MULTAN: The All Pakistan Oil Mills Association has issued a stark warning of an impending shutdown if the government does not address their pressing concerns.
In a press conference held at the Multan Press Club, association leaders, including Patron-in-Chief Khawaja Muhammad Fazil, Chairman Malik Muneeb, Vice Chairman Sheikh Waqas, Mustafa Kamal Khan, Mian Abdul Razzaq, Manawar Iqbal, Sheikh Farooq, and Mian Adeel, highlighted the severe economic pressures facing the industry.
The leaders pointed to a fourfold increase in fixed charges on electricity bills, resulting in an additional monthly burden of Rs100,000 to Rs300,000 per oil mill.
They noted that their operations span only 100 days annually, making these charges particularly onerous. Additionally, they cited a near doubling of the electricity unit cost over the past six months.
Further compounding their difficulties are new taxes: a 10% sales tax on oil cake (khal banola) and an 18% sales tax on cottonseed oil, alongside a 1% increase in turnover tax. The association warned that these measures would significantly inflate the prices of essential commodities such as milk and ghee.
Moreover, the reduction of Rs 2,000 per maund in cotton prices means farmers will receive less than their production costs, potentially discouraging future cultivation of cotton. This could lead to reduced cotton availability, adversely affecting the textile sector and increasing unemployment.
The association leaders called on the Prime Minister, the Finance Minister, and the Chairman of the Federal Board of Revenue (FBR) to take immediate action to revert taxes to their previous levels. They emphasized the urgency of the situation, noting that the Pakistan Cotton Ginners Association has also threatened to halt factory operations.
The rapid spoilage of the cotton crop could spell financial disaster for farmers. The association stressed that government intervention is essential to keep industries running, provide affordable goods to the public, and shield farmers from economic distress, especially as the cotton season is underway.
