KARACHI: The smuggled edible oil and ghee from Iran is not only costing the government billions of rupees in taxes but also shutting down local industries due to the low prices and the black market, an official said.

Pakistan Vanaspati Manufacturers Association (PVMA) former vice chairman and Korangi Association of Trade and Industry (Kati) former president Sheikh Umer Rehan has expressed concern over the increasing consumption of edible oil and ghee smuggled from Iran in the country and especially in Karachi.

He said that thousands of tonnes of smuggled oil and ghee had devastated the local manufacturers.

Rehan urged the government and law enforcement agencies to take strict measures to curb smuggling, and black sheep hidden in government agencies should be traced, under whose patronage thousands of tonnes of edible oil and ghee are reaching the market.

The PVMA former vice chairman feared that if the smuggling was not stopped immediately, the local industry would be shut down and the government would suffer significant losses in terms of revenue.

He demanded that the government should create competition in the sale of edible oil and ghee, and formulate a strategy to curb smuggling and also give tax exemption to the local manufacturers so that they can compete with the smuggled oil due to its low price.