Pakistan Eyes Ghee Exports to UAE, Africa

Pakistani companies are preparing to expand ghee exports to the United Arab Emirates and African markets, marking a significant move for the country’s export sector. Sheikh Umar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), announced that a meeting with Federal Finance Minister Muhammad Aurangzeb is scheduled to discuss lifting the current ban on exporting ghee via sea routes.

At present, Pakistan exports ghee solely to Afghanistan through land routes, as the sea route ban limits further export opportunities. Rehan pointed out that removing this restriction could enable local companies to bring in much-needed foreign exchange for the country.

One of the main hurdles facing the industry is the sales tax under Section 8B, which has led to over 100 billion rupees being held up by the government. Rehan noted that there are 148 ghee-producing companies in Pakistan, though just 100 mills are sufficient to meet domestic demand.

He also urged the Ministry of Industry to adopt regulatory frameworks for establishing new ghee factories, similar to those in place for the sugar industry. Pakistan’s annual ghee demand stands at 4.5 million tons, with 3.2 million tons of palm oil imported last year to supplement domestic production.

Despite a nationwide increase of Rs 10 per kilogram in ghee prices after the budget, Rehan stated that no further price hikes are expected due to turnover restrictions. He added that the ghee industry contributes over Rs 700 billion in taxes to Pakistan’s national treasury annually.