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ISLAMABAD: Pakistan and Philippines are unlikely to reach any sugar trade deal on government to government basis as the latter has no surplus sugar for export to any country, official sources told Business Recorder. "Philippines Veterens Investment and Development Corporation (PHIVIDEC) is insisting on a sugar-rice barter deal, but the Philippine government and Pakistan's embassy in Manila are indicating that the deal is impossible because Philippines has sugar shortage," said an official told Business Recorder.
Islamabad has been apprised by the PHIVIDEC that it would arrange sugar for Pakistan from world-wide sources, which implies that Philippines has no surplus sugar. Sources said that Pakistan had written a letter to the government of Philippines, requesting an offer by February 2, 2010, but till the filing of this report no reply had been received by GoP, which implies that there is little chance of a deal between the two governments.
However, PHIVIDEC, a private firm whose representative met Commerce Minister Amin Fahim twice, is still urging the GoP to wait, but Islamabad has decided to explore other options. In a letter addressed to TCP Chairman Saeed Ahmad Khan on January 21, 2010, Zafar Mahmood, Secretary Commerce, had directed to urgently establish contact for government to government purchase of sugar, using any means necessary to get a favourable response about availability and price, in a day or two. The Ministry of Commerce has submitted a report to the Cabinet on sugar.
The ECC on October 27, 2009 had directed the Ministry of Commerce to start negotiations with Philippines on government to government basis and come up with a comprehensive proposal at the earliest. However, the ECC directive was not complied with by the ministry as no such comprehensive proposal was submitted to the ECC in its meeting held on January 26, 2010.
Official sources confirmed that Philippines may import as much as 150,000 tons of sugar immediately, due to rising trend in its own local market. Despite these confirmed reports, Islamabad tried its best to get a deal on government to government basis to overcome Pakistan's sugar crisis.
Pakistan had also planned to send a delegation to Manila, headed by Food and Agriculture Minister Nazar Mohammad Gondal, but as the information reached Islamabad that Philippines itself is short of sugar, the government shelved its plan. Pakistan has also approached the governments of China and Thailand for a sugar deal on government to government basis, but both governments have not yet responded to the query.
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