Oct 29 - Nov 04, 2001
SBP facility for carpet exporters
The State Bank of Pakistan (SBP) has extended the
financing period for carpet and rug exporters up to 270 days from 180
days for realization of their export proceeds.
Carpets and rugs specially hand-knotted and
man-made require more time for their manufacturing as compared to
other products and they require financing for longer duration, the SBP
says in a circular BSD no. 40, issued to all banks on Wednesday.
Exporters of carpets and rugs are facing serious
difficulties in realization of export proceeds, the bank said.
Keeping in view this aspect, it has been decided to
relax the provisions of the Export Finance Scheme (EFS), where export
finance has been, or will be, availed under Part I of the EFS, the SBP
In case of fresh finances granted by banks to
exporters, the facility will be available for 270 days to the above
exporters, banks will have to adjust the finance within a maximum
period of 180 days and allow refinance for an additional period of 90
days, provided shipment has been made by the exporters within a period
of 180 days after withdrawal of the finance.
SBP said in case export finance already availed by
exporters under Part I of the EFS, banks may allow an additional
period up to 90 days for repayment of export finance availed of for
export of carpets and rugs only, except where export proceeds have
been realized earlier by the exporters.
Exporters said the SBP's decision will go a long
way in timely realization of export proceeds and minimize the problems
that the exporters have been facing after September 11 incident in the
USA, resulting in slow down of orders from foreign buyers.
Exports of carpets rose by 39 per cent to $21
million in September 2001 from $15 million in August 2001. However,
exports in September 2000, were $24 million, showing a decline of 14
per cent as compared to September 2001.
Orders for fish, shrimps drop
Traditional western buyers of shrimps and fish from
Pakistan are switching over to cheaper imports from other countries,
and purchase orders have plummeted by 30 to 40 per cent after
September 11 , industry sources said.
The economic slowdown in Europe and America has
adversely changed the consumption pattern, reducing the demand of
various products. Cheaper goods are more in demand.
Exporters claim that October is our peak season for
export of shrimps but poor demand from the western countries have
slashed the arrival of orders by at least 30-40 per cent.
"We are being asked to ship shrimp at much
lower price than the rates offered by India, Indonesia and Bangladesh.
Our exports have virtually become uncompetitive in world
markets," President Pakistan Seafood Industries Association (PSIA),
Hanif Khan told on Wednesday.
Cotton export may earn less forex
Cotton exports during the current season may not
hit the last year's high mark of $139 million owing to steep decline
in world prices because of an expected production glut and falling
World cotton prices have, since the beginning of
the new cotton season from September 1, declined to 15-year low level
of 30 cents per lb, which in turn, could well mean lower foreign
exchange earnings despite a larger exportable surplus, exporters claim
after calculating the difference between the last and current season's
Refinance at 10pc by Dec, says Ishrat
The State Bank Governor Dr Ishrat Hussain has said
the rate of export refinance will be cut down to 10 per cent from the
existing 12 per cent by December to boost exports from Pakistan and to
help exporters who have obtained duty free access to the EU markets
from January 2002.
In his lecture at the Government College, Lahore,
on Wednesday, the governor said Pakistan's economy had been hit hard
after the September 11 events as it became the frontline state in the
global war against terrorism. However, he was hopeful that the economy
would start recovering in the third quarter of the current financial
Free trade pact with Sri Lanka soon
Pakistan and Sri Lanka are close to signing a
comprehensive free trade agreement to promote exports and imports
between the two countries, a highly-placed source in the ministry of
commerce told on Tuesday.
The government has constituted a delegation
comprising officials of the ministry of commerce, EPB and Central
Board of Revenue, who will leave for Colombo in mid-November for
carrying out consultations on free trade with their counterparts and
consequently draft the agreement, the source said.
Pakistan, Japan trade discussed
Commerce Minister Abdul Razak Dawood on Saturday
said that Japan was a major trading partner of Pakistani exports and
collaborating in automotive industry.
The minister was talking to Sadaaki Numata,
ambassador of Japan, who called on him and discussed with him matters
pertaining to bilateral trade.
The minister gave an overview of the economic and
trade activities. Razak said that the incident had affected Pakistan's
Gold imports resume after four months
Gold imports have been resumed after remaining
suspended for four months and one of the three licensed importers in
the country has imported 10,000 tola in the last two days.
"I have imported 10,000 tola gold from Dubai
in view of declining trend in global prices," chairman Tessori
Trading Company Limited Kamran Khan told on Saturday.
Pakistan, however, used to import 10,000 tola per
day. "We have initiated the imports to check the market and we
may increase the quantum in coming days depending on the market
situation, he said.