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ANALYSIS: Textile exporters urged to
take Russian market by storm
RECORDER REPORT
FAISALABAD: Russian Consul General Vladimir P. Mikhaylov has
urged Pakistani exporters to aggressively enter into the
Russian market which was unfolding under WTO from January.
He stated this while addressing the textile tycoons of the
country at the head office of Pakistan Textile Exporters
Association (PTEA) here on Monday night.
Explaining the potential of the Russian market, he said:
"Our imports were only 17 billion dollars as compared to the
potential of 60 billion dollars.
He also mentioned the last visit of President General
Pervaiz Musharraf that played a major role in increasing
Pakistani exports, adding: "Bilateral trade between Pakistan
and Russian was doubled in 2003-04.
Mikhaylov said that Pakistani exports were only 20 million
dollars as compared to the imports of 135 million dollars
from Russia. He said Russia will open its markets for all
from January 2005 and Pakistan must exploit this opportunity
to increase its share from the Russian markets.
The Russian consul general said that various European
countries were exporting Pakistani textile products, and
earning huge profits, adding the direct textile exports from
Pakistan would not only provide an opportunity to Pakistani
exporters to earn profits, but also help Russian consumers
to get quality Pak products at cheaper rates.
About tariff issue raised by the PTEA Chairman Mian Faiq
Jawed, Mikhaylov clarified that his position and asked the
Pakistani exporters to pressurise their government to take
up this issue with Russian commerce minister, who is
scheduled to visit Pakistan very soon.
He also mentioned language problem, banking, law and order,
and other related problems, saying that new generation of
Russian businessmen is mostly conversant with English while
interpreters were also available.
Similarly, some serious Russian exporters have also launched
their web sites in English to have direct links with the
international markets, he added.
About issuance of visas to Pakistani businessmen, the
Russian consul general said that maximum business visas have
been issued last year. However, serious businessmen must
first make homework and get recommendation from Russian
firms or individuals to qualify for a business visa, he
added.
He said some Pakistani firms were already doing business and
they opened Letter or Credits (L/C), etc as it was a matter
of mutual confidence and trust. He, however, said that
additional steps are also being taken to improve the banking
facilities.
The Russian consul general also asked the exporters to
explore genuine businessmen and in this connection he
offered his services for establishing close links between
Pakistani and Russian businessmen.
He also mentioned union of entrepreneurs of light industry
and textile, saying that he will help them to negotiate with
PTEA and sign memorandum of understanding (MoU) for further
co-operation between their members and exchange of
delegations, as it would provide an opportunity for
match-making and thus help them launch joint ventures.
Earlier, PTEA Chairman Mian Faiq Jawed, in his address of
welcome, introduced Faisalabad and his association, saying
that Faisalabad exporters were continuing two billion
dollars foreign exchange and has potential to cater to the
textile needs of the new international markets.
He said, at present, imports from Pakistan to Russia
constitute only 0.22 percent of the total imports of Russia
which means even less than a quarter of one percent. The
main reason for this low trade is lack of awareness about
Pakistan and its potential. The PTEA chief said that Italy,
Greece, Turkey, and Poland are purchasing fabrics from
Pakistan and exporting it to Russia, adding" "Russia is
indirectly importing Pakistani fabrics up to 10 percent at a
higher cost via Europe."
He also pinpointed high import tariff in Russia, and said
that import duties in Russian on finished cloth are 15
percent plus 18 percent VAT making total 33 percent.
"This import duty becomes more pinching and discriminatory
when compared to zero percent duty for Bangladesh and
India", he said.
The PTEA chief said that another similar irritant is the
bed-sheet, which is subjected to 20 percent excise duty,
adding that bed-sheet doesn't fall in the value-added
category, and, therefore, this should be exempted from
excise duty.
Mian Fiaq Jawed also mentioned lack of banking and shipping
facilities and requested appropriate measures to encourage
Pakistani exporters to provide quality and cheap textile
products to Russian consumers.
He also urged the Russian consul general to streamline the
system of visit visa for Pakistani exporters.
Muhammad Farooq Afzal, director, Pakistan-Russia Business
Council and chief executive, Integrated Textile Network,
also addressed the function and explained various measures
being taken to encourage bilateral trade between the two
countries.
In this connection, he particularly mentioned banking
facilities and opening of warehouse for Pakistani exporters.
He also proposed a single country exhibition at St.
Petersberg, and assured full support from his side.
Later, Hafeez Pasha of Bishmillah Textile, thanked the
guests while Sheikh Mukhtar and PTEA Senior Vice President
Waseem Latif presented memento of the Association to Russian
consul general.
Videodisks of the visit of Vladimir P. Mikhaylov were also
presented to him.
Earlier, the Russian consul general also addressed the
members of the Faisalabad Chamber of Commerce and Industry
(FCCI). He also visited some local textile units.
Courtesy: `Business Recorder
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Pakissan.com;
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