Latest news with #PVMA
Business Recorder
24-05-2025
- Business
- Business Recorder
SAPM assures PVMA of prompt dues clearance
ISLAMABAD: Pakistan Vanaspati Manufacturers Association (PVMA) raised the challenges facing the ghee manufacturing sector including outstanding dues in a high-level meeting. The high-level meeting was held on Friday between Prime Minister's Special Assistant, Haroon Akhtar Khan and the Pakistan Vanaspati Manufacturers Association (PVMA). Present at the meeting were PVMA Chairman Sheikh Umar Rehan, Secretary of the Ministry of Industries and Production Saif Anjum, and representatives of the ghee industry. The discussions focused in detail on the challenges facing the ghee manufacturing sector. Haroon Akhtar Khan acknowledged the concerns raised by the industry and assured them of the government's support. 'We fully recognise the issues being faced by the ghee sector and are committed to not putting the industry under any additional pressure,' said Haroon Akhtar Khan. He assured that all outstanding dues will be paid promptly. 'The Government of Prime Minister Shehbaz Sharif will ensure the timely disbursement of all pending payments,' he stated. While acknowledging that cash disbursements take time, he emphasised that efforts will be made to expedite the process. Khan also highlighted the government's recent efforts in supporting low-income families, stating, 'Prime Minister Shehbaz Sharif successfully delivered the Ramazan package directly to deserving households.' He reiterated the Ministry of Industries and Production's dedication to resolving the industry's concerns and emphasised, 'The Government and the Ministry of Industries and Production are always available to support and address your issues.' 'Prime Minister Shehbaz Sharif is committed to taking every possible step for the facilitation of the business community,' Haroon Akhtar Khan concluded. Copyright Business Recorder, 2025
Express Tribune
24-05-2025
- Business
- Express Tribune
Ghee millers demand payment of Rs13b dues
Listen to article Ghee millers have asked the government to clear the outstanding dues of Rs13 billion against the Utility Stores Corporation (USC). Ghee millers and other industries had supplied their products to USC but they were denied payments. The matter was taken up at a meeting between Prime Minister's Special Assistant Haroon Akhtar Khan and the Pakistan Vanaspati Manufacturers Association (PVMA) on Friday. PVMA Chairman Sheikh Umar Rehan, Ministry of Industries and Production Secretary Saif Anjum and representatives of the ghee industry were present in the meeting. The discussion focused on the challenges being faced by the ghee manufacturing sector. Haroon Akhtar acknowledged the concerns raised by the industry and assured them of the government's support. "We fully recognise the issues being encountered by the ghee sector and are committed to not putting the industry under any additional pressure," the PM aide said. He declared that all outstanding dues would be paid promptly. While acknowledging that cash disbursements take time, he emphasised that efforts would be made to expedite the process. He also highlighted the government's recent efforts to support the low-income families, stating, "PM Shehbaz Sharif has successfully delivered the Ramazan package directly to the deserving households."
Business Recorder
21-05-2025
- Business
- Business Recorder
PVMA seeks removal of Section 8B of Sales Tax Act in budget
KARACHI: Sheikh Umar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA) has urged the federal government, Finance Minister Senator Muhammad Aurangzeb, and the Chairman of Federal Board of Revenue (FBR) to abolish Section 8B of the Sales Tax Act for the edible oil and ghee industry in the upcoming federal budget. Currently, Section 8B mandates the advance withholding of 10% of input costs, which Sheikh Rehan described as an unfair burden on an industry that deals with essential food products. 'This clause should not apply to the edible oil and ghee sector, which is already under immense financial pressure due to multiple layers of taxation,' he said. He emphasized that the industry is grappling with rising production costs, which it can no longer sustain. One of the key challenges, he noted, is the delay in the release of billions of rupees in sales tax refunds, currently held up by the FBR. 'Timely disbursement of these refunds is essential to ensure manufacturers have the working capital they need,' Rehan added. He explained that if refunds are paid on time, the industry would not need to rely on expensive bank loans, which would significantly lower production costs. 'Ultimately, this would lead to a reduction in the prices of ghee and cooking oil — benefiting consumers directly.' Sheikh Umar Rehan stressed that if the government aims to curb inflation, it must adopt industry-friendly policies. He highlighted the removal of Section 8B and the prompt payment of sales tax refunds as critical steps toward stabilizing the edible oil sector and providing economic relief to the public. Copyright Business Recorder, 2025
Business Recorder
25-04-2025
- Business
- Business Recorder
‘Anti-competitive practices'; CAT upholds Rs50mn fine on Vanaspati Manufacturers Association
The Competition Appellate Tribunal (CAT) dismissed the appeal filed by the Pakistan Vanaspati Manufacturers Association (PVMA), thereby upholding the Competition Commission of Pakistan's (CCP) order imposing a Rs50 million penalty for engaging in anti-competitive conduct and discriminatory practices, a statement said on Friday. PVMA, an association representing nearly 100 ghee and cooking oil manufacturers across Pakistan, had challenged the CCP's 2011 decision that found it in violation of Sections 3 and 4 of the Competition Act, 2010. According to the statement, the case originated from an inquiry and subsequent show cause proceedings initiated in April 2011 after CCP observed coordinated price hikes in the edible oil sector. APCMA, cement cos: CAT asked to annul Rs6.35bn CCP penalty 'The commission concluded that PVMA had used its platform to orchestrate price-fixing arrangements, whereby it negotiated prices with government authorities and advised its members to implement uniform pricing.' Though PVMA claimed these were mere recommendations, the commission found that such directives were in fact enforced, resulting in reduced price competition. The CCP also established that PVMA had entered into agreements with oil tanker associations and the National Logistics Cell (NLC) to fix transportation rates. 'These arrangements, in the commission's view, distorted fair competition in the logistics sector and disadvantaged non-member market players. In addition to collusive pricing and logistics agreements, PVMA was found to have abused its dominant position by charging discriminatory fees for the verification of import invoices—a responsibility delegated to it by customs authorities to address under-invoicing concerns,' the statement said. PVMA charged its own members Rs4 per metric ton for this service, while charging commercial importers Rs10 per metric ton without offering a valid justification. In its defense, PVMA argued that its members paid a substantial membership fee and annual dues, and that the commercial importers ultimately sold their products to PVMA's member manufacturers. It further claimed that it lacked the statutory authority to enforce any pricing arrangements and had only acted on government pressure to stabilise prices in response to fluctuating international palm oil rates. However, both the CCP and the Tribunal rejected these justifications. The tribunal observed that the verification service was delegated to PVMA by customs authorities for all importers, and that distinguishing between members and non-members in charging service fees was unjustified. Telenor's and Orion's acquisition: CCP decision delay threatens pact, PTCL chief says The order stated that such discriminatory charges could not be rationalised under the concept of 'objective justification,' especially when the burden of these charges ultimately fell on the members of PVMA. While the CAT upheld the Rs50 million fine imposed by the CCP, it modified the commission's order by granting PVMA a 15-day period to rectify its discriminatory conduct. 'Should PVMA fail to comply within the stipulated timeframe, an additional penalty of Rs1 million per day of default—originally part of CCP's order—would be reinstated.' The tribunal emphasised that even non-binding or advisory decisions taken by associations can violate competition law if they lead to a reduction in market competition.
