Apr 09 -
PARCO accepts bid for export of petrol
The Pak-Arab Refinery Limited (PARCO) announced, on Tuesday,
of accepting the highest bid for the export of 300,000 tons surplus petrol at
the rate of $240 per metric ton.
The company said that the country would earn over $75 million
per annum but it did not give any details about as to where this surplus
commodity is to be exported.
PARCO had recently invited an international tender for the
export of surplus motor gasoline which was bid by other sources also at nearly
double the premium offer it had received initially from Iran on a bilateral
PARCO officials refused to give further details about the
bidding countries, destination of petrol export, possibilities of signing the
agreement with the highest bidder for the delivery of first shipment.
The company is also expected to be shortly given permission
to export other products including liquefied petroleum gas (LPG) if found in
surplus to the country's present needs.
The $886 million refinery at Mehmood Kot near Muzaffarabad
has a total petroleum products refining capacity of 4.5m tons per annum. A press
release said that the refinery is estimated to save $100 million worth of
value-added oil products through import substitution.
PARCO relies on crude oil imported from Saudi Arabia and Abu
Dhabi which is pumped from Karachi through PARCO's 864km pipeline to the
refinery site near Mehmoodkot as part of an integrated operation which includes
availability of a pipeline for product transportation up to Machike near Lahore.
Pakistan to lose Rs2 billion on petrol export
Pakistan would lose around two billion rupees in one year on
the export of 300,000 metric ton of petrol at the rate of Rs10.97 per litre,
Pakistan-Arab Refinery (Parco) which accepted bids for the
export of 300,000 tons of surplus petrol at the rate of $240 per metric ton, is
running on an annual subsidy of over Rs4 billion and the figure goes beyond Rs7
billion if hidden subsidies are included in it.
Experts believe that exporting the motor spirit at a lower
rate is double loss to the country which is producing it by offering huge
subsidy and then exporting it at the price lower than its production cost.
They say that instead of exporting the motor spirit at the
lower price, the government can market the product by slashing its taxes, which
will be incentive for motorists to use the motor spirit instead of the
Compressed Natural Gas (CNG).
Pakistan, China trade
Vice Minister for Foreign Trade Peoples Republic China An Min
said on Wednesday that Pak-China bilateral trade has touched a record $ 1.1
billion mark during the year 2000.
He was speaking at a seminar, organised by the Federation of
Pakistan Chambers of Commerce and Industry (FPCCI) at a local hotel.
He said that the bilateral and economic relations between
China and Pakistan has witnessed a history of five decades and China is
satisfied with the cooperation in economic and technology, investment, foreign
assistance and trade.
Food grade tinplates worth $70,000 have been exported to
India via Dubai. The shipment left for its foreign destination about a couple of
weeks back, a senior official of the tinplate manufacturing company said on
Total exports, aside from the recent shipment of tinplates,
stand at $20 million a year. The company went into production of tinplates in
The company has been allowed monopoly in the local market
because of the recent, heavy raise in the duty on the imported tinplates. It is
selling its prime quality tinplates in the local market for Rs34,000-38,000 per
ton and secondary quality for Rs30,000-34,000 per ton.
Export finance rate up
The State Bank has enhanced export finance rate from 9 to
10.5 per cent to meet a key condition of the $596 million IMF standby credit.
This is the second upward revision in export finance rate
within two and a half months: on January 16 SBP had raised the rate from 8 to 9
per cent as the first step toward eliminating subsidy on export finance as asked
by the IMF.
SBP said in a circular on Saturday that exporters of locally
manufactured machinery would also get export finance at 10.5 per cent instead of
9 per cent. The circular said export finance rate for exporters of bleached or
unbleached cloth had been enhanced from 11 to 12.5 per cent.
Enlisting for rice export
Pakistan is trying to enlist as a "source country"
for rice in the Philippines to compete with Vietnam, Thailand and China and to
participate in the tenders.
"Our embassy in Manila, in consultation with commerce
ministry, is making efforts to get Pakistan registered as a source country for
rice with the National Food Authority (NFA) of the Philippines," chairman
Trading Corporation of Pakistan (TCP), Masood Alam Rizvi told on Saturday.
Molasses export lowered
The exchequer has suffered a loss of $7 million in foreign
exchange, because of lesser export of molasses during the current season.
On an average, approximately 0.6 million tons of molasses is
exported during the peak period of two months of January and February, every
year. However, exporters this season could not meet the target owing to a
prolonged strike of transporters, which resulted in export to the tune of 0.4
At present molasses price in the world market is ranging from
$37-$38 per ton. As a result of lesser exports, the country could only earn
around $14 million on an average price of $35 per tone. In case the target of
0.6 million tons was achieved, there would have been earning of $21 million,
during the two months peak season.