Global Rice News

ISLAMABAD: Pakistan’s exports are estimated to have crossed $31 billion during the last fiscal year of 2020/21 with goods shipments breaking high records made for year and month, commerce adviser said on Thursday.

Adviser to Prime Minister for Commerce and Investment Razak Dawood said exports of goods for FY2021 amounted to $25.3 billion, which are the highest-ever exports of goods in the country’s history, he said and cited the previous highest of $25.1 billion in 2013/14.

Similarly, exports of goods in June 2021 were highest for any month in the history at $2.7 billion. The previous highest was $2.6 billion in September 2013. Further, export of services during FY2021 was estimated at 5.9 million.

“Hence, the cumulative exports of goods and services during FY2021 is likely to cross $31 billion. I salute our exporters for this great achievement which they have made possible despite the difficulties created at home and in our markets by COVID-19,” the adviser wrote on Twitter, while sharing data which he frequently shares before the Pakistan Bureau of Statistics’ official release.

Despite growth, industrialists believed that small and medium exporters couldn’t bear impact of liquidity crunch aggravated by 17 percent general sales tax.

“Imposition of 17 percent GST has made the textile exporters specially SMEs financially unviable as their precious liquidity, without any purpose, are stuck up and they throughout the year faced financial difficulties to fulfill their export commitments,” said a joint statement by value-added sector associations.

While industrial cycle stopped working suddenly following lockdowns associated with coronavirus last year, it rebounded later when the government tried to keep it safe from inertia.

Together with diversion of export orders from lockdown-mauled regional economies, this helped industries to hit their capacity. All economic indicators signaled recovery and restored confidence of businesses to improve external account position. Nonetheless with untapped growth, exports sector drove to benefit from domestic support amid external favorable environment. Domestic economy is, however, yet to come out of the effects and aftereffects of lockdowns.

Industries showed resilience as the government started releasing their pending sales tax refunds, including Rs8 billion of duty drawback on local taxes and levies that are expected to be released by the commerce ministry this week. The backlog clearance was appreciated despite the fact that billions of rupees are still pending with the government.

Along with textile sector, rice exports were also seen increasing for which commerce adviser commended efforts of rice exporters and provincial extension departments.

Dawood said ministry of commerce and International Trade Centre are holding six seminars to educate stakeholders about the importance of good agricultural practices and maximum residual levels. Seminars are being held in major rice growing areas of four provinces. “They will form the basis for increasing global competitiveness of Pakistani rice,” he added.