ISLAMABAD: Exports of textile and clothing products witnessed an increase of 5.96 per cent in July-May 2014 from a year ago, mainly owing to a slight increase in export of value-added products.
The export value of such products surged to $12.626 billion in the first 11 months of the outgoing fiscal year against $11.916 billion over the corresponding period of last year, showed data of Pakistan Bureau of Statistics here.
Only nine textile products witnessed positive export growth among all textile and clothing categories.
In May, exports of textile and clothing witnessed a marginal growth of 1.19pc over the corresponding period of last year.
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Product-wise details show that export of low value-added products, such as cotton cloth was up by 4.46pc, cotton carded 2.86pc; other textile material 20.74pc and made-up articles, excluding towels and bedwear 12.39pc during the period under review over the corresponding period last year.
In the value added sector, export of bedwear increased by 19.99pc, knitwear 11.35pc. Export of towels dipped by 1.94pc; cotton yarn 9.93pc, and tents 26.41pc. Raw cotton export witnessed a robust growth of 38.84pc.
Total export proceeds witnessed a growth of 3.71pc to $23.111bn in July-May 2014 from $22.286bn over the corresponding period of last year.
In the last few months, growth of textile and clothing stagnated at 7pc owing to capacity issues, especially in Punjab where the sector is faced with shortage of electricity and gas.
In the current budget, the government announced a textile package under which duty drawback for local taxes and levies, to be given to exporters of textile products on FoB values of their enhanced exports, has been increased beyond 10pc over last year’s exports.
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The rate of support for garments will be 4pc. It would be 2pc for made-ups and 1pc on processed fabrics exports. The rate of mark-up for export refinance scheme of State Bank has been reduced to 7.5pc from 9.4pc.
The package is estimated to help increase exports by at least $2bn from next year. Similarly, for non-textile products, the government announced a similar package.
Oil and foodstuffs
Oil and eatables import bill witnessed a decline of 2.95pc in the first 11 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 $17.16bn from $17.68bn.
Pakistan’s total import bill reached $40.777bn during the months under review as against $41.01bn, showing a decline of 0.57pc.
The import bill of food products witnessed a decline of 4.48pc at $3.753bn in July-May 2014 as against $3.929bn over the corresponding months last year.
The decline in food items import was mainly driven by import of palm oil, tea and pulses. Three eatable items import witnessed a substantial increase during the period under review because of shortage in domestic market.
Import of sugar witnessed an increase of 28.55pc, wheat 14.68pc and milk products 22.16pc during the months under review.
