Federal Minister for Finance and Revenue, Mr. Shaukat Tarin, held a meeting with a delegation of the Pakistan Vanaspati Manufacturers Association (PVMA).
While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.
The Chairman PVMA briefed the Finance Minister about the international hike in prices of palm and soyabean oils, particularly during the ongoing COVID-19 pandemic. The international prices kept fluctuating between the range of $1,100 – $1,257 per ton, and the domestic market drives rates from the prevailing international prices and the dollar value. The exchange rate also has a significant impact on edible oil prices in the country, he added.
While taking stock of the situation, the Finance Minister urged PVMA to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend. If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid the highly fluctuating edible oil market.
The Finance Minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with a sustainable pricing mechanism in collaboration with the Ministry of Industries and Production and FBR.
The Finance Minister directed Chairman FBR to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure the availability of funds. Besides, he constituted a committee comprising representatives of PVMA, Secretary M/o Industries and Production, and Chairman FBR to work out an arrangement for streamlining the collection of sales tax and a predictable pricing formula.
The Chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.
Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue, Dr. Waqar Masood, Secretary M/o Industries and Production, Chairman FBR, and other senior officers participated in the meeting.