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GSP status boosts textile exports to $13.74b

GSP status boosts textile exports to $13.74b

ISLAMABAD – Textile exports surged to $13.74 billion during previous financial year 2013-2014 mainly because of the GSP Plus status granted to Pakistan by the European Union (EU).
The country exported textile made commodities worth $13.74 billion during last fiscal year (July 2013 to June 2014) as compared to $13.05 billion of the preceding year (July 2012 to June 2013), according to the latest figures of Pakistan Bureau of Statistics (PBS) released on Wednesday. The country’s textile exports have shown increase of 5.3 percent during previous fiscal year.
The PBS data showed that export of raw cotton has registered an increase of 33.27 per cent, cotton cloth 3.11 per cent, yarn 12.82 per cent, knitwear 10.53 per cent, bed wear 19.78 per cent, readymade garments 8.67 per cent, made-up articles 11.41 per cent and other textile materials 23.24 per cent during the period under review. Meanwhile, exports of the following textile commodities have recorded negative growth including cotton yarn 11.65 per cent, cotton carded 53.3 per cent, tents, canvas & tarpaulin 30.07 per cent and art, silk & synthetic textile, 5.47 per cent.

The main reason behind increase in textile exports is GDP plus status effective from January 2014. Textile exports to the European Union (EU) registered an increase of 18 percent reaching the figure of $5 billion for the first time due to the GSP plus status given by the EU, while textiles exports to the rest of the world declined by 3.5 percent.

The textile exports could have further increased if government had provided uninterrupted power supply to the industries. Sources in Textile Ministry informed that investment trend in the textile sector declined as compared to other regional countries due to the inconsistent polices on taxes, non-availability of energy, high interest rates and stuck up liquidity on drawbacks and refunds. Therefore, the government is working to prepare five years plan to provide incentives textile sectors. Under the new proposed textile policy (2014-19) value-added textile sector would be incentivised. According to the policy, textile export would be increased to $26 billion in next five years, besides creating jobs opportunities.

Textile bodies had welcomed the increase in textile exports but also warned the government to improve energy and security situation in the country if they want to see growth in the next 12 months. The All Pakistan Textile Mills Association (APTMA), in its statement, said the increase in exports could have been higher by at least 10% if the effect of massive revaluation of rupee against the dollar and other foreign currencies was translated into decrease in cost of production, especially electricity and gas tariffs.

Meanwhile, according to the PBS figures, the country exported goods worth $25.132 billion as against the imports worth of $45.113 billion, leaving trade deficit at $19.98 billion during last financial year 2013-2014.

The PBS data further revealed that country exported foodstuff worth of $4.63 billion during period under review. The break-up of food group showed that rice exports have recorded growth of 12.51 percent, fish 15.68 per cent, fruits 11.68 per cent, meat 9.61 per cent and oil and seeds 127.74 per cent. Meanwhile, following of the food commodities have recorded negative growth: vegetables 14.78 per cent, pulses 37.76 per cent, tobacco 10.66 per cent, wheat 86.93 per cent, spices 17.55 per cent, sugar 45.75 per cent and all other food commodities 20.66 per cent during the period under review. According to the PBS data, exports of other manufacturing group have decreased by 9.46 per cent to $4.64 billion during previous financial year 2013-2014 from $5.123 billion of the preceding year. Meanwhile, exports of all other items were recorded at $1.409 billion during last fiscal year as against $1.499 billion of the FY2012-2013 showing a decline of 5.98 percent.