Saturday July 04, 2009

ISLAMABAD: Cotton production may exceed the target set for 2009-10 fiscal year (13.36 million bales) by about 9.4 percent to 14.6 million bales following 40 percent increased sowing in Sindh and usage of BT seed for the current financial year.

According to the well placed sources in the Ministry of Food and Agriculture, the production of cotton may increase by 1.24 million bales more than the target of 13.36 million bales set for 2009-10, although the usage of BT seed is not permitted in the country.

The sources revealed that as the government had banned the sowing of rice in the Sindh as area under cotton had been increased by 40 percent. Similarly, an increase of 20 percent had been recorded in cotton sowing area of Punjab Province, which would be 88 million acres, they said.

They revealed that in the absence of certified seed and government's failure to introduce BT cotton last year, Pakistan's cotton production for 2008- 09 had witnessed a shortfall of 2.8 million cotton bales. They said that lack of expertise in fighting cotton virus and heavy rainfall, around 20 percent crop in Punjab and interior Sindh had been affected.

The sources further said that against the set target of 11 million bales, Punjab had produced seven million bales, witnessing a decrease of four million bales, while Sindh fall short of its set target by 0.5 million bales. Due to failure in the achievement of target, cotton worth Rs 25 billion was imported last year to meet the above gap, spending a lot of foreign exchange. If this year the set target could be achieved, foreign exchange worth Rs 30 billion could be saved.

The sources said that cotton production remained 2.7 million bales below the government's target of 14.1 million bales during the outgoing fiscal on account of non-supply of better quality seed, short supply of quality inputs and insufficient water supply. They said that the Pakistan Central Cotton Committee, keeping in view the situation, had revised the target to the level of 12.5 million bales in 2008-09, but the production was less than the revised target.

Average production last fiscal year remained 21.20 maunds per acre, while 40 maunds per acre production is expected in Punjab and Sindh due to use of BT cotton seed. Pakistan is the only major cotton producing country where certified BT cotton seed had not been introduced, as its production was more than other seed varieties, the sources said, adding the country was importing over three million bales to meet the demand of the local textile industry.


(BRecorder)

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Wednesday July 01, 2009

LONDON: Pakistan's exports to UK have crossed $1 billion mark this year for the first time in history. With the growth rate of 16.29 per cent during the period July 2008-April 2009, Pakistan has seen an all time high export to the UK, which is one of Pakistan's top three export markets in the world for the last four years from 2005-2006 through 2008- 2009 financial years.

Due to dedicated efforts of Commercial Wing of Pakistan High Commission, UK remains among top three markets with balance of trade in favour of Pakistan. Exports from Pakistan to the UK were worth 1.03 billion during the financial year 2007-2008. The exports mainly constituted such items as textile yarn, rice and cereals, fruit and vegetables and value added items like apparel and clothing accessories, power generating machinery and equipment.

Officials at Pakistan High Commission explained that by diversifying products a huge potential of enhancing further exports could be exploited. Three new sectors with export potential to the UK are high quality periods replica furniture, health care items including pharmaceuticals, surgical and beauty care instruments, herbal medicines, hospital linen besides dairy and Halal meat products.

In this context the commercial wing of Pakistan High Commission has planned sector specific conferences. A conference for promotion of Healthcare sector is being organised here from July 21 to 23. As market access remains a crucial factor in expanding trade share Pakistan has insisted time and again for concessions and preferences such as GSP plus.

The surge in exports due to effect of award of GSP plus in the past is evident from the comparison of data of FY 2003-2004 with the successive years. According to the officials, in UK there is great interest for trade with Pakistan, which could be translated into growth of exports through greater outreach to importers and by rectifying misperceptions about Pakistan, as travel advisories by FCO and discreet policies of companies of not providing insurance cover to travel to Pakistan create reluctance among people to travel to the South Asian country for business.

(APP)

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Tuesday June 30, 2009

FAISALABAD: Textile exporters could bring in $25 billion forex from exports in the next two years and 120 billion during the next 10 years, if they were provided a level playing field and productivity-conducive consistencies, claimed Azhar Majeed Sheikh Chairman FPCCI (Federation of Pakistan Chambers of Commerce and Industry) Standing committee on export trade, here Monday, in post-budget proposals to Shaukat Tarin, Advisor Finance.

A major issue pertaining to exports still remained unattended and unsettled, he said. Pin pointing the major irritants he advocated that exports should be zero-rated, as exporters were heavily burdened with 6.8% local taxes, whereas China, India, Bangladesh's exporters got 17% incentives. The difference with regional players was 25%, he said and demanded a 8% minimum, duty draw-back against local taxes for a level playing-field.

