KARACHI, Oct 8: Businessmen and traders are drawing up contingency plan to cope with any unexpected developments in the wake of the US attacks on Afghanistan that could have far reaching political and business implications.

They are trying to ensure adequate supplies of essential commodities through imports and from local crops to meet any unforeseen immediate shortfall in the country, in case US led strikes on the neighbouring Afghanistan escalate.

For instance, palm oil importers have become active to open more letters of credit (LCs) in order to pile up stocks of palm oil to meet the demand of 80,000-100,000 tons of edible oil in Ramazan falling next month. Palm oil is a raw material for making ghee and cooking oil.

An importer said one ship, carrying 7,000 tons oil is unloading the consignment at the Karachi Port, while another vessel carrying 7,800 tons has already arrived. “We have stocks of 30,000-40,000 tons coupled with back up support from the arrival of cotton seed oil but we need more to meet Ramazan’s rising demand,” the importer said.

On the other hand, industrialists are a bit panicky over the post US attack situation fearing what will happen next.

“We have not curtailed our production yet but yes, we are panicky right now,” chairman Site Association of Industry, Zakariya Usman told Dawn on Monday.

“We fear blocking of our shipments of raw material from foreign countries coupled with non-honouring of letter of credits (LCs) in case the war heats up,” he said.

He said local industrialists are seeking some support from their foreign suppliers of raw materials, which they had given to them after September 11 incident.

Vice Chairman, F.B. Area Association of Trade and Industry, Farooq Bakali said, “we have to draw up contingency plans in case the situation further deteriorates.”

“The situation is depressing and if it persists, industrialists will have to curtail their productions next month to prevent them from losses,” he said adding the production till Monday was continued, but “we cannot tell right now what situation may develop in next day.”

On Monday, only bullion market turned out to be an exceptional case of post-US attack scenario. Bullion hall in Sarafa Bazar had been closed for trading due to what a jeweller described as an “insecure feeling” among the bullion dealers and tension prevailing in its adjacent areas over a protest by some pro- Taliban leaders in the city.

Karachi Saraf and Jewellers Group (KSJG) did not quote any official rate of bullion for 10 grams on Monday, but some dealers revealed the rate in private trading at Rs6,104 per 10 grams, linking the domestic price to the prevailing global rate of $293.25 per ounce.

Other business activities continued to remain normal on the first day after attack on Afghanistan.

“Stocks in pulses, tea, sugar, rice and flour are sufficient to meet the requirement in crisis-like situation,” Chairman Pakistan Commodity Traders Association (PCTA), Raees Ashraf Tarmohammad said referring to the contingency plan.

“In case people starts panic-buying of various items, shortage of commodities is imminent and will result in price hike,” he said.

He ruled out the element of hoarding by the wholesalers and market players, saying that the current situation is not so alarming. “Much will depend on the response of general public. Any buying euphoria at this moment will create problems in future,” he said.

Chairman Karachi Wholesale Grocers Group (KWGG), Anis Majeed confirmed about sufficient stocks particularly of pulses to handle crisis-like situation for at least a month.

So far, he said things are normal as ships, carrying imported pulses, are arriving as per schedule. “Market may see shortage of commodity in case ship movements stop, otherwise the wholesale trade is reacting normally.

A sizable quantity of gram pulse has already arrived from Australia while the local crop of mung has just started. Mash crop from Punjab is about to start.

Retailers have also shared same views, ruling out any element of stocking by the general public. “Stocks are enough. There is no possibility of any shortage in coming months,” said general Secretary, Karachi Retail Grocers Group (KRGG), Farid Qurieshi.