KARACHI, Feb 21: The importers of goods from Europe, except Denmark and Norway, continue to open letters of credit (LCs) with the banks amid demand by certain religious and political parties to suspend trade with the EU to protest the publication of the blasphemous sketches in the newspapers.
Some trade bodies and associations, in their recent strikes and agitations, have also been urging the general public to boycott the European goods for the purpose.
A senior banker of a private bank in Jodia bazaar said that the importers were opening LCs for goods import from Germany, the Netherlands, and other European countries etc.
He, however, said that the importers of goods from Denmark and Norway, who had been very limited in number, have not turned up at the bank for opening the LC for the last one and a half week since the agitation began.
He added that the bank had not received any clear instructions from its head-office or from the SBP not to process the LC for Norway, Denmark and other European countries. He added that the situation had been normal in this context.
In case of milk powder, the founder chairman of Pakistan Milk Powder Importers Association (PMPIA), Abdul Rahim Janoo, said that the importers were opening LCs for milk powder imports from Sweden, Holland and Ireland.
However, he said, he cannot not divulge as to what is the strategy or course of action of the milk importers or distributors of the milk from Denmark as there has been only one or two importers of Dano milk and some butter products.
Personally, he said, he and his association members felt that the import of European goods should be discouraged unless the Denmark government and other countries apologise on this serious issue.
“We have called a meeting on Feb 27 to chalk out future course of action regarding milk import from European countries,” he said adding that the association is likely to hold a meeting with the commerce minister.
He said there would be no problem in case milk powder import is suspended from some European countries. He added that the importers bring in 27,000 tons of milk powder (skimmed milk from East European countries, vegetable fat powder from Ireland and Sweden and butter fat milk powder from Holland) every year.
“We have identified the USA, Australia, New Zealand and India as alternative markets for milk powder import in case we decide to suspend imports from the European countries,” Rahim Janoo said.
He said skimmed milk is used in preparing ice cream, dairy products, and sweets, while butter fat milk powder is also used by dairy industries and sweet merchants, while loose milk sellers also use vegetable fat milk powder.
On the other hand, a retailer in Tariq Road market, who asked not to be named, said that the consumers had not yet shown any unwillingness in purchasing locally made items of companies that are subsidiaries or agents of the European multi-nationals.
President Jodia Bazar Traders Association, Jaffer Kudia said that so far there had been no negative situation in Jodia Bazar, a hub of city’s wholesale trade, in opening LCs for the European countries. However, he said that the Danish and Norwegian products had a very little share in Jodia Bazar business.
He added that the Danish products, like Lurepak butter and Dano milk, can be found in supermarkets and big departmental stores, while local wholesalers in Jodia Bazar hardly keep these products.
