Wider access earned to the 27-nation European Union (EU) bloc under the Autonomous Trade Preference (ATP) Scheme can help Pakistani textile exporters boost their exports to that market.
Briefing media, Faisalabad Chamber of Commerce and Industry (FCCI) President Zahid Aslam said Pakistan’s textile exports to the EU are expected to rise 31 percent as the EU has issued notice for implementation of the scheme.
Last fiscal, Pakistan exported US$ 1.709 billion worth of textiles to the EU, its largest trading partner, which is expected to rise by US$ 537 million to US$ 2.246 billion, this year, he added.
Under the scheme, the EU has allowed duty-free import of 75 Pakistani items, most of them textile and apparel items, till December 31, 2013. While 26 of these items fall under tariff regulated quotas, rest of them are covered under the non-tariff regulated quotas, which became effective from November 15.
The FCCI President said exporters would benefit dually from these concessions, as on one hand while they would be able to enhance their exports due to quota system, on the other hand the country would become eligible for further concessions in 2014 upon reviewing of the quota regime.
However, he noted that mainly attributable to inadequate power and gas supply, Pakistan’s overall imports and exports have declined over the past few months. The country’s exports dipped by 2.3 percent year-on-year during first quarter of the current fiscal that started on July 1, while its imports plummeted by 6 percent year-on-year.