By Muhammad Saleem 

The Punjab government plans to establish an export processing zone for the salt industry to explore the vast potential of this treasure for foreign exchange earnings. The project will be carried out through the Punjab Mines & Minerals Department. Talking to Wealth Pakistan, an official of the department said that Punjab has the world’s second-largest reserves of salt. “We need to explore the true potential of this treasure so that we can fetch the much-needed foreign exchange,” he added.

He said that recognizing the potential of these salt reserves, a comprehensive proposal has been submitted to the provincial government for the establishment of an export processing industrial estate near the Khewra mines. Through this project, he said that the department aims to provide back-end support to businesses and investors planning to enter the salt processing market.

He noted that different countries are earning significant foreign exchange by adding value to the pink salt of Pakistan. “We have to improve our capabilities to export value-added salt to Gulf countries, China, and the European Union. Only value addition can help Pakistan attract more customers and boost foreign exchange earnings,” he remarked. Owais Ahmed, spokesperson for the Chairman of the Punjab Board of Investment and Trade, told Wealth Pakistan that the proposal has been submitted to the board of directors for approval.

Saqib Naveed, a businessman associated with the salt crafts industry, told Wealth Pakistan that the establishment of a salt export processing zone will boost the production of value-added products and help the government attract foreign investors. He said the government needs to announce incentives for importing machinery required for value addition, which would generate jobs in the sector. “Besides, duty-free packing for this industry is also crucial. Our private sector has immense growth potential, but it needs consistent policies and government support,” he added. Exporters in this sector face challenges related to the import of machinery, Naveed said, adding that with the second-largest salt reserves in the world, Pakistan must make efforts to capitalise on this opportunity.

Naveed said that the establishment of such an estate is a tremendous move for strengthening the national economy, which is only possible through industrialisation. Moreover, he said that by providing an organised platform for salt processing, businessmen in this sector can efficiently benefit from digital transformation and add value to their products. “Only value addition can increase the export volume of Pakistan as packaged, flavoured and industrial salts can easily make their way into international markets.” Tax incentives in this sector will provide an opportunity to the exporters to compete internationally more effectively, Naveed stressed.

Credit: INP-WealthPk