Pakistan Economy - News & Updates - Archive

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KARACHI (May 20 2006): The total liquid foreign exchange reserves held by the country rose $16 million to $13.70 billion for the week ended May 13. The foreign exchange reserves during the preceding week was at $13.054 billion.

The break-up of the foreign reserves position is as these foreign reserves held by the State Bank of Pakistan $10,677.3 million, net foreign reserves held by banks (other than SBP) $2,393.5 million.

 

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KARACHI (May 20 2006): The World Bank (WB) ranked Pakistan in 10th position for better economic and investment country in the world. This was stated by the Secretary General Finance, Ministry of Finance, Nawid Ahsan as Chief Guest while addressing the audience at the joint venture of 21st Business and Economic Club and Overseas Universities Alumni Club (OUAC) here late on Thursday night.

He said the hallmark of the government of the last six years was to promote business and economic environment in the Pakistan. The government was taking all necessary steps in this regard, he added.

The federal government was also considering the 'New Competition Policy' to promote market based economy. In this connection, consultations have been made with all the stakeholders and it would be presented for their approval in the near future.

In post WTO scenario, weak industries in terms of quality and would not able to survive and these are the challenges faced by industrialist of Pakistan, he said, adding the world has to face such challenges and only those who would be ready to meet such a criteria would ultimately attain success in future business.

Nawid Ahsan said the government was looking for private/public partnership in order to develop infrastructure in the country as public-private partnerships have proved itself successful internationally.

Now the Government of Pakistan was also keen in developing infrastructure through such partnerships, he added.

Commenting about forthcoming budget, Nawid Ahsan said that he noted the suggestion given by the speakers and he personally wished to see a good package in hospital, health and education in the upcoming budget.

Earlier, the founder president of the OUAC, Syed S. Haider said the OUAC members are comparatively more aware, better flexibility, determination to bring changes, sense of good and bad, diversity of thoughts and ideas, excellent education and quick grasp of facts. By this they were contributing more positively in the development of the country, he added.

Four awards were also given on the occasion includes; Nadeem Mustafa Khan, Director General and Chief Executive Officer of Aga Khan University Hospital, Syed Tariq Hussain, Chief Executive, Emirates Global Islamic Bank Limited, Sarmad Ali, Executive Director of Jang Group and Ayaz Dawood, Director, First Dawood Investment Bank Limited.

 

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SIALKOT (May 20 2006): Provincial Industries, Investment and Commerce Minister Muhammad Ajmal Cheema has said that strenuous efforts were being made for bringing industrial revolution and tracking the industrial sector on scientific lines.

Addressing a memorandum signing ceremony of Sialkot Display Centre held at Sialkot Chamber of Commerce and Industry (SCCI) on Friday he added that government had adopted a liberal and business-friendly policy enabling the newcomers and foreign investors to set up new industrial units in the Punjab.

The minister revealed that Punjab Chief Minister Chaudhry Pervaiz Elahi would perform formal stone laying ceremony of Sialkot Expo Centre shortly.

The industries minister said that provincial chief minister had already announced the construction of Sialkot-Lahore motorway the prime concept to facilitate the business community of Sialkot. The completion of Sialkot-Lahore motorway would play an instrumental role in further accelerating the pace of trade and commerce activities in this export-oriented city and hub of cottage industry of the country he said.

Ajmal Cheema said that the proposed Sialkot-Lahore motorway would be accomplished at a cost of Rs 20 billion and would this mega project would be carried out soon.

The Punjab government he said had already released Rs 90 million for Sialkot Engineering University and the completion of the university would play a pivotal role in catering the need of local industry but also provide an opportunity to the students of Sialkot its adjoining districts in getting higher education at local level.

Ajmal Cheema said the setting up of Sialkot Expo Centre would be an addition in this export-oriented city where all type of products produced in the city would be exhibited.

