Pakistan is missing export opportunities because foreign firms are reluctant to use letters of credit (L/Cs) to purchase Pakistani goods.

Anwar Merchant, president of Canada-Pakistan Business Council told journalists covering the visit to Pakistan of a 14-member delegation of Canadian business representatives that would-be importers of goods from Pakistan have been reluctant to open L/Cs for purchases since the 11 September attacks on the US.

Negative perceptions

The importers are apparently concerned that L/Cs could become null and void due to negative impacts on Pakistan of the US-led campaign against terrorism according to Merchant. He also said that for similar reasons, importers were concerned about delayed shipments.

The visiting delegation led by Canada's Minister for International Trade Pierre Pettigrew arrived in Pakistan on 15 February with the aim of boosting trade with South Asian countries, including India and Pakistan after economic sanctions on these two countries were lifted to secure their cooperation in the campaign against terrorism.

The delegates also attended a two-day conference in Karachi organised by the International Chamber of Commerce aimed at promoting trade and foreign direct investment in Pakistan and the region.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.