Food exports surge by 64% in half-year period
Published on: January 9, 2024.
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Agriculture and Food Exports Boost Pakistan’s Economy
KARACHI: Pakistan’s agriculture and food exports have seen a substantial increase of 64% during the first half of the current fiscal year, contributing to the narrowing of the country’s trade deficit. According to official data, total agriculture and food exports reached $3.847 billion from July to December 2023-24, compared to $2.345 billion in the same period last year, reflecting an impressive increase of $1.502 billion.
The overall merchandise exports in the country witnessed a growth of 5.17%, totaling $14.98 billion in the first half of the current fiscal year. Meanwhile, imports experienced a significant decline of 16.28% to $26.13 billion, compared to $31.21 billion in the corresponding period last year. These figures indicate a growing dependency on agri-foods to drive higher export growth, consequently reducing the trade deficit by 34.3% to $11.14 billion during the first half of the fiscal year.
Rice export has proved to be a major contributor to the country’s export earnings, almost doubling during the first six months. The export value of rice amounted to $1.64 billion in 1HFY24, compared to $841 million during the same period last year, marking an impressive increase of 96%. It is projected that rice exports may surpass the $3 billion mark during the current fiscal year. Rice exporters in Pakistan have expressed confidence that, with government support for cultivation and exploring new markets, rice has the potential to earn up to $10 billion in export revenues.
While the quantity of rice exports increased by 71%, prices only saw a 15% rise compared to the previous year. Despite Pakistan’s reputation for producing high-quality rice, Vietnam and Bangladesh currently lead in the rice export market. The export of maize experienced a significant increase, more than tripling from $85 million to $262 million during the same period last year.
Other notable increases were seen in the exports of sesame seeds and ethyl alcohol, which jumped by 273% and 497%, respectively. Sesame seed exports reached $364 million, compared to $98 million last year, while ethyl alcohol exports reached $259 million, a marked increase from $43 million in the previous year. The meat export also saw a positive growth of 23%, with export earnings reaching $239 million from July to December 2023-24, compared to $195 million in the same period last year.
On the flip side, the export of animal or vegetable fats and oils experienced a decline to $15 million from $51 million in the first half of FY23.
Conclusion
Pakistan’s agriculture and food exports have played a significant role in driving economic growth and reducing the trade deficit. With rice as a key export commodity, the country has the potential to further increase export earnings by cultivating new markets and receiving government support. By leveraging its strengths in high-quality crops such as rice and maize, Pakistan can continue to enhance its position as a major player in the global agricultural export market.
Source: Dawn
