KARACHI, May 16: Pakistan has received more than 73,000 tons of soyabean oil from the US against reimbursement of the F-16 payments, which has pushed up soyabean oil import bill by almost 325 per cent in dollar terms during last ten months.

The US had booked orders for F-16 fighter planes in decade of eighties but breached the contract under the sanctions. The US has started offering soyabean to Pakistan against the amount it had received instead of paying back in hard cash with interest.

About Rs2.5 billion or $42 million worth of soyabean oil has been dumped in Pakistan during July 2002 to April 2003 where cooking oil and vegetable ghee market is under severe strain because of the government’s taxation policy.

Palm oil import increased by 6.61 per cent quantity wise in last ten months but has jumped by about 42 per cent in rupee terms and 48.4 per cent in dollar terms because of rise in the international prices.

Overall, Pakistan’s total import in last ten months has exceeded Rs28 billion figure and is likely to end up anywhere near Rs33 to Rs34 billion. In dollar terms the amount is about 482 million dollars and would exceeded 500 million dollars figure by end June next.

Consumers in Pakistan suffer on two counts. The State Bank is holding dollar at Rs58 to Rs59 against its realistic price of what State Bank Governor and finance minister has said on many occasions at Rs54 to Rs55 a dollar. There are businessmen who say the realistic price of dollars is now close to Rs50.

Secondly, the government’s taxation policy in 2002-03 budget has raised the total impact of all duties and taxes on a kg of edible oil to Rs20 from Rs3.8 to Rs4.8 in 1998. The government charges customs duty at the rate of Rs9.05 to Rs10.80 per kg in addition to Rs20 sales tax and 3 per cent minimum withholding tax.

Then there is an area in Pakistan called Federally Administered Tribal Area (Fata) where no law of the land applies. Of all the persons, the Chairman of Central Board of Revenue in his meeting with the American Business Council expressed his total helplessness in dealing with the factories set up in Fata. Factory operators in Fata neither pay sales tax nor income tax and of course payment of electricity bill is a crime.

Pakistan Vanaspati Manufacturers Association in its recent press conference offered examples of its two member units operating in FATA. In first nine months of current fiscal year they have imported about 20,000 tons of edible oil which by the end of this year may go up to 26,500 tons. Government will not get revenue of about Rs400 million from these two units. The formal cooking oil and vegetable ghee sector pays about Rs29 billion taxes. Almost the entire amount is recovered from the consumers.