Feb 26 -Mar 04, 2001
EU mulls quota
lifting for Pakistani textiles
A European Union (EU) team is arriving next week to discuss
possibilities of lifting quotas on Pakistani textile exports to its member states,
official sources said on Tuesday.
Sources said the EU had already given its consent for lifting of
quotas, provided Pakistan reciprocate on equal terms and reduce its customs tariff as
required under the WTO agreement.
At present the maximum customs duty stands at 35 per cent and under the
WTO agreement, Pakistan was supposed to have further reduced these duties.
However, there is a delay in further reduction of duties, which is
primarily because of shortfall in revenue and a protection required by the industry,
before facing open market competition.
The EU lifted quota restriction on Sri Lanka last December, after the
latter met the tariff reduction condition.
Minister for Commerce Abdul Razzak Dawood has also hinted at the
FPCCI's Trophy Award Ceremony at Lahore that a EU team was due next week to discuss
lifting of quota restrictions on Pakistani textile exports.
Sources said the EU team was carrying along a "wish list" to
discuss it with the government of Pakistan and it was expected that some positive results
would come out of this development.
After the US, the second largest trading partner of Pakistan are the EU
member states with whom there is an annual export volume of around $1 billion. Most of the
exports consist of textile and textile made-ups like readymade garments, bedlinen,
hosiery, yarn etc.
Pakistan is already behind the schedule of tariff reduction and if the
government manages to face the problem, it was most probably that a further reduction may
be effected in next budget.
Deals worth $35.5m struck with Iraq
Pakistani delegation has struck various deals worth more than $35.5
million with Iraqi authorities during three-day visit to Baghdad.
This was stated by state Minister and Chairman Export Promotion Bureau
(EPB) Tariq Ikrim on Wednesday.
He said the visit was very fruitful and Pakistan is likely to get more
orders worth millions of dollars for the supply of various consumers and construction
work, medicines, surgical items, laboratory equipment, stationary items, agricultural
implements, spare parts, tractors.
Tariq Ikram said there had been a total change in the attitude of Iraqi
government following Pakistan's support of Iraqi stand and strong condemnation of US-UK
air strikes over Baghdad.
He said Pakistan struck deal for the supply of 100,000 metric tons of
wheat worth $12 million, 40,000 tons rice worth $10 million, wooden doors for $11 million
and G I Pipes worth $2.5 million during the current visit to Iraq.
OMCs allowed to import diesel
Ministry of Petroleum has cancelled a diesel purchase tender to make
way for private sector imports of the product, the second to be freed from government
control after fuel oil, last year.
"Yes, we have cancelled the tender and allowed OMCs (oil marketing
companies) to import diesel," a petroleum ministry official said.
The tender had sought 480,000 tonnes of gas oil in eight 60,000 cargoes
for delivery in the second quarter. It had been due to close on February 24.
The official said the tender had been issued as a "backup" to
ensure that diesel supplies to Pakistan were not disrupted.
"But OMCs like Shell and Caltex informed us that they were ready
to import, so we decided to cancel the tender," he said.
A Shell Pakistan official told Reuters negotiations had already begun
with international firms for the supply of the product in the second quarter.
Direct container delivery
The Karachi Customs Agents Group (KCAG) and Karachi Port Trust (KPT)
have decided that direct delivery of containers from port area would not require any
An agreement in the regard was reached in a recent meeting held between
KCAG and KPT authorities for resolving certain issues confronting members of the group.
Export rebate allowed on PVC resin
Export manufacturers of PVC resin as raw material have been authorized
customs rebate on Wednesday. A Central Board of Revenue notification No. C.3(90)DDS/99,
dated February 20, 2001 , allows the export rebate on consignments made from August 13,
1999 onward, to Engro Asahi Trading Ltd, Karachi.
The rate of rebate on export of PVC resin grade AU-67R, packed in
printed paper bags would be 5.01 per cent of the FOB value. It would be 4.42 per cent of
the FOB value on export of grade AU-67R packed in PP woven bags.
On export of PVC resin grade AU-67S packed in printed paper it would be
5.03 per cent of the FOB value, while on export of grade AU-67S packed in PP woven bags
the rebate would be at 4.44 per cent of the FOB value.
Removal of trade obstacles is imperative to promote mutual trade and
business between Iran and Pakistan.
Need to remove customs related barriers was overwhelmingly felt to
promote trade between the two countries at a meeting between the visiting delegates of
Iran's Khurasan Chamber of Commerce and Industry and members of the Sarhad Chamber of
Commerce and Industry on Tuesday.