Good news for Pakistan's foreign exchange, economy

KARACHI: In a positive development has emerged for Pakistan’s export sector, which will likely to boost foreign exchange, and strengthen country’s economy, ARY News reported on Thursday.

As per the received details, the local companies in Pakistan are preparing to export ghee and oil to the United Arab Emirates and African nations, potentially bringing in millions of dollars in foreign exchange.

Currently, ghee exports are limited to Afghanistan by road, as a sea export ban remains in place.

Umar Sheikh, Chairman of the Pakistan Vanaspati manufacturers association (PVMA), expressed optimism about resolving the issue after an upcoming meeting with Federal Finance Minister Muhammad Aurangzeb.

He highlighted that Pakistan’s ghee industry can generate substantial foreign exchange but is hindered by Section 8B of the sales tax, which has caused over PKR 100 billion to remain stuck with the government.

He also noted that Pakistan imports 3.2 million tons of palm oil annually, while the domestic demand for ghee stands at 4.5 million tons.

Despite challenges, the country’s ghee companies continue to contribute significantly to the national treasury, paying over Rs 700 billion in taxes.