7
ISLAMABAD: Pakistan’s exports to nine regional countries posted a paltry growth of 1.818 per cent while imports from the region grew by nearly 31pc in first 10 months of the ongoing fiscal year (10MFY21) from a year ago, latest data released by the State Bank of Pakistan showed.
The country’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives account for a small amount of $3.191 billion — just 15.26pc of Pakistan’s total global exports of $20.906bn in 10MFY21.
China tops the list of countries in terms of Pakistan’s exports to its neighbours, leaving other populous countries India and Bangladesh behind. Pakistan carried out its border trade with the farther neighbour Nepal, Sri Lanka, Bhutan, Bangladesh and Maldives via sea only.
On the other hand, imports from these countries edged up to $10.754bn in 10MFY21 against $7.638bn over the corresponding period last year, showing an increase of 30.97pc. As a result of huge imports, Pakistan’s trade deficit with the region expanded during the period under review.
Pakistan’s exports to China posted positive growth during July-April 2020-21. Bulk of the regional exports share, which accounts for 51.4pc, is with China while the remaining is for eight countries.
Pakistan’s exports to China posted a growth of 16.22pc to $1.640bn in 10MFY21 from $1.411bn in 10MFY20. The increase in export proceeds was noted in the post-Covid period. However, it is not clear now whether the gain is one time or it is the outcome of the Ministry of Commerce claims to have brokered preferential market access for local products under the second phase of the free trade agreement with Beijing.
Contrary to this, imports from China grew 35pc to $10.312bn during the period under review against $8.211bn over the last year. The bulk of 95.88pc imports is coming from China alone while remaining imports are from other eight countries.
Pakistan’s exports to Afghanistan posted a growth of 2.35pc to $828.727m in 10MFY21 from $809.685m in the same period in FY20. Till a few years ago, Afghanistan was the second major export destination for Pakistan after the United States.
Imports from Afghanistan posted a growth of 27.34pc to $147.403m against $115.747m over the last year. Imports from Afghanistan have seen visible improvement, especially of essential kitchen items including tomatoes, potatoes and onions as well as fresh and dried fruits.
The country’s exports to India plunged 90.9pc to $2.252m this year from $24.992m in 10MFY20. The imports from India dipped 56.5pc to $153.601m against $353.162m over the last year. The government has suspended trade relations with New Delhi. Since the arrival of Covid-19 pandemic, the government has only allowed import of pharmaceutical products from India.
Pakistan’s exports to Iran jumped 374.5pc to $0.261m in 10MFY21 from $0.055m in 10MFY20. Most of the trade with Tehran is carried out through informal channels in border areas of Balochistan. No imports were made from Tehran during the period under review.
Exports to Bangladesh decreased 17pc to $497.396m in 10MFY21 from $599.658m. Imports from Dhaka posted a growth of 64.9pc to $68.362m this year against $41.450m over the last year.
Similarly, exports to Sri Lanka dipped by 18.5pc to $213.794m in 10MFY21 from $262.482m in the previous year. Islamabad has signed the first-ever FTA with Colombo but trade between the two countries remains far behind its true potential. Imports from Sri Lanka posted a growth of 14.6pc to $72.081m this year against $62.902m over the last year.
In the last visit of Prime Minister Imran Khan to Sri Lanka, both countries agreed to exploit the available potential of bilateral trade.
On the other hand, Pakistan’s exports to Nepal plunged by 80.4pc to $3.987m in 10MFY21 from $20.374m the previous year. However, imports posted a growth of 140.87pc to $0.937m this year against $0.389m over the last year.
Exports to Maldives dipped by 20pc to $4.945m from $6.195m. Import posted a growth of 157.89pc to $0.049m this year against $0.019m over the last year.
Export proceeds to Bhutan were recorded at $0.043m in 10MFY21 against $0.094m over the last year. In the month of March-April, no exports proceeds were sent to Maldives.
Published in Dawn, May 29th, 2021
