Food Exports Increase by 64% in Six-Month Period
Published on: January 9, 2024.
Filed under:
Agriculture and Food Exports in Pakistan See Impressive Growth, Contributing to Trade Deficit Reduction
In a positive development for the country’s trade deficit, the agriculture and food exports in Pakistan have recorded a significant jump of 64% during the first half of the current fiscal year. This surge has helped narrow down the trade deficit, with the total agriculture and food exports reaching $3.847 billion between July-December 2023-24, compared to $2.345 billion in the same period last year.
This remarkable increase in exports amounts to an absolute growth of $1.502 billion.
Boosting Overall Exports
The overall merchandise exports have experienced a growth rate of 5.17%, reaching $14.98 billion in the first half of the fiscal year. On the other hand, imports have decreased by 16.28% to $26.13 billion from $31.21 billion in the corresponding period last year.
Evidently, the country’s reliance on agri-food exports has played a vital role in achieving a higher level of growth in overall exports. Additionally, this sector has contributed significantly to reducing the trade deficit by 34.3%, which currently stands at $11.14 billion for the first half of the fiscal year.
Impressive Rice Exports
Rice exports have emerged as the highest earner for Pakistan, almost doubling during the first six months of the fiscal year. The country exported rice worth $1.64 billion during this period, compared to $841 million in the same period last year, marking a substantial increase of 96%. Projections suggest that rice exports may exceed the $3 billion mark by the end of this fiscal year.
Exporters have expressed optimism about the potential of rice exports, claiming that with government support for cultivation and exploring new markets, it could contribute up to $10 billion in earnings for the country.
In terms of quantity, rice exports have seen a significant increase of 71%, with 15% higher prices compared to the previous year. However, despite Pakistan’s good quality rice, Vietnam and Bangladesh currently lead the market.
Other Notable Increases
While rice exports took the forefront, several other agricultural products experienced remarkable growth in exports as well:
- The export of maize more than tripled, reaching $262 million compared to $85 million in the same period last year.
- There was a substantial increase in the exports of sesame seeds and ethyl alcohol, with jumps of 273% and 497%, respectively. The export of sesame seeds reached $364 million compared to $98 million in the previous year, while ethyl alcohol exports surged to $259 million from $43 million.
- Meat exports also saw a rise of 23%, reaching $239 million in July-December 2023-24 compared to $195 million in the corresponding period last year.
However, the export of animal or vegetable fats and oils experienced a significant decline, with exports plunging to $15 million from $51 million in the first half of FY23.
Conclusion
Pakistan’s agriculture and food exports have witnessed substantial growth, allowing the country to make progress in narrowing down its trade deficit. Rice exports, in particular, have played a pivotal role in this growth, with significant increases in both quantity and earnings. Moving forward, with continued government support and exploration of new markets, the potential of the agriculture sector to contribute to Pakistan’s economy looks promising.
Source: Dawn.com
