is considering to hire the services of two reputed firms
by the end of this month for lobbing access of textile
products to European Union markets, besides resolving
the pending issues to this effect, it is reliably
The PAGE that these firms would propose for taking
appropriate measures in achieving market access and help
settle the issues like anti-dumping duties on Pakistani
bed-linen in EU markets. Pakistani textile exporters are
paying 100 million dollars per annum on the export of
bed-linen to European Union markets in terms of custom
and anti-dumping duties in quota free regime.
The EU markets
have a great attraction for Pakistani textile products
and textile exporters have to compete with their
counterparts in China, India, Sri Lanka, and Bangladesh.
that the 13.1 percent anti-dumping and 12 percent custom
duties put a heavy burden on bed linen exports to EU
markets and it was a conspiracy on EU side to deprive
the Pakistan products from reaching big markets.
European Union is the principal market for Pakistan's
bed linen exports with a market size of over $500
million per annum, however, 100 million dollars are
being paid against the WTO rules.
The Ministry of
Commerce officials said Pakistan's bed linen exports
have traditionally enjoyed entry into the EU market at
EU/GSP preferential tariffs under general arrangements
and in 2002 nearly all the manufactured goods, except
yarns and fabrics, in the textile sector and whole of
the leather sector were granted full duty exemption by
virtue of recognizing Pakistan as a drug combating
exporters of bed wear contested the anti-dumping
proceedings against Pakistani bed linen at every stage
but it did not result in bringing any relief to them. On
the other side, India is enjoying an advantage of over
15.58 percent in duties over Pakistani textile exports
to European markets in the quota-free era that began in
January 2005, industry sources said.
government did not take any action in this regard, it
would be difficult to achieve the set target of 17
billion dollars for the financial year 2005-06,"
the sources added. Under the European Union's
Generalized System of Preferences (GPS), Sri Lanka and
Bangladesh enjoy zero import duty for their exports to
EU. The Pakistani textile sector does not enjoy this
benefit but apparel exports continue to benefit from
this. India has to face a 9.6 per cent import tariff and
contributes 21.5 per cent of EU's textile imports. The
post quota period (January-July, 2005) saw Chinese
exports gain the most. They grew by 110 per cent
compared to last year, while India's grew by 35 per
cent, Sri Lanka 14 per cent, Pakistan 12 per cent and
Bangladesh 26 per cent. The growth in India's fabric
sector is just 1 per cent compared to China's 47 per
cent and Pakistan's 12 per cent. The only remarkable
thing for India has been its yarn exports growing by 300
per cent. According to exporters, out of the $13 billion
worth of textile exports, apparel constitutes 50 per
cent but the "various lobbies in the industry are
moving in cross-direction". The apparel industry,
which is less capital intensive, can employ 12 million
workforce at present; the sector employs 7 million
people with 4 million directly employed in the industry.
Elaborating on the need for greater exports, they said,
"If we export 1 kg of cotton, we get $1.20 but if
we export 1 Kg of cotton apparel we get $12."
Dismissing the projection of the Textile Ministry that
India will increase its exports to $50 billion by 2010,
the experts said, "It can be $30-35 billion."
For this the industry requires an investment of Rs
50,000 crore which means every major player has to
double his capacities. He suggested that the government
must usher in FDI in this sector to achieve this target.
The various infrastructure bottlenecks like poor road
and ports and high cost of power has impaired the growth
of the industry.
OF PSO IN DECEMBER 2005
Privatization Commission is likely to hold bidding of
Pakistan State Oil in the month of December this year,
it is reliably learnt.
The PSO is the
largest state-run oil company in the country and also a
listed entity at bourses. The PC Board had recently
approved the pre-qualification of seven bidders, out of
11 who submitted statement of qualification, for
Pakistan State Oil Company Limited (PSO) privatization
and the names of the bidders are being kept confidential
due to reasons best known to PC officials.
A total of 15
companies submitted Expressions of Interest (EOIs) for
the PSO privatization, out of which the PC board has
pre-qualified seven bidders. It was learnt that the
bidders, pre-qualified for the strategic sale of the
company, had been asked to complete the due diligence
process as soon as possible so that the bidding could be
arranged in December, a senior PC official told PAGE.
conference and bidding date for PSO would be decided
soon after the bidding of Pakistan Petroleum Limited (PPL),
expected any time next month. The Board of the
Privatization Commission and the Cabinet Committee on
Privatization had already approved the strategic sale of
PSO and PPL by December this year, said the official.
The process of
privatization of PSO and PPL might slow down during the
holy month of Ramazan, but during recent meetings
Federal Minister for Privatization and Investment Dr
Hafeez Sheikh has directed the PC officials, financial
advisers and bidders to line up the bidding of PPL and
PSO in November and December, respectively.
Government holds approximately 54 per cent stake in
Pakistan State Oil Company Limited (PSO), including both
direct holdings of the Federal Government and indirect
holdings through GOP owned institutions. The government
intends to divest 51 per cent shares in PSO to a
strategic investor along with management control.
JP Morgan had
been working as the Financial Advisor for the
privatization of PSO. The PC had invited Expressions of
Interest for the strategic sale of PSO in January this
year. The last date for submission of Statement of
Qualifications by all interested parties was April 15,
2005. The Commission earlier indicated June 2005
deadline for holding bidding for PSO, but the date was
extended to December 2005, as the required process could
not be completed. PSO is the largest oil marketing
company in Pakistan, engaged in storage, distribution
and marketing of petroleum products, liquid petroleum
gas, compressed natural gas and petrochemicals.
As on June
2004, the company has more than 3,800 retail outlets
with 60 per cent market share in POL products. PSO's
storage capacity is 860,000 metric tons, which is 81 per
cent of the national storage capacity.
profit of the company has gone up from 4 billion rupees
in FY-01 to 6.09 billion in FY-04. Its profit after tax
also has surged from 2.25 billion in FY-01 to 4.21
billion in FY-04 and the base of assets enlarged from
30.13 billion to 42.40 billion during this period. PSO
is one of the most favorite scrips at stock market in
Pakistan. On Tuesday its share closed at Rs 410.