In his address of welcome President Sialkot Chamber of Commerce and Industry (SCCI) Dr Nouman Idris Butt said the proposed Sialkot Expo Centre would be accomplished at a cost of Rs 1.42 million. He disclosed the executive body of SCCI had already set aside Rs 20 million for the Expo Centre.

 

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Saturday, May 20, 2006

ISLAMABAD: The government has decided to launch a plan to enhance cotton production to the level of 20.70 million bales by the year 2015.

Having considered various options for production enhancement, it is realized that a production level of 20.7 million bales could be achieved by 2015 with a modest increase of 25,000 acres annually in potential cotton growing areas of Balochistan and NWFP coupled with an average of 5 percent growth in per hectare yield. The area under the crop would thus increase to 3.32 million hectares as against the estimates of 3.22 million hectares for 2005-06, with an increase of 3 percent. The hectare yield would thus improve to 1,060 kgs from the provisionally estimated yield of 686 kgs for the current season.

The plan titled "Cotton Vision 2015 Targets" has been initiated after taking into account the future prospects for a sustained growth in cotton sector and the possible improvement in the quality of raw cotton. The plan has been designed to achieve higher production of clean cotton to obtain advantages of assured supply of cleaner, uniform, graded and contamination free cotton to the domestic textile industry.

The textile industry places the current consumption of raw cotton at around 15 million bales based on certain assumptions, whereas the Textile Commissioner’s Organization have estimated it at 12.5 million bales for 2004-05.

However, cotton consumption in the country during the last decade registered a growth rate of about 4 percent annually on average. Based on a similar growth pattern in years to come the mill consumption requirements are estimated to be 18.5 million bales, 42 percent higher than the current level of consumption.

The likely consumption by 2015 may also be considered on the basis of growth in the working spindles during the last 10 years, which is averaged at 3.16 percent annually.

Taking this growth rate into consideration and a maximum of 1.5 bales consumption per spindle, the requirements by 2015 to be 17 million bales.

The working group constituted by the MINFAL for projecting the demand of raw cotton by the domestic textile industry, which has also envisaged the minimum mill consumption of raw cotton by 2015 at 18.5 million bales.

 

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Saturday, May 20, 2006

KARACHI: IATA has nominated PIA, Saudi Airlines, Air France, Emirates, Gulf Air, Lufthansa, Malaysian Airlines and Thai Airways as panel members. Shahid Latif, general manager cargo PIA has been appointed as chairman with Syed Intizamullah, manager cargo Saudi Airlines as vice chairman and Muhammad Ilyas of PIA as secretary.

According to PIA press release on Friday, the IATA Cargo Advisory Panel (ICAP) for Pakistan has been formed to assist IATA (International Aviation Transport Agency) in processing applications for dealing with registration, retention, and financial aspects of Air Cargo Agents in Pakistan.

 

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KARACHI, May 19: While proposing increase in exchange of trade delegations, the visiting Chinese delegation has showed interest in forming joint trade and investment companies to further strengthen trade ties.

“People of China and Pakistan are too close to each other and similar in so many ways, coupled with time tested friendship and brotherhood but the trade ties hardly match to this situation,” said leader of the delegation Zhao Qingmao, Economic and Commercial Counsellor, Embassy of China, here on Friday during a visit to the Export Promotion Bureau.

Mr Zhao told EPB vice-chairman Zafar Mahmood and director Nusrat Jamshaid that the trade between China and Pakistan was not reflective of good political, historical and cultural ties that the people of two countries were enjoying.

“Bilateral trade should be increased manifold for which there should be frequent exchange of delegations, participation of importers and exporters in exhibitions and fairs organised in each other countries”, he suggested.

He said he would advance similar suggestion to the Chinese counterpart of the EPB for making efforts to increase the number of visits of trade delegations to Pakistan and the EPB should also make an effort to increase the number of trade delegations visiting China.

