ISLAMABAD: Pakistan’s exports to regional countries dipped by 24 per cent year-on-year during 2019-20 mainly due to lockdown imposed in March to curtail the spread of coronavirus.

Exports to the region — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives — fell to $3.738 billion in FY20, from $4.658bn the previous year, according to the latest data compiled by the State Bank of Pakistan.

The trade deficit with the region declined during the year under review as imports from these countries also dipped.

Exports to Afghanistan have been on a steady decline for the last few years, owing to souring relations with Kabul and several border closures. Pakistan’s exports to the north­western neighbour fell to $888.913 million in FY20, from $1.192bn in FY19 — a plunge of 25.5pc.

A few years ago, Afghanistan was the second major export destination after the United States. At the same time, imports from the country also declined by 28.5pc to $121.832m in FY20, from $170.478m in 2018-19.

Pakistan’s exports to China also dipped by 10.5pc to $1.663bn in FY20, from $1.858bn the previous year. The decline in proceeds was noted even though commerce ministry claims to have brokered preferential market access for local products under the second phase of the free trade agreement with Beijing. Imports from China fell to $9.544bn in FY20, from $10.164bn in the previous year, representing a decline of 6pc.

The country’s exports to India fell by a whopping 90.8pc to $28.644m in FY20, from $311.958m over FY19. The government suspended trade relations with New Delhi last year. However, the Ministry of Commerce has yet to clarify the exports to India despite the suspension.

Imports from India plunged to $374.86m in FY20, from $1.595bn in FY19. The government has allowed imports of raw materials from the eastern neighbour for pharmaceuticals despite the suspension of trade relations with New Delhi.

Export proceeds to Iran came in at an insignificant $0.055m in FY20, from $2.942m while from the country stood at $0.048m, as against none the year before. Most of the trade with Iran is carried out through an informal channel on the border areas.

The exports to Bangladesh decreased to $694.124m in FY20 from $744.720m, indicating a fall of 6.79pc. Islamabad has recently reached out to Dhaka to revive talks to facilitate trade between the two countries further.

Similarly, exports to Sri Lanka dipped by 5.49pc to $287.941m in FY20 from $303.761m in the previous year. Islamabad has signed the first-ever FTA with Colombo, but trade between the two countries remains far behind the true potential.

On the other hand, export proceeds to Nepal surged by 86.7pc as they reached $21.679m in FY20, from $2.872m the previous year while those to Maldives jumped by 37.36pc to $8.478m from $6.172m. Exports to Bhutan tumbled by 60.8pc to $94m in FY20 from $240m in 2018-19.

Published in Dawn, August 16th, 2020