Pakistan textiles expect good gains after WTO trade waiver

 

It makes a change, but Pakistani textiles boss Asghar Hussain is pleased. A year ago, recession, power cuts and poor security forced him to sack most of his workers.

 

Now he s hoping for a major improvement in garment sales after the World Trade Organization approved unprecedented waivers allowing 75 Pakistani products duty free access to markets in Europe for two years.

 

The European Union is Pakistan s largest trading partner, receiving nearly 30 percent of its exports — worth almost 3 billion euros ($3.9 billion).

 

“It means we should expect good gains… as Europe is a huge market for Pakistani readymade garments,” said Hussain.

 

The signs are so good that Hussain has re-hired some workers, bringing his total staff to 50.

 

It is a fraction of the number he employed before devastating floods in 2010, but he expresses hope it could be a pointer to rosier times ahead.

 

The WTO passed the waivers as an unprecedented concession in order to help Pakistan recover from the floods, yet in 2011, the business climate had already started to improve.

 

Cotton prices rose to an all-time high of 229.67 cents a pound in March, and although they have since retreated to a modest 87 cents a pound, it is good news for Hussain, who says he exports 25 percent of his goods to Britain and Germany.

 

There was also a fall in Islamist and sectarian violence in the second half of 2011 and power cuts also diminished owing to priorities being given to industry.

 

“The situation isn t ideal. Cotton prices have decreased again, but power supply is better and industrial peace is there,” said Hussain.

 

Textiles dominate Pakistan s trade with the EU, accounting for more than 70 percent of its exports to the trading bloc.

 

The products chosen for the waiver, which needs to ratified at the WTO general council meeting on Tuesday and Wednesday, would amount to around 900 million euros in import value, about 27 percent of EU imports from Pakistan.

 

Pakistani textiles are currently hit with a 7.19 percent import duty in the European Union. If approved, the waiver will apply until end-2013.

 

“Such concessions will bring life to our dying industry,” said Shehzad Salim, Chairmen of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), without providing precise figures.

 

“Our value-added textile industry s exports have suffered a lot because of electricity and gas shortages, devaluation of rupee and many other factors. The EU s package is promising and seems a breather for a choked economy.”

 

Mirza Ikhtiar Baig, textiles advisor to the prime minister, revised down an initial estimate that the EU package may increase exports by 400 million euros, agreeing with independent analysts who forecast a slightly lower figure.

 

Most believe the waiver will equate to a 0.7 percent increase in Pakistan s overall exports and a 1.5 percent increase in its textile exports.

 

“This package would increase Pakistan s exports by $175 million a year,” said Furqan Punjani of Equity Research, a market research firm.

 

The package includes over 30 products of non-value added textiles — items such as gray cloth, cotton yarn and fabric — 23 of textile garments and the rest made up of home textiles, value-added leather, footwear, raw leather and ethanol and vegetables.

 

“We estimate an increase of 0.7 percent in Pakistan s overall $25 billion exports for the year while it would contribute 1.26 percent to our $13.8 billion textile exports,” said Baig.

 

“The increase is a good positive for our economy, yet it should not be called significant given the fact that a ceiling has been imposed on our 15 quality products.”

 

A.B. Shahid, an independent analyst, was more cautious.

 

“The WTO waiver is a positive development, yet it is too little to handle the increasing negatives the economy is accumulating,” he told AFP.

 

That caution is something that skilled garment worker Mohammad Wahid understands only too well. When he was sacked two years ago, he struggled to feed his family of five until he was rehired 10 months later.

 

“Life is better now,” he said.

 

“Concessions in Europe are good, yet no-one knows how long this job lasts. In Pakistan, the feeling of insecurity never bites. It stings fatally.”
 

Business train completes maiden journey

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KARACHI: Passengers of Pakistan’s first-class train were accorded warm welcome when the business express arrived at Karachi’s Cantt railway station, completing its maiden journey with 486 onboard, TrendPK reports.

The Railways Department is operating this Karachi-Lahore luxury train in collaboration with private sector.

The passengers were seemed happy when reached at the Cantt station where especial arrangements were made for their welcome, with petals showered on them at the tastefully decorated platform.

GM Railways, Saeed Akhtar and DG Railways Aftab Memon greeted the passengers.

Akhtar announced that government plants to operate five more trains in private sector partnership, describing the private investment in Railways a ‘successful experiment’.

The Railways Minister, Bashir Ahmed Bilor expressed hope that the department would successfully come out of financial crises with healthy competition to private sector.

The train reached Karachi after an 18-hour journey, 1,200 kilometres, between Pakistan’s two biggest cities, that once used to take 30 hours. TrendPK

England bowls out Pakistan for 99

DUBAI: England seamer Stuart Broad grabbed 4-36 to shoot out series leader Pakistan for 99 on the first day of the third and final Test on Friday.