He said he had only two points in his mind for bringing the two countries closer to each other by joining hands in import and export business and make some joint companies to make investment in China and Pakistan. “We had done such experiments successfully with couple of other countries”, he added.

He said he was impressed by the progress and development of Karachi where he had come after 12 years and said, like Pakistan, China was also developing on higher pace and registering impressive growth rate.

He also appreciated the display centre of the EPB and took keen interest in hand-knotted carpets and garments besides other peculiar items like camel skin lampshade etc.

Mr Zhao said he expected extra ordinary heavy trade activity between Pakistan and China which was just across the mountain and shares so many aspects of social, religious and cultural values.

He also informed that he had visited the Karachi Chamber of Commerce and Industry on Thursday and had open discussions with the businessmen and office- bearers of the KCCI.

The Chinese delegation, currently on a seven-day visit to Pakistan, had already visited Islamabad and Lahore before coming to Karachi.

The EPB vice-chairman welcoming the delegation said there existed great potential of trade and investment between the two countries and elaborated the political and social ties between the people and the governments of the two countries.

 

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ISLAMABAD, May 19: Pakistan has good industrial potentials for penetrating into the international market and should make research studies to pinpoint better quality and cheap products for making inroads.

These observations were made by Johann Klomfass, German commercial and development counsellor, during a meeting with Imtiaz Rastgar, vice-chairman and CEO of the Engineering Development Board (EDB), says a press release.

Imtiaz Rastgar said the EDB wanted to build a Pakistan-German automotive supply network, providing opportunities to Pakistani automotive vendor enterprises to benefit from the German know-how and technology to improve quality, productivity, developing and marketing of value-added products.

It also aimed to enter into project specific alliance with German automotive vendor enterprises for trading and joint venture projects, he said, adding that as a first step in this direction, the EDB had planned mapping study of the automotive sector to address the issues like supply industry, technology, production and demand levels, geographically distribution of the industry, key uncertainties, skill level, industry’s strengths and weaknesses, deficiencies of suppliers and their core competence key success factors and regulatory environment.

Mr Rastgar said that this would be an in-depth analysis of the current situation and would highlight the factors that were likely to shape the future of automotive manufacturing in Pakistan. In addition, the study is required to attract players from Germany as well as from other countries to develop business with the Pakistani counterparts, the German diplomat was told.

Specialists from Germany would be conducting this study and would also present it to the German automotive industry. Ways and means of Pakistan-German cooperation for conducting the study were also discussed.

The German diplomat was also briefed about Pakistan’s participation in the Hannover Fair 2006.

 

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Saturday, May 20, 2006

PESHAWAR: NWFP Chief Minister Akram Khan Durrani has said that the government’s plans to alleviate the crippling poverty in NWFP required international and domestic financial assistance. He labelled hydropower as essential to the development of vast natural resources available to the province.

Talking to the country director of the Asian Development Bank (ADB) and a delegation from UK’s Department For International Development (DFID) at the NWFP Development Forum, the chief minister said that NWFP had geographical importance since it provided a gateway to Afghanistan and Central Asian Republics. “It can serve as a link for business and commercial activity but it needed domestic and foreign investment to fulfill its potential,” he added.

Durrani said that meeting the province’s irrigation needs was a key element in the struggle for poverty-reduction since vast tracts of land in the southern districts remained barren due to water-shortage. “The government has planned to construct first, second and third Chashma Lift Irrigation Channels, Tank Zam and 20 small dams that would irrigate thousands of acres of land so that we have sufficient food supply in the province besides being able to export to Afghanistan,” the chief minister said. Durrani praised President Musharraf for announcing Basha and Munda dams, adding that this would reinforce national integration.

Highlighting the need to construct more dams Durrani said that NWFP possessed 75 percent of the water resources available to Pakistan. He emphasised the need to construct dams at Punchkorha, Kalam, Chitral and Kohistan. He said that Malakand-III would produce 82-Megawatts of electricity of which 10 Megawatts would be provided to the local industrial plants at subsidised rate. He said that the province earned Rs 500 million as its share of royalty in natural gas deposits and with more discoveries expected, the royalty would increase.

