KARACHI: Former Vice President of the Pakistan Vanaspati Manufacturers Association (PVMA) and former President of KATI, Sheikh Umer Rehan, expressed concern over the increasing consumption of edible oil and ghee smuggled from Iran in the country and in particular in Karachi.
He said thousands of tons of contraband oil and ghee had devastated local manufacturers. Contraband oil not only costs the government billions of rupees in taxes, but also leads to the closure of local industries due to low prices and the black market.
Sheikh Umer Rehan added that the government and law enforcement agencies should take strict measures to combat smuggling. He said black sheep hiding in government agencies should be found under whose patronage thousands of tons of edible oil and ghee reach the market.
He feared that if the smuggling was not stopped immediately, the local industry would be shut down and the government would suffer significant losses in terms of revenue.
He demanded that the government create competition in the sale of edible oil, ghee and formulate a strategy to curb smuggling or also grant a tax exemption to local manufacturers so that they can compete with contraband oil due to its low price.
Copyright Business Recorder, 2021