James Anderson took 3-35 and finished off Pakistan for its sixth lowest ever total against England when he clean bowled Umar Gul midway into the second session.

Pakistan ran into trouble soon after captain Misbah-ul-Haq won the toss and elected to bat. Anderson struck in the first over and Broad dented the middle-order with three wickes in space of 16 deliveries.

Asad Shafiq fought a lone battle with 45 off 78 balls before he was trapped lbw by left-arm spinner Monty Panesar (2-25). Pakistan has an unassailable 2-0 lead in the series. AGENCIES

Four run out as Australia make 131 against India

MELBOURNE: India dazzled in the field with four run outs to restrict Australia to 131 in their second Twenty20 international at the Melbourne Cricket Ground on Friday.

The Indians, chasing their first victory on their tour of Australia, rocked the home side with brilliant ground fielding led by two run outs from Ravindra Jadeja.

Opener Aaron Finch, one of three changes from Australia’s 31-run win in Wednesday’s opening T20 game, topscored with 36 off 23 balls and first match topscorer Matthew Wade chipped in with 32 off 29 balls.

But India had the home side under pressure from the third over when they had T20 specialist David Warner dismissed for eight to a great catch in the deep by a back-pedalling Gautam Gambhir off Praveen Kumar.

Test flop Shaun Marsh was out for a two-ball duck and Finch was run out by an outstanding piece of athletic fielding by Jadeja after David Hussey hit straight to him at backward point and scampered for a single.

Hussey also played a role in a second run out as Jadeja found skipper George Bailey (3) well out of his ground at the bowler’s end, and was himself next to go, caught and bowled by Jadeja for 24 off 29 balls.

Smart glovework by skipper M.S. Dhoni had Mitchell Marsh stumped for 13 off spinner Rahul Sharma and Wade was run out by a direct throw from Rohit Sharma in the 19th over.

The Australians collapsed losing their final three wickets in seven balls.

Clint McKay was caught by Dhoni off Vinay Kumar for a first-ball duck, veteran Brad Hogg was leg before wicket to Rahul Sharma for four and Xavier Doherty was run out by Suresh Raina attempting a suicidal second run to end Australia’s innings with two balls left.

Kumar took two for 21 off three overs and Sharma claimed two for 29 off 3.4 overs. AGENCIES

British pharmacist Hilton arrives at Lahore

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LAHORE: British pharmacist Trody Hilton has arrived here on Punjab Chief Minister Shahbaz Sharif’s invitation, TrendPK reported on Friday.

She has come to help Pakistani experts in drugs’ reaction issue that has caused more than 100 deaths so far in the province.

While talking with media here at Lahore Airport she said that the purpose of her visit is to help Pakistani experts in treating patients.

Fortunately, the reasons of the diseases are at last known which will help treating patients and saving lives, she added. TrendPK

PM Gilani says he will respect court verdict

ISLAMABAD: Embattled Prime Minister Yousuf Raza Gilani said Friday he will respect the outcome of a supreme court move to indict him on contempt charges.

The Supreme Court on Thursday ordered Gilani to appear before it on February 13, to be indicted with contempt for failing to pursue corruption cases against president Asif Ali Zardari.

The shock announcement threatens to plunge his weak government deeper into crisis and force early elections within months.

“I will go there and I will present my stance before the court,” Gilani told reporters in the eastern city of Lahore.

He said the matter was “sub-judice” and he should not comment on the issue, but added that he “will respect the court order” and reiterated his opposition to conflict between state institutions.

Supreme Court judge Nasir-ul-Mulk told the court Thursday there were grounds to proceed against Gilani over the government’s refusal to follow a court order and ask Swiss authorities to re-open graft cases against Zardari.

Switzerland shelved the cases in 2008, when Zardari took office.

The government argued that Zardari has immunity from prosecution while head of state and accused judges of plotting with the military to wage a witch-hunt against him.

The prime minister told parliament late Thursday he will appear in the Court.

“I have attended the court when summoned in the past and I will attend again now,” he said, adding that “everybody should follow the constitution”. AGENCIES

India beat Australia by 8 wickets in T20

MELBOURNE: India broke through for their first tour win with a convincing eight-wicket win over Australia in the second Twenty20 international at the Melbourne Cricket Ground on Friday.

Australia were dismissed for 131 with two balls left after winning the toss and India reached that target with 135 for two off 19.4 overs.

The Indians were always in control of the run chase, but tensions mounted in the final over as the Australians ringed the field around Gautam Gambhir before he pierced the circle for the winning runs with two balls to spare.

Gambhir remained unbeaten on 56 off 60 balls while skipper M.S. Dhoni, who promoted himself in the batting order to number four, was not out 21 off 18 balls.

