ISLAMABAD: Merchandise exports increased nearly 16 per cent to $2.74 billion in August from $2.36bn in the corresponding month last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.
The growth momentum picked pace in August owing to improved orders from the international community and stability in the exchange rate. In July, the exports grew 11.83pc.
On a month-on-month basis, exports saw a hefty increase of 18.9pc in August from the preceding month.
The export proceeds reached $5.05bn in July-August FY25 from $4.43bn over the last year, an increase of 14pc.
Trade gap contracts 20.54pc to $1.67bn in August
In FY24, Pakistan’s merchandise exports rose 10.54pc to $30.64bn from $27.72bn in the preceding year.
Exports increased steadily from July 2023 until they turned negative in January. This negative trend persisted until April. After a temporary setback, growth regained momentum in May and continued into June.
The country witnessed its highest-ever exports in 2021-22, reaching a staggering $31.78bn. However, the following year saw a decline, with exports dropping to $27.54bn.
The surge negates the exporter associations’ claims about the potential negative impact of the tax measures outlined in the budget 2024-25. They believe these steps could result in a decline in the country’s export earnings.
Trade deficit
According to the PBS data, imports grew 5.67pc to $8.63bn in July-August FY25 from $8.16bn over the last year. The imports declined 1.25pc in August to $4.42bn from $4.47bn in the same month last year.
Month-on-month, imports increased 4.92pc. In FY24, imports fell by 0.84pc to $54.73bn compared to $55.19bn in FY23.
The trade deficit in July-August FY25 decelerated by 4.30pc to $3.57bn from $3.74bn over the last year. In August, the deficit narrowed by 20.54pc to $1.67bn from $2.11bn last year.
The trade gap contracted to $24.08bn in FY24 from $27.47bn in the preceding year.
Rice exports
Meanwhile, Commerce Minister Jam Kamal has asked the rice exporters to set an export target of $5bn for the current fiscal year. In FY24, rice exports stood at $4bn. As a result of the high contribution from rice exports, the overall agriculture exports in FY24 reached $8bn.
Sectoral Council for Rice Chairman Shahzad Malik expressed optimism about the future, noting that if favourable climatic conditions persist and export activities continue to grow at the current pace, Pakistan could potentially reach a $10 billion rice export target by 2030.
Published in Dawn, September 4th, 2024
