ISLAMABAD: Pakis­tan’s exports to nine regional countries dipped 21.1 per cent in FY23 mainly driven by a drop in shipments to China, data compiled by the State Bank of Pakistan showed.

The decline is not confined to exports but imports, especially from China, also saw a steep decline during FY23. As part of government policy to curtail the trade deficit amid fast dwindling foreign exchange reserves, the import containers were awaiting clearance and the opening of letters of credit for consumer goods was the least priority of the State Bank of Pakistan in FY23.

The country’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives dipped to $3.331 billion — just 12pc of total exports of $27.73bn in FY23.

Pakistan’s bulk of the regional exports share, which accounts for 60pc, is with China while the rest is with the remaining eight countries.

Exports to China declined 27.3pc to $2.02 in FY23 from $2.78bn in FY22. It was the first decrease in the post-Covid period. However, the imports also declined by 44.1pc to $9.66bn from $17.30bn during FY23.

Pakistan’s exports to Afghanistan posted a negative growth of 9.97pc to $521.99m in FY23 from $552.78m in FY22.

Till a few years ago, Afghanistan was the second major export destination for Pakistan after the United States. The export figures did not include proceeds materialised through the land routes.

Pakistan’s exports to Iran on the official channel remained at $0.028m in FY23 against no exports last year. Most of the trade with Tehran is carried out through informal channels in border areas of Balochistan. Pakistan carried out barter trade with Iran.

The country’s exports to India declined 74.53pc to $0.329m in FY23 from $1.292m in FY22.

Exports to Bangladesh decreased 11.92pc to $768.54m in FY23 from $872.56m in FY22.

And Exports to Sri Lanka dipped by 24.4pc to $283.77m from $375.37m in the same period last year.

On the other hand, Pakistan’s exports to Nepal declined by 58.7pc to $2.84m from $5.77m in FY22. Exports to the Maldives increased by 23.5pc to $8.54m from $6.91m. A marginal export worth $0.048m to Bhutan was recorded in the FY23 against $0.082m exports last year, indicating a decline of 41.46pc.

Published in Dawn, August 11th, 2023