Regional Exports Surge by Over 16%
Published on: December 20, 2023.
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Pakistan’s Exports to Regional Countries Show Double-Digit Growth in First Five Months of FY24
ISLAMABAD: In a positive sign for Pakistan’s economy, exports to regional countries have experienced a significant double-digit growth of 16.3% during the first five months of the current fiscal year. This growth, driven primarily by increased shipments to China, showcases the country’s strengthening trade relations with its neighboring nations. Data compiled by the State Bank of Pakistan reveals that exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives have reached $1.855 billion in the period of July to November of FY24, up from $1.595 billion recorded during the same months of the previous fiscal year.
It is worth noting that in FY23, exports to regional countries had declined by 21.1% on a year-on-year basis, making this recent growth even more impressive. China remains Pakistan’s largest regional export partner, accounting for 60% of the country’s total regional exports, while the remaining eight countries make up the rest.
Exports to China specifically have seen a remarkable increase of 39.45% during July to November of FY24, totaling $1.223 billion compared to $877.44 million in the corresponding months of the previous year. It is notable that in the previous fiscal year, exports to China had experienced a decline of 27.3% to $2.02 billion from $2.78 billion in FY22. This recent growth marks a positive change after a period of decrease following the impact of the Covid-19 pandemic.
Meanwhile, Pakistan’s imports from China have decreased by 6% to $4.741 billion in the first five months of FY24 compared to $5.045 billion in the same period last year. This decrease in imports may contribute to the country’s focus on boosting domestic production and reducing reliance on imports.
Other notable export growths include a 9.1% increase in exports to Afghanistan, reaching $232.69 million in the first five months of FY24, and a 7.61% surge in exports to Sri Lanka, totaling $145.97 million during the same period. However, exports to Bangladesh have experienced a decline of 31.91%, reaching $248.45 million in July to November of 2022, compared to $364.93 million in the previous year.
It is important to highlight that exports to Iran have not been made through official channels during the first five months of the current fiscal year. Most trade with Iran occurs through informal routes in the border areas of Balochistan, including barter trade transactions.
The figures also reveal that Pakistan’s exports to India have remained negligible, amounting to only $0.069 million in the first five months of FY24. Pakistani imports of Indian goods often occur via Dubai and Singapore, resulting in higher costs for Pakistani products.
Despite this mixed performance across different countries, Pakistan’s overall export growth among its regional neighbors signifies positive economic progress. With efforts to diversify its export markets and foster stronger trade relations, Pakistan can continue to capitalize on its export potential and boost its overall economic stability.
