TRADE

 

Aug 19 - 25, 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

$108.17 HIGHEST BID FOR WHEAT

The Trading Corporation of Pakistan has received a highest bid of $108.17 per ton for export of 100,000 tons of wheat. In total 13 bids were received. The tender was opened on Monday in the presence of bidders or their authorized representatives.

 

Official sources said the validity of tender was up to Friday, and the TCP as per the terms and conditions of tender documents had the right to accept or give counter-offer to the bidders.

The highest bid of $108.17 per ton is the best price the TCP has ever received for wheat export. However, the TCP is likely to give counter-offer and asked the bidder to enhance the offer by $1 or $2. The TCP is also looking into account if the bidder has met all the terms and conditions of the tender document.

The TCP offered 100,000 tons of "PAKPUNJAB" wheat of Punjab Food Department (crop 2002) for export and fixed Monday (August 12) for tender opening day.

According to the TCP sources, the second best offer of $105.50 came from three to four bidders, while the lowest bid was at $101 per ton. At preset the corporation is under taking the scrutiny of the bids offered by the 13 participants. According to initial indications, the TCP had detected flaws in some of the bids offered.

Citing an example, official of the corporation told that according to tender condition the minimum bid of 25,000 tons would be at sellers option, but some of the bidders have asked for buyers option. Similarly, the condition of opening of L/Cs within ten days after acceptance of bid offer is being rejected by some of the bidders. However, the final decision will be taken on Friday as the offers stay valid for another three days, sources said.

As per official figures the country is carrying around 7.2 million tons of wheat in the public sector and much higher quantity in the private sector.

PSO WINS WAPDA FUEL TENDER

Pakistan State Oil (PSO) has won the first ever international tender for fuel oil, floated by the Wapda, under which the company will supply two loads of 55,000 tons of oil each.

The first cargo is scheduled to be delivered by September 2-4 followed by delivery of second one between September 25-27, says a press release of the PSO, issued on Tuesday.

PSO had quoted the premium price of $12.95 and $13.10 for the two cargoes, which was the lowest as compared to major international traders like Glencore and regional traders Fal and Bakri.

PSO has been supplying fuel oil to Wapda for the past several years when the prices were controlled by the government. Later, when fuel oil was deregulated by the government, Wapda started purchasing through local traders.

ARMS EXPORT INCOME DOUBLED

Pakistan's export earnings from weapons and defence equipment have made a quantum jump of almost 100 per cent during the last two years from $40 million to $85-$90 million, the director-general of Defence Export Promotion Organization said on Saturday.

"We have managed to export Darra Adam Khel-made weapons worth $1.5 million," Maj-Gen Syed Ali Hamid, the director-general, told a press briefing. Darra, he pointed out, had now appeared on the world arms trade map for legal trading.

He said weapon selling had become a tough business because of the international trend of cutting down on the size of armies and a gradual reduction in tensions in many parts of the world. Besides, he added, the delivery period after booking an order is spread over three to five years and hence the slow movement in weapons exports.

US TEXTILE MACHINERY

Textile operators in Pakistan will be able to get loans from the banks on strength of their balance sheets for import of reconditioned machinery and equipment from North and South Carolina in the US where about 200 textile mills are about to be closed.

Federal Commerce and Industries Minister Abdul Razak Dawood informed business executives on Saturday that he has discussed the issue of possibility of importing re-conditioned textile machinery and equipment from the US with the governor, State Bank.

CUSTOMS DUTY ON 20 ITEMS SLASHED

The government on Saturday reduced the customs duty on about 20 items to do away with various anomalies of budget 2002-03.

The decision has been taken on the recommendations of Budget Anomalies Committee, which had examined about 80 cases of customs anomalies sent by the local industries.

Out of these, anomalies were found only in 20 cases in which customs duty was reduced in 15 cases while remaining five cases were related to the technical errors, said a senior official in the Central Board of Revenue.

EXPORTERS FOR MORE ACCESS TO FCY LOANS

Whereas banks say that credit disbursement in foreign currency is picking up in Pakistan, leading exporters complain that the banks are just too choosy about the borrowers.

Initially only foreign banks were lending in foreign currency but from January this year local banks also joined them and it was state-run Habib Bank that took the lead. Now more than half a dozen local banks are offering foreign currency credit mainly to exporters.