Global Rice News

ISLAMABAD: The first five months of the current fiscal year have shown impressive growth in exports to nine regional countries, with a notable increase in shipments to China, according to data compiled by the State Bank of Pakistan. Exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives reached $1.855 billion in July-November FY24, marking a 16.3% growth compared to the same period last year.

During FY23, exports to regional countries experienced a decline of 21.1%, totaling $3.331 billion on a year-on-year basis.

China occupies a significant share, accounting for 60% of Pakistan’s regional exports, while the remaining eight countries make up the rest. Exports to China witnessed a substantial increase of 39.45% to $1.223 billion in July-November FY24, compared to $877.44 million during the same months last year. However, in FY23, exports to China declined by 27.3%, from $2.78 billion in FY22 to $2.02 billion.

In 5MFY24, imports from China decreased by 6% to $4.741 billion, compared to $5.045 billion during the corresponding months of the previous year.

Exports to Afghanistan, once the second-largest export destination for Pakistan, experienced a positive growth of over 9.1% to $232.69 million in 5MFY24, compared to $213.28 million in the same period last year. It is worth mentioning that the export figures do not include proceeds realized through land routes, as Pakistan has allowed trade in rupees with Afghanistan to boost exports.

No official exports were made to Iran in the first five months of the current fiscal year, as most of the trade with Tehran is conducted through informal channels in the border areas of Balochistan. Barter trade is carried out with Iran.

Exports to India remained insignificant at $0.069 million in the first five months of the current fiscal year. It has been reported that Pakistani imports Indian goods via Dubai and Singapore, which has increased the cost for Pakistani products.

Export figures to Bangladesh saw a decline of 31.91% to $248.45 million in July-November 2022, compared to $364.93 million during the same period in the previous year. In contrast, exports to Sri Lanka increased by 7.61% to $145.97 million in 5MFY24, compared to $135.64 million in the same period last year.

Exports to Nepal witnessed a year-on-year increase of 15.32% to $1.43 million in 5MFY24, while shipments to the Maldives increased by 15% to $3.83 million. No exports to Bhutan were recorded in 5MFY24.

It is encouraging to see the growth in Pakistan’s exports to regional countries, particularly to China. Efforts should be made to strengthen trade ties with other regional partners to further expand the export market. With the right strategies and policies in place, Pakistan can leverage its export potential and boost the economy.

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