TRADE

 

Sep 02 - 08, 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

DUBAI EMERGES AS SECOND LARGEST EXPORT MARKET

Dubai has emerged as the fastest growing and the second largest export market for Pakistan. According to official figures compiled by the Export Promotion Bureau , Dubai accounts for nearly 50 per cent of the imports by the Middle East region from Pakistan.

 

Exports to the United Arab Emirates amounted to $728 million in 2001-02, of which, Dubai accounted for $720 million. Dubai's annual imports from Pakistan exceed those by the UK $659 million, Germany $452 million, Netherlands $257 million, France $247 million and Canada $175 million.

However, with sales of $2.25 billion, the US is the largest export market for Pakistan. Whereas the exports to the United Sates have stagnated at about the same level in the past two years, Dubai's imports have risen from $341 million to $720 million in three years ending June 2002. During this period, barring the UK, the exports to major industrialized countries like France, Germany, Belgium, and Canada show continuous decline.

The US and the European Union are, however, still the most important markets, whose imports together accounted for $4.7 billion against Pakistan's total exports of $9.1 billion last year. The Middle East region accounts for $1.5 of export earnings against $2.5 billion for EU.

UAE , particularly Dubai, re-exported 12.1 per cent of its $34.5 billion imports in year 2000. These included Pakistani goods. It also imports inputs for its textiles, garment and knitting industry.

Percentage-wise, origins of imports by UAE are as follows: 44.4 per cent from Asia, 35.5 per cent from Europe and 11.1 per cent from America.

POSITIVE CHANGE IN IMPORT STRUCTURE

Emergence of Pakistan on the world wheat export map, a slight fall in international oil prices and stabilization of dollar-rupee parity in post-September 11, 01 is bringing a gradual positive change in Pakistan's import structure which looks sustainable.

A detailed analysis of 10 months import during July 01 to April 02 shows that share of consumer goods has fallen appreciably with a simultaneous rise in import of capital goods, raw material for Pakistan's engineering industry and also raw material import for Pakistan's consumer industry.

Capital goods now constitute 27.4 per cent of Pakistan's total import of about Rs509 billion. Official figures show that import value of capital goods jumped from more than Rs128 billion to Rs139 billion.

TEXTILE VALUE IN US DOWN BY 28PC

In these times when Pakistan textile industry is operating at its potential best in terms of quality and quantity, it is beset with serious low value problem in the US export market where average unit price has gone down by about 28 per cent to 1.16 dollars in January to August 9 period this year as against 1.61 dollars obtained in same period in 2001.

Latest official figures show that the US remains the single largest market to absorb Pakistan's textile quota items in terms of value from where exporters fetched 610.71 million dollars in last more than seven months. This is roughly 50 per cent of the total 1.29 billion dollars earned from all the textile export quota countries.

Overall, the total textile exports to the quota countries USA, Canada, EU and Turkey has gone up to 1.29 billion dollars during January to August 9 this year. In same period in 2001 total textile exports to these countries was worth 1.26 billion dollars.

ECC ALLOWS TRADERS TO IMPORT FUEL OIL

The Economic Coordination Committee of the Cabinet (ECC) on Thursday allowed the import of fuel oil by the traders.

The ECC which was presided over by Minister for Finance Shaukat Aziz, however, said the import of fuel oil would be subject to quality check, import schedule clearance by OCAC and the conditions laid down by the Ministry of Petroleum. Bulk import of diesel and furnace oil by consumers such as Railways and Wapda was also allowed.

According to an official announcement, it was decided to allow duty free import of CKD kits for buses, whether diesel or CNG under the regulatory control of Small and Medium Enterprise Development Authority (Smeda). The import of Polyester Staple Fibre under the Duty and Tax Remission Rules for Exports (DTRE) regime will not be permissible.

PAKISTAN, JAPAN BUSINESS EVENTS

The Export Promotion Bureau (EPB) will organize a general trade delegation to Japan in the third week of September 2002, to create a greater understanding among Pakistani exporters about Japanese market.

PAKISTAN, TURKEY TRADE NEEDS TO BE DIVERSIFIED

Pakistan and Turkey should dispense with over-dependence on textile and diversify products in order to boost bilateral trade, Commerce Minister Abdul Razak Dawood stressed on Wednesday.

While discussing various proposals on mutual trade ties with the Ambassador of Turkey, H. Kemal Gur, according to an official source, he suggested the exploration of avenues other than textiles such as leather products, surgical goods, sports goods, fresh and dry fruits, furniture, fans, air conditioners, marble, handicraft, pharmaceuticals, cement, etc.

WHEAT TEAM TO VISIT EGYPT, MOROCCO

A wheat delegation comprising private and public sector members will be leaving for Egypt and Morocco next month to explore government-to-government as well as private sector export deals with both the countries.

The chairman of Trading Corporation of Pakistan (TCP), Syed Masood Alam Rizvi will lead the team. There will be private sector exporters and officials of government of Punjab who would be working as supplier in case any deal is finalized.

CANADIAN MARKET

There is a great potential of boosting two-way trade between Islamabad and Ottawa, said leader of Pakistani trade delegation which is currently visiting Canada.