September 11, 2002	Wednesday	Rajab 3, 1423

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ISLAMABAD, Sept 10: Commerce minister Abdul Razak Dawood on Tuesday said that he would like to see the currency rate stabilizing instead of strengthening so that the exporters could plan export of their products.

He was asked whether he would advise the State Bank governor to intervene through the inter-bank market mechanism to contain strengthening of the rupee against dollar. The minister said SBP governor must be watching the situation carefully and added that he would like to see the currency rate stable that enabled the exporters to plan.

Replying to a question, the minister said that the exports could be hit only in case of recession in the world economy and strengthening of the currency.

Speaking at a news conference here on Tuesday after his return from the United States, Mr Dawood said that he did not take up with US authorities the issue of textile quota for Pakistani products.

The minister parried questions about his visit to the US. He first said one could go to US on a private visit and then added quickly that “we talked about the world trade organization”. He said that he would be leaving for Geneva on Sept 21 to attend the meeting of like-minded group on WTO.

Mr Dawood said that he was not yet satisfied with some areas relating to formal signing of free trade agreement with Sri Lanka and would be holding another meeting on Thursday in Lahore with exporters to make a final point of view of list of tradable items.

He said that a two-member technical team would be leaving Colombo on Sept 15 where they would present Pakistan’s final position and have one from the Sri Lankan authorities to sort out remaining issues.

He declined to identify the areas the two sides still had difference of opinion but said that his Sri Lankan counterpart had called him to postpone ministerial meeting to sign the agreement from Sept 20 to Oct 2, 2002.

The minister said that given the increasing export trend in the first two months, it could be safely expected that exports would reach $10.4 billion by the year end.

He said that exports during the first two months have amounted to $1.713bn as against a target of $1.608bn showing an increase of 6.5 per cent over the target and 17 per cent higher than the same period last year.

He said that imports in first two months amounted to $1.9bn against $1.7bn imports same period last year showing an increase of 9.9 per cent.

The minister said that exports of engineering sector increased by 51.7 per cent while those of chemical goods increased by 97.8 per cent. Similarly, footwear exports increased by 71.6 per cent in first two months when compared to last year while textile manufactured goods posted an export growth of 20.6 per cent.

He said that exports of petroleum products have decreased by 62 per cent while imports of petroleum products also reduced by 8.8 per cent. He however expressed his inability to say what factors resulted in falling import of petroleum despite increase in international prices.

He said that sales of Pakistan Steel Mills hit a record Rs1.938bn mark in August against a highest figure of Rs1.869bn in May 1987.

He said that production of steel in August stood at 8600 tons and recorded 92 per cent capacity utilization. He said that consumption of steel was seen in hot and cold rolls and billets which meant that fabrication industry was functioning well.