ISLAMABAD: The government will refund tobacco cess to exporters for promoting exports of the commodity and in this regard rules have been finalised, Minister of Commerce Khurram Dastgir Khan said on Thursday.

He was speaking at the sidelines of a signing ceremony for a Memor­andum of Understanding (MoU) for Barn Modification. The modification of barns aims to make tobacco curing process more efficient.

Pakistan Tobacco Board (PTB), a subsidiary of the Ministry of Comm­erce, inked the MoU with two leading players in the private sector – Pakistan Tobacco Company (PTC) and Philip Morris Pakistan Limited (PMPKL).

Mr Dastgir said tobacco is an important cash crop and source of livelihood for thousands of underprivileged farmers and their families. It is the policy of the present government to help such farmers all over the country, he added.

“PTB must adopt proactive approach and take all necessary steps for the welfare of tobacco farmers,” the minister further remarked.

The financial cost of the scheme, which is Rs20 million, would be borne by the PTB from its own resources while the two private sector companies will provide technical assistance free of cost.

The companies will also undertake an impact analysis during and after the curing season to see the results of the modifications. According to the MoU, preference will be given to small farmers and all tobacco growing districts will be given share proportionate to their production.

Under the scheme, more than 400 existing barns of tobacco farmers will be modified through introduction of latest innovations.

The modifications will make the tobacco curing process 20-25 per cent more energy efficient, thereby reducing cost of production of tobacco on one hand and improve quality of the leaf on the other. This will also minimise the adverse impact on environment.

Mr Dastgir directed the management of PTB to adopt proactive appr­oach and take all necessary steps for the welfare of tobacco farmers.

Published in Dawn, March 3rd, 2017