Surge in exports of raw food products
Published on: March 18, 2024.
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Pakistan’s export of raw food products experienced a significant surge, with a growth rate of 35.38% recorded in February compared to the same period last year. This impressive growth marks the seventh consecutive month of export growth. However, it comes at a time when the country is facing its highest food inflation in history, which reached 20.2% in February. As a result of the export surge, domestic markets have suffered from shortages and price hikes, particularly impacting consumers during the holy month of Ramadan.
The upward trend in export growth began with a negative growth rate of 7.56% at the beginning of the fiscal year. However, it gradually improved, leading to positive growth rates in the following months. Basmati rice exports witnessed a notable surge of 39.43%. This increase in demand can be attributed to India’s ban on rice exports. Additionally, meat exports also saw a considerable rise of 30.16%. Pakistan has gained market access to new countries, including Jordan, Egypt, UAE, Saudi Arabia, and others, contributing to this growth.
Despite the positive export growth, Pakistan experienced significant increases in the imports of wheat, sugar, and tea. These imports highlight the country’s reliance on foreign markets, despite claims of bumper crops. The import bill for tea rose by 10.13% compared to the previous year. The combination of rising food exports and increasing imports poses challenges for Pakistan’s food economy and has a direct impact on domestic consumers.
In conclusion, Pakistan’s export of raw food products has been on the rise, contributing to the growth of the country’s economy. However, this growth has come with challenges, such as shortages and price hikes in domestic markets. Importing essential food items such as wheat, sugar, and tea further highlights the struggles faced by Pakistan’s food economy.
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