The non-textile exports, particularly manufacturing groups including machinery and transport equipment, gems and jewellery, handicrafts, cement etc have witnessed a -10.1 percent decline in 2013-14 against a growth of 5.8 percent in 2012-13 due to the loadshedding crisis. According to a World Bank report titled as "Pakistan Country Snapshot", the exports also suffered from the sharp nominal appreciation of the rupee and registered an anaemic growth of 1.4 percent. In parallel, imports grew by 3.9 percent.
Further decomposition of export performance reveals that the year-on-year exports growth during the second quarter decelerated sharply to -0.17 percent compared to 3.1 percent in the first half of 2013/14.
Overall, the report said, exports growth was mainly driven by textile products (raw cotton, knitwear, bed wear and other textile made-ups), petroleum group (solid fuel, naphtha) and rice exports as a result of increased quantity and unit value. Pakistan exports continued to be highly concentrated to textile exports and benefited from preferential trade status from the EU. Pakistan exports to EU mainly comprise textile and clothing, accounted for 75 percent of total exports to EU. EU is the largest export market with a 25 percent share.
According to APTMA, textile exports to EU grew by 40 percent during third quarter of 2013-14 after winning the GSP plus status from the EU. But it was followed by a decline to 29 percent in fourth quarter due to energy constraints. There were strong apprehensions that export to EU would be marred heavily in winter due to less gas supply to Punjab-based mills. However, the Prime Minister Nawaz Sharif has recently intervened and directed the SNGPL to ensure eight hours a day gas supply to Punjab-based mills by suspending supply to Rouch Power Plant.
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