ISLAMABAD: Pakistan’s merchandise exports to the United States fell 10.65 per cent to $4.989 billion in the first 11 months of outgoing 2023-24 from $5.484bn 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 (SBP).

Contrary to this, Pakistan’s exports to China increased by 42pc to $2.553bn in July-May FY24 from $1.889bn 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 SBP data, Pakistan’s exports to the US stood at $5.17bn in FY23, down 23.28pc from $6.74bn in the previous fiscal year. In FY24, Pakistan’s exports to China stood at $2.22bn, down 30pc from $3.18bn in FY22. The US remained Pakistan’s biggest export destination in FY23.

According to the finance ministry report on top export destinations, the US remained Pakistan’s most significant market in 9MFY24. Exports to the USA moderately decreased to 17pc in 9MFY24, compared to 19pc last year. Similarly, the Chinese export share increased to 9pc during the period under review.

Meanwhile, the export share to the United Kingdom stood at 7pc, followed by 5pc in Germany, the UAE and Spain during the months under review. The share in export proceeds remained relatively stable for these countries during the months under review compared to the previous year.

The primary factor hindering exports was the slowdown in major importing economies, exacerbated by stringent monetary policies responding to high inflation and the ongoing Russia-Ukraine conflict. It said home textile exports have dropped due to lower demand in the European Union, the US, and the UK.

Published in Dawn, July 11th, 2024