Since surplus in current account balance (CAB) was used for repaying rupee loans under the same agreement with the US, accretion to reserves was only marginal. Surplus in India’s CAB was, however, short-lived as the first oil shock occurred by October 1973. Sharp rise in international oil prices was evident in higher imports growth in 1973–74 and 1974–75.
The abolition of quotas on textile exports under the WTO regime and the withdrawal of preferential tariff arrangements by the European Union have not adversely affected our textile industry. Pakistan’s share in the highly competitive world export market has in fact risen during the last few years.