The chairman of the Pakistan Soap Manufacturers Association (PSMA), Abdullah Zaki, has said that the local industry is facing a very tough time, and serious efforts should be made to encourage the private sector to play an effective role in reviving the economy. He was briefing Member Customs FBR Muhammad Zahid Khokhar about issues related to the soap industry at a meeting held in Islamabad.
He said that most raw materials for the soap industry are imported from Malaysia and Indonesia. There is a big volume of bilateral trade between the two countries and Pakistan under FTA and PTA. He also pointed out that smuggling is widespread through the Afghan border and smuggled goods are freely sold into markets all over Afghanistan at prices lower than the cost of production in local industries, which badly affects their production capacities.
This trend must be checked sternly for the enhancement of the country's GDP. He added that no facility is given to the soap industry in the form of duty reduction on raw materials related to soap-making, although soap makers' association is continuously trying to convince the policy makers that there is a high tariff rate of soap raw materials, which is why smuggling of finished soap is continuing and choking the soap industry.
According to Abdullah Zaki, M. Zahid Khokhar gave the assurance that all genuine problems of soap manufacturers would be resolved in a good manner, because their industries generate huge revenue to the government. He expressed the hope that the soap manufacturers will do better business, which will strengthen the soap industry. Senior Vice Chairman M. Ali Zia expressed the hope that Khokhar will make his efforts to resolve the problems of the soap industry. He appreciated the efforts of the former chairman of PSMA, Sheikh M. Ilyas, who managed such an excellent meeting in Islamabad.
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