The chief minister said that the government had distributed Rs 10 billion among the earthquake victims and planned to donate another Rs 25 billion by the end of June. The government had also developed the road infrastructures in areas of potential tourist interest.

The chief minister expressed the hope that the frontier government would succeed in raising the standard of living with assistance from foreign donors. He praised the MMA government’s success in purging the administrative institutions of corruption.

The country director of Asian Development Bank and the DFID delegation apprised the chief minister of the investments being made by the institutions in the province. The ADB provides concessional loans to the province, while the DFID has pledged numerous grants for the social sector.

 

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Saturday, May 20, 2006

RAWALPINDI: The United States has made a long-term commitment to help in Pakistan’s socio-economic development and will assist the country in developing its human resource.

This was stated by USAID administrator Randall Tobias during a meeting with President General Pervez Musharraf on Friday. Tobias, who is also the director of US Foreign Assistance, said that America greatly valued its multi-faceted relationship with Pakistan and will extend cooperation in the development of a number of sectors including health and education.

He informed the president about the US scholarships for Pakistani students. President Musharraf thanked the US official for assisting Pakistan through various development programmes initiated by USAID. The president informed the visiting official about Pakistan’s efforts aimed at improving the quality of higher education as well as equipping schools and colleges with better facilities.

“We are determined to educate the young generation in modern skills as part of our focus on human resource development, which, we believe lies at the core of sustained development,” he said.

Referring to the recently established National Vocational and Technical Education Commission (NAVTEC), the president said the commission would produce a skilled workforce, which was necessary for a rapid industrial development. He said that NAVTEC would set up vocational institutes all over the country to train the local residents according to the economic potential of their areas.

The president said that efforts were being made to establish high quality and state-of-the-art universities with the help of developed nations to provide education that meets the demands of a knowledge-based economy.

The president said that he looked forward to US assistance and added that Pakistani students could benefit from the US expertise in the fields of water resource management. Dr Salman Shah, finance advisor to the prime minister, and Ryan C Crocker, the US ambassador to Pakistan, were also present at the meeting.

 

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The UN wants people to be ready for next winter

The United Nations has launched a $300m (£159m) rebuilding plan to help tens of thousands of Pakistanis displaced by last October's devastating earthquake.
The 12-month plan aims to ensure that the services quake victims received in camps over the last few months return with them to the villages and hamlets.
The UN already has $100m and is urging countries who pledged donations to redirect their funds to this effort.
More than 73,000 people were killed and three million displaced by the quake.
The recovery programme was drafted with the help of the Pakistan government and voluntary organisations.

We want to make sure that the services people have had access to in the camps will follow them home

Jan Vandemoortele
UN humanitarian co-ordinator for Pakistan


"We believe we had a successful relief phase behind us," said the UN's humanitarian co-ordinator in Pakistan, Jan Vandemoortele.
"We want to sustain the success into the early recovery and reconstruction phase."
The UN has begun training teachers and health workers, as well as builders who can help reconstruct some of the 600,000 destroyed homes.
Helicopters needed
Other priorities include ensuring there is enough water and sanitation, food, seeds, fertiliser and small livestock to help restore people's livelihoods.
"We want to make sure that the services people have had access to in the camps will follow them home," Mr Vandemoortele said.
He said he was confident that the countries which promised $6.2bn last November to help rebuild the stricken area would help fund the remaining $200m of the plan.
The additional funds will provide helicopters to help deliver aid to the areas still inaccessible by roads, he said.
Of the 300,000 people who were forced to spend last winter in camps in Pakistan, at least 200,000 had now returned home.
The remaining 100,000 still in camps are either from urban centres that were completely flattened by the quake, or are from rural areas and are facing land disputes, physical disabilities or other problems.
"This plan will help tremendously in getting people back on their feet again, so that when winter comes - and it's only six months away - they are ready to face it," Mr Vandemoortele said.
"If not, we will see the same mass movement of people again, and have another emergency on our hands."

