IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/108384.html
   My bibliography  Save this article

Export boost of Textile Industry of Pakistan by availing EU’s GSP Plus

Author

Listed:
  • Wagan, Shah Mehmood

Abstract

Pakistan is commonly known as agriculture based economy where vast areas of cultivated lands are producing cotton. This enabled to establish and flourish textile industries in Pakistan, therefore Pakistan is vital part of cheap and quality based textile products exporting country. Recently Pakistan is granted European Union's Generalised Scheme of Preferences (GSP) Plus status as a year from January 2014 by European Union because of that Pakistan's Textile exports surged to $14.22 billion in the fiscal year 2013-2014. This study main focus is on EU’s GSP Plus for textile industry of Pakistan to explore the effects and impact on the international trade, export and economy of Pakistan. The various issues and problems pertaining to the policy, strategy, trade, export and taxes are analyzed and discussed to come up with suggestions. Pakistan Textile sector made $14.22 billion (2013-2014 Jul-Jun) compared to export value of the previous fiscal year, reaching from $13.69 billion in the previous year (July 2012, June 2013). The country's textile exports have been shown in growth of 3.81% in fiscal year (2013 2014 Jul-Jun) as compared to fiscal year of (2012-2013 Jul-Jun). The key motive behind the growth of textile exports is the national GSP plus successful from Jan 2014 because of textile export to the EU which is increased by 18% to reach $ 5 billion figure for the first time in Pakistan history because of the GSP plus status granted by the European Union, and textile exports to the left of the globe fell by 3.5%. Seeing this textile export Pakistan government is ready for a 5-year program to grant subsidies for the textile sector. Under the latest planned textile strategy (2014-19), textile industry will be rewarded. Followed by the strategy, textile exports will increase over the next five years, $ 26 billion, in addition to the creation of employment opportunities.

