The Export Oriented Enterprises (EOE)
1st Quarter 2011
Highlights

1. Introduction
1.1 Below are the highlights of the results of the “Quarterly Survey of Employment” carried out at the end of March 2011 among Export Oriented Enterprises (EOE). The EOE consist of enterprises previously operating with an EPZ certificate as well as those manufacturing goods for exports and holding a registration certificate issued by the Board of Investment.

2. Export Oriented Enterprises (EOE)

Number of enterprises

2.1 The number of Export Oriented Enterprises at the end of the 1st quarter of 2011 stood at 374 compared to 372 at the end of December 2010 and 398 at the end of March 2010.

2.2 During the first quarter of 2011, some 8 enterprises started operation while 6 closed down. In “Wearing apparel”, the most important group in the EOE, the number of enterprises at the end of March 2011 stood at 147 compared to 144 at the end of December 2010 and 155 at the end of March 2010.

Employment evolution

2.3 During the 1st quarter of 2011, total employment increased by 304 (+0.5%) from 55,828 at the end of December 2010 to 56,132 at the end of March 2011. Male employment increased by 452 and female fell by 148 respectively. Employment in “Wearing Apparel” decreased by 38 and that in “Textile yarn and fabrics” by 1. Total employment includes 17,922 foreign workers, 168 more than the figures registered at the end of December 2010.

2.4 From March 2010 to March 2011, total employment decreased by 2,249 (-3.9%) from 58,381 to 56,132. Male employment fell by 683 and female employment by 1,566. Employment in “Wearing apparel” fell by 3,227 (-7.9%) and in “Jewellery and related articles” by 118 (-8.0%). On the other hand, increases were noted in “Textile yarn and fabrics” (+165 or +4.0%), “Food” (+304 or + 6.4%), “Electronic watches and clocks” (+107 or +17.9%), “Leather products and footwear” (+100 or +17.0%) and “Other” product group (+428 or +11.7%).

Exports and Imports

2.5 EOE exports for the 1st quarter of 2011 is estimated at Rs. 9,605 million, that is, 9.5% lower compared to the previous quarter and 13.3% higher compared to the corresponding quarter of 2010.

2.6 The United Kingdom (UK), France and the United States of America (USA) remain the principal EOE markets, accounting for Rs. 5,870 million or around 61% of total exports. Compared to the corresponding quarter of 2010, exports to UK increased by Rs. 143 million (+5.6%), to France by Rs. 337 million (+21.8%) and to USA by Rs. 81 million (+6.7%).

2.7 EOE imports during the 1st quarter of 2011 were estimated at Rs. 5,164 million, representing an increase of Rs. 40 million (+0.8%) over the previous quarter and an increase of Rs. 538 million (+11.6%) compared to the corresponding quarter of 2010. Imports of raw materials rose by Rs. 551 million (+12.4%) while those of machinery and equipment fell by Rs. 13 million (-7.3%) compared to the first quarter of 2010.

2.8 It is to be noted that the above figures do not include transactions of the EOE with the Freeport. In first quarter of 2011, EOE sales to the Freeport amounted to Rs. 180 million compared to Rs. 330 million in the corresponding period of 2010.

June 2011