1

Vol No. 15 to 17
TDAP Can Provide a List of Importers for any Country for any product at I&C Karachi

15t hNovember 2011

In this Issue
NEWS UPDATE
6th Expo Pakistan 2011
Sixth Expo Pakistan: PM seeks to woo foreign investors Expo Center to help achieve exports target: Makhdoom Exhibitors bag $517m orders The 6th Expo Pakistan: A Successful event by Dr. Mirza Ikhtiar Baig

2 15
2-6

General Information
Cancellation of the membership of M/s. Paradise Leather Co., Kasur by PTA New address of Consulate General of Pakistan, Hong Kong 5th Session of Pakistan-Uzbekistan Joint Ministerial Commission (JMC)

Joint Venture Design Institutes of Pakistan and Poland ink deal for
Design Development

6-7

Business Opportunities
Major Railway Projects in Saudi Arabia and the Gulf Region

Press Clipping
Value-added products exports to go up MFN status for India under consideration Indian PM accepts invitation to visit Pakistan, Fahim India announces support to EU duty waiver for Pakistan Pakistan, India discuss opening of bank branches KCCI too Dwell on Mutually beneficial trade with
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7-14

Indian Counterparts Chinese government assures TDAP of participating in 6th Expo Pakistan Japan plans investment seminar for Pakistan Ministry of Commerce working for 72 items export to EU Bilateral Trade with China Touches $ 8.6 billion Spain Super Store giant to open buying office

Fairs & Exhibitions

9 International Trade Fair at Lome, Togo
th

15

20th International Trade Fair at Dakar, (FIDAK) Africa Export and Import Fair 2011

SRO EXPORT GUIDE

Review of Russian Meat Market EU and Pakistan Trade Relations

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17 18 19 20

ADVERTISEMENTS INTERNATIONAL TRADE ENQUIRIES FEEDBACK FORM

Readers Ple ase Pr ovide Fee db ack on t he form available on t he bac k page f or f urt her i mpr ove me nt of the b ullet i n

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6th EXPO PAKISTAN 2011

This would enable expansion and growth.

them

to

plan

Sixth Expo Pakistan: PM seeks to woo foreign investors

Prime Minister Syed Yousuf Raza Gilani has said that despite the scourge of terrorism at home and in its neighbourhood, Pakistan is still one of the most attractive destinations for doing business and investment. Speaking at the inaugural ceremony of the Sixth Expo Pakistan held at Sindh Governor's House on Wednesday, the Prime Minister said the Ministry of Commerce had announced a three-year Strategic Trade Policy Framework to provide a long-term policy framework of sustainable businesses.
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He urged the concerned government agencies to simplify procedures, reduce red-tapism, and enhance transparency and efficiency towards creating a business-friendly environment. The sixth Expo Pakistan, organized by Trade Development Authority of Pakistan, was held at Karachi Expo Centre. Sindh Governor Dr Ishratul Ebad Khan, Chief Minister Syed Qaim Ali Shah, federal ministers Farooq Sattar and Babar Khan Ghori, federal commerce secretary Zafar Mahmood and Speaker Sindh Assembly Nisar Khohro were also present on this occasion. Gilani said Pakistan is endowed with exceptional human and natural

EXPORT NEWS 15 to 17/2011

resources which offer excellent opportunities for developing mutually beneficial business. "However, there is a need to harness the potential to the full extent in order to give impetus to our economy," he added. In Pakistan, the Prime Minister said, the growth rate is not at a desirable level due to multiple problems. "However, this year's remarkable growth in exports is a testimony to the great potential of our export sector which demonstrates the country's capability and indeed refutes the notion of sluggish economy and it clearly establishes the resilience of our businessmen and of the economy," he added. "While the leaders of our industry help lead our country on the path of prosperity, it is imperative that we provide them the most effective and timely support for making businesses more competitive and attractive," he said. "In this regard, the President and I have been emphasizing Pakistan needs Trade not Aid," he added. He said the government has made concerted efforts to acquire better market access for Pakistani products in the world markets. The EU's offer at the WTO to Pakistan for duty free access to goods from 75 tariff lines is just one example of such endeavours of the government. By 2014, Pakistan expects to qualify and benefit from the EU's import preferential treatment under the GSP Plus regime allowing duty free access for all the products of Pakistan exports. He said Pakistan has already entered into preferential and free trade
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agreements with China, Malaysia, Sri Lanka, Iran, and Mauritius. He strongly urged exporters to take full advantage of the market access opportunities of the bilateral agreements. "We are also making concerted efforts to enhance regional trade with our neighbours," he said and added that the recently-held trade talks between India and Pakistan are moving in the positive direction. On the global scene, he said, a major shift is surely but steadily taking place through economic redistribution amongst the world community. Most observers agree that economic gaps between the West and the Asian economies are shrinking to the advantage of Asia. "In particular, our neighbours, especially China, are seen as the engine of growth for the world economy in the coming decades. They are heading with nearly double-digit growth rates bringing millions of their citizens out of the shackles of poverty as their economies generate wealth at a worth mentioning pace," he stated. According to him, the Expo Pakistan has become an annual event held at the cosmopolitan city of Karachi to showcase a complete range of quality products and services offered by Pakistan. It is heartening to see such a large gathering of foreign guests, he added. He recalled that he had declared the year 2010-2011 as the year of exports. "It is most gratifying that we achieved the milestone of $25 billion exports this year," he said Of course, it was made possible through combined efforts of the public and private sector, he added.

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He congratulated all the stakeholders whose collective efforts have made this year truly the year of the exports. "We do realize the hardships of the business communities who are facing severe problems in the face of energy outages and still they have outperformed," he said, adding that it is the ingenuity and hard work of the Pakistani entrepreneurs that made the difference. "Having said this, the democratic government is fully cognizant of these difficulties and is taking appropriate steps to overcome all such problems to facilitate the undertaking of businesses in the country," he said. He said that he had performed the ground-breaking of the DaimerBasha Dam only one day back, which would not only add 4500 megawatts to the national grid, but also provide a solution in controlling the floods and also provide sufficient water to irrigated country's vast cultivable lands. He mentioned that a meaningful headway has been made by his government and a recent acknowledgment of this fact is a World Bank Report "Ease of Doing Business in South Asia", which has ranked Pakistan as one of the attractive investment destinations in the region. The PM said: "To illustrate this, the recent experience of a Spanish company, EL CORTES INGLES, is worth mentioning. This multibillion-dollar company with a large network of departmental stores in Europe visited Pakistan on the invitation of TDAP with more than 30 buyers last year. They found a large range of competitive products and of high quality. The
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company Chief Executive wrote: 'Perhaps it is not the level of insecurity but the view that the media gives to Western citizens which restrains their travelling to Pakistan.'" Resultantly, the prime minister said, the Spanish company appointed an Exclusive Buying Agent for Pakistan, and orders have already started to pour in. "I am confident that those foreign friends, who have chosen to be our guests at this Expo, will also be pleasantly surprised to find Pakistan a profitable place to do business," he said. The Prime Minister announced a cash bonus for TDAP employees equal to two basic salaries for their efforts towards making Expo Pakistan a major success. Federal Commerce Minister Makhdoom Amin Fahim said that the country has witnessed the highest-ever growth in its exports of $25 billion in FY2010-11. "We want to continue this momentum," he said and added the commerce ministry is making more efforts towards increasing country's exports. In this regard, he said preferential trade agreements are being signed with Indonesia and Turkey. The commerce ministry is moving for second phase of free trade agreement with China. Recently, a delegation had visited India and it is expected Pakistan's trade relations with India would be normalized, he added. The Chief Executive of TDAP Mr. Tariq Iqbal puri said over 600 foreign guests from 52 different countries are participated in this expo. He said 285 exhibitors from diversified sectors

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showcased their products international and local buyers. for

Expo Center to help achieve exports target: Makhdoom

Federal Minister for Commerce Makhdoom Amin Fahim inaugurated the 6th International Expo Pakistan at Expo Centre. Federal Secretary Commerce Zaffar Mehmood, Chief Executive Officer of Trade Development Authority of Pakistan (TDAP) Mr. Tariq Puri, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senator Haji Ghulam Ali were also present. This international event, with participation of 52 countries, continued from October 21st ~ 23rd. It was open for general public on last two days. Talking to media on this occasion, the Minister said the expo would prove a big opportunity to market Pakistan s wide range of products that is, textile, agriculture, dairy products, fisheries, meat, and engineering goods. Handicrafts and other cottage industry products were given prominent place in the expo. It would greatly help promote our exports and bring more foreign investment in various sectors of the country. It would give very good exposure to foreign investors and would help stop flight of capital from the country, he said. He said a large number of foreign and domestic investors besides diplomats from various countries were expected to visit the 4-day expo. I hope, Expo will help us achieve our exports target, he said.
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While assisting the Minister, CE, TDAP, Mr. Tariq Puri said that more than 600 foreign importers were expected to visit this international trade exhibition. These included buyers from Russia, China, Japan, & France. To another query, the Federal Minister said the PPPled Government was trying its best to improve energy situation in the country. Prime Minister Yousuf Raza Gilani laid the foundation stone of Bhasha Dam two days back to ensure energy supply position in next couple of years. The work on Pak-Iran Gas Pipeline project was in progress. We are using all available sources including the import of gas to meet its domestic and industrial demand, he said. When his attention was drawn to the recent positive developments between Pakistan and India on economic front, Makhdoom Amin Fahim confirmed that many trade related issues were settled. Future strategy on bilateral trade would be finalized during the meeting to be held in the current month.

Exhibitors bag $517m orders

The visiting foreign buyers have placed orders worth $517 million and signed 15 memorandum of understanding (MoU) at the 6th Expo Pakistan with a major breakthrough witnessed in Information Technology (IT). A Polish company is in talks with a local IT company to finalise a partnership deal with tentative business of $1 billion, which is a sign that Pakistan is also competitive over regional countries in the IT field. This was stated by Trade Development Authority of Pakistan Chief

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Executive Tariq Iqbal Puri while giving a sort of roundup of the mega event to media at Karachi Expo Centre on Saturday. He said that during two days a record 1,650 business-to-business (B2B) meetings between buyers and Pakistani exhibitors-cum-manufacturers were held and foreign buyers made 1,093 visits to different stalls at the expo. Mr. Puri disclosed that M/s Ormita of Hong Kong had signed a MoU with Pakistani food company M/s Alpha Dairies of $120 million for first year with a provision to go up to $300 million. The success of the expo could be judged from the fact that some of the foreign delegations were headed by their ministers or high trade officials. Chinese delegation, he said, was headed by Vice Chairman China Counsel for Promotion of Trade. Similarly, he said that Malaysian delegation was headed by Haji Abdul Maalik, Penang State Minister and Madagascar delegation was headed by Minister for Trade, the TDAP Chief added. A big turnout of 500 foreign visitors from 52 countries despite security concerns was a testimony to the fact that foreign buyers still preferred Pakistan as their source of supply, he maintained. The TDAP Chief said that many foreign buyers extended their stay and held meetings and some also visited production facilities. As per TDAP plans, he said in coming years the Expo will be gradually given international posture and Chinese
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and Japanese stalls in the expo marked the 60th anniversary of relationship with Pakistan. The main objective of holding trade fair is to increase countrys exports so that lesser bill of imports is footed. He disclosed that M/s Iftikhar Ahmed Co. secured export orders worth $4 million for fresh vegetables and valueadded fruit products. Furthermore, he said that delegates from UK, Russia, and Holland had shown keen interest in importing fresh fruits from Pakistan. The TDAP Chief said that hopefully the next Expo would be held in October 2012. Around 22 Commercial Counsellors of Pakistan from different countries also accompanied the delegations from their respective countries. He admitted that some problems were faced by foreign visitors and this was mainly because that such a high turnout was not expected at any level and hoped that next time more and better facilities would be arranged.

The 6th Expo Pakistan: A successful event by Dr. Mirza Ikhtiar Baig

The first Expo Pakistan was organized in 2005 in Karachi, and the sixth Expo Pakistan also held in Karachi from October 20-23. Due to poor law and order situation in the country, foreign delegates and buyers are reluctant to visit Pakistan. But, I am pleased to inform that this year more than 600 foreign

EXPORT NEWS 15 to 17/2011

delegates from 52 countries participated in the Expo Pakistan2011. Out of which some of the delegates were the guests of TDAP. Wide range Products from Agri-Food, Auto-Parts, Sports, Fabric, Garments, Leather, Handy Crafts, Furniture, Surgical Instruments, IT and Energy sectors were displayed by the exhibitors. Big Local Pakistani companies from different sectors also displayed their products in the Expo. A trade delegation from India accompanied by Pakistani Trade Minister Naeem Anwar also participated. The Prime Minister of Pakistan formally inaugurated the 6the Expo Pakistan, in the Governor House which was attended by all foreign delegates from South and Latin America, Brazil, Mexico, Chile, Yemen, Morocco and Argentina. Along with our commercial consulars from their countries. The Expo has provided an opportunity to all stakeholders in trade to meet and do business. After the inauguration, Prime Minister Yusuf Raza Gilani met individually each guests which embossed a good impression on them. On this occasion, Mr. Tariq Puri, CE Trade Development Authority of Pakistan (TDAP), said the Prime Minister declared 2011 the year of exports. Giving details he said countrys exports rose in last four years from $17.7 billion (2008-09), $19.3 billion (2009-10) and to record $25.3 billion last year 2010-2011. Despite that our economy sustained substantial losses due to devastated flood in the country, which has damaged our cash crops. I must give credit to our exporters that in spite of power and gas load shedding in the industries affecting their production. The Textile Sector achieved 35%
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growth, and the countrys gross exports exceeded $ 25 billion which reflects the confidence of the foreign buyers on our products. During the Expo, a Multilateral International Conference on trade and investment was held in collaboration with Board of Investment (BOI), Trade Development Authority of Pakistan (TDAP), Pakistan Japan Business Forum and other business forums of Australia, Belgium, France, Germany, Italy, Russia, Sri Lanka, Switzerland. The organizers constituted various focus groups of Pakistans key sectors including Agriculture, Dairy Farming, Textile, Infrastructure, Energy, Pharmaceutical, Light Engineering, Mining and Minerals. I was Chairing Textile Group and gave a presentation on the investment opportunities in Pakistan. Many delegates form Russia, Poland, Argentina, Malaysia and other countries participated in the Group discussion. Expressing their interest and confidence to do business Pakistan. Majority of them came to Pakistan first time and were impressed with our warmth welcome and hospitality. They were of the view that the Western media presented a bad image of Pakistan, they called Karachi a vibrant and trade and industrial city which means business. I also invited the foreign delegates to invest in the Textile City Project in Karachi in value added joint ventures. I learned from them that several countries are buying our products through third country at higher prices, such Russia and Poland are buying fabric at higher price from Turkey, but now they want to deal directly from us. During Expo fashion shows were organized, Federation of Pakistan Chambers of Commerce and Industry

EXPORT NEWS 15 to 17/2011

(FPCCI) arranged meetings with the Business Councils of various countries, and TDAP arranged B2B meetings of the businessmen for trade and investment. A delegation of Pakistan Turkey Joint Business Council (PTJBC) with their Chairman Hussain Akin met their Pakistani counterpart in FPCCI. During the meeting. The Council criticized Turkish governments imposing protection duties on the imports of our textile products which has severely affected Pakistans exports to Turkey. PTBC urged the need for signing of Preferential Trade Agreement (PTA) between Pakistan and Turkey to achieve $2 billion annual trade target. The organizers were aiming three objectives to achieve from the Expo: Firstly, to get export orders from the foreign buyers, secondly, to attract foreign investment in Pakistan potential sectors and thirdly, to create Pakistan soft image of Pakistan. We have received exports orders worth more than $500 million during the Multilateral Investment Conference, many foreign delegates shown their interest to invest in Pakistan and after meeting with the delegates I am certain that on return to their countries they will talk good about Pakistan. On achieving all three objectives from the Expo I, congratulate Zafar Mahmood, Secretary Trade, Senator Ghulam Ali, President FPCCI, and Tariq Puri, CE TDAP for success of the Expo-Pakistan 2011.

Paradise Leather Co., Kasur by PTA

The Customs Department has recently claimed to have arrested 5 exporters allegedly involved in multimillion Scam, which was allegedly being fraudulently exported to Taiwan, by Mis-declaration and without payment of regulatory duty of Millions of Pak Ruppee. It has been revealed that out of the five (5) exporters/companies, one was the member of Pakistan Tanner Association (PTA) namely M/s. Paradise Leather Co., Kasur. In this regard PTA has Cancelled the Membership of M/s. Paradise Leather Co., Kasur. Therefore, M/s. Paradise Leather Co., Kasur is no more member of Pakistan Tanners' Association (PTA) and all the affairs/business activities would be dealt by themselves under its own umbrella without the Shadow of this recognized Trade Body and PTA would not be held responsible for any eventuality if occurred in future.

New address of Consulate General of Pakistan, Hong Kong

The Consulate General of Pakistan, Hong Kong has informed this office that their office has been shifted to the following premises: Consulate General Republic of Pakistan 803-4, Tung Wai Commercial Building, of the Islamic

GENERAL INFORMATION

Cancellation membership

of of

the M/s.

EXPORT NEWS 15 to 17/2011

109-111, Gloucester Road, Wanchai, Hong Kong. The above address may please be used for all future correspondence. positively affect our exports to European countries. The PIFD was keen and so were Commerce Ministry and Pakistan's Mission in Warsaw to benefit from the opportunities of sharing and transferring European design development and knowledge available through cooperation with the Polish IWP which has within its scope "Design Your Profit" (DYP) project run in collaboration with the EU. IWP is one of the leading design institutions in Poland. IWP is a strategic advisor to many Polish companies, designers and public entities and assists them in development of design of new products. It is the main institution in Poland which deals with systemic development of design and conducting design-driven business research for stimulating innovation and competitiveness. Polish Ministry of Economy has granted the status of a research and development center to IWP. Under the cooperation agreement, IWP will extend support to PIFD in projects related to promotion of design for new products. It will also benefit designers of PIFD to benefit from design workshops and e-learning courses offered under DYP. It will lead to useful exchange of experiences in design management, evaluating design effectiveness, identifying needs and competence of companies related to design. It will enhance capacity of PIFD which will benefit Pakistani companies. Consequently this cooperation will build capacity of Pakistani companies to develop designs acceptable in the European markets. Once Pakistani designs are in sync with the European requirements, demand of our products will surge in the whole of Europe.

5th

session

of

Pakistan-

Uzbekistan joint ministerial commission (JMC)

Tashkent has proposed that public and private sectors, delegations may participate in the Annual International Cotton Fair held in Uzbekistan in October, each year to sell cotton crop of the year at one platform. This is the most appropriate forum to buy cotton from Uzbekistan. Usually, almost the entire crop is sold during the fairs.

JOINT VENTURE

Design deal

Institutes Poland for

of ink Design

Pakistan and Development

Pakistan Institute of Fashion and Design (PIFD) and Polish Institute of Industrial Design (IWP) signed on 26 July, a cooperation deal in design development and management. The deal cames on the eve of Polish Foreign Minister Radoslaw Sikorski's visit to Pakistan which started on 1st August 2011. The agreement would help Pakistan's industry and businesses, especially in development and management of designs which are in demand in European markets and will
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EXPORT NEWS 15 to 17/2011

BUSINESS OPPORTUNITIES
the Agro-Food sector and the authority would act as the focal agency. This was stated by Zafar Mahmood, Federal Secretary Commerce while chairing a meeting of leading exporters in TDAP Karachi to develop a strategic roadmap for the Agro-Food sector. Mr. Tariq Puri, Chief Executive of TDAP; briefed the participants about the role of MoC/TDAP as a catalyst to encourage the exports of value added agriculture products. He also informed that there was much emphasis on value addition, for instance in Rice, where exporters and growers should focus on projects which would lead towards value addition rather than continuing to export raw materials in order to maximize gains from the quality produce of Pakistan. In order to provide easy access to credit, Secretary Commerce added that the Ministry has taken up the matter with State Bank and Zari Tarqiati Bank (ZTBL) for provision of credit lines to farmers and exporters to assist them in identifying and establishing much needed projects in the Agro Food sector to achieve the objective. Secretary Commerce had advised TDAP to hold quarterly meetings with SBP along with relevant stakeholders for reviewing the current policies pertaining to provision of credit for agri sector and to review the disbursement and utilization of agri loans. Furthermore, a committee may also be formed wherein representatives of commercial banks should also be present the address to issues. Secretary Commerce also directed the National Animal and & Plant Health Inspection Service (NAPHIS) to conduct the awareness seminars in collaboration with TDAP for the benefit of exporters to know

Major Railway Projects in Saudi Arabia and the Gulf Region

GCC countries are embarking upon a highly ambitious and extensive infrastructure development programme valued at $ 142 billion over the next three years. These projects offer huge opportunities for Railways and construction sector. This information is being brought to the notice of all who may wish to take part in them. For further information interested Pakistani parties may contact on the following address:Consulate General of Pakistan Commercial Section Jeddah Tel: 6691054 Fax: 6690561 E-mail: pakcom.jdh@tdap.gov.pk

PRESS CLIPPINGS

Value-added exports to go up

products

Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) would jointly speed up their activities for facilitating the development and exports of value added products in
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the issues related to SPS requirements and how to address them. Secretary Commerce assured that MoC and TDAP would continue to facilitate the exporters and growers in resolving all their issues pertaining to various other agencies and provincial governments. The meeting was attended by leading exporters from Poultry; Rice; Fruits & Vegetables; Fisheries; Processed Meat and officials of SBP; ZTBL; PNAC; Plant Protection Department, PHDEC; PSQCA; NAPHIS; TDAP and MoC. US the only country with which it enjoy surplus. Experts say granting the MFN status to India will not only reduce tensions between the two countries but also earn support from the Indian government at a time when the US has accused Pakistan of having links with the Haqqani network of Afghanistan. While the government appears to have put aside some crucial issues, including Kashmir, that have marred economic and trade relation between the two countries for decades, it has made the MFN decision conditional to the removal of non-tariff barriers by India. Prime Ministers Adviser on Textile Mirza Ikhtiar Baig said he hoped the MFN status would be granted to India next month. Mr Baig, who recently visited India along with Commerce Minister Amin Fahim, said the formalities were likely to be completed ahead of the next meeting of the commerce secretaries of the two countries. Pakistani and Indian commerce secretaries are scheduled to meet in November in New Delhi to finalise the issue. Indian Commerce and Industry Minister Anand Sharma is scheduled to visit Pakistan in November along with a delegation of businessmen. I think the decision is more likely to be announced during the Indian commerce ministers visit, Mr Baig said. Pakistans business community, according to Mr Baig, has already recommended to the government to grant the MFN status to India. This is a key recommendation as Pakistani

