it . .



 1. INTERNATIONAL   2. INDUSTRY
 3. FINANCE  4. POLICY
 5. TRADE  6. GULF

A

TRADE

April 22 - 28, 2002

AUTO PARTS EXPORTS

There is a lot of confusion over foreign exchange earnings from auto parts as the Federal Bureau of Statistics (FBS) gives $4 million figures but auto parts makers claim $27 million.

According to FBS, Pakistan exported auto parts worth four million dollars during July-March 2001-2002 as compared to $2.7 million in the same period of 2000-2001.

On the other hand, senior members of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) say that when auto parts exports fetched $27 million in July-June 20002001 then how the FBS exports figures could give a single digit export earnings.

In July-March 2001-2002 period, auto parts exports have already fetched over $27 million and "we aim to achieve our target of $34 million by the end of this fiscal," they told on Wednesday.

They said exports of auto parts to mainly Europe and the US have been on the rise. In 1998-1999, exports stood $4 million only, rising to $12 million 1999-2000.

A senior member of PAAPAM said FBS figures are surprising as there may be some problem of classification of items.

The FBS official, said that they take export figures from Customs. However, a senior official of Pakistan Revenue Automation Limited (PRAL), Pakistan Customs, said that the FBS figures are actually based on the statistic copy (the last form of the shipping document comprising of seven forms) prior to the examination of the exportable items.

Clear export earnings come out from the last examination document which also determines the actual quantity of goods, he said. Furthermore, the FBS uses STC code for evaluating items while the Customs relies on HS Code for product specification.

60,000 TONS WHEAT BEING EXPORTED TO IRAQ

More than 60,000 tons of wheat is being shipped to Iraq in two vessels late this month and next month following an approval of the samples by the Iraqi authorities, officials said on Tuesday.

These two shipments replace the ones Iraq has rejected last year on the grounds that the wheat does not conform to their specifications.

Sources said that a two-member team of Pakistan Agriculture Storage and Supplies Corporation (PASSCO) carrying wheat samples recently visited Baghdad for getting approval from the Iraqi government.

The Iraqi government, after testing the samples in a laboratory, gave its consent because the wheat was fulfilling their specification in term of its contents and properties.

Pakistani wheat, which is of "hard milling" quality met the Iraqi specifications, which demands 28 per cent gluten and 14 per cent moisture. However, Baghdad gave some relaxation by allowing average gluten of 26 per cent.

TEXTILE SECTOR

Pakistan and China can join hands to further develop their textile industry, increase export of garments and other cotton- based products, said a senior member of China's Textile Association.

In an interview on Monday, he lauded Pakistan's potential in the textile field and said "we are prepared to share our experience and expertise to further enhance production and export of garment products."

He said Pakistani firms are allowed to divert their export to Chinese growing textile market, by establishing business linkage with the Chinese business and fashion houses and meeting necessary legal requirements. There is also a need to launch a coordinated marketing offensive by participating in the exhibitions that are being held time to time in major cities.

LEATHER SHOW

Over 90 companies comprising all segments of the industry are participating in the Pakistan Leather Show 2002, being held Friday, at Karachi Expo Centre.

EPB TO EARN

The Export Promotion Bureau expects to earn Rs2.060 million per annum on letting out Karachi Expo Centre (KEC) to a private company having international affiliation.

MEP FOR TOWEL FIXED

The Quality Assurance Committee (QAC) has fixed floor price (minimum export price) for towel export at $3.50 per kilogram fob Karachi, with a flexibility of reduction of 15 per cent.

The representative of textile associations dealing with towel, members of QAC on towel and members of Quota Supervisory Council in a recent meeting unanimously decided to start price check with effect from April 10, 2002. As a result of this meeting it was also unanimously decided to fix MEP for category 9 of towel for exports to European Union (EU) countries.

The price of towel exports to EU would be minimum of $3.50 per kilogram fob Karachi with a flexibility of reduction of 15 per cent.

MILL BUYING REMAINS AT LOW EBB

Mill buying on the cotton market remained at a low ebb on Wednesday as perceptions of comfortable future supplies and higher imports seems to have provided spinners a breathing space to play safe at least for the near-term.

Although official spot rates did not show any change for the third session in a row, in physical trading prices fell each session as weaker links among the ginners having a little holding capacity are forced to sell to meet their bank demands, dealers said.