ISLAMABAD, Nov 23: Ghee manufacturers have urged the government to revise the duty drawback regime in a bid to enhance export of ghee and oil to Afghanistan and Central Asian Republics (CARs).

A copy of the proposals was presented to the caretaker minister for commerce and textile, Mian Shezada Alam Monoo, in a meeting by the PVMA chairman Sh. Amjad Rashid here on Friday. The chief executive of the Trade Development Authority of Pakistan (TDAP), Tariq Ikram, was also present in the meeting.

Mr Rashid informed the commerce minister that Pakistan can export up to 0.5 million tons of ghee and cooking oil, if government announced due incentives and improves refund of customs duty and sales tax.

Sh. Amjad Rashid highlighted the export potential of vegetable ghee and cooking oil to the Central Asian States and the Middle East countries, which would result in earning of precious foreign exchange for the country.

He pointed out the huge potential of ghee exports in Afghanistan, Central Asian states and Middle East, which remained untapped so far.

Mr Rashid said in view of rising costs on duty, Pakistan was in an ideal position to enter Middle East and African market provided the government allowed full duty and taxes drawback to exporters.

According to an official announcement, the chief executive of the TDAP fully endorsed and supported the presentation.

For a follow-up, a separate meeting has been arranged with the TDAP authorities.

Sh. Amjad drew the attention of the minister towards difficulties faced by exporters, while dispatching their shipments to Afghanistan.

Reference was specially made to the depleted condition of the Quetta-Chaman road, which has torn up miserably and hampers timely transit of goods to Afghanistan.

Mr Monoo briefed the delegation regarding priority of the government and his ministry for facilitating the business community, particularly to boost exports.

Pakistan has already lost around 50 per cent of market access for export of ghee and cooking oil in Afghanistan following the heavy duty and taxation regime in the edible oil sector.

The repeated changes in the trade policy during the last few years also squeezed the market access for Pakistani ghee/oil in Afghanistan.