Sep 09 - 15, 2002










Thirteen china tableware manufacturing industries in Pakistan have been closed, while at least three others are operating at less than 40 per cent capacity mainly due to dumping, National Tariff Commission (NTC) was informed on Thursday.


Participating in a public hearing held at NTC, All Pakistan Ceramics & Pottery Association chairman Mohammad Aslam Lone alleged that the local industry faced dumping prices charged for the crockery imported from China.

Dr Faizullah Khilji, Chairman of NTC presided. Interestingly, the importers remained conspicuous by their absence.

Quoting Chinese exporters, he said it was the practice in China not to fix universal rates. In this, China was aided by the fact that it had ample raw materials in the form of clay and coal. There was thus no system of cost accountancy. The Chinese exporters simply determined their price in comparison with the rates prevailing in each country of import.

The public hearing was held in response to the application submitted by Cera-e-Noor a subsidiary of Hashu group to the NTC for protection from unfair trade practices of foreign exporters.

Representing Cera-e-Noor, P.K. Shahani said the organized sector comprising 12 industries, large and medium-sized, was on the verge of collapse owing, besides dumping, etc., to high production cost due to ill-considered custom duty on imported raw material and high energy cost.

He charged that the imported crockery was being marketed in Pakistan at rates about 60 per cent lower than the international price. Tactics employed by them included invoicing first class product as second class product, thus cheating exchequer of tax and avoiding the mischief of anti-dumping ordinance.


Pakistan suffered a trade deficit of $265.21 million during the first two months of fiscal 2002-03, down 29.38 per cent from the same period of previous year.

According to the aggregate foreign trade data released by the Federal Bureau of Statistics on Thursday, the exports during the period under review totalled $1,171.35 million. This is 17.02 per cent more than July and August in 2001.

Likewise, the imports at $1,900.85 million surged by 9.90 per cent. Thus the fraction of imports paid for by exports improved to 90.14 per cent during the period under review. In the first two months of previous financial year, 84.67 per cent of imports were covered by exports.

Further analysis of the figures showed that for the first time in a long period, the exports are not only abreast of the target of $10.1 billion for the current financial year but ahead of it.


Molasses exporters are seeking exemption from sales tax because it blocks huge amount of around Rs337.50 million on export of about 1.5 million tons of molasses per annum.

In a presentation to Minister of State and Chairman Export Promotion Bureau Tariq Ikram, Terminals Association of Pakistan (TAP) has sought immediate exemption from sales tax paid at the time of purchase of molasses from sugar mills.

The association pointed out that since the collected sales tax is refunded, but not before wrecking the export business of molasses by way of creating liquidity problem and enhancing the cost, therefore, there was no logic to impose it at all.


The State Bank has issued a set of guidelines about trade loans being offered by the banks out of their fresh foreign currency deposits.

In a circular issued last week to the banks dealing in foreign exchange the SBP clarified that foreign currency deposits could be used for these purposes: (i) financing exports (ii) financing imports (iii) lending to exporters and (iv) lending to importers.

But the issuance of the circular does not mean that banks are currently not using their fresh foreign currency deposits for trade financing.


The government has expanded the list of gold category aimed at facilitating early payment of duty drawback claims to maximum genuine exporters, a senior official told.

Member Sales Tax, Ramzan Bhatti said that besides the existing gold category exporters the following exporters would also be included in the list provided they were not involved in tax frauds.

Those new exporters who would avail the facility included: all listed companies quoted on stock exchange; the exporting companies having annual export of $15 million or exporters of value-added goods having annual export of $1 million or exporting companies awarded best exporters by the Export Promotion Bureau (EPB).


The international exhibition of carpets is held by the Pakistan Carpet Manufacturers and Exporters Association (PCMEA) in collaboration with the EPB.

Around 50 stalls have been put up at the display that is being visited by some 100 foreign buyers and importers from Europe, the US, Canada, Far East and other countries.


Head of a two-member mission of the Islamic Development Bank Mohammad Sayef Uddin said on Friday that IDB will make $125 million credit facility available to the small exporters in Pakistan through National Bank. He was speaking at a meeting of Islamic Chamber of Commerce and Industry.

According to a press release he explained to the participants of the meeting that another $275 million IDB facility available to the exporters are of direct nature. Under this facility the exporters after shipment send their documents to the IDB and the IDB buys the export documents and pays the amount equivalent to the exports value.