Govt allows 100,000 tonnes
of urea export
The Ministry of Food and Agriculture has granted permission to export
100,000 tonnes of urea as the country is expected to have a surplus of over 400,000 tonnes
in 2000, sources close to fertilizer industry said.
The local production in 1999 was 17.8 per cent higher than 1998 as it
reached 3.96 million tonnes from 3.36 million tonnes. The imports were at 0.43 million
tonnes while total demand was 4.08 million tonnes, giving 0.43 million tonnes as the
opening stock for 2000.
This is a positive factor for the sector said a leading manufacturer
and might help recover companies from the last year's dull period. He expects the country
can export 100,000 tonnes of urea making the local manufacturers more profitable.
The government has allowed export of urea as the local prices are much
less than the international market prices.
Therefore, the agriculture ministry has recommended that the private
sector might sell the urea at international $120-$130 per tonne against the prevailing
market price of $150 per tonne to attract buyers towards seller like Pakistan. The ratio
of local production and the demand has risen to 97 per cent from 87 per cent in 1999,
thereby reflecting the self-sufficiency in urea production.
An analyst from IP Securities believes that with Fauji Jordan already
in commercial production, the local producer with 0.4 million tonnes as beginning
inventory can easily meet the domestic demand of 4.20 million tonnes expected in 2000.
There has been no threat to local makers of urea from imports as there
has been rise in international prices and the government has imposed 10 per cent
regulatory duty to protect local industry. The step was aimed to discourage cheap imports
in the country and also saving foreign exchange.
Textile exports surge
Commerce managers and exporters are of the opinion that during the
current fiscal the textile sector would recover losses it suffered in the past few years
due to low production of raw cotton, its high domestic prices and depressed exports.
Officials in the Ministry of Commerce told that textile sector had
braved a very tough time in the past three years and country's largest sector further
landed into a deep trouble when the Far East crisis erupted which eroded unit value.
Export Promotion Bureau (EPB) has received an international tender from
Thailand through Pakistani Embassy in Bangkok for the supply of electric equipment.
1,300 Hino buses to be exported
The country has received orders for the export of 1,300 buses from Iraq
and Kuwait, while negotiations are going on with Dubai and Muscat for more orders.
This was stated by the G.M. Marketing of Hinopak, Irfan Shaikh, at the
launching ceremony of their new model coaches.
Iraq wants to import 1,000 buses and Kuwait is keen to buy 300 buses,
G.M. Marketing of Hinopak, Irfan Shaikh said.
Gold demand up
With the demand for gold rising to 27.9 tonnes in the fourth quarter of
the previous year, Pakistan's annual demand for the commodity rose to 121.8 tonnes in
1999, registering a rise of 24 per cent as compared to 1998.
Foreign cos propose gas sale to Wapda
In a bid to solve their price issue with the government, foreign gas
companies have proposed direct gas sales to Water and Power Development Authority (Wapda),
According to the proposal, a pipeline, carrying low BTU gas, would be
constructed from Kirthar to Multan, providing gas directly to the Wapda's system.
The price of the gas will depend on the BTU value and how much heat it
can generate. Sources said foreign companies were willing to invest in the pipeline
project with the government for which a separate company could be formed.
EU may merge various categories of textile quota
The European Union (EU) is likely to merge various categories of
textile quota originating from Pakistan to its member countries, official sources
Pakistan had been asking the EU to merge under utilized categories of
textile quotas with those having growth potential and usually are over utilized by
Sources said that EU has hinted merger of several textile quota
categories being imported from Pakistan. India and China are already enjoying this
facility given by EU and has helped increase their exports.
In first phase, the EU is going to merge kitchen and table linen
(category 39) with bedlinen (category 20) which is in great demand in EU member countries.
Another category being clubbed is of bath-robe (cat 18) with that of towel (cat 9). In
this case, the former is underutilized whereas the later is in great demand.
Trade team to visit Iran, CARs
Speaking to a group of local newsmen here on Monday president
Balochistan Chamber of Commerce & Industry Sardar Muhammad Ali Jogezai said that the
Pakistani traders' visit to Iran was eventually finalized. It would commence from April
The delegation is expected to visit Teheran, Mashed and Zahidan to
discuss trade matters focusing on better means for marketing Pakistani exportable surplus
to Iranian markets through Balochistan overland route.
Stockists selling phutti at Rs800
The stockists here are now deriving good profits from the sales of
their phutti as prices of this stuff have stabilized around Rs 800 a
They purchased phutti just a month ago at Rs 400 a maund from the
cotton growers who had no option but to sell their stocks at this throw-away rates as the
ginners were not willing to pay even this price.
The stockists who waited for this moment appeared on the scene and
bought phutti at the rate of Rs 400 a maund which was then a very reasonable price in view
of the fact that the ginners had previous stocks to worry about and they were reluctant to
tie their money down on fresh purchases.