Islamabad: Federal Minister for Finance and Revenue, Shaukat Tarin, on Monday urged Pakistan Vanaspati Manufacturers Association (PVMA) to bring down prices in the domestic market in line with the international price trend.
This was discussed during a meeting with a delegation of PVMA. Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Special Assistant to Prime Minister (SAPM) on Finance and Revenue Dr Waqar Masood, Secretary M/o Industries and Production, FBR chairman and other senior officers participated in the meeting.
While welcoming the PVMA chairman, the finance minister expressed his concern over the rise in the prices of edible oil and ghee in domestic markets over the period of time.
The PVMA chairman briefed the finance minister about the international hike in prices of palm and soybean oils, particularly during the ongoing Covid-19 pandemic. The international prices kept fluctuating between the range of $1100 – 1257 per tonne and the domestic market drove 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 & Production and FBR.
Tarin directed FBR chairman to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure the availability of funds. Moreover, he constituted a committee comprising representatives of PVMA, Secretary M/o Industries and Production and FBR chairman to work out an arrangement for streamlining the collection of sales tax and a predictable pricing formula.
The PVMA chairman assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.