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Govt to allow 100,000 tonnes sugar export shortly

JAVED MEHMOOD

ISLAMABAD: Economic managers of the government gave a firm assurance to the sugar producers here on Monday that around 100,000 tonnes of sugar export would be allowed within a week, it was learnt.

The Federal Minister for Finance Shaukat Aziz, Minister for Commerce Abdul Razak Dawood and Minister for Food & Agriculture Shafqat Ali Shah Jamote, held a detailed discussion with the representatives of the sugar industry to discuss the problems being faced by the sugar producers and find out their remedy.

Sources said that the major demands of the sugar producers were the permission for the export of one lakh tonnes of sugar, provision of capital by the banks, speedy payment of held-up rebate with CBR and removal of sales tax on bagasse.

The economic managers, said sources, agreed to the demand of one lakh tonnes sugar export and promised that they would look into the other problems of the industry.

Regarding sugar export the ministers told the representatives of the sugar industry that the Economic Committee of the Cabinet (ECC) would allow sugar export within a week.

They also told the local manufacturers that the ECC would also take decision whether or not the sugar industry should be allowed rebate on sugar export.

During the meeting the sugar producers, said sources, convinced the ministers that a minimum of two lakh tonnes of sugar was surplus this year and at least the permission for one lakh tonnes export should be granted in the first phase.

Sources said that the sugar producers also raised the matter of non-provision of the running finance to the mills by almost all the banks and a representative of the State Bank of Pakistan (SBP) told the meeting that the central bank had not issued any such instructions to the banks.

He, however, said that the banks were denying credit to sugar industry on their own after a change in the democratic set-up, perhaps fearing action by the incumbent governments.

Meanwhile, during the meeting the sugar industry also demanded speedy payment of held-up rebate/refunds, removal of sales tax on bagasse, but the economic managers did not evince interest in these issues.

It is the first-ever high-level contact between the sugar producers and the economic managers of the government since the dismissal of Nawaz Sharif government.

A sugar producer told Business Recorder that the team of economic managers was very sympathetic with the sugar producers and they pledged to resolve all the genuine problems of the industry.