Pakistan Export Updates

[ghazi52]

Currently rice export third largest sector in country’s economy: REAP leaders​

Associated Press Of Pakistan
Dec 5, 2023

Rice Export Association of Pakistan (REAP) on Tuesday said that rice export is currently the third largest sector in the country’s economy, which should be given the status of an industry.

According to the rice exporter organization, REAPs leaders, Pakistan has an export potential of rice worth $4.5 billion, which can be further improved through the use of technology and modern methods.

According to the REAP leaders, government support is necessary to increase the production of rice in Pakistan and to find new markets, which if fully available, rice export can become the largest sector in Pakistan’s economy.

Meanwhile addressing the press conference on this occasion, REAP Chairman Chela Ram Kelwani said that despite the floods in the recent past, we have managed to achieve the annual target of $2.5 billion, which is a major success for REAP.

Chairman REAPS said that rice export is currently the third largest sector in the country’s economy, and the government is still in the process of giving industry status.

He said that 15 years ago the export of rice was $300 million, which today stands at $2.5 billion, which will be taken up to $5 billion under the patronage of the government.

Chela Ram said that Pakistan’s “Basmati” is very popular all over the world and Pakistani basmati is consumed in the markets of Southeast Asia, Europe and Central Asia.

He said that Punjab is the centre of “Basmati” and the area along the GT-road Punjabis known in the world for the cultivation of Basmati, but at present housing societies are being formed in the areas of rice cultivation.

He said that the export of rice is facing challenges like tariff increases, export issues on the seaports and Bank interest rates and high-priced electricity, which “we need government support to resolve.”

He said that we have defeated India in the European market, and now they cannot sell our rice to the world with their branding.

On this occasion, REAP leader Abdul Rahim Janu said that REAP was founded in 1989 and today it is a representative organization of major rice exporters of the country.

He said that he is doing charity work through the platform of REAP, which includes eye treatment and other medicines for poor patients.

On this occasion, REAP leader Haseeb Ali Khan said that the time is not far when the rice export sector will be the largest sector of the country’s economy.

President National Press Club, Islamabad Anwar Raza while addressing this occasion said that it is a good omen to meet the target of rice export this year 2023 and the time is not far when we will achieve the target of more than $4 billion in rice export.

He assured REAP and Rice will have the full support of the Islamabad Press Club, Islamabad and its journalists.
Meanwhile, Finance Secretary National Press Club, Nayyar Ali, said that the export of rice earns foreign exchange and this sector has a very significant role in the national economy.

Meanwhile, REAP leader Sabi-ur-Rehman said that the export of rice is playing an important role in the country’s exchange and economy. The book “The Rice Story” was also launched on the occasion.

 

[ghazi52]

Pakistan's sesamum seed exports reach all-time high of USD 113 million in Oct 2023​

By Zafar Hussain
Dec 5, 2023

Pakistan has witnessed an unprecedented surge in its Sesamum seed exports, reaching an all-time high of USD 113.66 million just in October 2023. The surge not only underscores the nation's prowess in the agricultural sector but also highlights its ability to capitalize on global market demands, said Ghulam Qadir Commercial Counsellor Pakistan Embassy in Beijing.

Ghulam Qadir said that the Sesamum seed industry continues to thrive, experts attribute this remarkable achievement to a combination of favorable climatic conditions, strategic agricultural policies, and adept market positioning. This surge in exports not only reflects positively on Pakistan's economy but also positions the country as a key player in the international Sesamum seed market.

“In the first ten months of 2023, Pakistan's sesame seed exports to China increased 100% amounting to USD 170.06 million, whereas last year in the same period (January-October) it was USD 84.67 million worth of sesame seed Pakistan exported to China. In October Pakistan exported 64,711.149 tons of sesame seed to China worth USD 113.66 million while in last year's same month, it was 16,727.774 tons worth USD 25.57 million, he stated.

