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Apr 24 - 30, 2000

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

Export sector gets Rs41.6bn refunds

The export sector received Rs6 billion more in refunds/rebate this year in July-March period than what was paid under this facility in the corresponding period last year.

The CBR's final tax collection statement obtained on Thursday reveals that refunds/rebate (Rs41.6 billion) payments left CBR with a net collection of Rs241 billion this year. Last year, Rs35.6 billion were paid to exporters, leaving a net collection for three quarters at Rs203.7 billion.

The Income Tax department paid exporters a sum of Rs7.72 billion this year (net Rs74.38 billion) against Rs6.62 billion last year (net Rs68.78 billion). The department increased its net collection by Rs5.60 billion while paying more Rsl.02 billion in refunds.

The Sales Tax department this year paid refunds of Rsl8.72 billion against Rsl6.14 billion, registering an increase of Rs2.58 this year. Last year, the ST department had collected in July-March a net amount of Rs81 billion against Rs 47 billion achieving an increase in net by Rs34 billion—82.9% .

The Customs department paid a sum of Rsl5 billion in rebate, against Rsl2.6 billion (increase Rs2.4 billion). Last year's net Customs Duty in July-March was Rs45.26 billion, this year Rs46.29 billion (difference Rsl.03 billion).

The Central Excise department's rebate amount last year stood at Rs279 million, this year at Rsl42 million. Last year's net CED was Rs42.47 billion, this year Rs39.44 billion (decrease of Rs3 billion).

The CBR authorities say that since CED is a fast shrinking revenue resource for 1999-2000, depletion in net collection would continue.

MoU on rice export to Iran soon

The government of Iran has agreed to sign a memorandum of understanding (MoU) with the Rice Exporters Association of Pakistan (REAP) for the supply of 0.4 million tons of rice to Iran.

This understanding was reached during the meeting between Iranian delegation headed by the Deputy Minister of Commerce and Chairman CSDC, Saeed Nejad and the Minister of State and chairman Export Promotion Bureau (EPB), Tariq Ikram here on Thursday.

Prompt disposal of cargo urged

Around 0.4 million packages of detained and confiscated cargo of various categories are lying at Karachi port for the last several years, port users disclosed.

Such packages which are normally disposed of by the customs through auction are not only fast losing the value of their contents because of exposure to climatic conditions but are also occupying space in the port area, they added.

$450m orders for machinery import

Textile industry has placed import orders for textile machinery and equipment worth $450 million to undertake extensive programme of balancing, modernization and replacement (BMR) in spinning and weaving sectors, industry sources said.

Sources said that some leading textile groups have also opened letters of credit for import of around 0.4 million spindles to upgrade their manufacturing operations and move into production of higher count yarn.

"Many leading textile groups have already opened up letters of credit worth $400 million for import of machinery to upgrade their spinning and weaving units," a leading textile tycoon said.

Presently around 8.3 million spindles are installed in the country but a large number of this capacity has become obsolete and requires urgent and early replacement.

Industry sources say that around 60 per cent of the installed capacity of spindles is over 25-year old and the balance of 40 per cent was installed about 15 years back. However, presently around 7 million spindles are operative giving a monthly production of 143 million kilogram of yarn. Up to last year only 6.6 million spindles were operative due to the shortage of raw cotton.

TCP accepts Turkey's bid

The Cotton Trading Corporation accepted one bid of Baltas of Turkey for 10,000 cotton bales of 'Afzal' type at 42 cents a pound.

Chairman TCP and Chief of Price Evaluation Committee, Javed Ashraf Hussain, said here that eight foreign merchants had participated in the ninth bidding.

He said the TCP was still making profit at 42 cents.

3,360 tons sugar imported

The private sector has imported 3,360 metric tons of sugar during the last nine months of the current fiscal, an official of the Ministry of Food and Agriculture said here on Tuesday.

Sources said that presently the international prices of sugar are low as compared to the domestic prices.

Meanwhile, Sugar Mills Association has demanded of the government to monitor figure of import of sugar and increase the import duty to save the local industry. They are of the view that large quantity of import of sugar and any cut in the import duty will hit the domestic industry.

Pakistan, Egypt sign accords

Pakistan and Egypt on Sunday agreed to enhance their trade and economic cooperation through realisation of encouraging business climate and greater bilateral activity in these spheres.

The two sides, led by Chief Executive General Pervez Musharraf and Prime Minister of Egypt Atef Ebeid, held indepth talks vowing to further boost their cooperation to the benefit of both countries.

The two sides later also signed two agreements: i) on the Protection of Investment and, ii) on Mutual Cooperation on Trade Promotion.

The first agreement was signed by Pakistan's Commerce Minister Abdul Razak Dawood and Egypt's First Under Secretary, Ministry of International Cooperation, Ahmed Ragaei Bakry.

The second agreement was signed by Commerce Minister Abdul Razak Dawood and Egyptian Minister for Economy and Foreign Trade Dr Yousef Boutros Ghali.