Export proceeds from non-textile products fall

Published March 29, 2015
Export proceeds from these products fell to $6.826bn in July-Feb 2014-15 from $7.704bn last year. -Reuters/File
Export proceeds from these products fell to $6.826bn in July-Feb 2014-15 from $7.704bn last year. -Reuters/File

ISLAMABAD: Pakistan’s export of non-textile products witnessed a negative growth of 11.39 per cent during the first eight months of this fiscal year from a year ago.

In absolute terms, export proceeds from these products fell to $6.826 billion in July-February 2014-15 from $7.704bn in the corresponding months of last year.

In the 2014-15 budget, the government announced to provide support on export of nine value-added non-textile products, but the decision is yet to be notified by the government despite a lapse of seven months.

The support scheme was announced for leather manufacturers, footwear, sports goods, surgical, engineering goods, furniture, meat and meat products, fish products and cutlery.

Exports from the non-textile sector are witnessing a declining trend since July 2014, but the Ministry of Commerce has yet to take corrective measures for arresting the fall.

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 12pc year-on-year in export of petroleum products. Petroleum naphtha led the decline in the petroleum sector’s export. However, exports of petroleum crude witnessed an increase of 100pc and petroleum products 7.50pc.

Export of carpets and rugs witnessed a negative growth of 5.18pc during July-February 2014-15 period of this fiscal year from a year ago.

Export of sports goods dipped by 3.08pc year-on-year during the months under review. Foreign sales of footballs were also down by 3.06pc.

Export of tanned leather witnessed a negative growth of 3.06pc in July-February 2015 from a year ago.

Leather products’ export declined by 4.22pc during the period under review. All value-added leather products witnessed decline in exports in July-February 2014-15. However, export of leather gloves witnessed a growth of 9.16pc during the period under review.

Export of footwear swelled by 18.73pc, mainly driven by 23.70pc increase in export of leather footwear. This is the only sector which witnessed an impressive growth during the first eight months of the current fiscal year from a year ago.

The growth in footwear was mainly because of preferential market access in the EU market because of GSP Plus scheme.

Export of surgical goods and medical instruments went down by 0.14pc and engineering goods dipped by 27.54pc during the period under review over last year.

Year-on-year export of gur was down by 7.50pc, cement 2.37pc, molasses 66.93pc, and jewellery 98.40pc during the first eight months of this fiscal year from a year ago. However, export of furniture was up by 1.65pc and handicraft 473.41pc.

In the food basket, export of rice witnessed a decline of 6.58pc in the first eight months of this fiscal year from a year ago.

The decline was witnessed in export of both basmati and non-basmati rice. Export of meat, sugar, oil, wheat, tobacco, leguminous vegetables, vegetables also witnessed a decline during the period under review.

However, export of spices witnessed an increase of 23.93pc during July-February 2014-15. Exports of fruits also witnessed an increase of 0.72pc during the period under review.

Published in Dawn, March 29th, 2015

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