ISLAMABAD: In a significant downturn, Pakistan’s exports to the Middle East fell by 12.62 per cent to $2.332 billion in FY23 compared to $2.669bn in the preceding year.
This decline is primarily attributed to a decrease in exports to the United Arab Emirates. The exports to Saudi Arabia increased while other countries of the region dipped, according to data compiled by the State Bank of Pakistan.
Despite a higher import value from the Middle East, Pakistan witnessed a 7.24pc decline in imports totalling $17.488bn in FY23, down from $18.853bn in the previous year.
Nearly 62pc of total exports to the region go to the UAE market alone. However, it suffered a decline of 20.23pc to $1.474bn in FY23 from $1.848bn over the corresponding months last year (FY22).
Out of seven UAE states, the bulk of export was destined for Dubai amounting to $1.328bn during FY23 against $1.598bn in the corresponding months last year, showing a decline of 18.83pc.
Pakistan’s top export products to UAE include rice, bovine carcasses and half carcasses, men’s/boys’ cotton ensembles, guavas, mangoes, etc.
Similarly, Pakistan’s top sectoral exports to the UAE include cereals, articles of apparel and clothing, meat and edible offal etc.
Imports from the UAE experienced a significant decline of 14.78pc in FY23, falling to $7.457bn from $8.751bn in the previous year. Despite this decrease, the UAE remains the largest import destination in the region for Pakistan.
Pakistan’s second biggest market in the region in terms of value is Saudi Arabia. However, the exports jumped 13.1pc to $503.40m in FY23 from $420.40m in the preceding fiscal year.
Exports to Saudi Arabia have stagnated at around $500m in the last decade due to no expansion in market access as compared to the UAE. Top exports to Saudi Arabia include rice (semi- or wholly milled), bovine carcasses and half carcasses, tents, textile materials, etc. The imports from Saudi Arabia saw a sharp decline of 21.43pc in FY23, dropping to $3.324bn from $4.231bn in the previous year. Despite this decrease, Saudi Arabia remains the third largest import destination for Pakistan.
Pakistan’s exports to Qatar dipped 17.81pc to $163.15m in FY23 from $196.60m during FY22, which include rice, bovine carcasses, potatoes, onions, guavas, mangoes, etc. However, one of the most exported goods to Qatar during FY23 remained footballs as Pakistan was the official football supplier to the FIFA World Cup 2022 held in November in Doha, Qatar.
In contrast to the declines seen in imports from other countries in the region, imports from Qatar experienced a significant increase of 41.82pc in FY23, rising to $3.788bn from $2.686bn in the previous year. This growth has made Qatar the second largest import destination for Pakistan, following the UAE.
Pakistan exports to Kuwait fell by 9.28pc to $127.44m during the FY23 from $134.44m over the corresponding months of last year. Top exports to Kuwait include bovine carcasses, seafood, tents, rice, etc. The top sectoral exports to Kuwait include meat and edible meat offal, followed by other made-up textiles.
However, the imports from Kuwait saw an increase of 10.43pc to $2.54bn in FY23 from $2.30bn over the previous year.
Published in Dawn, August 13th, 2023
