ISLAMABAD: Pakistan and Tajikistan have signed sugar deal under which Pakistan will export 30,000 tons through Trading Corporation of Pakistan (TDAP).

Concluding extensive meetings held between Pakistan and Tajikistan officials on August 13-14, Nurmahmad Akhmedov, the Chairman of Agency on State Material Reserves of Tajikistan, and the Minister for Commerce, Makhdoom Amin Fahim, signed minutes of the negotiations for trade of sugar here on Wednesday.

Official sources told Business Recorder that Tajikistan’s President will visit Pakistan in October this year during which agreements on urea, rice, wheat and other export commodities will be signed.

According to the agreement, Pakistan, on request of Tajikistan government, agreed to provide 30,000 tons of white refined sugar through TCP in compliance with the Economic Coordination Committee of the Cabinet’s decision of August 7, 2012 at a rate $20/ per ton lower than the international market price ($ 548.25 per ton as on August 13, the day of negotiations) in the wake of humanitarian crisis faced by the people of Tajikistan.

Both sides also agreed upon a draft commercial agreement except the provision of inland/domestic transportation of sugar from mills to the point of delivery which will be finalised as soon as the clarification, sought by the Ministry of Commerce from the ECC is received. The government of Tajikistan, while appreciating Pakistan’s good will gesture, requested for early delivery of sugar to Tajikistan – before the onset of winter season (September 30 this year). Pakistani side agreed to fulfill the commitment within shortest possible time.

Sugar will be exported to Tajikistan against 100 percent secured cash LoC (letter of credit) to be established/opened by the government of Tajikistan through any first class internationally-recognised bank. The delivery will be in three tranches of 10,000 tons each.  The two sides also agreed to the point of delivery that would be Amangarh, district Nowshera (KPK) and a commercial agreement between the two parties will be signed within 15 days.  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.