 

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ISLAMABAD (updated on: May 21, 2006, 17:10 PST): Pakistani and Iranian experts on Sunday opened talks here for the second time in less than a month to review progress on the $7.1 billion Iran-Pakistan-India gas pipeline project.

The Pakistan-Iran Joint Working Group is discussing technical and financial issues, focusing on the finalisation of a pricing formula, the officials said.

Pakistan had sent a draft gas pricing formula to Iran based on domestic gas pricing mechanism and the two sides are discussing the formula.

Iran Deputy Oil Minister Mohammad-Hadi Nejad-Hosseinian, who arrived here early Sunday, is leading the high-level delegation of experts in the talks and Pakistan side is leaded by Secretary of Petroleum Ahmed Waqar.

Officials say that the two sides will hold further discussion on the infrastructure and propose route for the 2,670-km pipeline in the four-day talks.

If implemented the 2,670-km pipeline will comprise 1,115 kilometres in Iran, 705 kilometres in Pakistan and 850 kilometres in India.

The two sides met in late April in Islamabad and had a wide-ranging discussion on the project.

 

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ISLAMABAD (May 21 2006): The Central Development Working Party (CDWP) on Saturday approved 65 projects costing over Rs 100 billion, of which 25 projects were recommended for approval of the Executive Committee of National Economic Council (Ecnec).

The projects approved in CDWP meeting held here with Deputy Chairman Planning Commission Dr Akram Sheikh are related to transport and communications, water resources, energy, commerce, health, population, education and mass media etc.

A large number of projects related to water resources and energy including Pehur High Canal Project (ADB loan), increasing capacity of Barani Dam and PC-I for Balochistan small scale irrigation were approved.

Dr Akram Sheikh observed that Wapda and provincial government should acquire land for Kurram Tangi Dam on priority. Wapda informed the meeting that 1,300 villages will be electrified during the current year and 1,500 more villages will be electrified next year under Roshan Pakistan Programme.

Advanced CAD/CAM training centres costing Rs 485 million were approved relating to industries and production division. A number of projects relating to health also came under discussions. Strengthening of National Control Authority for biological and its independent laboratory at a cost of Rs 231 million, up-gradation of existing facilities at National Institute of Heart Disease at Rawalpindi, Liver Transplant Centre project at Sheikh Zayed Postgraduate Medical Institute, Lahore at a cost of Rs 170 million and establishment of Institute of Cardiology at Peshawar at a cost of Rs 1,462 million were approved.

The deputy chairman, planning commission directed the officials of population ministry to take some concrete steps to control population growth. The officials of population ministry assured the deputy chairman that their ministry had changed its strategy in motivating the people and concerned Moulanas of the mosques are being involved.

The ministry of information and broadcasting gave a presentation on the establishment of 26 stories Media Tower to be built in Islamabad at a cost of Rs 1,150 million. The main purpose of the tower is to provide infrastructure facilities to media people.

 

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SHARM EL SHEIKH (May 21 2006): Prime Minister Shaukat Aziz said here on Saturday that home-grown leaderships, with a clear vision and decision-taking powers can help the Muslim world make rapid advancement towards the goal of more stronger economies.

Chairing an interactive session on 'Who is leading the Way', he elaborated on the role and responsibilities of a leader, the forces that are driving political change and economic development and how the region can share common values to bring about a positive change in the lives of its people.

"Decisions and leaders imposed from abroad are not long lasting and neither there should be any interference," he said.

He, however, regretted that the Muslim world lacked the unity it needed to meet the growing challenges. The Prime Minister said there was leadership deficit in the world and there was need to have leaders who have a clear vision, can take tough decisions, have the ability of problem solving and can take the people along by convincing them.