MFN status for India under consideration

In a dramatic break from the past, the government is inclined to granting the most favoured nation (MFN) status to India in a couple of months after getting a green signal from all stakeholders. As a first step, the commerce ministry has sent a summary to all stakeholders, seeking their comments on changing the decades-old trade regime with India, according to sources. The summary was sent a couple of weeks ago and the stakeholders have been asked to submit their comments within three weeks. If no objection is raised, the summary will be sent to the federal cabinet for approval. The environment turned favourable for the decision in the wake of the recent tensions in Pakistans ties with its top trading partner, the United States. Pakistans exports at an estimated $4 billion in 2010-11 make the

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businessmen were not prepared in the past to compete with Indian businesses and wanted a restricted regime. Commerce Minister Amin Fahim also hinted during his five-day visit to India that the status would be granted, saying fulfilment of procedures were delaying the decision. Mr Fahim said it was the priority of his ministry to grant MFN status to India at the earliest. Last week, the commerce ministers of Pakistan and India set a target of $6 billion bilateral trade to be achieved in three years from the current $2.7 billion. There are also reports of $3 billion trade through illegal channels. Pakistan will also change its trade regime from positive to negative list as required under the South Asian Free Trade Agreement (Safta). This was the key issue due to which Pakistan had not ratified the treaty, Mr Baig said. The country has included 1,945 items in the positive list for trading with India, while the import of other items is banned. Under Safta, Pakistan has committed to a sensitive (negative) list of 1,169 items. Mr. Baig said the negative list was likely to be reduced to only a few items and the issue would be settled by November. To reciprocate this gesture, the Indian government would formally withdraw its opposition to an EU trade concessions package at the World Trade Organisation, he said. The WTO
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is scheduled to take up the EU waiver issue on Oct 20 and the Indian decision is likely to be announced the same day. The adviser said that Indian government had agreed to improve the infrastructure on Wagah border and set up cold storages for perishable items. He said Pakistani businessmen had also raised the issue of non-tariff barriers with Indian authorities concerned.

Indian PM accepts invitation to visit Pakistan, Fahim

Commerce Minister Amin Fahim formally invited on Monday Indian Prime Minister Dr Manmohan Singh to visit Pakistan, reviving hopes that the two countries would fully exploit the potential of economic and business ties. Mr Fahim extended the invitation during a meeting with Dr Manmohan in New Delhi at the end of his visit, said a statement issued by the commerce ministry in Islamabad. The minister extended his three-day (Sept-27-30) trip and visited shrines of Sufis and other tourist spots in India. On return from India, Mr Fahim told reporters that the Indian Prime Minister has accepted the invitation to visit Pakistan. However, he did not say when would Mr Singh visit Islamabad. Indian Commerce and Industry Minister Anand Sharma is scheduled to visit Pakistan as the head of a delegation of businessmen. Mr Fahim expressed the hope that all hurdles would be removed to

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achieve the bilateral trade target of $6 billion over the next three years. According to him, the Indian prime minister said India wanted to see Pakistan a prosperous country. Mr Fahim said the Indian decision to reverse its earlier stand of blocking the EU trade package at the WTO would benefit Pakistan. The package was due to be implemented in January, but delayed because of resistance by India. According to the commerce ministry, Mr Fahim praised active participation and keen interest taken by Pakistani and Indian business communities at business conclaves organised by the Federation of Indian Chambers of Commerce and Industry in Mumbai and New Delhi. Dr. Manmohan stressed that Pakistan and India should jointly fight poverty. He assured Mr Fahim of his governments full cooperation in boosting trade between the two neighbouring countries. A joint statement of the Commerce Ministers of India and Pakistan simultaneously released from Delhi and Islamabad said: "At the invitation of the Commerce Minister of India, Shri Anand Sharma, the Commerce Minister of Pakistan, Makhdoom Mohammad Amin Fahim is visiting India from 26th September to 2nd October 2011. "After more than three and a half decades, this is the first visit by a Pakistan Commerce Minister to India. Accompanying the Minister is a high level official delegation including the Commerce Secretary of Pakistan; and more than fifty business delegates from Pakistan. The composition of this delegation underscores the importance that both sides attach to this visit and the mutual desire for better bilateral trade and commercial relations. "The official level discussions were held today (28th September) between the Commerce Ministers and their respective official delegations. Both Ministers noted with satisfaction that India and Pakistan are entering a new phase of full normalization of bilateral trade relations. This augurs well for enhancing mutual trust and understanding. "The ministers agreed to jointly work to more than double bilateral trade within three years, from current levels of 2.7 Billion US dollars per annum to about 6 Billion dollars. This goal shall also be facilitated through the Memorandum of Understanding signed today between the India Trade Promotion Organization and the Trade Development Authority of Pakistan. The MoU shall foster better

India announces support to EU duty waiver for Pakistan

India has announced support for Pakistan's EU waiver package bid in World Trade Organisation (WTO). Necessary instructions are being given in this regard. This was announced after the meeting of Commerce Minister Makhdoom Amin Fahim and Indian Minister for Commerce and Industry Anand Sharma in New Delhi.

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trade promotional activities, for the benefit of business communities of both countries. "The ministers affirmed that fully normalized commercial links between both countries would strengthen the bilateral relationship and build the bridges of friendship, trust and understanding - for mutual benefit of their people and promotion of prosperity in South Asia. "The ministers mandated their Commerce Secretaries to pursue with vigour the task of fully normalizing bilateral trade relations. They agreed that their countries would cooperate for a high ambition of preferential trade relations under the framework of the South Asia Free Trade Agreement (SAFTA). They noted with satisfaction the joint and collaborative efforts already being made by India and Pakistan to liberalize trade in goods and services under SAFTA. They agreed that all mutual obligations contracted under SAFTA would be implemented with full sincerity. "The ministers appreciated the progress made and roadmap laid for trade liberalization in the April 2011 meeting of the Commerce Secretaries. They further mandated their respective Commerce Secretaries that when they meet in November, 2011 they shall lay down specific timelines to normalize all trade relationships including dismantling of all non-tariff barriers. Full implementation of SAFTA obligations was also mandated. Commerce Secretaries were also directed to prepare the roadmaps for greater preferential trading arrangements between India and Pakistan. Both
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Ministers agreed that joint and concerted efforts will be made in all areas to create an enabling environment for trade and to encourage greater engagement between the business communities of both countries. They agreed to further promote greater intra-regional connectivity through road, rail, shipping and air. "Ministers noted with satisfaction the comprehensive ground covered in the August 2011 bilateral trade review held in New Delhi. This meeting has been an important milestone in identification of issues impeding trade (in sectors such as cement, textiles, surgical instruments) as perceived by the business communities of both countries. Customs arrangements have also been significantly synchronized and both sides are vigorously addressing issues of infrastructure, to further promote bilateral trade through the land route of Attari-Wagah. "The ministers noted that in the past few months, India and Pakistan have constructively engaged towards a liberalized business visa regime. They expressed that they now expect this matter to be expeditiously concluded before November 2011. The new business visa regime would allow multiple entry and could be for a period up to one year. The Ministers expressed the hope that such a new visa regime would rapidly expand the vistas of bilateral commerce. They emphasized that a more secure regional environment would progressively help both countries to keep liberalizing the visa arrangements for businesspersons. "Both ministers reaffirmed that all decisions taken by them and their respective officers to improve trade relations would be closely monitored to

EXPORT NEWS 15 to 17/2011

ensure adherence to all agreed timelines. Both sides would maintain frequent contact in this mutual quest for a better trade relationship, underpinned on the principles of sincerity, mutual respect and trust. The Ministers agreed that the bilateral trade liberalization process should be uninterruptible and irreversible. They affirmed that both countries would cooperate and work in close coordination at multilateral forum, such as WTO and SAARC, to support each other, thereby strengthening their economies."

