KARACHI, July 27: Finance Minister Shaukat Aziz has agreed to set up a high-powered committee to chalk out a viable plan for export of surplus sugar.

The Pakistan Sugar Mills Association (PSMA) delegation in a meeting held here on Friday, apprised the minister of the problems being faced by the industry regarding huge unsold and surplus stock of white refined sugar.

PSMA chairman Ashraf Tabani told Dawn that the minister had given a patience hearing to the issues and assured early resolution.

For resolving the issue of exportable surplus sugar, the minister agreed to set up a high-powered committee comprising officials from the CBR and the sugar industry.

Since export of white sugar at the current high cost of production is not viable the committee will find out ways to make exports of sugar possible.

The finance minister was requested not to allow import of raw sugar as the country is expecting good crop in next season.

The PSMA members also asked the minister not to allow duty-free import of raw sugar for onward exports to Afghanistan as there will be sufficient sugar from the local production.

Mr Tabai said the finance minister agreed that there should no additional sales tax of three per cent on sugar for non-registered persons as has been in the case of vanaspati ghee.

Shaukat Aziz was informed that sugar being a food item should be exempted from additional tax of three per cent as many retailers who keep all sort of commodities, including sugar, could keep their sugar stocks as well.

The PSMA delegation was appreciative of the role being played by State Bank Governor Dr Ishrat Hussain and informed the finance minister about re-scheduling of the industry’s loans.