December sees a 22% surge in exports
Published on: January 9, 2024.
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Pakistan’s merchandise exports continue to show strong growth, reaching an 18-month high in December 2023. Data from the Pakistan Bureau of Statistics reveals that export proceeds amounted to $2.82 billion, reflecting a robust 22.21% increase compared to the same period last year.
On a month-on-month basis, export proceeds grew by 9.29%, indicating a sustained recovery in export-led industrial growth. The first half of fiscal year 2024 saw a 5.17% rise in goods exports, totaling $14.98 billion, compared to $14.24 billion in the previous year.
Caretaker Commerce Minister Gohar Ejaz highlighted the positive trend, noting that December 2023 exports reached $2.8 billion, approaching the potential of $3 billion per month. He expressed optimism about achieving export-led development goals, with a target of $8 billion per month through a new policy framework under the Special Investment Facilitation Council (SIFC).
The preliminary report indicates that the increase in export value is primarily driven by semi-finished goods in the textile sector, while value-added garment exports remained negative. The non-textile sector, particularly food goods like rice and beef, has experienced unprecedented growth in export earnings.
In contrast, imports declined by 12.25% to $4.52 billion in December 2023, compared to $5.14 billion in the same month the previous year. Month-on-month, imports decreased by 0.55%. The overall import bill for July-December FY24 fell by 16.28% to $26.13 billion, compared to the previous year’s corresponding period.
The trade deficit has shown significant improvement, contracting by 34.29% to $11.14 billion in July-December FY24, from $19.96 billion in the same months of the previous year. In December 2023 alone, the trade deficit reduced by 40.13% to $1.70 billion from $2.84 billion in December 2022.
Overall, Pakistan’s export sector continues to thrive, with strong growth in merchandise exports. The government remains optimistic about achieving export-led development goals, driven by the new policy framework under the Special Investment Facilitation Council (SIFC). With the textile sector leading the way, particularly in semi-finished goods, and the non-textile sector experiencing unprecedented growth in food goods exports like rice and beef, Pakistan’s export industry shows promising potential for the future.
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