Connect with us

Business

An argument in favor of coffee in Pakistan

Published

6 months ago

on

In Pakistan, coffee is becoming more and more popular, especially among younger people, who drink it hot instead of other drinks. Its high price is partly due to the high tariffs on coffee, though, which makes the expansion of the national coffee market difficult.

Colleges, universities, and workplaces are full of young people who clearly enjoy coffee. This suggests that as the number of young people increases, their tastes will change.

The Pakistani coffee lover and specialist in advertising, Faizan Tariq, says he wishes coffee was as cheap as tea. He questions why coffee prices are not more competitive, similar to those of tea, given its appeal as a hot beverage for working late into the evening.

When the semester system started in college, Punjab University student Amna Tariq resorted to coffee. She views coffee as a lifeline during exam season and depends on it to keep her energized throughout strenuous university responsibilities. Still, she wishes coffee, like tea, was more reasonably priced on weekdays.

It is estimated that by 2025, the global coffee market would be worth $85 billion, with 2.25 billion cups consumed daily. Pakistan must assess and reorganize its tax system as a developing coffee market. After customs, additional customs, and regulatory duties, the total duty on finished coffee goods is currently 53%, while bulk imports are subject to a tariff of 28%. But just thirteen percent of the tariff is applied to tea.

High duties not only prevent the coffee industry from expanding, but they also make it difficult for legitimate companies to make investments, which encourages the formation of the black market. Legal coffee-making enterprises cannot match the cost of foreign coffee brands that are smuggled because they have to pay taxes and duties.

SRO 237, which was issued in 2019, also states that products must have a minimum shelf life of 66 percent at the time of import, ingredient labeling in both English and Urdu, and halal certification from recognized authorities in addition to meeting certain logo and labeling specifications. All of these requirements are violated in this scenario. Provincial and federal governments are in charge of ensuring conformity at the retail level and during importation, respectively.

A chance exists in Pakistan to localize, assemble, manufacture, and brand coffee with the possibility to export it, given the rising public consumption of the beverage. It is worth noting that a prominent global multinational coffee producer is already present in Pakistan and could be well-positioned to take advantage of this favorable circumstance. A major factor in fostering an atmosphere that supports these kinds of initiatives is the government.

Also, Pakistan can grow coffee; in fact, the Pothohar region of the country has a climate that is ideal for coffee growth. In addition to creating job opportunities, this might unlock economic potential and diversify Pakistan’s agriculture value chain. It is necessary to streamline the bulk coffee duty structure in order to assist this, as doing so will draw in foreign investment, promote value chain development, and encourage innovation in the coffee industry.

The coffee market in Pakistan is expanding, but in order to fully realize the industry’s potential, it is imperative to reform the duty structure, encourage localization, and strengthen coffee cultivation.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

Published

3 days ago

on

By

The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

Continue Reading

Business

The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

Published

3 days ago

on

By

The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

Continue Reading

Business

Positive IMF negotiations propel KSE-100 Index above 94,000 points

Published

4 days ago

on

By

As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

Continue Reading

Trending