He further said that as per the General Administration of Customs of the People’s Republic of China, China imported 97,069.705 tons of sesame seed from Pakistan in the first ten months of 2023, an increase of 72.53% by volume worth USD 170.063 million. In the same period last year, it was 56,261.629 tons worth USD 84.67 million.
It is worth mentioning that Pakistan's exports to China crossed USD 2.82 billion in the first ten months of this year, up 1.27 percent year on year.

 

[ghazi52]

Pakistan, Japan launch ambitious project to boost ICT exports​

MoITT partners with JICA to position ICT sector on global stage

Our Correspondent
December 16, 2023

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ISLAMABAD: The Federal Ministry of Information Technology and Telecommunication (MoITT), Pakistan, and the Japan International Cooperation Agency (JICA) have initiated an EAD-approved project focused on elevating Pakistan’s ICT industry exports to Japan and fostering partnerships between public and private entities. The formal Record of Discussions was signed by key representatives at MoITT on Friday, December 15, 2023.

The collaborative effort, titled “The Project for Strengthening the Business Collaboration of ICT Industry in Pakistan,” is funded by JICA and spans three years, with execution led by the Pakistan Software Export Board (PSEB). The project aims to position Pakistan’s ICT sector prominently on the international stage, fostering collaborations, joint ventures, and export opportunities.

 

[ghazi52]

Exports to Middle East jump 29pc in July-November​

Mubarak Zeb Khan
December 27, 2023

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.

Exports to Middle East jump 29pc in July-November

Surge in demand for Pakistani products observed from UAE, Saudi Arabia and Kuwait.

www.dawn.com

 

[Ghseean]

Rice exports: irrational exuberance?​

BR Research Published about 6 hours ago
Pakistan’s rice exports seem to be coming into their own. According to the monthly external trade statistics reported by the Pakistan Bureau of Statistics (PBS), total rice exported during 5M-FY24 (Jul – Nov) period exceeded 1.7 million metric tons (MMT), with export revenue reaching $1.12 billion – both firsts in history. In fact, this is the first time that rice export earnings have exceeded a billion-dollar mark during the first five months of the fiscal year, raising hopes for an even more spectacular second half for the industry.


On annualized basis alone, rice export revenue for the full fiscal 2023-24 could climb up to $2.7 billion, against the highest ever export earnings of $2.5 billion recorded during 2021-22. In fact, industry insiders are confident that export earnings could climb up to $3 billion, based on forecasts of exports reaching the target of 5MMT, a holy grail for the industry.


The exuberance in the industry is truly palpable. The revenue target of $3 billion no longer seems unachievable if the average unit price of exports remains north of $575 per metric ton for the remainder seven months of the fiscal year, which is very much in line with industry forecasts. Average unit price of total rice exports during the 5M-FY24 period hovered above 650 per metric tons, levels last witnessed during the commodity super cycle of 2008-09. Back then, Pakistan’s rice export earnings breached the $2 billion psychological barrier for the first time in history but have remained rangebound in the same territory ever since.


Although basmati rice remains Pakistan’s key premium brand, it is the ‘other rice’ category of coarse varieties that are leading the way during the current fiscal. In the five months since Jul 2023 (Jul – Nov), Pakistan exported 1.5MMT of coarse rice, which is 25 percent higher than last 10-year average volume of 1.2MMT for the 5M period. Similarly, coarse rice exports during Nov 2023 climbed up to 0.61MMT, which is 50 percent higher than the last 10-year average for the month of November at just 0.4MMT. Reportedly, total rice shipments of 0.66MMT are itself the highest-ever monthly export number in the country’s history, however, BR Research could not independently confirm this claim as monthly export volume data going back beyond 2010s is unavailable.
But amidst the jubilation, serious risks lurk in the shadows. The phenomenal performance by kharif rice crop during the 2023 season – coupled with record prices in the international market – has made the industry hopeful that 2024 belongs to them. But H2-FY24 could take a disastrously dangerous turn. Already, basmati prices in the international market have declined by 36 percent from peak levels of $1500 per metric tons in Jan 2023, to under a thousand dollars per ton by Nov 2023. