Mar 03 - Mar 09, 2003  
ISSUE # 09  

Profit margins of polyester staple fibre manufacturers in Pakistan, already under pressure to over supply, seems to be further eroding due to hike in prices of two important basic raw materials, PTA and MEG. The increase in PSF prices coupled with higher prices of cotton and rupee getting stronger against dollar will adversely impact the profit margins of textile and clothing exporters. There seems to be no probability for reduction in PSF prices unless Iraq crisis is resolved amicably.





The countrywide torrential rains during last week, after a long dry spell have proved to be both a blessing and a calamity for the country. Unfortunately, many lives have been lost in fatal accidents and incidence of house collapses in the rural area, the rains, heaviest in the last decade have ended the droughts and brightened the prospects of Rabi Crop.


The heavy dependence on foreign shipping lines is feared to take a heavy toll on the economy of the country in more ways than one as clouds of seemingly imminent war thickens in the region. The tell-tale signs are already there: Indian Pakistan Bangladesh Ceylon Conference (IPBCC), a group of some 15 shipping lines serving these four countries and Europe, has announced to increase the freight rates recently.