KCCI too Dwell on Mutually beneficial trade with Indian Counterparts

The Karachi Chamber of Commerce and Industry (KCCI) proposed concrete suggestions to be discussed at the meeting between the commerce ministers of India and Pakistan held on September 28 and 29 at Delhi. A four-member chamber delegation comprising of its President Muhammad Saeed Shafiq, VicePresident Juniad Esmail Makda, former President and Chairman Sindh Board of Investment Zubair Motiwala and former President KCCI Majiyd Aziz participated in a meeting with Pakistan High Commissioner in Delhi Shahid Malik and CEO of Trade Development Authority Tariq Iqbal Puri at 5 TDAP. According to programme Commerce Minister Makhdoom Amin Faheem along with 40 members' trade delegation visited India from 26 to 30 September 2011 and during his stay in India the delegation visited Mumbai and Delhi and held meetings with trade bodies, government officials, ministers and discussed issues related to trade and investment. The delegation suggested that India should be allowed to invest in various sectors in Pakistan. The delegation proposed that Pakistan business community should be allowed to open their office in India. They also highlighted various items including the trade policy for allowing the trade with India which would be beneficial for the domestic industries

Pakistan,

India

discuss

opening of bank branches

Dr Subir Vithal Gokaran, Deputy Governor, Reserve Bank of India, called on Makhdoom Amin Faheem, Federal Minister for Commerce, who is currently on an official visit to India, to discuss the opening of bank branches in India and Pakistan on reciprocal basis, a statement said on Wednesday. According to the Trade Development Authority of Pakistan, Faheem stressed that both the countries should fast track the process of opening bank branches to facilitate the business community and to increase the trade volume between the two countries. Dr Gokaran expressed optimism and agreed for increased cooperation between the two regulators. It is also expected that a highlevel delegation of the RBI will visit Pakistan in the first half of October to discuss the modalities for opening of bank branches.

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EXPORT NEWS 15 to 17/2011

of Pakistan engaged in the export oriented and other sectors. KCCI also discussed issues to increase trade through land-route and besides Wagah-Attari, to open the Monabao-Khokrapar and improve Customs facilitations and infrastructure. The delegation highlighted that visa was the core issue and requested efforts should be made to resolve it. It is suggested that many items which are imported from China can be imported from India due to cost effectiveness. The chamber proposed trade of minerals, coal, textiles, and steel, etc. President KCCI Saeed Shafiq was of the view that collaboration in steel would be very profitable for both countries. The recently inked MoU between KCCI and Bombay CCI is also deliberated and efforts of Juniad Makda were appreciated. Zubair Motiwala suggested sectors in Sindh where Indians could be invited to invest. Majyd Aziz informed that Pakistan could export up to 150,000 tones of chrome ore to ferro-chrome plants in India but due to heavy freight cost, Pakistan was missing on immediate export of 45 to 50 million dollars per year. The KCCI team was very bullish about the visit of a high-powered business delegation to India led by Commerce Minister Makhdoom Amin Faheem and pledged full support of the chamber.
16

Chinese government assures TDAP of participating in 6th Expo Pakistan

The Chinese government had assured Trade Development Authority of Pakistan (TDAP) that it would participate in the 6th Expo Pakistan being held in Karachi from October 20 to 23, 2011. This was affirmed by Zhao Jianding, Vice Chairman of Chinese Council for Promotion of International Trade (CCPIT) and Yu Jian Ming, Director General of Shanghai Municipal Commission of Commerce, on the occasion of 3rd Pakistan-China Business Forum held in Shanghai on August 30, 2011. They further stated that there was a need to increase the trade and business relations of Pakistani businessmen with region located at Eastern Coast of China and at the Yangtze River Delta. Speaking on the occasion, Tariq Puri, Chief Executive TDAP, stated that the TDAP was extending all necessary support to the CCPIT in organizing a "China Pavilion" at the Expo Pakistan 2011, in order to facilitate the participation of Chinese companies in this upcoming event, which also celebrates the 60th year of friendship between the two countries. Mr. Puri stated that TDAP has declared China as the focus country for its trade initiatives in 2011-12 and plans to participate in more than 20 fairs in China. Through this outreach programme, TDAP is accessing different regions of China to introduce and establish the brand "Pakistan" which can be relied for its quality and competitive offerings in various sectors like textiles,

EXPORT NEWS 15 to 17/2011

leather, fisheries, food products, marble, gemstones and minerals. TDAP and Pakistan's Consulate General of Shanghai had clubbed the 3rd Forum with Intertextile exhibition of home textiles held in Shanghai from August 29-31, 2011. Mr. Puri delivered the keynote speech apprising the participants about the flourishing textile sector of Pakistan. He said that it was a good opportunity for Pakistani businessmen to introduce and display their products. This event helped in boosting bilateral trade between China and Pakistan and to ensured exposure of the home textiles of Pakistan in the Chinese market. He further stated that TDAP launched an awareness programme both in Pakistan and China for identification of new areas of trade and investment and Business Forums were manifestation of such programmes. He said that 4th Pakistan China Business Forum wouldl be held in Urumqi on 2nd September 2011 and another in November 2011. exploring trade and opportunities in the country. investment

During the visit of the delegation to the Trade Development Authority of Pakistan (TDAP) offices, Kanikawa said that investment promotion missions would also be sent to Pakistan to enhance trade and investment between the two countries. Secretary Trade Development Authority of Pakistan (TDAP), Javed Anwar Khan, briefed the delegation about the government policies for the creation of an enabling environment for foreign trade and investment. Kanikawa said that the visit was a prelude to Pak-Japan high-level joint economic dialogue to be held in Tokyo in March 2012. The Japanese delegation appreciated the positive outcome of the recent visit of the Chief Executive TDAP, Tariq Puri, to Japan in July this year for positioning of Pakistani products in Japan. Secretary TDAP invited the Japanese investors for setting up VHT processing plant under public-private partnership mode for export of mangoes to Japan.

Japan

plans

investment

seminar for Pakistan

The Japanese government plans to hold an investment seminar in Bangkok in August 2012 to persuade investors to invest in Pakistan, Wakana Kanikawa, an official of the Japanese Foreign Ministry, said on Tuesday. Kanikawa and Daisuke Tsukao, Section Head, Asia & Pacific Division, Japanese Ministry of Economic, Trade and Industry, along with a delegation of businesspersons visited Karachi for
17

Ministry to EU

of

Commerce

working for 72 items export

The Ministry of Commerce is taking steps to get approval for the export of 72 items to European Union and getting GSP Plus status for Pakistan.

EXPORT NEWS 15 to 17/2011

This was stated by the Secretary Commerce Zafar Mahmood while talking to prominent exporters and representatives of various trade bodies relating to textile and clothing, agro food, leather, mines and minerals, gems and jewellery, information technology, services sector etc. at Trade Development Authority of Pakistan (TDAP). Chief Executive TDAP Tariq Iqbal Puri was also present in the stakeholders meeting which discussed measures to form the strategy for setting exports targets for financial year 201112 and for removal of bottlenecks facing exporters. The Secretary Commerce suggested to the exporters to get leverage from trade with India. Exporters were advised that they should give more focus on value addition of their products for fetching good export prices of their products. Ministry of Commerce and TDAP, through the trade officers, will market their value-added products, he added. Secretary Commerce and CE TDAP assured that effective interministerial coordination will be ensured to resolve issues hampering exports, especially with Federal Board of Revenue (FBR). Secretary Commerce and CE TDAP said they would also hold meeting with Chief Secretary Sindh for resolving the matters affecting export of fisheries sector. They said that special focus shall be given to non-traditional sectors like marble and granite, petroleum and its products, gems and jewellery and services sector, especially the
18

information and technology and engineering consulting services. They said that Ministry of Commerce and TDAP would continue to provide enabling environment for the exporter community to further boost exports. Mr. Tariq Puri stressed on the business community that they should focus more on regional markets especially in China, Japan, Vietnam, Malaysia and Indonesia. He said that TDAP was fast-tracking the Dazzle Park at Karachi near the airport for boosting the export of gems and jewellery sector. The representatives of trade bodies were optimistic that efforts being made by Ministry of Commerce and TDAP will indeed ensure the momentum going for increase in exports. They were of the view that countrys exports will see an increase of 10 % in the overall export value during FY 2011-12.

