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May 14 - 20, 2001

Manufactured goods export up by 7.15%

Export of manufactured products increased by more than 7.15 per cent during the first ten months of 2000-01 over the corresponding period of previous fiscal. According to Federal Bureau of Statistics, the manufactured goods share in total exports amounted to $7.45 billion, falling to 86.73% from 87.06% in the corresponding period of 1999-2000.

In line with the global recessionary trend and declining unit prices, the receipts from exports continued to register a negative trend. Thus, the prices in dollars are not a reliable measure of performance. The figures show that volume-wise, exports of most of the items, both among primary commodities and manufactured/semi-manufactured went up, while their value registered a negative trend.

After adjusting a reduction of 5.75% during the month of April 2001, in total export figure, the textile manufactures exports registered a growth rate of 3.02% during the period under review. In fact, this sector pulled down the share of manufactured exports in total exports. Its share in the total export figure stood at 62.64%, as compared to 65.39% for the corresponding period of previous year. Outstripping cotton fabrics for the first time in many months, cotton yarn export emerged as the top-most earner of foreign exchange among textile manufactures (and semi-manufactures). The quantity of cotton yarn exported during the period was 445,403 tons 6.54% more than in July-April, 1999-2000.

In absolute terms, the accrual in dollars from its export amounted to $878.55 million. But this is only 0.39% more than what it fetched during the same period last year. This was because it was exported for price lower by 5.77%, as compared to July-April 1999-2000. Probably for this reason, its share in the export figure for textile manufactures eased to 18.81% during July-April 2000-01 as against 19.30% during the corresponding period of previous year.

The volume of cotton fabrics exported in the current year so far was higher by 9.24%. But the accrual in foreign exchange therefrom (834.04 million) was minus 7.77%.

Exports up by 7.55%

Merchandise exports of Pakistan went up by 7.55 per cent to $7.45 billion during July-April in comparison to the corresponding period of last year.

This, according to trade statistics released by the Federal Bureau of Statistics on Wednesday, still leaves short of the export target by about $2.55 billion.

As the monthly exports have averaged $745.60 million, it is now certain that the target, this year again, would remain unfulfilled. In order to achieve the target, the exporters will have to improve their performance by exporting goods at the rate of $1.27 billion at the minimum.

On the positive side, the FBS statement shows a 0.89 per cent decline in trade deficit for the 10-month period under review. It amounted to $1.39 billion, as compared to $1.41 billion during the corresponding period of previous year.

Textile machinery import valuation up

An 89 per cent increase in the import valuation in dollar terms, of textile machinery in last ten months, reflects the consolidating efforts now under way in the key sector termed as the 'mainstay' of Pakistan's economy.

Official figures give total import value of textile machinery during July 00 to April 01 at $294.64 million as against about $195 million in same period of last fiscal. In rupee terms, the import valuation of textile machinery is more than 111 per cent as its worth is more than Rs17 billion.

Significance of mentioning textile machinery import in rupee terms is that many textile operators complained of being denied the foreign exchange facility for import. Obviously, many of these textile manufacturers had to arrange foreign exchange to finance textile machinery import from the market which pushed the dollar price up.

EPB strategy to earn $14.124n

The Export Promotion Bureau (EPB) has evolved a six-point strategy for achieving minimum $14.124 billion in exports by year 2002-03. While reviewing the arrangement, Chairman EPB , Tariq Ikram who is the architect of the document emphasized on the need to shift from 'supply led' efforts to 'demand led' export growth in coming years.

Based on an evaluation of the world demand of goods and services, the plan aims at prioritizing those areas where, Pakistan has or is capable of achieving a competitive edge either sourced from within or outside the country.

Rice exports fetch $358.7mn

Pakistan has exported 1.636 metric tonnes rice worth more than $358.7 million during July-April of current fiscal year. The convener of Rice Export Association of Pakistan (REAP) Akbar Ali Hashwani on Monday said the export of Irri-6 was recorded at 1.125 million tonnes during the 10 months of current fiscal.

He said the export of Irri-9 stood at 83,549 tonnes, during the same period. The export of basmati rice including super basmati (extra long grain) has significantly contributed to the overall increase in rice export.

The export of super basmati was estimated at 144,931 tonnes and basmati-385 stood at 138,571 tonnes till April 30.

Textile quota issue

The on-going negotiations between Pakistan and European Union (EU) on lifting of textile export quotas has so far caused Rs500 million loss to the government revenue because of sharp fall in premium price as well as extremely poor response of exporters to quota auctions, exporters said on Thursday.

In last two months of present fiscal, the export trade is confronted with an uncertainty as exporters, who have huge investment in textile quota, are all out to lessen their quota holdings. As a result of this development, the prices of even 'hot cake' quota categories in the open market as well as growth quota held by government have sharply declined, making huge losses to exporters as well as national exchequer.