Pakistan's exports of textile and clothing fell by over five per cent in the first two months of the current fiscal year compared to a year ago. The decline in exports started in July 2014 despite the preferential market access to the EU. Exports of low value added products, such as cotton cloth, fell by 13.77 per cent; cotton yarn 27.01per cent; other textile material 5.88 per cent; and made-up articles, excluding towels and bed wear, 2.60 per cent during the period over the corresponding period last year.

In absolute terms, export proceeds fell to $2.169 billion in July-August 2014 from $2.289 billion over the corresponding months of last year. Last year, export proceeds grew by 2.75 per cent and reached $25.132 billion from $24.460 billion over the corresponding period of previous year. Raw cotton export witnessed a robust growth of 41 per cent in the first two months of the current fiscal year from a year ago. Total export proceeds witnessed a decline of 5.84 per cent in July-August 2014 over the corresponding period of last year.

After efforts of years, Pakistan was inducted in the club of countries enjoying free market access for most of its products in the European Union, but it has failed to capitalise on the opportunity.