3.2 million tons annually, while domestic demand for ghee reaches 4.5 million tons. Despite these challenges, Pakistan’s ghee companies are making a substantial contribution to the national treasury, paying over Rs 700 billion in taxes.
This optimistic outlook for exports could be a crucial step toward enhancing Pakistan’s economic stability and foreign exchange reserves.
