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ISLAMABAD: Pakistan’s merchandise exports to the United States fell 10.14 per cent to $3.63 billion in the first eight months of the current fiscal year from $4.04bn over the corresponding period last year.
The fall is mainly attributed to a dip in exports of textiles and clothing to North America, according to data compiled by the State Bank of Pakistan.
Contrary to this, Pakistan’s exports to China increased by 42pc to $1.895bn in July-February FY24 from $1.334bn over the corresponding period last year. It is estimated that during FY24, Pakistan’s exports to China will reach $3bn by the end of June this year.
According to PBS data, Pakistan’s exports to the US stood at $5.17bn in FY23, which fell by 23.28pc from $6.74bn over the previous fiscal year. In FY24, Pakistan’s exports to China stood at $2.22bn, dipped by 30pc from $3.18bn in FY22.
According to PBS report, the US remained Pakistan’s biggest export destination in FY23. Shipments to the US decreased moderately, comprising 19pc of Pakistan’s overall exports in FY23, down from 21pc the previous year.
Shipments to China surge 42pc to $1.9bn in July-Feb FY24
The share of exports to China declined from 10pc to 8pc in the year under review. Meanwhile, the export figures to the United Kingdom, the Netherlands, Germany, Spain, and the United Arab Emirates remained relatively stable compared to the previous year.
These seven countries collectively accounted for 55pc of Pakistan’s total exports in FY23, a slight decrease from 57.3pc in the previous year. The decline was particularly notable in key core markets such as the US, China, and the UK. The primary factor hindering exports was the slowdown in major importing economies, which was exacerbated by stringent monetary policies responding to high inflation and the ongoing Russia-Ukraine conflict.
It said that home textile exports have dropped due to lower demand in the European Union, the US, and the UK.
The fall in exports can be attributed to several key factors. These include a shortage of capital, which has hindered businesses’ ability to invest in their export operations. Additionally, there have been issues with refunds, such as delays in receiving sales tax refunds, deferred sales tax payments, and income tax refunds.
Imports from the US also dropped 17.36pc to $1.19bn during July-February from $1.44bn a year ago. In FY23, imports from the US also dipped 45.64pc to $2.18bn compared to $4.02bn in the same months last year.
Published in Dawn, April 7th, 2024
