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Dec 27, 1999

  1. International
  2. Finance
  3. Industry
  4. Policy
  5. Trade
  6. Gulf


Export Promotion Bureau (EPB) has received international tenders from India and South Africa for the supply of medical equipment, computers. The closing dates for these tenders are January, 10,17 and 28. The EPB has advised interested exporters to contact its offices to obtain more details.

Sugar shipment

Pakistan will ship 12,500 ton white sugar to Iraq by February next year. Sugar industry sources told that Pakistani traders were likely to win sugar export orders for Baghdad because of low price and high quality of the commodity.

Contracts made for export of 0.3m cotton bales

Pakistani private exporters have booked contracts for about 3 lakh cotton bales with foreign buyers from India, Bangladesh, Indonesia, Hong Kong, Thailand, Taiwan, etc., and the figure may cross 10 lakh bales by June 2000, market source said on Thursday.

Cotton exporters registered 174151 bales with Export Promotion Bureau (EPB) till December 14, 1999 and shipment of over 15,000 bales have been made from Pakistan to India and Far Eastern countries.

A bulk of 30 to 40 percent export contracts were made with Indian buyers which had bad crop this season when international prices were depressed and being sold at 36 cents per pound. The contract made so far were of lower to high grades cotton however, India has started demanding the two highest grades 1503 and 1505 which become scarce at the end of year.

Exporters said Indian importers were including a tricky condition in LCs that samples will be obtained from each cotton bales at the loading port to be sent to Indian for quality check and the process would take about one week.

This condition may land Pakistani exporters who were trading at a profit of just 1 percent in difficult situation as Indian exporters may find quality of shipped cotton not upto the requirement and refuse to accept certain bales or offer discounted price on these bales which will be a loss to exporters.

On the other hand Trading Corporation of Pakistan (TCP) which was allowed by the government to play role of second buyer in cotton market has still not made any export contracts.

TCP has said it has written letters to foreign buyers and some of them have responded asking further queries about the stock.

TCP has so far made contracts for around 980,000 cotton bales with ginners and lifted around about 250,000 bales by December 22, 1999.

Duty exemption on imported goods for re-export

Central Board of Revenue has notified to expand the scope of duty and tax exemption on import of goods for a reexport.

This scope has now been extended from the material for processing, manufacturing and repair, to all the materials and components, sub-components for processing, assembly, manufacturing, repair or rebuilding.

Through an amendment made in the CBR notification No SRO 818 (I)/89, dated August 9,1989, the exemption has been allowed by an insertion under notification No C. 11 (62) DDS/96-PT, dated Dec 17, 1999.

Urea prices go up on levy of import duty

The prices of urea have reportedly gone up by Rs 20 in wheat growing areas as a result of imposition of 10% duty on its import by ECC.

The decision is likely to affect wheat sowing in cotton belt (Seraiki region) in particular where sowing process is in full swing. Officials said that urea was sold at Rs 320 per bag in the Seraiki region against the previous rate of Rs 300, a day before the decision.

Officials who received reports of this increase Wednesday said, levy of duty on urea import amid wheat cultivation has surprised them as they have been advising growers to use additional fertilizer to get maximum production.

Economic Coordination Committee (ECC) of the cabinet had decided to impose 10% duty on urea import by the private sector in its meeting held on Tuesday.

HMC to export sugar, cement plants worth over $300m

Heavy Mechanical Complex (HMC) will export sugar and cement plants worth over $ 300 million besides balancing, modernization and rehabilitation of existing plants in five countries.

Negotiations are at different levels with five countries including Bangladesh, Nigeria, Sudan, Iraq and Syria for the supply of sugar and cement plants, manufactured by HMC, sources at the Complex said here Wednesday.

HMC has also identified agriculture sector as an important area for the local manufacturing of agricultural machinery including rice transplanters, potato graders and bulldozers with the technical advice and support of Pakistan Agricultural Research Council, sources said.

The Complex, sources maintained would however continue to focus on export market to retrieve this strategic asset back on the rails of fast recovery and profitability.

Textile exports up

Pakistan's textile exports have recorded an increase of $180m during the first five months of the current fiscal as cheaper local lint prices has given the needed push to the competitive edge of spinners.

According to office figures released by the Export Promotion Bureau (EPB), textile export swelled to $2.197 billion during the first six months of the current year as compared to last year's comparable figure of$2.017 billion.

Stock market touches year's highest level

The stock market touched the year's highest level on Saturday, breaching the 1,400 barrier as all investment stocks and blue chips staged a handsome rally under the lead of fuel and energy stocks.

The market was up on the statement of Finance Minister Shaukat Aziz that a mission of International Monetary Fund was scheduled to arrive next month to negotiate on stalled loans of $280 million from the credit line of $1.56 billion approved earlier this year.