ISLAMABAD - The European Union’s grant of Generalised Scheme of Preferences  (GSP) Plus status has started showing positive results, as Pakistan’s textile exports have increased by over 14 percent in the month of February 2014 over a year ago.

Pakistan has exported textile made commodities worth of $1.131 billion in February 2014 compared to $988 million of the same period last year, showing an increase of 14.54 percent. Pakistan’s exports started increasing after attaining GSP Plus status from European Union, which is likely to further enhance in the months to come.

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. According to the figures of Pakistan Bureau of Statistics (PBS), country’s textile made commodities exports have recorded at $9.155 billion during eight months (July-February) of the ongoing financial year 2013-14 compared to $8.455 billion of the corresponding period lass year, showing an increase of 8.28 percent. Apart from GSP status, consistent supply of gas during the period under review to textile sector produced the desired results, especially in the Punjab.

The break-up of textile exports revealed that export of raw cotton witnessed a growth of 51 percent in the months under review over the last year. Meanwhile, export of cotton yarn has recorded decline of 5.45 percent followed by increase in export of cotton cloth of 8.47 percent. Similarly, the exports of cotton carded has registered negative growth of 42.17 percent, yarn export surged by 19.48 percent, knitwear, 8.42 percent, bed wear, 20.8 percent, towels negative growth of 3.5 percent, tenets, canvas and tarpaulin 22.93 percent in the period under review. According to statistics, Pakistan’s exports have recorded at $16.87 billion against imports registered at $29.41 billion in July-February of FY 2014.

Therefore, the country’s trade deficit has recorded at $13.187 billion.