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Apr 10 - 16, 2000

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

Gas pricing, sale pacts signed

The Government of Pakistan and Sui Southern Gas Company Limited (SSGC) signed two agreements, namely, Gas Pricing Agreement (GPA) and Gas Sales Agreement (GSA), with Messrs BHP Petroleum (Pakistan) Pty, Limited and their joint venture partners Premier Exploration Pakistan Limited, Lasmo (MP) Limited and Government Holdings.

The agreements were signed by the Federal Secretary, Ministry of Petroleum and Natural Resources, while Managing Director, SSGC and the Director General (Petroleum Concessions) signed on behalf of SSGC and Government Holdings respectively.

The gas supplies from Zamzama field will be under the new gas price package recently approved by the Government to facilitate the speedy development of the new gas discoveries. The gas price is indexed to international oil prices (basket of crude oils imported into Pakistan).

CCPIT, FPCCI sign MoU on trade

The Federation of Pakistan Chambers of Commerce and Industry (PFCCI) and China Council for the Promotion of International Trade (CCPIT) have signed a memorandum of understanding (MoU) for the promotion of bilateral trade between the two countries.

The signing ceremony of MoU which took place on Tuesday at the Chinese Consulate General office also envisages for the resolution of trade disputes through newly formed "Pak-China Joint Business Resolving Committee."

Under the MoU both the countries will ensures easing of visa procedure, controlling flow of illegal trade through Pak-China border, exchange of data on bilateral trade statistics, export of potential items from Pakistan.

PVC resin imports halted

The imports of PVC resin have been virtually halted due to high duty protection given to a leading multinational company, Pakistan Plastics Importers and Traders Group said. In a representation to National Tariff Commission the group said about 60,000-70,000 metric tons of PVC resin were imported before the production of Engro Asahi and Polymers and Chemical Limited started in December 1999.

Pakistan files case with WTO

Setting a precedent, Pakistan has filed a case with the Dispute Settlement Board (DSB) of the World Trade Organisation (WTO) challenging the United States decision of enforcing quota restriction on the import of combed yarn from Pakistan, sources in the Ministry of Commerce told. A couple of months back Pakistan had engaged a Swiss law firm, Frider Roessler, which had filed case with the DSB last month in Geneva seeking justice from the high-powered body of the WTO.

The firm prepared a detailed draft of complaint in the light of informations provided by the Ministry of Commerce and All Pakistan Textile Mills Association and despatched it to Pakistan for formal approval before lodging complaint last month.

The Dispute Settlement Board is expected to hold a meeting within this month and during this meeting it would take up the issue of quota restriction on the export of combed yarn from Pakistan to the United States.

Cotton sale bids

Cotton Trading Corporation will hold open bidding for the sale of 70,000 cotton bales on April 12, says TCP Chairman Javed Ashraf Hussain here Monday. He said tenders will be received for 50,000 bales of Afzal and 20,000 bales of Elaka at 11 a.m and bidding will be held on the spot afterward.

Pakistan, China to expand trade ties

Pakistan and China on Saturday agreed to expand bilateral trade and economic relations.

A Chinese delegation led by Ma Yue Vice, the chairman of China Council for the Promotion of International Trade (CCPIT), met Finance Minister Shaukat Aziz and discussed with him issues relating to the promotion of trade between the two countries.

The Chinese team is visiting Pakistan to have the first meeting of the Pakistan-China Business Council which comprises members from the CCPIT and the Federation of Pakistan Chambers of Commerce and Industry.

Official sources said that both sides decided to enhance cooperation in all important fields, including trade and economy. China expressed willingness to transfer technology for improving the performance of various organizations in Pakistan, including the Pakistan Steel.

According to a handout issued after the meeting, the finance minister briefed the head of the Chinese delegation about the challenges facing the economy and the steps taken by the government to improve it.

He said the official policies would result in economic stability, creation of employment opportunities and poverty reduction. The priority areas were agriculture, small and medium enterprises development, petroleum, energy, and information technology. He said the government was focusing on increasing exports to make the country self-reliant.

Another major area of reforms, the minister told the delegation, would be restructuring of taxation system.

Mr Ma Yue appreciated the economic revival plan announced by the government and hoped that it would help Pakistan achieve economic stability and growth.

Textile quota exports up

Textile quota exports rose by 12.6 per cent in value and by 11.32 per cent in quantity during the first quarter of 2000-2001 compared with the same period of last year. The growth in value and quantity was registered in exports to the USA, European Union (EU), Canada and Turkey.

According to the provisional figures of export performance quota released by the Export Promotion Bureau (EPB) the value of textile exports to the USA rose by 20.35 per cent, to EU by 4.97 per cent, and to Turkey by 469.9 per cent. However, the value of exports to Canada declined by 23.15 per cent. In terms of quantity quota exports increased by 10 per cent in case of the USA, 6.20 per cent for EU and 517.25 for Turkey.