KARACHI: Sheikh Umer Rehan, former chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has raised serious concerns over the widespread smuggling of edible oil and ghee from Iran, which he said is wreaking havoc on the domestic manufacturing industry.
In a statement issued on Wednesday, Umer, who also served as the president of the Korangi Association of Trade and Industry (KATI), highlighted the alarming increase in the consumption of smuggled edible oil and ghee across Pakistan, particularly in Karachi. According to him, thousands of tonnes of these smuggled products are entering the market, causing irreparable damage to the local industry.
“The influx of Iranian smuggled edible oil and ghee is costing the government billions of rupees in lost tax revenue while also forcing local manufacturers to shut down operations due to their inability to compete with the lower prices of black-market goods,” Umer said. He emphasized that the local industry is already struggling with high production costs and heavy taxation, making it vulnerable to unfair competition from untaxed smuggled goods.
Sheikh Umer Rehan called upon the government and law enforcement agencies to take urgent and effective measures to combat this issue. He stressed the need to identify and eliminate the “black sheep” within government agencies who facilitate the smuggling and distribution of thousands of tonnes of edible oil and ghee. “It is crucial to dismantle the networks enabling these operations to protect local manufacturers and ensure a fair playing field,” he stated.
The former vice-chairman of the PVMA warned that if smuggling is not curtailed immediately, the domestic edible oil and ghee industry could face total collapse. This, he added, would lead to significant losses for the government in terms of revenue while also exacerbating unemployment.
To address the crisis, Umer urged the government to create a competitive environment in the edible oil and ghee market. He suggested introducing a comprehensive strategy to curb smuggling while considering tax exemptions for local manufacturers. “If local producers are given relief from high taxes, they will be able to compete with the prices of smuggled products,” he said, stressing the importance of protecting domestic industries.
In conclusion, Sheikh Umer Rehan’s call to action underscores the urgency of addressing the challenges posed by smuggled edible oil and ghee to safeguard Pakistan’s economy and ensure the survival of its manufacturing sector.