ISLAMABAD: Pakistan’s export of non-textile products witnessed a negative growth of 17.20 per cent during the first three months of the current fiscal year from a year ago.

Exports proceeds from these products between July and September 2014 reached $2.60 billion as against $3.14bn in the corresponding months of last year.

The government announced a cash subsidy package in the budget 2014-15 for nine value-added non-textile sectors. These include leather manufacturers, footwear, sports goods, surgical and engineering goods, furniture, meat and meat products, fish products and cutlery. But the package is yet to be implemented despite a lapse of three months.

The ministry of commerce believes that the support will accelerate exports and reduce cost of products.

A declining trend is being witnessed since July 2014 in exports of non-textile sector, but the ministry of commerce is yet to take corrective measures for arresting the decline.

Last year, export of non-textile products reached $11.40bn from $11.42bn in the previous year, showing a decline of 0.18pc.

Product-wise details show a decline of 32pc year-on-year in export of petroleum products. Petroleum products and naphtha led the decline in the petroleum sector’s export. Last year, export of these products witnessed a substantial growth. Export of carpets, rugs, etc., witnessed a negative growth of 9.48pc during July-September 2014 period of the current fiscal year from a year ago.

However, export of sports goods were up by 0.60pc year-on-year during the months under review. Foreign sales of footballs also went up by 15.5pc.

Export of tanned leather witnessed a negative growth of 4.82pc in July-September 2014 from a year ago.

Leather products’ export declined by 3.93pc, while export of leather garments rose by 5.23pc during July-September 2014 from a year ago. Export of gloves also witnessed a decline of 1.28pc during the period under review.

In the past few months, exports from the leather manufacturers witnessed an increase, but decline was being witnessed since August.

Export of footwear swelled by 17.70pc, mainly driven by 26pc growth in export of leather footwear. This is the only sector which witnessed an impressive growth during the first three months of the current fiscal year from a year ago.

The growth in leather manufacturers and footwear was mainly because of preferential market access in the EU market because of GSP+ scheme.

Export of surgical goods and medical instruments fell by 2.90pc and engineering goods dipped by 30.73pc during the period under review over last year.

Year-on-year export of gur was down by 14.91pc, cement 3.22pc, molasses 76.58pc, and jewellery 97.82pc during the July-Sept period from a year ago.

However, exports of furniture increased by 31.35pc and gems 12.12pc during the months under review over the last year. In the food basket, export of rice witnessed a decline of 10.34pc in the first three months of the current fiscal year from a year ago.

Published in Dawn, October 29th , 2014