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Archive for January, 1987

Mangoes, Stars and Stripes

(This is the TENTH part of a series of weekly articles which will attempt to explore the advantages/disadvantages of Barter/Countertrade as opposed to the liberal policy in vogue in Pakistan).

he United States of America is one of Pakistan’s largest trading partners, 1983 Imports US$ 500 million Exports US$ 160 million, 1984 Imports US$ 560 million Exports US$ 220 million, 1985 Imports 675 million Exports US$ 225 million, showing an imbalance of US$ 350-400 annually in favour of the US. These figures do not include imports of defence material which would be in the region of US$ 600-750 million annually. Given the level of economic and military AID in credits available every year, Pakistan constitutes, along with Egypt, Israel and Turkey, one of the pivots of US strategic interests in the world. Despite the fact that our Government has managed a deft balancing act by remaining NON-ALIGNED and maintaining excellent relations with most of the COMECON countries, somewhere deep inside the KREMLIN must be a board where Pakistan must be circled in red as a prime target, of long-term planning and opportunity.

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Metamorphosis in foreign relationswhen the time comes!

Some exceedingly worrisome changes have taken place in the Region, barely perceptible at this stage, nevertheless significantly ominous in their portents.

Rajiv Gandhi recently went to Washington and came back cock-a-hoop. Euphoric and buoyant, he talked to the members of the media in the aircraft on his way back from USA. Pakistan was dismissed by an irritated Gandhi as “one of the small countries” on India’s borders and as far as the “problem of Pakistan” was concerned he said, I quote, “we shall handle them when the time comes,” Unquote.

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Textiles – and Mangoes!

(This is the NINTH part of a series of weekly articles which will attempt to explore the advantages/disadvantages of Barter/ Countertrade as opposed to the liberal trade policy in vogue in Pakistan).

Pakistan’s main cash earners in export have been raw cotton, cotton textiles and cotton manufactures. Theoretically, it does not make economic sense to put any of these items under Countertrade (CT). On the other hand, any one desirous of entering into an STA with the Government of Pakistan (GoP) will like to have a “sweetener” in the form of between 30-40% of traditional items, prime among them being raw cotton. As far as those cotton textiles and cotton manufactures are concerned which fall within the ambit of quota items they should definitely be deleted from any CT list.

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The Mango Crowd

(This is the EIGHTH part of a series of weekly articles which will attempt to explore the advantages/disadvantages of Barter/ Countertrade as opposed to the liberal trade policy in vogue in Pakistan).

There is no doubt that the Countertrade and/or Barter process can be expensive. The Primary Aim for the country’s planners will be to keep the costs down. In order to analyse how we can reduce the effects of the MARK-UPs on the C&F prices, we have to undertake a review of the various trading options available to us under Countertrade and/or Barter.

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