ISLAMABAD: Merchandise exports continued upward trend for the third consecutive month in November marking a potential shift in the economic landscape.
In absolute terms, the export proceeds were recorded at $2.57 billion in November against $2.38bn over the corresponding month last year, indicating a growth of 7.66 per cent. However, on a month-on-month basis, the export proceeds decreased 4.39pc.
The export of goods in the first five months of FY24 increased by 1.93pc to $12.17bn against $11.94bn in the corresponding period last year.
The uptick in export proceeds in November suggests that the textile and clothing sectors are beginning to secure orders from global clients following a year of downturn. However, the full scale of the export resurgence will become apparent in the forthcoming months.
According to a preliminary report, the increase in overall export value was mostly driven by semi-finished goods in the textile sector, while value-added garment exports remained negative. Furthermore, in the non-textile sector, the export earnings of food goods, particularly rice and beef, have posted unprecedented increases in recent months.
The commerce ministry reported that over 1,600 textile units had closed down in the PDM government. However, the ministry has yet to announce the strategic framework to provide regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and diversification of products.
However, the imports declined by 13.47pc to $4.46bn in November from $5.15bn in the same month last year. On a month-on-month basis, the imports increased by 8.31pc. The import bill fell 17.32pc to $21.55bn in July-November FY24 from $26.06bn over the corresponding months last year.
The imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22. The government has projected an import target of $58.69bn for FY24 against $55.29bn in FY23, an increase of $3.4bn or 8.14pc.
The trade deficit narrowed 33.59pc to $9.37bn in July-November FY24 from $14.12bn over the corresponding months of last year. The trade deficit contracted 31.72pc to $1.88n in November from $2.76bn over the corresponding month last year.
Published in Dawn, December 2nd, 2023
