ISLAMABAD: Merchandise exports grew for the fourth consecutive month in December, reaching an 18-month high, indicating a recovery of export-led industrial growth.

In absolute terms, the export proceeds were recorded at $2.82 billion in December against $2.30bn over the corresponding month last year, indicating a growth of 22.21pc, data released by the Pakistan Bureau of Statistics showed on Tuesday.

On a month-on-month basis, the export proceeds increased 9.29pc.

The export of goods in the first half of FY24 increased by 5.17pc to $14.98bn against $14.24bn in the corresponding period last year.

The continued rise in export proceeds in December suggests that the textile and clothing sectors are beginning to secure orders from global clients following a year of downturn.

Trade gap narrows to $11.14bn in first half

Caretaker Commerce Minister Gohar Ejaz stated that exports reached $2.8bn in December 2023 compared to the potential of $3bn per month.

“We will soon achieve our capacity and then proceed to the next step,” he said, adding that the commerce ministry’s goal is to increase export-led development to $8bn per month through a new policy under the Special Investment Facilitation Council (SIFC) framework.

Mr Gohar further said in a statement that the commerce ministry remains committed to strengthening Pakistan’s export potential and creating a conducive environment for sustainable economic growth.

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 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 12.25pc to $4.52bn in December from $5.14bn in the same month last year. The negative growth in imports also continued for the last few months.

On a month-on-month basis, the imports declined by 0.55pc. The import bill fell 16.28pc to $26.13bn in July-December FY24 from $31.21bn 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 34.29pc to $11.14bn in July-December FY24 from $19.96bn over the corresponding months of last year. The trade deficit contracted 40.13pc to $1.70n in December from $2.84bn over the corresponding month last year.

Published in Dawn, January 3rd, 2024