GSP Plus pushes exports up The European Union’s grant of Generalised Scheme of Preferences (GSP) Plus status has started showing positive results with exports from Pakistan to EU rising 5.14 percent to $2.167 billion in February 2014 over the previous month, official data suggested on Monday. The status will remain valid till 2017. Under the scheme, textile goods (20 percent at zero tariff and 70 percent at preferential rate) started entering into the 27-member EU block, which accounts for 25 percent of Pakistan’s exports and 10 percent of its imports. Pak-EU’s bilateral trade volume is $10.9 billion with trade surplus of $1.78 billion in Pakistan’s favor. Pakistan exports mainly textiles and leather products to EU and imports mechanical and electrical machinery, chemical and pharmaceutical products. The Pakistan Bureau of Statistics (PBS) latest data showed that in January 2014, Pakistan’s exports dipped by 9.4 percent to $2.06 billion. In January, its impact was not visible, as the industry was getting export orders and also opening letters of credit. Now in February 2014, the full-fledged exports started under the new system and the figures showed its positive impact. Comparatively better energy supply also pushed the figure up. In same month under review, imports were down by 13 percent to $3.6 billion against $4.137 billion in the previous month. Economists believe that after fully utilising the GSP Plus facility and the government removes the domestic bottlenecks, the country could increase its exports to the EU by about two billion dollars. Export figures are encouraging, they say, adding the export will rise further. During the eight months (Jan-Feb, 2013-14), cumulative exports were recorded at $16.866 billion and imports at $29.408 billion, revealed the PBS data. In the same period last fiscal year, exports were at $15.88 billion and imports at $29.069 billion, it disclosed. Trade deficit during these eight months stood at $12.54 billion, according to the PBS. It was about five percent less than the $13.18 billion recorded in the corresponding period last fiscal year, it showed. In February 2014, exports went up by 18 percent and imports down by 7.4 percent over $1.835 billion and $3.38 billion in February 2013.
Posted on: Tue, 11 Mar 2014 06:06:45 +0000
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