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Exports to EU fell 12pc in Jan-Nov

Exports to EU fell 12pc in Jan-Nov

ISLAMABAD: Pakistan’s exports to the European Union (EU) fell 11.93 per cent to $6.13 billion in the first 11 months (January-November) of 2015 from $6.96bn in the same period last year, indicating that the preferential market access has failed to boost dwindling exports.

The preferential market access to the EU markets, under Generalised System of Preferential Plus (GSP+) scheme, became effective in January 2014, and would remain available for the next 10 years. In the first year, a growth of 20pc was witnessed.

The commerce ministry listed two reasons for the decline: the recession in EU and depreciation of the euro against dollar.

The impact of GSP+ scheme on textile and clothing sector also showed a dismal performance. The sector constitutes 75pc of the total exports to EU under the scheme. Textile and clothing exports to EU declined by 6.24pc year-on-year to $4.597bn in January-November 2015 from $4.903bn, according to EU official data available with Dawn.

Exports of textile garments fell to $2.289bn from $2.291bn. Home textile exports dipped 8.51pc to $1.461bn from $1.597bn in January-November 2014.

Exports of cotton and intermediary goods of textile reflected a decline of 16.94pc year on year to $810.63 million from $975.99m.

Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani said that the government has totally failed in increasing the exports.

“It is evidently a matter of real concern that exports are failing just because of the wrong policies of the present government,” he remarked.

He complained that the government has withheld exporters’ refunds amounting billions of rupees which has created financial problems for them.

Other factors, according to an analyst, included persistent vicious circle of high unemployment, low wages, fall in purchasing power, decline in domestic demand and shrinkage in non-essential imports in European countries.

In the non-textile sector, exports of carpets and rugs declined by 6.70pc to $35.93m in January-November 2015 from $38.51m.

Courtesy : Dawn News



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