December sees a 22% increase in exports
Published on: January 9, 2024.
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Merchandise exports in Pakistan reached an 18-month high in December 2023, signaling a recovery in the export-led industrial growth. Data released by the Pakistan Bureau of Statistics showed that export proceeds amounted to $2.82 billion in December, a growth of 22.21% compared to the same month last year. On a month-on-month basis, export proceeds increased by 9.29%.
During the first half of FY24, the export of goods increased by 5.17% to $14.98 billion. This continuous rise in export proceeds suggests that the textile and clothing sectors are starting to receive orders from global clients after a challenging year.
Caretaker Commerce Minister Gohar Ejaz stated that exports in December 2023 reached $2.8 billion, slightly below the potential of $3 billion per month. The Commerce Ministry aims to increase export-led development to $8 billion per month through a new policy implemented under the Special Investment Facilitation Council framework. The ministry remains committed to strengthening Pakistan’s export potential and creating an environment for sustainable economic growth.
The increase in overall export value was largely driven by semi-finished goods in the textile sector. However, value-added garment exports remained negative. In the non-textile sector, the export earnings of food goods, specifically rice and beef, have experienced unprecedented growth in recent months. The Commerce Ministry has yet to announce a strategic framework that includes regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and product diversification.
In contrast, imports declined by 12.25% to $4.52 billion in December compared to the same month last year. This negative growth in imports has persisted for the past few months. On a month-on-month basis, imports declined by 0.55%. The import bill for July-December FY24 fell by 16.28% to $26.13 billion. The government has projected an import target of $58.69 billion for FY24, an increase of $3.4 billion or 8.14% compared to FY23.
The trade deficit in July-December FY24 narrowed by 34.29% to $11.14 billion compared to the corresponding months of last year. The trade deficit contracted by 40.13% in December, reaching $1.70 billion.
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