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Jan 24 - 30, 2000

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

'Cotton export can't be stopped on millers' demand'

The export of cotton could not be halted on the demand of All Pakistan Textile Mills Association as the procured cotton is not likely to be consumed by the textile industry of the country, sources in the government said here on Thursday.

They said that Aptma had declared its consumption of cotton at 9.4 million bales, which does not match the data, because based upon capacity working of 6.65 million spindles during the 98-99, total cotton consumed by local industry was 7.98 million bales.

Their demand is also not likely to bear fruit as during the September-mid January period of this fiscal, Aptma imported 163,570 bales Karachi Port, 13,278 bales through Port Qasim and 7,790 bales through land from Central Asian States against an estimated production of over 10.5 million bales of cotton.

Sources said nobody knows about the exact quantity of long staple imports and requirements of the textile industry. They said according to independent estimates 70,000 to 80,000 bales of long staple cotton are imported into the country.

Aptma, said sources, was in no need to import this quantity of cotton at a time when the country was harvesting a bumper cotton crop and the only reason they were bound to import was their open LCs. Even last year there was no shortage of cotton otherwise they would have raised hue and cry over it. They imported cotton only to crush the prices of local cotton so as to gain from it. Now at a time when international prices have started showing rising trend, they are lobbying to convert the cotton procured by TCP into a surplus pool, said sources.

Pakistan may lose battle against quota curbs

Pakistan may lose its battle against the quota restriction on the export of combed cotton yarn to the US as a consequence of the government failure to present its case to the WTO Dispute Settlement Board (DSB) to get the curb removed.

Pakistan, according to sources in the textile industry, has so far not been able to take its case to the DSB mainly because of a dispute between the finance ministry and the All Pakistan Textile Mills Association (APTMA) on who should foot the bill of $100,000 for moving the world body.

Toxic chemicals

All exporters, producers and users of chemicals in Pakistan are required to submit annual declaration for the quantity of toxic chemicals in schedule 2, 3 and 4 under the Chemical Weapon Convention (CWC). This was stated by Director Disarmament Cell, Ministry of Foreign Affairs Lt-Col. Liaquat Ali Khan.

New system of drawback on anvil

The Central Board of Revenue has decided to revise duty drawback rates on export of cement and clinker, it is learnt.

For this purpose the CBR has issued instructions to all the collectorates to furnish the survey report along with worksheets about the cement and clinker on top priority basis so that a new system of drawback be evolved with the approval from the Economic Coordination Committee of the Cabinet.

KSE index breaks 1700 mark

The share market on Wednesday broke the barrier of 1700 after almost 22 months as foreign buying in blue chips and investment stocks bloomed amid hectic activity in PTCL, ICI, PSO and Fauji.

The main factor behind this surge was the State Bank of Pakistan's decision to allow banks to repatriate dividend amounts to foreign fund house without prior approval from the central bank.

LSE: After a day's break, bulls again got hold of the driving seat on Wednesday and equities scored gains across the board while the index went up by 13.81 points amid rising volumes.

ISE: Buying spree in fuel, energy and communication sectors expanded the volume of the Islamabad Stock Exchange to 20.360 million shares where equities scored handsome gains amid increase in both index and horizon of trade.

Indians using 3rd country option for cotton import

Despite imposition of ban by India on the import of cotton from Pakistan, private sectors of both the countries seem to be keen on continuing with their commitments.

According to official figures, exporters continue to register sale contracts, signed by the Indian buyers with the Export Promotion Bureau and trade circles believe it reflects some mutual understanding between the two sides.

The foreign sale figures released by the EPB, disclose that contracts for 26,519 bales were registered with it on Jan 15 and 17, with the bulk consignment destined for India. The total foreign sales figures swelled to 0.436 million bales.

Food imports fall by 35 per cent

Inspite of increase in overall imports, the food imports have declined by 35.32% in first half of the current fiscal year, showing a conscious effort by the gevernment to achieve self-sufficiency in food, official sources said Saturday.

The food imports during July-December, 1999 was to the tune of $ 524 million as against that of $ 810 million during the same period last year.

According to sources, in terms of percentage, the major decline has been witnessed in the import of sugar, whose import dropped to $ 0.62 million in first six months from $ 2.43 million during the same period last year.

However, in terms of amount the major decline has been recorded in import of soyabean oil and palm oil.

The import of soyabean oil and palm oil declined by 56.89% and 53.02% respectively in the comparable periods.

In dollar terms, the import of soyabean oil reduced to $ 49.61 million from $115 million and that of palm oil to $158 million from $ 337 million in the first six months.

The import of spices and tea has also declined considerably by 44.89% and 22.20% respectively.

Besides, the import of milk & cream, including milk food for infants, wheat unmilled and pulses has also declined.