Suggested Citation

  • Wagan, Shah Mehmood, 2015. "Export boost of Textile Industry of Pakistan by availing EU’s GSP Plus," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(1), pages 18-27.
  • Handle: RePEc:zbw:espost:108384
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/108384/1/179-548-1-PB.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Noor Ahmed Memon & Noor Zaman, 2007. "Pakistan Lags Behind In Technical Textiles," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 3(2), pages 120-127.
    2. Samina Shabir & Reema Kazmi, 2007. "Economic Effects of the Recently Signed Pak-China Free Trade Agreement," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(Special E), pages 174-202, September.
    3. mahmood, Hamid mahmood & gul, Sidra gul, 2014. "Assessing the impact of fta: a case study of pakistan- malaysia fta," MPRA Paper 55802, University Library of Munich, Germany, revised 12 Jun 2014.
    4. Attiya Y. Javed & Haseeb Ahmad Bhatti, 2000. "How to Live in a Textile Quota-free World," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 609-628.
    5. Ashani Abayasekara, 2013. "GSP+ Removal and the Apparel Industry in Sri Lanka," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(2), pages 293-316, September.
    6. Zafar Iqbal Qureshi, 2005. "Performance Challenges at Masood Textile Mills," Asian Case Research Journal (ACRJ), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 61-81.
    7. Monica DUDIAN, 2012. "Governance Mechanisms And Organizational Innovation Within The Textile Industry And Textile Products," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 4(4), pages 47-55, December.
    8. Redwan Ahmed & Md. Tawhidul Islam & Md. Al-Amin, 2013. "The Effects of Market Diversification Activities on Bangladesh RMG Export," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 938-948.
    9. Muhammad, Andrew & Ngeleza, Guyslain K., 2009. "The role of the Generalised System of Preferences (GSP) in determining carnation demand in the United Kingdom: implications for Colombian and Kenyan exports," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-16, September.
    10. Ow-Taylor, Chwee Huay & Hock, Ow Chin, 1991. "Graduation from U.S. GSP: The case of Singapore," Journal of Asian Economics, Elsevier, vol. 2(2), pages 285-299.
    11. Ozden, Caglar & Reinhardt, Eric, 2005. "The perversity of preferences: GSP and developing country trade policies, 1976-2000," Journal of Development Economics, Elsevier, vol. 78(1), pages 1-21, October.
    12. Muhammad Anees & Ahmed Jamil & Faisal Shahzad, 2011. "Free trade agreements, exhange rates and foreign portfolio investment in pakistan. dynamic causality analysis," Economics Bulletin, AccessEcon, vol. 31(1), pages 1-8.
    13. Hanif, Muhammad N. & Jafri, Sabina K., 2006. "Financial Development and Textile Sector Competitiveness: A Case Study of Pakistan," MPRA Paper 10271, University Library of Munich, Germany.
    14. Musleh-Ud Din & Kalbe Abbas, 2000. "The Uruguay Round Agreement and Pakistan's Trade in Textiles and Clothing," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 1(1), pages 101-115, March.
    15. Hock, Ow Chin & Ow-Taylor, Chwee Huay, 1993. "Graduation from the U.S. GSP-a comparative study of the East Asian newly industrializing economies," Journal of Asian Economics, Elsevier, vol. 4(1), pages 89-98.
    16. Syed Abdul Sattar Shah & Anwar Ali Shah G.Syed & Faiz M.Shaikh, 2014. "Impact of Textile Industry on Pakistan Economy," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 62(3), pages 43-59, March.
    17. Monica DUDIAN & Liliana CRACIUN, 2011. "Industrial Agglomerations and Clusters. The Textile and Textile Products Industry from Romania," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 40-51, June.
    18. Muhammad Nadim Hanif & Sabina Khurram Jafri, 2008. "Financial Development and Textile Sector Competitiveness," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 141-158, June.
    19. Ilse Scheerlinck & Luc Hens & Rosette S’Jegers, 1996. "Free trade or protection? belgian textile and clothing firms’ trade preferences," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(4), pages 723-739, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sayef Bakari & Mohamed Mabrouki & Asma Elmakki, 2018. "The Nexus Between Industrial Exports And Economic Growth In Tunisia: Empirical Analysis," Journal of Smart Economic Growth, , vol. 3(2), pages 31-53, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shah Mehmood WAGAN, 2015. "Export boost of textile industry of Pakistan by availing EU’s GSP Plus," Journal of Economics Library, KSP Journals, vol. 2(1), pages 18-27, March.
    2. Hasan Shahzad & Umar Shahzad & Imran Ahmad, 2024. "The Prospects of Comparative Advantage in Pakistan’s Exports of Pharmaceutical Products," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 857-863.
    3. Doina I. POPESCU, 2013. "Servicing The Market Niche €“ A Possible Solution For The Maintenance And/Or Success Of The Firm On The Market In The Context Of The Global Economic Crisis," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 5(1), pages 79-96, March.
    4. Khurram Shahzad, 2015. "An RCA Analysis of Textiles and Clothing in Pakistan, India, and Bangladesh," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(1), pages 157-168, Jan-June.
    5. Akmal, Nadeem & Akhtar, Waqar & Shah, Hassnain & Niazi, Muhammad Azam & Saleem, Tariq, 2014. "The Structure and Competitiveness of Pakistan’s Basmati Rice Exports," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 4(04), pages 1-9, April.
    6. repec:lje:journl:v:20:y:2015:i:1:p:157-168 is not listed on IDEAS
    7. Hanif, M.N. & Husain, F. & Jafri, S., 2008. "Financial Sector Reforms and International Trade Competitiveness: A Case Study of Pakistan," MPRA Paper 36730, University Library of Munich, Germany, revised 31 Jan 2012.
    8. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2018. "Reciprocal vs nonreciprocal trade agreements: which have been best to promote exports?," Working Papers 1802, Department of Applied Economics II, Universidad de Valencia.
    9. Emanuel Ornelas, 2016. "Special and Differential Treatment for Developing Countries," CESifo Working Paper Series 5823, CESifo.
    10. Ghialy Yap & Shrabani Saha & Nelson O Ndubisi & Saif S Alsowaidi & Ali S Saleh, 2023. "Can tourism market diversification mitigate the adverse effects of a blockade on tourism? Evidence from Qatar," Tourism Economics, , vol. 29(4), pages 880-905, June.
    11. Emily Blanchard & Xenia Matschke, 2015. "U.S. Multinationals and Preferential Market Access," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 839-854, October.
    12. Patrick A. Messerlin, 2006. "Enlarging the Vision for Trade Policy Space: Special and Differentiated Treatment and Infant Industry Issues," The World Economy, Wiley Blackwell, vol. 29(10), pages 1395-1407, October.
    13. Rizwana Yasmeen & Wasi Ul Hassan Shah & Larisa Ivascu & Rui Tao & Muddassar Sarfraz, 2022. "Energy Crisis, Firm Productivity, Political Crisis, and Sustainable Growth of the Textile Industry: An Emerging Economy Perspective," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    14. Sajal Lahiri & Peri Silva, 2016. "Potential Pareto-Improving Move Toward Most Favored Nation Tariffs," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1086-1104, April.
    15. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2019. "Reciprocal vs nonreciprocal trade agreements: Which have been best to promote exports?," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-15, February.
    16. Nadeem Ul Haque, 2007. "Entrepreneurship in Pakistan," PIDE-Working Papers 2007:29, Pakistan Institute of Development Economics.
    17. Low, Patrick & Piermartini, Roberta & Richtering, Jurgen, 2005. "Multilateral solutions to the erosion of non-reciprocal preferences in NAMA," WTO Staff Working Papers ERSD-2005-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    18. R. Rajesh Babu, 2020. "On the Legality of the United States Action of Terminating India’s GSP Status," Foreign Trade Review, , vol. 55(1), pages 119-129, February.
    19. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2019. "Foreign Influence and Domestic Policy: A Survey," Working Papers 1072, Barcelona School of Economics.
    20. repec:spo:wpecon:info:hdl:2441/5341 is not listed on IDEAS
    21. Umer Khalid, 2003. "Opportunities and Challenges for Pakistan in an Era of Globalisation," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(1), pages 45-63, Jan-June.
    22. Monica DUDIAN, 2012. "Governance Mechanisms And Organizational Innovation Within The Textile Industry And Textile Products," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 4(4), pages 47-55, December.

    More about this item

    Keywords

    European Union's GSP Plus; Textile Export; Fiscal Year; Textile Industry of Pakistan;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:108384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.