Bilateral Trade with China Touches $ 8.6 billion

Pakistan has conveyed to India that the latter should not object the European Union's (EO) trade concession to the former at the World Trade Organization (WTO) as the facility of $ 23 million worth of trade in the global market will not affect the huge economy of Dehli. As a positive gesture, the neighboring country should take back its reservation, based on traditional animosity, to encourage outgoing talks and negotiations on various issues between the two countries. These views were expressed by Trade Development Authority of Pakistan (TDAP) Chief

EXPORT NEWS 15 to 17/2011

Executive Mr. Tariq Iqbal Puri, during an exclusive interview with Pakistan recently. TDAP has already forwarded a summary related to an agreement and understanding with its Counterpart in India, to the cabinet for approval he added. Besides, the authority would also attend some fairs and shows in India to explore new markets for Pakistani products. Talking about various Pak-China business forums and fairs held in China so far, Mr. Puri said, different Chinese firms, especially related to mines and mineral and corporate agriculture and farming sectors have expressed interest in sharing their expertise and technological assistance in the respective fields in Pakistan. The latest machines and technology, used in the Chinese agricultural and mineral sector are amazing, according to Mr. Puri the transfer of such technology and expertise would drastically improve the qualitative production in the mentions sectors. While celebrating the 60th SinoPak friendship this year, TDAP and its counterpart in the foreign country, China Council for Promotion of International Trade (CCPIT) are actively holding various business forums and trade fairs in different provinces. Though we have tried to obtain a greater market share in western countries during the last 60 years, we had never explored the trade potential in various parts of the neighboring country," he said, adding that the Chinese government always encourages its public as well as private sector to actively participate in projects in Pakistan. According to Mr. Puri,
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China's, public and private sectors were currently involved in over 250 projects in Pakistan ranging from mega to minor and from strategic to ordinary businesses. The bilateral trade level, he said, has also touched $ 8.6 billion in 2010, displaying a growth of 28 per cent. Pakistan's exports exceeded $ 1.7 billon showing a growth of 37 per cent. In the recently held 4th South Asia Trade Fair jointly opened by the Governor of the Yunnan Province, Chinese visitors visited Pakistani stalls and appreciated the quality of products displayed. The visitors greatly appreciated Pakistani products especially those in furniture, Leather, Textiles, Carpets, Jewellery, Kitchen wear, Brass and Herbal products, he added. In reply to a query whether Pakistan was at a disadvantage position under the existing Pak China free trade agreement (FTA), he said China is such a huge market that the balance of trade will ultimately favour it but Pakistans share of trade is also on the rise. Talking about the proposed amendments in the FTA, he said, the Ministry of Commerce has constituted a committee under his chairmanship with the mandate to interact and consult with stake holders in order to develop a comprehensive negotiation strategy for the Phase II of the Pak China FTA, while output from all concerned stake holders so far is being obtained to tilt the agreement with greater favour for Pakistan. According to Mr. Puri, the formulation of a comprehensive negotiating strategy entails a two pronged approach i.e. an offensive aspect, wherein a part of the strategy shall focus on enhancing the

EXPORT NEWS 15 to 17/2011

level of market access of Pakistani exports to China, and a defensive component, wherein sectors and products would be identified with a view to enhance the level of market access of Chinese exports to Pakistan. To another question about whether the export target of the country during 2011-12 would be reduced due to the expected decline in cotton prices internationally, he said that the country was expected to fetch around $ 27 billion and the target for the current year would be fixed accordingly. He also hoped that the country would register export figure around $ 25 billions till completing the final report of the last financial year. He said that a proposal prepared by TDAP regarding the forthcoming trade policy has already been forwarded to the Ministry of Commerce. To another question, the TDAP, CE said that the large number of Chinese companies would display their products in the Expo Pakistan while foreign firms and buyers from India, Russia, France, Iran, Japan and other countries from Europe Asia and Africa would also attend the important event. As the Chinese government had already facilitated Pakistani exporters and traders in over 20 trade related events in Beijing, Islamabad, reciprocating Chinese facilitation, would also provide full support and space for companies of the neighboring countries. In reply to a query, Mr. Puri said, the work on 12 important projects announced for promotion of trade in the county would soon get started, besides arrangements of foreign investment and third party validation. Furthermore, he said, TDAP had also focused on the eastern part of the world, especially China, Russia and central Asian states which had been
20

neglected for more than 60 years. Frequent exchange of visits of head of states from these countries and other trade delegation were part of the new initiatives, he added.

Spain Super Store giant to open buying office

Trade Development Authority of Pakistan (TDAP) has been successful in attracting the EI. Corte Ingles Group, the leading super store of Europe and world's fourth largest, based, in Spain to open a buying office in Pakistan. El Corte Ingles is interested in increasing its volume of buying and product range from Pakistan. The opening of the office in Pakistan is also the beginning of better opportunities for Pakistani exports to Spain. The office will also be responsible for introducing new sourcing partners and products from Pakistan. According to Director (Sourcing) of EI Corte, export orders from Pakistan, since their maiden visit to Pakistan in February 2011 visit, have already exceeded Euro 1.0 million. Mr. Puri, Chief Executive TDAP expressed his confidence that these export orders were manifestation of TDAP's aggressive marketing campaign and TDAP would continue to strive for creating business opportunities for Pakistani exporters to keep the increasing trend in exports going. Opening of EI Corte office in Pakistan is a result of an initiative taken by Pakistan's Commercial Counsellor, Embassy of Pakistan and keen efforts of Pakistan's Honorary Investment Counselor in Spain. TDAP had sponsored and organized a 20-member

EXPORT NEWS 15 to 17/2011

El Corte delegation's visit to Pakistan in February this year, for analyzing the potential of Pakistan as a reliable sourcing hub. Mr. Borja de la Cierva, Director/Head of International Supply Chain led the delegation. They held B2B meetings with 272 different Pakistani companies in Lahore, Sialkot, Faisalabad and Karachi and visited 59 selective production facilities in these cities. As a result of these extensive interactions, El Corte has inked an agreement with Firoz International, a Pakistani company, to operate its buying offices in Karachi and Lahore. The Pakistani Commercial Counsellor in Madrid played a pivotal role in materialization of this agreement, which could not have been possible without persistent follow up by TDAP. It's a big achievement as currently EI Corte operates its procurement wing of South Asia from India and soon they will start procuring from Pakistan and all future orders will be exclusively executed through Pakistan. EI Corte has an annual turnover of over US$ 25 billion and is a trusted name in quality of products and services in European market. It has more than 400 Stores under the brand names of El Corte Ingles; Hipercor; Supercor; Opencor etc. El Corte Ingles annual imports is more than US$ 12 billion and 80 percent of its imports are from Asia.

