Alcohol Exports Bring $220 Million To Pakistan

Pakistan earned $220mn on export of 0.3mn tonnes of alcohol up to October 31 while another 50,000 tonnes of alcohol is expected to be exported during the November-December period.

Pakistan, where alcohol consumption by Muslims is banned by law, produced 2.6mn tonnes of molasses during the 2007-08 sugarcane crushing season and on adding 50,000 tons of carry-over stocks at terminals and an equal quantity at the mills, the total available stocks of molasses stood at 2.761mn tonnes.

Industry and export sources say since conversion ratio of molasses to alcohol stands at 5:1 (five tonnes of molasses required to produce one tonne of alcohol), the estimated requirement of distilleries stood at 1.65mn tonnes for molasses.

The sources said alcohol prices in the world market remained on the upper side during 2008 which enabled Islamabad to earn more foreign exchange through exports. After touching around $800 per tonne, alcohol prices receded back to $600 per tonne.

Consequently, on exporting around 312,000 tonnes up to October 31, 2008, at an average price of $725 per tonne, Pakistan managed to earn around $220mn through export of alcohol.
According to industry sources, the country exported 190,585 tonnes of alcohol last year (2006-07) and earned $112mn at an average price $550 per tonne.

“With the advent of each sugarcane crushing season, Pakistan had been exporting millions of tonnes of molasses at throwaway prices to European countries and Japan,” Kasim Hashim, the chairman of the Terminal Association of Pakistan, said. However, for the last several years it is being converted into three grades of alcohol – fuel or anhydrous, neutral or extra neutral and industrial or rectified ethanol Hashim said presently 16 distilleries are operating in Pakistan at 60% capacity although as more and more distilleries are coming up every year, there has been a constant rise in export of alcohol.

During 2004, Pakistan exported 99,711 tonnes of alcohol, but in the subsequent year, the figure jumped to 122,104 tonnes. After exporting around 255,812 tonnes last year (2007), Pakistan is now poised to export a record volume of 350,000 tonnes of alcohol this year (2008), he maintained. He said around 9,000 tonnes of alcohol had been exported this year through ISO containers which were the latest method for haulage of liquid cargo.

Hashim said that ISO containers/tank are filled with alcohol from distilleries and loaded on trailers for direct loading on to ships. These tanks are air-tight and expensive because they are first cleaned by steam and are used only after survey is carried out. The industry is encouraging use of ISO tanks because they are fast for haulage of liquid cargo and are also easy to handle.
Presently they are mostly reaching Dubai, but in coming years will encourage their use for Middle East and Africa, he added.

Export of alcohol is being hindered by congestion at the Karachi Port where tanker ships have to wait for their turn for several days, resulting in heavy demurrage charges. This is also draining out valuable foreign exchange because demurrage is paid in dollars, TAP Secretary Sultan Ahmed said.

Source: Gulf Times


14 thoughts on “Alcohol Exports Bring $220 Million To Pakistan”

  1. Whoever joins himself (to another) in a good cause, shall receive a share of it, and whoever joins himself (to another) in an evil cause shall have a share in its burden, and Allah overseeth all things.
    Translation of the glorious Qur’an 4:85

    @Muslim:
    That was excellent! Jazakallah khair brother for standing-up to speak Amr bil Maroof & Nahi Anil Munkar. I look forward to hear more from you inshallah. I hope more like you stand-up and speak.

    Reply
  2. Well hearing most of you, has triggered me to write this up cause i can clearly see you guys dont know what you are talking about, from islamic point of view. And i m guessing most of you are muslims but have forgotten the teachings. Please do research atleast those issues “which are not disputed among us”, and be sure what you are spreading and getting vocal about.

    Sunan Abu Dawud – Book 26, Number 3666:
    Narrated Abdullah ibn Umar:

    The Prophet (peace_be_upon_him) said: Allah has cursed wine, its drinker, its server, its seller, its buyer, its presser, the one for whom it is pressed, the one who conveys it, and the one to whom it is conveyed.

    This is a strange world it can blindfold us with reasons made by us for nothing else but worldly pleasures. But Quran and sunna will guide us. Wasallam

    Reply
  3. General Ayub Sahib, there is a fatwa by Saudi clerics that using alcohol fuel (ethanol or gasohol) is not allowed by Islam. So, when petrol runs out, what will Muslims put into the fuel tanks of their cars? Camel piss??

    Reply
  4. anything that improves the economy and creates jobs is good…..

    i am against drugs trade. But alcohol business should be set up in my opinion. Nobody is forcing people to drink. Business is business.

    Mashallah we are endowed by green land and rich resources. Lets use it.

    and I will defiantly say that I would rather sip a glass of whisky before I EVER listen to or abide by taleban wahhaby ideology

    Reply
  5. Pakistan is now exporting good quality fuel grade ethanol to foreign countries by using molasses produced in the country. Specially Dewan Distillery, whose quality is at the highest level and internationally recognized by the ethanol buyers.

    So, this is a good news for the country and its people

    Reply
  6. hehe thanks Nehu

    but you must re-familiarize yourself with Pakistan army. We are secular, and more-often-than-not the most liberal minded and nationalistic people.

    Pakistan is on our minds 24/7. The interest of our people and our success is on our minds 24/7.

    unlike Nawaz Sharif and Mr. 10% –whose ”democracy” systems entail vendettas and bickering —-we in the Army have a command system where every junior respects his senior. No games. Just Pakistan First.

    but thanks for your kind words. I voiced my opinion about this topic as being in the interests of Pakistan. Nobody says we must drink sharaap. But if we have something we can market and sell (which creates jobs and helps our balance-of-payments) then why the hell not?

    it has my blessing!!

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  7. @Neha

    how come you can’t associate SENSE with Generals..???I mean are you actually saying that you associate sense with our Politicians like Zardari/Sharif etc etc????

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  8. @Gen. Ayub
    You should change your name- you talk so much sense, something I don’t associate with generals!!

    You are 100% right. Producing wine/alcohol does not necessarily mean consuming alcohol so we should make use of our resources where we can. Peaceful co-existence is the key to prosperity. Don’t do what you find is wrong but we don’t have any right to force our opinions on others.

    Reply
  9. lollllll i had no idea Pakistan was exporting alcohol. But i am 100% for it. They say that Pakistan has INCREDIBLE potential to distil and produce fine wine –due to our high quality grapes.

    I am 100% for this. Even though we are Muslim country, nobody is putting gun to people’s head to engage in alcohol consumption –which is frowned-upon and not allowed in Islam.

    But this does not mean we cannot capitalize on a natural asset we have. It can create jobs and help our foreign reserves situation. Foreigners would take huge interest in Pakistani wine.

    Of course some of the more mullah/conservative people here will take extreme offence to what I said. But i have mastered the concept of ”living and letting others live” in tolerant fashion.

    Reply

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