The 10% regulatory duty on pigment-thickeners should also be withdrawn, he said. Similarly, any projected increase in the Polyester fibre duty would also scuttle the power-loom sector, he asserted. He also demanded an exemption of federal excise duty on insurance, banking, port and terminal operations for zero-rating purposes. Yet another demand was the refund of duty draw-back and Sales tax at the time of negotiations in banks.

As is the case with the deduction of income tax, he also demanded the payment of the pending refunds of earlier years, and also the release of 60% R&D claims. Pointing at the inconsistent and detrimental Monetary and Energy Policy's shortcomings, he said that the financial cost of credit borrowings, all over the world, was 0.4%, but in Pakistan, it was 14 to 18%.

Lamenting the tremendous increase in electricity and gas prices, he demanded a 10% deduction in gas prices, as well as mandatory exemption for textiles from gas load-shedding, to allow it to fulfil its export commitments. Azhar Majeed Sheikh demanded that free access of Bangladesh and other regional countries to Europe and America be offset through export incentives to the local industry.

These constraints had put exporters in a very difficult cash-flow situation, he contested and demanded the capping of the mark-up rate on various products to 7.5%, and the freezing of the earlier accumulated mark-up for 2years and the provision of Rs 40 billion for direct cash support to the export industry. He gave the assurance that if irritants were removed, a level playing field provided and export-conducive measures enforced, exporters would achieve the high targets for exports.


(BRecorder)

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Tuesday June 30, 2009

FAISALABAD: Textile exporters could bring $ 25 billion forex from exports in next two years and 120 billion during next 10 years if they are provided level playing field and productivity conducive consistencies.

This was claimed by Azhar Majeed Sheikh Chairman,Federation of Pakistan Chambers of Commerce and Industry (FPCCI) standing Committee on export trade here Monday in post budget proposals to Shaukat Tarin Advisor on Finance.

Major issue pertaining to exports still remains unattended, he said. He demanded exemption of federal excise duty on insurance, banking, port and terminal operations for zero rating purposes. Yet another demand was refund of duty drawback and sales tax at time of negotiation in banks as is case with deduction of income tax. He also demanded payment of pending refund of earlier years and also release of 60% R&D claims.

Azhar Majeed Sheikh demanded offsetting the free access of Bangladesh and other regional Countries to Europe and America through export incentives to local industry.

These constraints have put the exporters in a very difficult cash flow station; he contested and demanded capping of mark up rate on various products to 7.5% and freezing of earlier accumulated mark up for 2years and provision of Rs.40 billion for direct cash support to export industry.

He assured that if irritants are removed, level playing field is provided and export conducive measures are enforced, the exporters would achieve the higher targets for exports.


(APP)

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Friday June 26, 2009

KARACHI: Romania is Pakistan's important trading partner within the European Union (EU) and the bilateral trade between the two countries has surged to $63.80 million in 2008-09. This was stated by Commerce Minister Makhdoom Amin Fahim on Thursday, while talking to the leader of six-member delegation and Director General, Asian Department of the Foreign Affairs of Romania, Gheorghe Margheru at his office.

According to information reaching here Thursday, Secretary Commerce Suleman Ghani and other officials of the Ministry were present on this occasion. The minister expressed a desire that increased interaction of businessmen and contacts on officials' level between the two friendly countries would provide an opportunity to identify areas of mutual interests.

The delegation was told that Pakistan attaches greatest importance to its trade relations with the EU, which was the single largest trading partner accounting for 27 percent of county's exports and 17 percent of total imports. The trade volume had been doubled in the last five years, the delegation was told. The visiting Director General expressed that like Pakistan, Romania was also located at a strategic point of Black Sea in Eastern European.

He underlined the need for exploring the potentials in trade and Commerce at bilateral level as well as on the EU forum. The Minister pointed out that since Romania was a member of EU, Pakistan would like to have its meaningful support at EU level, besides bilateral partnership.

The recently held first Pak-EU summit in Brussels was a clear indication of broadening the commercial relations between EU and Pakistan. Pakistan's major exports to Romania include material of animal origin, cotton fabrics and articles of textile materials, while the imports include oil seeds, iron and steel manufactures and machinery.


(APP)

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Friday June 26, 2009

ISLAMABAD: Federal Bureau of Statistics (FBS) has revealed that fruit and vegetable exports for the 11-month period between July 2008-May 2009 increased to 6.55 percent and 26.6 percent respectively, compared with the corresponding period of 2007/08.

Fruit exports increased in both volume and value terms, up to 435,198 tonnes in 2008/09 from 384,384 tonnes, with value increasing to US$143m from US$134m last year, according to the FBS.

Meanwhile, vegetable exports totalled 343,198 tonnes through the July 2008-May 2009 period at a value of US$67m, up from the 211,458 tonnes sold at US$53m during the previous campaign.

Additionally, the country's pulse exports jumped 82.9 per cent through the 11-month period, with 3,807 tonnes shipped at a value of US$3.4bn.


(Aaj TV)

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