9th International Trade Fair at Lome, Togo

9th International Trade Fair at Lome, Togo will be held from 25th November ~ 12th December 2011. For further information interested Pakistani parties may contact on the following Number:Tel: 00228-2264031 / 2350727 Fax: 00228-2261754 E-mail: ceteflome@cetef.tg URL: www.cetef.tg

20th International Trade Fair of Dakar (FIDAK)

20th International Trade Fair of Dakar (FIDAK) will be held from 01st ~ 12th December 2011 at Dakar International Exhibition Center (CICES). The event will be suitable for office equipment and office supplies, Leather goods, Auto spare parts, Musical instruments, surgical instruments, Surgical equipments, Cosmetics, Jewelry, and related items, Furniture, Medicine pharmacy, Rice and Agricultural products, IT, Fashion and Textiles, Building and civil works, house hold appliances and Arts & Crafts. For further information interested Pakistani parties may contact on the following address:Centre International Du Commerce Exterieur Du Senegal (CICES) BP: 8166

FAIRS EXHIBITIONS

&

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EXPORT NEWS 15 to 17/2011

Dakar Yoff Senegal Tel: +221-338272530, 338273465 Fax: +221-338275275-78 E-mail: dec@cicesfidak.com URL: www.cicesfidak.com For further information interested Pakistani parties may contact on the following address:M/s. PT Wirausaha Melayu Mandiri Achmad Zaki President Director Mt. Haryono Square JI. MT. Haryono, Kav. 10 Lt. 2 # 2, Jakarta Timur Tel/Fax: 021-29067182, E-mail: info@wiramandiri.com URL: www.wiramandiri.com

Africa Export and Import Fair 2011

Islamic Consumer Fair & Gelar KUKM 2011 will be held from 15th ~ 18th December 2011 in the Exhibition Hall Tower SME / SMESCO, Japan, Gatot Subroto - Jakarta. The event will be suitable for Islamic products and services.

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EXPORT NEWS 15 to 17/2011

Government of Pakistan Ministry of Commerce ********
N o. 2(1)2006- E II Is la mabad, t he 7 t h July, 2011

NOTIFICATION
SUBJECT: RECONSTITUTION OF FEDERAL EXPORT DEVELOPMENT AND PROMOTION BOARD

The Prime Minister is pleased to re-constitute the Federal Export Development & Promotion Board (FEDPB) as under with the immediate effect and until further orders: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Prime Minister Minister for Commerce Minister for Finance Minister for Industries Minister for Textile Minister for Agriculture Minister for Investment Chief Minister Punjab Chief Minister Sindh Chief Minister Khyber Pakhtunkha Chief Minister Baluchistan Chief Minister Gilgit Baltistan Prime Minister Azad Jammu & Kashmir Governor, State Bank of Pakistan Deputy Chairman, Planning Commission Chief Executive, TDAP Secretary Commerce Secretary Finance Chairman, Federal Board of Revenue President, Federation of Pakistan Chambers of Commerce & Industry Chairman, National Assembly Standing - Committee on Commerce Chairman, Senate Standing Committee on Commerce President, Karachi Chamber of Commerce & Industry President, Lahore Chamber of Commerce & Industry President, Khyber Pakhtunkha Chamber of Commerce & Industry President, Baluchistan Chamber of Commerce & Industry Chairman Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member / Secretary Member Member Member Member Member Member Member Member Member

2.

The Terms of References of the Board are:(i) (ii) To periodically review the country's export performance To examine all important matters relating to export promotion and to consider ways & means of improving export performance; and

16

EXPORT NEWS 15 to 17/2011

(iii) To consider long-term plans and projections for the growth of export and to approve policy measures necessary for achieving exports targets.

3. Ministry of Commerce would serve as the Secretariat to the Federal Export Development and Promotion Board. 4. This supersedes this Ministry's Notification No. 2(1)/2006- Tex dated 22nd December, 2008. (Adnan Younis Lodhi) Section Officer (TP)

REVIEW OF RUSSIAN M EAT M ARKET

he financial crisis has negatively impacted upon consumer habits of Russians. Through the last months of 2010 household budgets got fairly exhausted, and that compelled many' consumers to abandon their expensive habits and immoderacy including purchase of unnecessary food items. Meat and meat products, especially expensive kinds are gradually disappearing from Russians' diets. Moreover, current situation affects the whole food industry along with the consumers. Anyway, decline of mass production of meat delicacies in Russia, for instance of summer sausage, is quite a probable. To a great extent industry's problems are determined by high import-dependence of Russian meat-processing facilities-through the recent year imported meat was rather cheap and thus provided extra advantages to
17

manufacturers. Meat products made from domestic meat are quite a rarity on shop shelves; moreover, significant part of raw meat retail offer is provided by import. Considering pessimistic scenarios of the market's future performance, Russian politicians and economists keep highlighting necessity of reduction of import volumes. According to experts, general meat import volume this year is forecasted to decline from 30 to 25% of the previous year's import market volume. Some import decline is indeed observed, but it's basically determined by the crisis. According to market analysts in Russia, through the first half of 2010 total import volume of chilled and frozen meat of all kinds to Russia reduced by 23.8% against the same period of previous year to make 585 thousand tons. Statistics of Federal Customs Service is slightly difference: decline by 28% with

EXPORT NEWS 15 to 17/2011

current volume of 513.5 thousand tons. Meanwhile according to "Academy Service's" estimations, in the first half of 2010 beef import volume constituted 239.8 thousand tons, which was by 20% less against the same time of the previous year. Nevertheless, on the background of growing dollar beef prices increased approximately by 25%. However, brief analysis of domestic beef production reveals no obvious import-dependence. Indeed, statistics showed 1.75 million tons of domestically produced beef in 2008 with import volume a little below 800 thousand tons. This ratio looks not so bad, at least not drastic. Still, there are many flattering ways of data analysis and presentation so this should be kept in mind. Traditionally Russian statistics uses the so-called "slaughter weight", i.e. the weight of meat with bones, while imported beef is always boneless. Besides, domestic raw meat fails to satisfy requirements of meat-processing plants in the key parameters, quality, slaughter, and carving. On boneless basis domestic beef production in Russia accounted in 2008 for about 1100 thousand tons where processable beef*and high-quality raw meat* constituted just 400 thousand tons and 62.2 thousand tons respectively. Noteworthy that beef import in Russia is under quotas introduced to protect domestic manufacturers. Currently quota
18

accounts for 450 thousand tons annually. However in practice this import volume isn't sufficient to satisfy domestic demand. Only in 2010 actual import volume exceeded quota by two times: according to Acadmic Services estimations beef import volume constituted 768.09 thousand tons. And despite the crisis, increase if import prices, significant fluctuations of currencies' exchange rates, and some. decline of import volume in early 2009, this year import quota is very likely to be exceeded again. No significant changes in import structure were registered: Latin American countries are still the strongest market players, and share of the leader, Brazil even increased a little to make 59% of the total import value. And still, why Russian meat market -beef segment in particular remains highly import-dependent? Indeed, on the one hand the crisis reduced the demand and on the other consumers should get more interested in domestic products as local manufacturers are willingly offer better prices than importers. Besides, conditions for meat farming in Russia are very advantageous thus meat farming turns out to be easier and more profitable than dairy-farming. Moreover, Russian manufacturers have every possibility to offer consumers not only frozen, but also chilled meat. Meanwhile for obvious reasons, in 2010, share of chilled beef constituted only 3% of total beef import value. A number of experts think that Russian beef manufacturers can benefit from current decline of import.

