News and Press Releases

During November 2006 Pakistan’s Export Registered
a Growth of 23.9% as Compared to the Corresponding
Month of Last Year

12/13/2006

During the month of November 2006 Pakistan’s export registered a growth of 23.9% as compared to the corresponding month of last year and 7.6% as compared to October 2006. In absolute terms the export have increased by US$ 266 million whereas last year i.e. November 2005 the increase was only US$ 205 million over the month of the preceding year. This is an extremely positive trend and its sustenance shall enable us to achieve the export target of US$ 18.6 billion. The most heartening aspect is that export of textiles and clothing to EU and USA, which account for more than 50% of export of textile and clothing, have increased. This year better cotton crop is expected which will boost value-added products of textile and clothing.

Pakistan’s trade diplomacy is also bearing fruit as Pakistan has gained market access to China through recently concluded FTA which will spur exports particularly of home textiles to that market.

Government of Pakistan is making all out efforts to help the exporters to maintain this pace of growth. In this regard Government has given the following incentives in the Trade Policy 2006-07;

R&D support on readymade garments. This facility has been extended to dyed/printed fabrics and home textiles.
Re-finance rates have been brought down to 7.5% from 9%.
Long Terms Financing for Export Oriented projects (LTF-EOP) has been amended and interest rate brought down to a maximum of 7% from 9% to provide concessionary financing to export oriented products.
Freight subsidy is also available and scope has been widened.
Government is also facilitating participation in exhibitions opening of warehouses etc.
In addition to above, the Prime Minister has setup a High Power Committee to resolve the problems impacting textile industry.
On the other hand the growth in imports has slowed down from 54.3% in July-November 2005 to 10.3% in July-November 2006. This has also slowed down widening of trade deficit, which is evident from the fact that the growth in trade deficit, this year is 17.9% while it was 147.5% in the first 5 months of the last year.

On the initiative of Ministry of Commerce, the Cabinet while considering the Trade Policy proposals 2006-07 decided that trade figures released by Federal Bureau of Statistics in future will also include data on services export and imports. Since then FBS is compiling the figures of export and import of services. Export of services during July-October amounting to US$ 1.048 billion against import of US$ 2.608 billion for the same period.

Source: http://www.commerce.gov.pk/read.asp?newsID=178