The Prime Minister said the Middle Eastern region has achieved a lot in the past few years and there was need to undertake vigorous reforms in economic, political and all other related areas to ensure progress and advancement in all spheres.

In reply to a number of questions about how the country managed a remarkable economic turnaround, he said the government was ensuring that Pakistan was never again trapped in debt and does not compromise its sovereignty.

The Prime Minister referred to the 'Fiscal Responsibility' law that was passed by his country's legislature, and added that any country's economy was based on economic policies and leave behind a deep impact on country's foreign and political process. He said the law will go a long way to ensure that Pakistan is never trapped again in debt and does not compromise its sovereignty.

During the interactive session, participants held a frank and open discussion and identified that there were many commonalties as all countries faced similar opposition to change.

They also termed the economic turnaround in Pakistan as a success story and said it could be emulated by all. The panellists agreed that the Arab countries needed to follow Pakistan's example, which undertook dedicated efforts needed to reform its financial sector.

Aziz also spoke of the need of political reform and said that the reform process could not be undertaken in isolation and needed to take into account other areas of governance.

He said that institutionalised reforms brought the country from the brink of bankruptcy to be among top 10 reformers.

He spoke of the reforms initiated by his government to bring about a positive change. He said it was very difficult, and added that the only constant in a modern world was the word 'change'. He said the five driving factors were: de-regulation, privatisation, good governance and transparency.

He referred to Pakistan's telecom sector that was now adding a million subscribers a month. He said the biggest hindrance was from within, but added that with concerted efforts and bringing about a series of changes, gradually things improved.

He also spoke of the reforms in the Income Tax department and said the department was known for indulging in malpractice's, followed by tax lawyers and tax payers who opposed change as it suited everyone.

The Session was participated by Bassem I Awadallah, representative of the Jordanian government, N Shafik Gabr, Chairman and Managing Director, Artoc Group for Investment & Development, Egypt; Chairman of Arab Business Council; Co-Chair of the World Economic Forum on the Middle East and Gamal H. Mubarak, Head, Policy Secretariat, National Democratic Party, Egypt.

The World Economic Forum on Middle East is focusing on several challenges faced by Middle East and to shape the regional agenda towards bold decisions that would provide hope and opportunity for young people.

Earlier, Egyptian President Hosni Mubarak opened the World Economic Forum on Middle East with a call to the international community to work together to resolve regional conflicts. "Peace and development are indivisible," the President told more than 1,200 government, business and civil society leaders from 46 countries meeting in Sharm El Sheikh. Bassem I Awadallah, representative of the Jordanian government, said that Pakistan could take justifiable pride in the reform agenda and celebrate its "fantastic economic success".

Participants, drawn from the highest level of government and business, as well as top experts and civil society representatives, will also be focussing on creation of new job opportunities besides looking into the labour market issues. The other sub-themes would cover the rule of law, peace, security and international relations, and issues of youth, culture and identity.

 

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KARACHI (May 21 2006): Air Marshal Shahid Hamid (Retd), Chairman, Alternative Energy Development Board (AEDB), said that firm letters of commitment have been given by 13 leading investors for installation of wind power turbines and as a result 650 megawatts (MW) of power would be injected to the national grid by the end of 2007.

He stated this at a meeting with Acting President, FPCCI Sheikh Muhammad Aslam and members of FPCCI in Federation House, Karachi that the mid-term development plan of the Alternative Energy Development Board included development of wind and solar energy to meet at least 5% of the total installed capacity ie 9,700 MW by 2030.

AEDB will facilitate installation of 700 MW of wind energy near Gharo, Sindh by 2010. It will also facilitate development of solar products like solar lights, solar fans, solar cooker, solar geyser through the private sector, he added.

The AEDB Chairman said that as a result of the analysis of three years data of general area Gharo-Keti Bandar provided by the MET Office, AEDB has identified a potential of 50,000 MW wind power.

