The corporation had invited bids for export of 50,000 tons of "Pak-Punjab Supreme" wheat of 2002 crop and fixed tender opening date on Wednesday, August 21.

In total six bids were received, but one of the bidders at the last moment regretted. The highest bidder has asked for a quantity of 30,600 tons wheat for export, the sources said.

In order to encourage competition between exporters, the TCP for the first time did not refer the bid offers to the price evaluation committee and instead the corporation's executive committee has taken the decision.

The sources said that change in the modus operandi of the TCP was just to remove the psyche of participants, who had started living on 'matching offers' given by the corporation rather than taking active part and were making independent price offers in their bids.

The second highest price for export of 15,000 tons was $109.70 per ton, but the bidder has given his counter conditions to the TCP, the sources added. However, the corporation has asked the bidder to raise the offer to $113.69 per ton and also follow the terms and conditions laid down by the TCP in its tender document.

The corporation also received two bids at $108.00 per ton which proved to be third highest offers, while fifth best bid was made at $105.55 per ton.

According to TCP terms and conditions, the qualifying bidders would have to open LCs within ten days of acceptance of his bid and the shipment had to be made in 45 days i.e. Sept-Oct 2002.

GST ON MEDICINES WITHDRAWN

The government on Thursday withdrew 15 per cent General Sales Tax on all kinds of medicines. "This 15 per cent GST on all kinds of medicines, including homoeopathy and veterinary medicines, was causing great hardship to people. Therefore, we have decided to withdraw it immediately," Finance Minister Shaukat Aziz told a news conference.

Accompanied by Health Minister Abdul Malik Kasi, Mr Aziz said: "This levy of 15 per cent GST on medicines was a mistake and we have decided to rectify that mistake," the minister conceded. "We are considering introducing heavy penalty against those who would still be charging this 15pc GST."

He said there would be a Rs2.5 billion revenue impact of the GST withdrawal.

The minister agreed with a report that the imposition of the GST was one of the IMF's conditions and added that the IMF had been informed of the decision. He agreed that the levy of GST on edible oil was also one of the IMF's conditions.

TRADE TEAM FOR SEOUL, JAKARTA

A nine-member trade delegation headed by director general, Export Promotion Bureau, Rahat Ul Ain, left for South Korea and Indonesia to explore export opportunities.

During their week-long visit to Seoul and Jakarta, the delegation will hold meetings with government officials and also attend briefings at the chambers of commerce and industry.

Pakistan's exports to South Korea during the year 2000-01 were $278 million. The balance of trade was in favour of Seoul and Pakistan's trade deficit with Korea was $78 million.

Exports to Indonesia in 2000-01 were $135 million. The balance of trade was in favour of Indonesia and Pakistan's trade deficit stood at $28 million.

ROAD MAP TO BOOST DATES EXPORT

The Export Promotion Bureau (EPB) has evolved a road map for boosting export of fresh dates on sustained basis and suggested various measures to ensure supply side and proper processing.

The chairman of EPB Tariq Ikram in a meeting held on Tuesday with growers and exporters of dates at bureau's head office discussed various issues relating to supply side i.e. production, domestic trade and those related to export to different markets.

Based on the detailed discussions with the stakeholders i.e. growers, exporters, a road map for boosting export of dates was chalked out.

DRAWBACK FACILITY ON SPORT GOODS ALLOWED

The government has allowed the exporters to claim the duty drawback facility on exports of all kinds of sports goods. The Central Board of Revenue on Wednesday issued a notification, amending the notification SRO 413 of June 18, 2002.

The facility would come into effect from August 21, 2002, said the notification. The rate of duty drawback would be 1.72 per cent of the fob value on mini or miniature boxing gloves with or without key chains used as decoration pieces for promotional purposes (all sizes); 4.66 per cent of the fob value on boxing gloves and others, including hockey, football, goalkeepers, driving and ski gloves, all sizes and other artificial leather (rexine) made-ups.

TAXATION TREATY WITH S. ARABIA ON CARDS

The government is likely to initiate dialogue shortly with the Kingdom of Saudi Arabia on signing a double taxation treaty.

Official sources told that the need for having a double taxation treaty with the kingdom was felt following the decision of the 'Saudi Shura' to impose 10 per cent income tax on income of foreigners exceeding 3,000 Saudi riyals.

The decision would not be applicable on the incomes of those nationals whose parent countries have a bilateral treaty with the kingdom.

Pakistan had already signed a bilateral treaty on air transport with Saudi Arabia.

DRAWBACK CLAIMS

The Collector of Customs (Exports) has released an amount of over Rs1,300,000 against 22 duty drawback claims by Knitter (Pvt) Limited on the Federal Tax Ombudsman directive.