LAHORE: The Pakistan Flour Mills Association (PFMA) announced on Saturday that it would postpone its strike until July 22 after receiving assurances from the government regarding resolution of the withholding tax issue.

The decision was made following a meeting between a PFMA delegation and a special government committee formed at the directive of Prime Minister Shehbaz Sharif.

The PFMA delegation, led by Chairman Asim Raza Ahmed and Farrukh Shahzad, met Minister of State for Finance Ali Pervez, Minister for Economic Affairs Ahad Cheema, Law Minister Azam Nazeer Tarar, and FBR Chairman Amjed Zubair Tiwana.

“The committee agreed with the position of the Flour Mills Association and assured a positive resolution by July 22,” delegation member Khurram Shahzad said. “Prime Minister Shehbaz Sharif sought suggestion or proposals from the association and assured to look into the matter positively.”

He confirmed that the association had postponed the strike and that flour mills would resume regular operations from Sunday (today).

The association earlier expressed concerns over the imposition of withholding tax, with the government committee agreeing to address the issue. In a statement, the PFMA spokesperson cited respect for the holy month of Muharram and the government’s assurances as reasons for delaying the strike.

During the meeting, the PFMA delegation briefed the committee on the reasons behind the strike, emphasising the adverse impact of withholding tax on the industry and consumers. The committee members unanimously assured the delegation that a solution would be found by July 22.

The mills had been on strike for the past three days, protesting the government’s decision to “make them withholding tax agents”.

On Saturday afternoon, at a press conference held at the Rawalpindi Chamber of Commerce and Industry (RCCI), former PFMA chairman Riazullah Khan condemned the tax implementation. He argued that the government should collect taxes directly from wholesalers and retailers rather than imposing the responsibility on flour mill owners.