The GSP Plus status granted to Pakistan by the European Union (EU) has boost textile export, a rise of 5.3 percent reaching the figure to $13.74 billion during last fiscal year (July 2013 to June 2014), as compared to $13.05 billion of the preceding year (July 2012 to June 2013), according to the Pakistan Bureau of Statistics (PBS) latest figures released on Wednesday.

The PBS data showed that export of raw cotton has registered an increase of 33.27 percent, cotton cloth 3.11 percent, yarn 12.82 percent, knitwear 10.53 percent, bed wear 19.78 percent, readymade garments 8.67 percent, made-up articles 11.41 percent and other textile materials 23.24 percent during the period under review.

The main reason behind increase in textile exports is GDP plus status effective from January 2014. Textile exports to the European Union (EU) registered an increase of 18 percent reaching the figure of $5 billion for the first time due to the GSP plus status given by the EU, while textiles exports to the rest of the world witnessed a downward trend by 3.5 percent.

The investment trend in the textile sector also witnessed decline as compared to other regional countries due to the inconsistent polices on taxes, non-availability of energy, high interest rates and stuck up liquidity on drawbacks and refunds. Therefore, the government is working to prepare five years plan to provide incentives textile sectors. Under the new proposed textile policy (2014-19) value-added textile sector would be incentivised.

According to the policy, textile export would be increased to $26 billion in next five years, besides creating jobs opportunities, said Source in Textile Ministry.

The textile exports could have further increased if government had provided uninterrupted power supply to the industries. Textile bodies welcomed the increase in textile exports but have warned the government to improve energy and security situation in the country if they want to see growth in the next 12 months.

According to APTMA, the increase in exports could have been higher by at least 10% if the effect of massive revaluation of rupee against the dollar and other foreign currencies was translated into decrease in cost of production, especially electricity and gas tariffs.

Meanwhile, according to the PBS figures, the country exported goods worth $25.132 billion as against the imports worth of $45.113 billion, leaving trade deficit at $19.98 billion during last financial year 2013-2014.

Meanwhile, exports of the following textile commodities have recorded negative growth including cotton yarn 11.65 per cent; cotton carded 53.3 per cent, tents, canvas and tarpaulin 30.07 per cent and art, silk and synthetic textile 5.47 percent.