ISLAMABAD: Federal Commerce Minister Khurram Dastagir Khan informed the Senate here on Thursday that Pakistan’s exports of eight products will witness a substantial increase in the current calendar year owing to zero-duty access to the European markets.

These eight products are: ethyl alcohol, carpets, plastics, footwear, leather, non-value added textile, home textiles and textile garments.

The commerce ministry estimates additional exports worth $1.117 billion of these eight products in the current calendar year. The minister stated this in reply to a question by Senator Syed Muzafar Hussain Shah here on Thursday.

Export of these products stood at $4.57bn during 2012, and it amounted to 82 per cent of Pakistan’s total exports to European Union in 2012. The minister said that total exports to EU stood at $5.6bn during 2012.

The break-up given by the minister about increase shows that maximum increase will be in export of textile garments by $408 million, followed by $307.5m in home textiles; $221.25m in non-value added textiles and $127.25m in leather products to the EU countries in the year 2014.

The minister said that 82pc of Pakistan exports to EU earlier faced stiff competition from countries, like China, India, Brazil, Bangladesh. But these would now be duty-free due to GSP-Plus status granted to Pakistan.

These items, rice, sports goods including football, surgical instruments, meat products and fruits, were already attracting zero-duty to EU markets.

Total exports of these products to the EU stood at $458.50 million in 2012.

The minister, however, did not inform the Senate about the decline in exports of textile products to the EU countries during the last eight months despite having zero market access.

With the decline, it is unlikely that the projected target may be achieved by the end of the current calendar year.

However, the minister stated that the increase in exports to EU will create 100,000 jobs in the textile garment sector alone. The creation of these jobs was calculated on the basis of an assumption that an increase of $4000 in exports will create one job.

The minister claimed that these jobs will be created on the assumption because Pakistan’s 90pc exports to the EU were now duty-free.

Published in Dawn, October 31st, 2014