Pakistan and Tajikistan have signed sugar trade agreement under which 30,000 metric tons white refined sugar will be exported to Tajikistan and for the purpose delivery will be in three tranches of 10,000 MT each.
While concluding the Pakistan-Tajikistan extensive meetings held on Monday and Tuesday between Agency on State Material Reserves of Tajikistan Chairman Nurmahmad Akhmedov and Commerce Minister Muhammad Makhdoom Amin Fahim.
Sugar will be exported to Tajikistan against 100 per cent secured cash letter of credit (LC) to be opened by the government of Tajikistan through any first class internationally recognized bank. According to official handout, both the parties have, after thorough negotiations, agreed upon a draft commercial agreement except the provision of domestic transportation of sugar from mills to the point of delivery which will be finalized as soon as the clarification, sought by the Ministry of Commerce from the ECC of the Cabinet of government of Pakistan, will be received.
The sugar will be exported at preferential rate of US$20/ PMT, lower than the international market price, (US$ 548.25 PMT as on 13th August, 2012-day of negotiations) in the wake of humanitarian crisis faced by the people of Tajikistan. Pakistan on request of government of Tajikistan, agreed to provide 30,000 Metric Tons of white refined sugar through Trading Corporation of Pakistan (TCP) in compliance with the Economic Coordination Committee (ECC) of the Cabinet’s decision.
The government of Tajikistan, while appreciating the goodwill gesture of Government of Pakistan, requested for early delivery of sugar to Tajikistan i.e. before the onset of winter season 30th September, 2012). Pakistani side agreed to fulfill the commitment within shortest possible time. “The two sides also agreed to the point of delivery would be Amangarh, district Nowshera (KPK) and in this regard a commercial agreement between the two parties will be signed within next 15 days,” it said, adding, on the proposal of Secretary Commerce, the two sides agreed to explore the potential of bilateral trade between the two countries and will have a technical level meeting soon.
