. .

Jun 19 - 25, 2000

Strategy to raise exports to $14bn

The Export Promotion Bureau has developed a six-point strategy to push exports to $14 billion by fiscal year 2002-2003.

Tariq Ikram, EPB Chairman, told a press conference that the strategy, which is 'demand led rather than supply led', has been approved by the chief executive.

The strategy is formulated in the wake of rising threats to the country's future export like ceasing of textile quota in 2004, devaluation of European currencies, non-management of the country's business image, insufficient capital with the small and medium sized enterprises, high cost of export finance, rising manufacturing cost and rising competition from developing countries, he added.

The strategy aims: to enhance world market shares of existing products categories, grow new and non-traditional items where Pakistan enjoys competitive edge, pursue exports to new destinations of our performing existing product categories or other significant products, value addition in existing top 10 products being exported, government to government transactions and strengthening trade blocs.

To achieve this strategy, an enabling environment will be essential which include agriculture growth at six per cent per annum, GDP growth of 6.5 per cent per annum, single digit inflation, rupee depreciation against dollar of 10 per cent each year to year 2,003, governmental continuity and stability, availability of required rupee and dollar funds for export programmes and unqualified support to export culture.

He added that there is also a need of export culture, high sensitivity to national and international change, demolition of bureaucratic environment, marketing management and advisory services, human resources, skills and competencies, supply chain management, foreign direct investment and export finance.

Import of food stuffs drops

As the imports of foodstuffs dropped by about one-third, the imports of petroleum crude and motor vehicles soared by about 88.8 per cent, raising the import bill for the period July-May, 1999-2000 by 11.48 per cent over the corresponding period of previous year.

A substantial contribution to the import bill, according to foreign trade statistics made available by the Federal Bureau of Statistics, was made during the month of May when the imports of petroleum crude jumped to 32.66% over May, 1999, to 388,012 tons. As the price of petroleum crude spiralled further to $199.82 per ton, the import bill on account of this item alone went up by over 123%.

In May last year, its rate was $118.82 per ton. Quantity-wise, the import of petroleum crude increased by 25.62% over April 2000 and by 32.66% over May, 1999.

The Food Group, whose imports totalled $1.02 billion, accounted for 10.97% of the total import bill. Thus the value of foodstuff imports dropped by nearly $500 million, compared to July-May, 1998-99, when their contribution to import bill stood at 17.94%.

Export of manufactured goods improves

Manufactures accounted for 87.16 per cent of total exports during the period July-May, 1999-2000, showing a slight improvement over their performance in the corresponding period of previous year.

According to foreign trade figures released by the Federal Bureau of Statistics, the exports totalled $7.69 billion as against $6.97 billion in the same period of 1998-99. The share of manufactures in the first eleven months of previous year was 87.10%.

Almost all the major groups have registered substantial improvement over the previous year. The exports of primary commodities in the period under review went up by 9.87%, Textile Manufactures by 11.73%, and Other Manufactures by 15.38%.

The exception was the "Others" group which declined by 6.06%. Their share in total exports dropped from 9.38% in the first 11 months of 1998-99 to 7.99% in the corresponding period of current financial year.

Gold up

Consumers have started paying Rs344 per 10 grams more to buy gold after opening of outlets after a 15-day traders strike.

The Karachi Saraf and Jewellers Group (KSJG), which issues daily bullion rates, did not provide rates in the markets on Monday.


Bangladesh and Cyprus have shown their keenness to buy Pakistani products as the EPB has received international tenders, it was stated. Cyprus has shown interest in 'distribution transformers' - July 7 and Power station desalination plant with opening date June 23. Bangladesh is interested in 3.00 M.T. Phosphate opening date July 5. The Department of Transmission System Engineering of Thailand has issued a tender for the supply of 230 kV transmission line with a closing date of August 29, 2000.

TCP tender for 80,000 cotton bales

The Trading Corporation of Pakistan has floated tenders to dispose of 80,000 cotton bales of Afzal, Elaka and 1467-type, officials said here Tuesday.

The newly appointed TCP chairman, Mr Fazlur Rehman, said here that the bidding will be held on June 20, both for international merchants and local buyers at the corporation office.

The TCP had floated international tender for the sale of 40,000 cotton bales of Afzal-type, 1467-type and Elaka.

He said bidding for 40,000 bales of Afzal-type and Elaka will be held for local buyers on the same day.

Textile made-up

Pakistan exported textile products worth $4.9 billion during the first eleven months of the current fiscal year as against $4.4 billion of the corresponding period last year.

Commerce ministry officials have noted an increase of 11.73 per cent (in terms of dollar) in textile made-ups export during the July-May 2000 over July-May 99. In terms of rupee, the increase is about 15.6 per cent.

A month-to-month comparison, however, shows that textile products export has declined in May 2000 by 3.8 percent against its export in April 2000. The textile groups earned $462 million in May 2000 as against $481 million in April 2000.