PESHAWAR (January 07 2004): Chinese tobacco manufacturers and trading companies have shown keen interest in the tobacco sector in Pakistan and possibilities of investment in establishment of a tobacco processing plant in NWFP for the purpose of producing exportable tobacco to the world market.

A delegation of leading Chinese tobacco manufacturers and trading companies, few days back held discussions with Chairman Pakistan Tobacco Board (PTB), Sahibzada Riaz Noor.

The delegation was led by Dong Quing Zhao, Vice Director of the Chuzhou Cigarette Factory and consisted of Yao Fazheng General Manager, 
Benglu Handfull Foreign Trading Company Ltd and Janna Zou of the Chuzhou Cigarette Factory.

The delegation showed keen interest in investment in the tobacco sector in Pakistan because of the large market, excellent quality of tobacco 
produced in Pakistan and the world-competitive price and cost structure that this country can provide.

The chairman PTB assured the delegation of all assistance in facilitation of establishment of tobacco processing plant. He explained that Pakistan produces the finest quality of tobacco at competitive rates of Flue Cured Virginia, which can be purchased and exported.

Pakistan's tobacco has proved its mettle in the international market, which is proved by the fact that its exports of tobacco products showed a growth rate of 34 per cent during 2002-2003 over 2001-2002.

In value terms, exports were 6.248 million dollars in 2002-2003 as compared to 4.659 million dollars during 2001-2002.

The expected target for the current financial year is about 10-12 million dollars.

The Chinese delegation was informed that Pakistan in general and NWFP in particular produce about 50-60 million kilograms of Flue Cured Virginia, but there is a capacity to produce about twice that volume.

Thus, at present there is availability of an exportable surplus of about 20-30 million kilograms (20,000-30,000 metric tons) with the capacity to increase it to almost 70-100 million kilograms or about 70,000-100,000 metric tons.

The delegation also discussed possibilities of a joint venture and opening of offices by its trading group in Pakistan.

The Chinese delegation was informed that they could set up their tobacco processing/marketing unit in the Risalpur Export Processing Zone or in 
the Mardan/Nowshera districts, to which the federal/ provincial governments would provide all facilities and assistance.

The Chinese tobacco manufacturers were also informed of the complete liberal trade regime in respect of imports as well as exports and the steps being taken by the Pakistan tobacco board/government to remove all tariff and non-tariff barriers in the way of tobacco trade.

Courtesy Business Recorder