EXPORT NEWS 15 to 17/2011

It is expected that in the wake of financial crisis, the Russian consumers would turn to local products, choice of which requires spending of fewer rubles. However, to win back consumer the import market should provide both sufficient quantity of product and proper quality level with a better price. Meanwhile, the crisis creates opportunities along with challenges. One should remember that development requires serious investments however payback during the crisis is usually delayed. Currently many investors have suspended their projects due to high bank loan rates; besides, agriculture has has never been investors' darling. Thus establishment of well-run domestic beef production might require at least a decade. Today a great depends on government policies this year the government allotted 4.5 billion rubles for support of domestic beef production; 3 billion rubles in this amount are meant for regional support programmes financing of which is to be shared with regional authorities. However, efficiency and timing of funds distribution in many cases is too low. Meanwhile the stock of meant cattle has reduced almost by three times during the last 10 years. Besides meat-processing plants prefer to work with standardized and predictable import supplies and rarely trust domestic manufacturers. Again, foreign suppliers turn out to have all competitive advantages.

Source:

Embassy of Pakistan Trade Office Moscow

EU AND PAKISTAN TRADE RELATIONS

19

the EU Countries, consumption per capita in July was the highest followed by Belgium and Germany. Consumption of woven outwear was lower Spain than EU average Consumption. 2. In 2008, the share of the total value of women's woven outerwear sales in the major EU countries exceeded 50 percent, making it a leading sector in EU market. Market shares for woven outerwear in 2008 were trousers and shorts 35 percent, dresses 9 percent, Skirts 5 percent indoor jackets 5 percent and, other products 15 percent. 3. Trade with European Union is clearly in Pakistan's favor. There is however scope for more mutually benef icial commercial activities. 4. Under EU offer, $1 billion worth of home -textile exports to EU were excluded from concession f rom Pakistan while mostly duty free import of textile raw material was allowed. As a result local value -added sector strongly opposed EU offer, saying it would only encourage export of raw material from the country resulting in high input cost for local industry. 5. Increasing trade with its main partners and with the EU, is part of Pakistan's economic revival agenda. Textile and clothing is an important sector for EU- Pakistan trade relations
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EXPORT NEWS 15 to 17/2011

mong 6. The European Union remains Pakistan's largest trading partner receiving 27.40/0 of Pakistan's exports and providing 17% of its total import. The overall volume of trade between the EU and Pakistan was worth euro 5.06 billion in the year 2002 with a trade surplus of euro 765 million in Pakistan's favour. 7. Pakistan trade with the EU is mainly composed of textiles, which account for over 60% of the total Pakistani exports to the EU, followed by leather products, which account for l3% of the total Pakistani exports. 8. The EC and Pakistan also cooperate in W TO multilateral trade negotiations and key aspects of the DDA. These include among others special and differential treatment provision including a package of results with real valu eadded for developing countries after the Cancun ministerial conference, implementation of developed countries commitments in the field of trade related technical assistance, as an important underpinning of the DDA negotiations and their implementation and specif ic sect oral negotiations such as in services and non -agricultural (industrial) products, where W TO should seek ambitions tariff reductions in, sectors of key export interest to developing countries.

Conclusion:

EXPORT NEWS 15 to 17/2011

9. The trade relations between EU and Pakistan play an active role in the world. By some estimates, Pakistan has an immediate requirement for up to $20 billion in infrastructure development that could provide good opportunities for EU exporters and investors. A major privatization effort in the telecommunications al1d financial sectors should offers additional markets for EU producers and investors, Today, foreign investment by the UK, followed by the Netherlands and ' Germany. The trade development and the promotion of business and institutional links represent about 10% of the EC's development budget for, Pakistan. 10. Due to the instability in relationship .between Pakistan and USA, we have to make a deep focus on EU Market for stabling our self .

Value in Million Dollar

S.NO

Regions/Countries

JulyJune 200910

JulyJune 200809
4412,43 15.23 392.98 10.88 16.19 45.54 313.59 737.99 39.22 579.75 5.04 23.89 0.09 20.47 2.83 404.50 874.59

Change VALUE
187.52 1.44 37.42 (0,63) 0.11 (2.87) 5.46 54.95 10.79 26.06 0.19 0.16 3.28 0.81 29.75 153.09

%
4.25 9.46 9.53 5.79 0.68 (6.31) 1.74 7.45 27.51 4.50 3.77 0.00 177.78 16.02 28.62 7.35 17.50

1 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

E.U. COUNTRIES AUSTRIA BELGIUM BULGERIA CHECH REPUBLIC FINLAND FRANCE GERMANY IRISH REPUBLIC ITALY LATVIA LITHUANIA LUXEMBOURG ROMANIA SLOVENIA SPAIN UNITED KINGDOM

4599.95 16.67 430.40 11.51 16.30 42.67 319.05 792.94 50.01 605.81 5.23 23.89 0.25 23.75 3.64 434.25 1027.68

Source: Federal Bureau of Statistics

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EXPORT NEWS 15 to 17/2011

PROCEDURE FOR EXPORT NEWS SUBSCRIPTION FOR NEW SUBSCRIBERS

The Export News as you may have noticed is now not only promptly and regularly issued each week, but its contents are updated and are relevant to the needs of our exporting stakeholders. The Export News is available on TDAPs Webportal www.tdap.gov.pk, a hard copy can be obtained on annual subscription. A request for 52 issues of EN can be made on company letter head, addressed to Director Communication, along with a pay order / bank draft of Rs. 500/- (Rupees Five Hundred only) in favour of Account Officer EMDF, Trade Development Authority of Pakistan, Karachi.

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EXPORT NEWS 15 to 17/2011

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EXPORT NEWS 15 to 17/2011

COUNTRY / FIRM TEL/FAX/E -MAIL Tel: 30(2310) 334440 Fax:30(2310) 334441 E-Mail: cosmodor@otenet.gr Tel: 97714248860, 4251860 Fax: 9771 4248394 E-Mail: shiva@uni.wlink.com.np Tel/Fax: +88-2-9570201 Cell: +88-0171-3000712 E-mail: shiny.2021@gmail.com All type of Rexene, Pvc Leather Cloth Vaccine (Human Live Saving) Medicine Sugar Manufacturer PRODUCTS / ITEMS Natural Salt

GREECE
M/s George Kouderis, 4 Kalapothaki str. 54624 Thessaloniki,
S ourc e : A t h e ns Embassy of Pakistan

NEPAL
M/s Universal Trade Link, 72, Phaichasal, Jhochhen Tole, Kathmandu,
S ourc e : H i gh C om m i s s i on P a k i s t a n K a t h m a nd u for

BANGLADESH
Salimuzzaman Johnny, Chief Executive Officer (CEO) M/s. Shiny Trade International 62/1, Purana Paltan (2nd Floor) Motijheel C/A, Dhaka-1000
S ourc e : H i gh C om m i s s i on Pakistan Dhaka for

The enquiries included in this Bulletin are received directly from foreign individual importers or through Pakistans Trade Offices / Embassies abroad. While every effort is made to ensure that the information given in this bulletin is accurate, no legal responsibility is accepted for any inaccuracy or omission. Parties are introduced without any responsibility or prejudice on part of the Authority regarding their standing or status.
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EXPORT NEWS 15 to 17/2011

Dear Reader,
The Prime objective of Export News is to help you maximize your export by providing updated information about export related issues. Although we make every effort to provide the best possible service, we are sure that there is room for improvement. In this regard we need your feedback and would truly appreciate if you could take a few minutes out of your busy schedule to fill in the following and fax it back to me. We assure you that we value your advice.

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Within 2 days 4 days one week for further improvement: (please do suggest)

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Thank you for your support and help.

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EXPORT NEWS 15 to 17/2011

The form may be sent back through fax or mail at the following address:

Director I&C Directorate

Trade Development Authority of Pakistan Government of Pakistan Block -A, 5th Floor, Finance & Trade Center, Karachi.
Tel: 99206810

Email: tdap@tdap.gov.pk Web Portal: http://www.tdap.gov.pk

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