He said that the Board was in liaison with the Government of Sindh for identification and acquisition of land in the area and has so far acquired 18,000 acres of land. Giving details of the pilot project for development and installation of micro wind turbines, he said that 85 micro turbines had been installed in Mirpur Sakro, District Thatta to provide electricity to 356 homes, 15 turbines are installed in Kund Malir, District Lasbella providing electricity to 111 homes, 40 turbines to government of Balochistan and one turbine is to be installed in AJK on trial basis.

Air Marshal Shahid Hamid said that AEDB was also exploiting solar energy and has executed a project to provide 100 solar homes in each province. These villages where the project has been executed include Allah Baksh, Bazar Dadar, District Kech, Balochistan; Bharo Mal, District Thar, Sindh; Janak, district Kohat, NWFP; and Lakhi Bher, district D.G.Khan, Punjab.

He said that Northern areas has immediate potential of more than 300MW and the canal network in Punjab has a potential of more than 350 MW through micro hydro power projects. A 40KW Kaplan type micro hydel turbine has been indigenously manufactured which has been installed at that Khanpur Dan canal near the village of Mohra Morado, Taxila, providing electricity to the village. On the proposal of Tariq Sayeed, former President, FPCCI Air Marshal Shahid promised to recommend to the Prime Minister to include a representative of FPCCI on AEDB. He also agreed to hold consultative meetings with FPCCI members every two months to interact with the entrepreneurs.

 

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KARACHI (May 21 2006): The country's towel exports is likely to cross $1 billion mark by end of the current fiscal despite seeing a decline in the towel made-ups exports, sources told Business Recorder here on Saturday.

Industry sources believed that the increased demand and launching of new products in the international market would help the figures to breach the fence of US $1 billion by the end of the current fiscal year 2005-06.

The statistics shows that the towels' exports were recorded at $421.1 million as on March 06, compared to $376 million during the corresponding period last year, depicting a growth of 11.97 percent. Similarly, exports made-up of towels from the country stood at $309.2 million until March 31, this year compared to $357.6 million, portraying a downslide of 13.52 percent.

"Despite increase in towel exports, the aggregate figure of towels and its made-up exports are showing a nominal decline of 0.45 percent as it stood at $730,35 billion on March 31, this year against $733,68 billion during the same period last year," said a leading exporter.

"Even with, low export figures, we are eyeing a target of $1 billion and are pretty optimistic that we would achieve it," he added. Citing the reason of the declining trend in the made-up towel exports, another exporter pointed out, "Since the value-addition of towel made-up is lowered, a number of people have switched their units to towel exports."

On the other hand, he said, the industry should focus to explore and capture other markets of the world, specially the African and Far East markets.

"The towel industry of the country is facing less global competition than the garments or any other sector, nevertheless, to boost exports, we must penetrate into the African and Far East markets where our exports are still negligible," exporters said.

Commenting on the newly launched products that have succeeded in attracting foreign buyers, a leading exporter said, "We have been exporting cotton towels, but this time we have recently started exporting 'micro fibre towels' and used 'bamboo yarn' in some of our products."

"Our buyers have appreciated this effort (new products) as we have proven that we can be updated and modernised with the changing world," he added.

The towel exporters have shown satisfaction over the pace of growth and highlighted that the average annual growth rate of their exports is ranging between 12 percent to 15 percent.

According to the statistics of 2004, China was the world's biggest towel exporter with 24 percent of the market share, followed by Turkey and Pakistan with 13 percent apiece.

India stood in fourth place with a market share of nine percent, followed by Portugal with seven percent, Brazil with six percent and Belgium with four percent.

"However, Bangladesh, that has emerged on the global front by enhancing its textile exports, is striving hard to penetrate into the world markets as its share in world towel exports is almost insignificant," stated a Karachi-based exporter.