ISLAMABAD: Pakistan’s export of textile and clothing fell by over five per cent in the first two months of the current fiscal year from a year ago.
There are fears of major layoffs owing to deceleration in production.
The decline in exports started in July 2014 despite the preferential market access to the EU.
The textile and clothing sector has been facing chronic energy shortage and the prime minister has already constituted a high-powered cabinet committee, headed by Finance Minister Ishaq Dar.
The Textile Minister, Abbas Khan Afridi, is yet to convene the meeting of the committee to resolve the energy issue despite lapse of months. Not a single meeting of the cabinet committee on energy has, so far, been held.
“After efforts of years, Pakistan was inducted in the club of countries enjoying free market access for most of its products in the European Union, but the government failed to capitalise on the opportunity,” commented a commercial diplomat.
In absolute terms, export proceeds fell to $2.169 billion in July-August 2014 from $2.289bn over the corresponding months of last year, suggested data of Pakistan Bureau of Statistics here on Saturday.
Last year, export proceeds grew by 2.75pc and reached $25.132bn from $24.460bn over the corresponding period of previous year.
Product-wise details show that export of low value-added products, such as cotton cloth fell by 13.77pc; cotton yarn 27.01pc; other textile material 5.88pc and made-up articles, excluding towels and bedwear 2.60pc during the period under review over the corresponding period last year.
In the value-added sector, export of bedwear increased by 9.08pc, knitwear 9.25pc and readymade garments 1.38pc. Export of towels was up by 2.38pc; cotton carded or combed 142pc and tents 82.81pc.
Raw cotton export witnessed a robust growth of 41pc in the first two months of the current fiscal year from a year ago.
Total export proceeds witnessed a decline of 5.84pc to $3.840bn in July-August 2014 from $4.077bn over the corresponding period of last year.
Oil and foodstuffs
Oil and eatables import bill witnessed a decline of 0.83pc in the first two months of the current fiscal year from a year ago over the corresponding period of last year.
In absolute terms, import bill of these two products declined to $3.258bn in July-August 2014 from $3.285bn over the corresponding months of last year.
Pakistan’s total import bill reached $8.082bn during the period under review as against $7.386bn, showing an increase of 9.44pc.
The import bill of food products witnessed a surge of 27.82pc at $834.432m in July-August 2014 as against $652.794m over the corresponding period last year.
The increase was mainly driven by import of sugar which witnessed an increase of 1.86pc, wheat 29.39pc and milk products 111.65pc during the period under review.
Statistics showed that oil import bill reached $2.423bn in July-August 2014 this year as against $2.632bn over last year, indicating a decline of 7.93pc.
Import of crude oil was down by 1.81pc while import of petroleum products fell by 18.45pc during the months under review.
Published in Dawn, September 21th, 2014