TRADE

 

Sept  15 - 21 , 2003

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF


MACHINERY IMPORTS DECLINE IN JULY-AUG

The machinery group imports ($438.19 million) declined by 1.03 per cent during the first two months of the fiscal 2003-04 as compared to the same period of previous fiscal. This group's share in overall imports ($2024.05 million) also dropped to the level of 23.07 per cent as against 26.65 per cent of the same period of previous year, according to an analysis of the foreign trade statistics available from the Federal Bureau of Statistics.

 

 

 

The main contributors to the decline in this group's imports were office machines, including computers ($33.72 million), textile machinery ($73.98 million), construction machinery ($13.90 million), and others ($134.77 million). These items registered a negative growth of 2.83pc, 3.85pc, 17.43pc and 7.64pc, respectively, as compared to the same period of previous year. Roadmotor vehicles, on the other hand, remained as strident as ever with imports of $89.68 million, representing the highest tab among all categories except others. The imports in this category surged by 18.35pc.

Besides, the imports of power generating machinery ($46.56 million) and electrical machinery and apparatus ($35.08 million) rose by 7.26pc and 8.93pc, respectively, during the period under review. This group, on the top in terms of import bill ($466.95 million), showed 7.60pc decline during the period July-August 2003. The petroleum products within this group plummeted by more than a quarter to stand at $195.71 million.

The vertical fall in this group as a whole was, however, offset to a significant extent by 11.74pc increase in import of petroleum crude (271.23 million). The quantity of petroleum crude imported during the period under review was 1,320,177 tons 3.77pc more than in July-August 2002. Petroleum crude thus accounted for 13.40pc of total imports, that is, 0.60pc more than during the same period of previous year.

EXPORTS TO SAUDI ARABIA UP BY 44PC

Saudi Arabia's imports from Pakistan during the fiscal 2002-03 went up to $477 million as against $330 million last year, showing an increase of 44 per cent over the fiscal 2001-02 and 75 per cent over 2000-01, just released data indicates. During the period under review, the global exports from Pakistan grew by 21 per cent.

As per sector-wise details available, during the outgoing financial year, export of bedwear to Saudi Arabia from Pakistan went up by 51 per cent, garments 66pc, synthetic textiles 111pc, cotton fabrics 41pc, tents and canvas 12pc, towels 44pc, engineering goods 27pc and even rice exports to the Kingdom grew by 26pc.

Incidentally, rice exports from Pakistan, which has been on decline for last 12 years, appear to have regained some of the lost market. For the first time rice exports went up from $27 million in the fiscal 2001-02 to $34 million in 2002-03. According to market sources, Pakistan's rice exports started to gain during the second half of the fiscal year, starting this January.

 

 

FINISHED ITEMS EXPORT UP BY 12.9PC

Finished goods exports ($1780.81 million) surged by 12.99 per cent in July-August 2003, raising their share in overall exports to 92.50 per cent as against 91.66pc during the same period of previous year. The overall exports during the first two months of 2003-04 stood at $1925.14 million, up 11.96pc from July-August 2002.

The major contribution to this figure was, however, made by the textile manufactures whose exports stood at $1301.97 million, recording an increase of 12.81pc over the previous year, as revealed in the foreign trade statistics released by the Federal Bureau of Statistics. These accounted for 67.58pc of total exports, up 0.51pc from the same period of previous year. As a proportion of finished goods exports, their share stood at 73.06pc. As compared to previous year, however, this figure shows a slight decline of 0.11pc.

TCP AGREES TO IMPORT RAW MATERIAL

The Trading Corporation of Pakistan (TCP) has agreed in principle to import bulk quantity of raw materials for the regular supply to small and medium enterprises to reduce their production costs.This assurance was given by TCP authorities to the Union of Small and Medium Enterprises (Unisame) during a meeting at the corporation's head office.

FISH EXPORT RISES IN AUG

Fish export during last month has shown increase in quantity but it has fetched slightly less amount than what was earned in August last year. Fish traders consider this small decline in fish export proceeds as insignificant and normal business fluctuations rather than any other reason.

PAKISTAN TO BENEFIT FROM CHINA PROTOCOL

Three special provisions in the Chinese Protocol of Accession to the World Trade Organization (WTO) provide enough safeguards for Pakistan's textiles exports in the EU, the US and Canada from where textile export quotas will be dismantled by December 2004. With a production capacity of 20 per cent of world textile garment export, China now competes head to head with virtually every textile producing and exporting country that included India, Vietnam, Mexico, Bangladesh, Indonesia and Pakistan.

TRADE DEFICIT

Pakistan's trade deficit with China has expanded significantly in the last five years from $245.512 million in the year 1998-99 to $594.465 million in 2002-03.

TEXTILE QUOTAS

The year 2005 will see the end of textiles quotas. The quotas set out in the Agreement on Textiles and Clothing helped many developing countries get a share of the world textiles trade. According to a report, textiles account for a sizable part of world trade. In 2002, textiles generated flows of around $382 billion, or six per cent of world exports.