Exports to Middle East increase by 29% from July to November.
Published on: December 29, 2023.
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Exports to the Middle East Show Strong Growth in First Five Months of Current Fiscal Year
Exports to the Middle East from Pakistan have experienced a significant growth of 28.98 percent in the first five months of the current fiscal year, reaching $1.257 billion. This is a notable increase compared to $974.50 million in the same period last year, according to data compiled by the State Bank of Pakistan.
The increase in demand for Pakistani products has primarily come from countries such as the United Arab Emirates, Saudi Arabia, and Kuwait. However, exports to Qatar saw a decline during this period.
To further enhance Pakistan’s exports to the region, the government recently signed a free trade agreement with the Gulf Cooperation Council (GCC) countries.
In the previous fiscal year (FY23), Pakistan witnessed a decline of 12.62 percent in exports to the Middle East, totaling $2.332 billion compared to $2.669 billion the previous year. Imports also decreased by 7.24 percent to $17.488 billion in FY23, down from $18.853 billion.
Saudi Arabia, the second-largest market in the Middle East for Pakistan, saw a significant increase of 50 percent in exports during July-November of FY24, with a value of $275.65 million compared to $183.73 million in the same months of the previous year. Rice, bovine carcasses and half carcasses, tents, and textile materials are among the top exports to Saudi Arabia.
Exports to the UAE registered a sharp rise of 33 percent in 5MFY24, reaching $817.978 million compared to $614.864 million in the corresponding months of the previous year. However, in FY23, exports to the UAE faced a decline of 20.23 percent, totaling $1.474 billion compared to $1.848 billion in FY22. The majority of exports to the UAE were destined for Dubai, amounting to $655.90 million during July-Nov FY24, showing an increase of 17.59 percent.
Pakistan’s top export products to the UAE include rice, bovine carcasses and half carcasses, men’s/boys’ cotton ensembles, guavas, and mangoes. Cereals, articles of apparel and clothing, and meat and edible offal are the top sectoral exports to the UAE.
Exports to Kuwait from Pakistan increased by 7.4 percent to $51.81 million during July-Nov FY24 compared to $48.24 million in the corresponding months of the previous year. On the other hand, exports to Qatar declined by 15.84 percent, amounting to $96.66 million in July-Nov FY24 compared to $83.44 million in FY23. Similarly, exports to Bahrain also saw a decline of 6.35 percent, totaling $29.04 million in 5MFY24 compared to $31.01 million in the corresponding period of the previous year.
In conclusion, Pakistan’s exports to the Middle East have shown robust growth in the first five months of the current fiscal year. The surge in demand from countries like the UAE, Saudi Arabia, and Kuwait has played a significant role in this increase. With the recent free trade agreement with GCC countries, Pakistan’s exports to the region are expected to further improve in the coming months.
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