ISLAMABAD: Exports to the Middle East bounced back with a growth of 28.98 per cent to $1.257 billion in the first five months of the current fiscal year against $974.50m from a year ago.
A surge in demand for Pakistani products was observed from countries like the United Arab Emirates, Saudi Arabia and Kuwait, according to data compiled by the State Bank of Pakistan.
However, the exports to Qatar decreased during the period under review.
The government has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) countries which will further facilitate Pakistan’s exports to the region.
In FY23, Pakistan’s exports to the Middle East shrank 12.62pc to $2.332bn from $2.669bn in the preceding year. Pakistan witnessed a 7.24pc decline in imports totalling $17.488bn in FY23, down from $18.853bn in the previous year.
Exports to Saudi Arabia saw an increase of 50pc in July-November of FY24 to $275.65m from $183.73m over the corresponding months of last year. Saudi Arabia is Pakistan’s second biggest market in the region in terms of value after the UAE. In FY23, the exports jumped 13.1pc to $503.40m from $420.40m in the preceding fiscal year.
Exports to Saudi Arabia have stagnated 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.
Pakistan exports to UAE rose sharply by 33pc to $817.978m in 5MFY24 from $614.864m over the corresponding months of last year. The exports to UAE bounced back during the current fiscal year.
However, it suffered a decline of 20.23pc to $1.474bn in FY23 from $1.848bn over the corresponding months FY22.
Out of seven UAE states, the bulk of export was destined for Dubai amounting to $655.90m during July-Nov FY24 against $557.77m in the corresponding month last year, showing an increase of 17.59pc.
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.
Pakistan exports to Kuwait increased by 7.4pc to $51.81m during July-Nov FY24 from $48.24m over the corresponding months of last year. Pakistan’s exports to Qatar declined 15.84pc to $96.66m in July-Nov FY24 from $83.44m during FY23. Pakistan exports to Bahrain also declined by 6.35pc to $29.04m in 5MFY24 from $31.01m over the corresponding last year.
Published in Dawn, December 27th, 2023
