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Pakistan’s Exports Increase by 13.5% in October 2023, PBF Reports

In a recent announcement, the Pakistan Business Forum (PBF) revealed that Pakistan’s exports have experienced significant growth, increasing by 13.5% in October 2023. This development is particularly noteworthy as it has led to a total export value of $2.7 billion. Moreover, during the same period, the trade deficit decreased by 4.5%, highlighting positive progress for the country’s economy.

The Vice President of PBF, Chaudhry Ahmad Jawad, emphasized the remarkable growth in the agriculture sector, which expanded by 73% in October. Notably, the exports of rice and sesame seeds saw a substantial increase. This diversification of exports signifies the strength of Pakistan’s agricultural industry and its ability to contribute to the country’s overall economic growth.

However, Jawad also acknowledged the need for Pakistan to focus on increasing its services exports, particularly in the information and communication technology (ICT) sector. He pointed out that Pakistan could learn from India, where ICT exports exceeded $140 billion in the fiscal year 2022-23, double the amount from the past five years. In contrast, Pakistan’s ICT exports reached a peak of $2.6 billion in the fiscal year 2021-22 but have not experienced significant growth since then.

According to Jawad, the primary reason for this disparity between Pakistan and India is the difference in skilled labor availability. India’s emphasis on technology and engineering has paid off, while Pakistan’s education standards have declined over time. While addressing this situation may take time, Pakistan still holds immense potential to grow its ICT sector.

Many IT companies in Pakistan have expressed concerns about the lack of skilled graduates who can contribute to the industry’s growth. Jawad proposed the idea of providing crash courses to help these graduates acquire the necessary skills. He further emphasized that Pakistan possesses a significant talent pool, but the technology sector needs to create more demand and foster a favorable business environment. Additionally, challenges such as difficulties in remitting money outside Pakistan reduce the incentives for companies to thrive in the country.

Jawad commended the efforts of the State Bank of Pakistan in addressing these challenges in 2020, resulting in higher growth in subsequent years. However, he acknowledged that last year’s balance of payment crisis had eroded confidence among companies, leading them to keep their dollars abroad. He emphasized the government’s responsibility to address this issue effectively. Encouragingly, the caretaker IT minister aims to boost ICT exports to $10 billion and introduce renowned payment gateways like PayPal and Stripe to Pakistan.

In conclusion, Pakistan’s recent export growth showcases the country’s economic potential and the strength of its agricultural industry. Moving forward, addressing the challenges in the ICT sector will be crucial for Pakistan’s future economic development. By focusing on nurturing skilled labor, creating demand, and improving the ease of doing business, Pakistan can unlock its full potential in the global market.

Sources:
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