Ravindra Jadeja was named man-of-the-match for his outstanding fielding effort of two run outs and a caught and bowled in Australia’s innings.

India’s win gives them some much-needed impetus in Sunday’s opening match of the tri one-day series against Australia at the MCG also involving Sri Lanka in the tournament. AGENCIES

England 104-6 at close, Pakistan routed for 99

DUBAI: England edged to a slender five-run lead over Pakistan at the close as 16 wickets fell during an extraordinary opening day of the third and final test at Dubai Stadium Friday.

Routed for a low score of 99 in their first innings by England pacemen Stuart Broad (4-36) and James Anderson (3-35), Pakistan spinners moved to the fore to leave England struggling at 104-6.

England, playing for pride after losing the first two Tests and the series, now hold a slight lead on a seemingly batting-friendly pitch.

At the close, Andrew Strauss was unbeaten on 41 and James Anderson was on three not out.

Paceman Umar Gul led Pakistan’s fightback by dismissing opener Alastair Cook (one) and Jonathan Trott (two) before Strauss added 57 for the third wicket with Kevin Pietersen (32) during their bids to overcome batting frailties.

England’s batting had flopped during their two wicket defeat in the first Test here and in the 72-run defeat in the second match in Abu Dhabi.

Pakistani spinners Abdul Rehman and Saeed Ajmal, who grabbed 34 of the 40 wickets in the first two Tests, then grabbed four more wickets, with Rehman dismissing Pietersen and Eoin Morgan (10) and Ajmal accounting for Bell (five).

Pietersen’s dismissal made it 34 leg-before dismissals for the series, beating the previous record of 33 in the Pakistan-West Indies series in the Caribbean in 1993.

Rehman, who took 3-23, then bowled Matt Prior (six) with England just one behind Pakistan.

Earlier in the morning, England’s pace duo of Broad and Anderson bowled well to expose Pakistan, who won the toss and batted. Asad Shafiq topscored with 45.

Anderson struck in the first over, trapping opener Taufiq Umar for a duck.

Broad then clicked into gear, snaring Ali in his third over through a caught behind and Younis in his next, caught off a rising delivery, again by wicket-keeper Prior.

He then claimed Hafeez’s wicket trapping him leg before. Australian umpire Simon Taufel initially turned down the appeal but changed the decision after England called for a review.

Hafeez mocked the decision review system and may face a hearing from match-referee Jeff Crowe of New Zealand after the day’s play.

From the other end Anderson trapped Misbah-ul Haq for one in a decision challenged by the Pakistani skipper to no avail. That left Pakistan struggling at 21-5.

Shafiq and Adnan Akmal (six) added 18 for the sixth wicket before Broad changed ends to dismiss the wicket-keeper, again with a sharp incoming delivery which caught the batsmen in front of the stumps.

Graeme Swann then teased a miscued a drive from Rehman (one) gathered by a grateful Pietersen at mid-off, leaving Pakistan in danger of being bowled out for their lowest ever Test total — 53 against Australia in 2002.

Shafiq hit his first boundary in the last over before lunch to take Pakistan to that lowest mark and then hit another off left-arm spinner Monty Panesar to avoid the ignominy.

But Panesar, who took 2-25, had the last laugh, breaking the 34-run stand — the best of the innings — between Ajmal (12) and Shafiq after lunch.

Gul made 13 before Anderson bowled him to wrap up the innings.

England resisted the temptation to change their line-up but Pakistan brought paceman Aizaz Cheema for Junaid Khan. AGENCIES

Explosion near tribal leader’s home in Peshawar

TrendPK.com

PESHAWAR: An explosion is reported near a tribal leader, Satana Gul’s residence at the Ring Road area, Pashta Khara, TrendPK reported on Friday.

Police said that one person has been recovered from debris while three are still under it.
Tribal leader’s home is also damaged in the explosion, police told.

The explosion took place in the office of a property dealer which is located near a NATO terminal.  TrendPK

President stresses more collaboration with China

 

Presnt Asif Ali Zardari has stressed the need for Pakistan and China to deal with the world economy together and act in accordance with the new global demands.

 

In an interview with China’s Peoples Daily Online, the President said as the world is settling in new situation, Pakistan and China need to find new comfort zone for further collaboration in all dimensions.

 

President Zardari termed growth of China as emergence of a new Japan, the largest economy in the world and added that all friends of China would be part of that rise.

 

Zardari said Pakistan established diplomatic relations with China at a time when the latter was not open in relations with the outside world.

 

Referring to the Karakorum Highway damaged by the floods, President Zardari said Pakistan and China were working on enhancing the road and railway connectivity.

 

He said the governments of both countries had the determination of increasing their bilateral trade by more than 10 billion US dollars.

 

President Zardari also extended new year greetings to China on start of its lunar year of Dragon.

 

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