ISLAMABAD: Pakistan’s exports to the European Union witnessed a paltry growth of over three per cent in 2016 from a year ago, indicating the preferential market access failed to boost the dwindling exports from the country.

In real terms, the exports proceeds under the Generalised System of Preferential (GSP+) scheme increased to €6.272 billion in January-December 2016 from €6.070bn a year ago, according to EU official data available with Dawn.

The preferential market access to the European markets under GSP+ became effective on Jan 1, 2014, and will remain available for the next 10 years.

In the first year 2014, a year-on-year growth of 20pc to €5.515bn was witnessed.

To avail the facility, the provincial governments were struggling to implement in 27 conventions related to human rights, political rights and labour laws.

Trade analysts observed that most of EU countries are facing persistent vicious circle of high unemployment, low wages, fall in purchasing power, decline in domestic demand and shrinkage in non-essential imports.

Country-wise data shows that a negative growth of 2pc came from the UK where imports from Pakistan fell to €1.329bn during Jan-Dec 2016 from €1.355bn a year earlier. Exports to Germany were up by 2pc in Jan-Dec 2016 to €1.262bn compared to €1.243bn a year earlier.

Both UK and Germany are major export destination for Pakistani goods but under the GSP+ scheme exports remain stagnated to both markets.

The decline in exports to UK is a worrisome factor but the Ministry of Commerce has yet to consider the issue. The fear of losing market in the wake of the Brexit also send negative signal to the exporters as well.

The third biggest market for Pakistan’s exports is Spain where exports up by 6pc to €787.829 million from €746.510m.

Traditionally, Spain was not the third biggest market for Pakistan’s exports destination and this position was grabbed in the past couple of years among all the 19 eurozone countries, including Germany, France and Italy owing to extensive marketing strategy.

Pakistan’s exports to Italy increased by 4pc to €599.335m from €578.174m last year. Exports to France up by 3pc to €434.824m from €423.971m.

Exports to the Netherlands increased by 4pc to €549.044m from €526.185m; to Belgium by 6pc to €403.991m from €381.461m; and to Sweden by 10pc to €137.823m from €125.410m compared to the same period of 2015.

Pakistan’s export witnessed a year-on-year growth of 29pc to €119.424m Denmark; Poland 10pc to €123.773m; and Sweden 10pc to €137.823m in 2016.

Export proceeds to the remaining 17 EU countries were far less than €100m in terms of value. However, the negative growth to all countries was in double digits in terms of percentage.

Pakistan’s exports to Austria increased year-on-year 4 per cent to €69.074 million; Cyprus 15pc to €4.249m; Czech Repub-

lic 8pc to €69.057m; Estonia 12pc to €11.443m; Greece 7pc to €55.319 million; Croatia 17 per cent to €10.222m; Ireland 16pc to €52.910 million; Lithuania 2pc to €19.652m; Latvia 21pc to €4.018m; Malta 1pc to €2.760m; Romania 6pc to €20.262m; Slovenia 29pc to €24.211m and Slovakia 74pc to €31.189m.

The exports which declined year-on-year 2 per cent to €14.251 million to Bulgaria; 2pc to €22.232m to Finland, 10 per cent to €12.342m to Hungary; 11pc to €0.369m to Luxemburg; and 0.1pc to €101.200m to Portugal, respectively.

Contrary to these, the imports of Pakistan from all EU countries reached to €5.292bn in 2016 as against €4.428bn in the previous year, reflecting an increase of 20pc.

The top importing country of Pakistan is Germany, followed by the UK, Italy, and France respectively.

Published in Dawn, February 26th, 2017