Merchandise Exports Experience Impressive 13% Growth
Published on: November 2, 2023.
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Pakistan’s merchandise exports have shown a promising increase for the second consecutive month, signaling a positive trend after a year of decline. According to data released by the Pakistan Bureau of Statistics, export proceeds in October reached $2.70 billion, a growth of 13.55% compared to the same month last year. On a month-on-month basis, there was a 9.33% increase in export proceeds. The total export of goods in the first four months of FY24 rose by 0.66% to $9.61 billion.
The recent recovery in export proceeds is attributed to the textile and clothing industries, which have started receiving orders from international buyers after a prolonged slump. However, the true extent of this export recovery will become more apparent in the coming months.
A preliminary report suggests that the increase in export value is primarily driven by semi-finished goods in the textile sector, while value-added garment exports are still experiencing challenges. In the non-textile sector, food goods, particularly rice and beef, have seen significant increases in export earnings.
It is worth noting that the closure of over 1,600 textile units in the past 16 months has impacted the export industry. The commerce ministry is expected to announce a strategic framework to address challenges and provide support in terms of regional competitive energy pricing, working capital, refund payments, market access, and product diversification.
On the other hand, imports have also seen a rise of 4.91% in October compared to the same month last year, reaching $4.80 billion. The import bill for July-October FY24 decreased by 18.54% to $17.03 billion. In FY23, imports fell by 31% to $55.29 billion. The government has set an import target of $58.69 billion for FY24.
As a result of these developments, the trade deficit has narrowed by 34.70% in the first four months of FY24 compared to the same period last year. In October, the trade deficit decreased by 4.46% year-on-year.
Overall, Pakistan’s export sector is showing signs of recovery, especially in the textile industry, while imports have also seen a modest increase. The government’s efforts to address the challenges faced by the export industry are crucial for sustaining this positive trend.
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