KARACHI, Aug 11: The Trading Corporation of Pakistan (TCP) has issued last tender for sale of cotton to local bidders which will be opened on Saturday. The TCP has offered 81,693 cotton bales for bidding and this will be the last combined tender under which local and export sales of cotton will be allowed. The ECC in April asked the TCP to dispose of its cotton by selling it to local and foreign buyers at competitive prices.

So far the TCP has floated 15 tenders and also managed to make some profit out of these sales. However, the prime minister in a meeting asked the corporation to stop its local sales by August 15, 2005. This would mean that the remaining stock of its procured cotton would be sold to foreign buyers.

According to official sources, the corporation had so far sold around 1,110,471 bales and held a balance of 465,981 bales. Out of the sold quantity local mills lifted well over one million bales and foreign buyers around 100,000 bales.

According to cotton analysts the TCP would face some problem in disposing of the balance as world cotton prices lately came under pressure.

With falling world prices the TCP may not earn profit from the balance stocks as it would be difficult for the corporation to dispose of these stocks at price which may cover its procurement costs, they said.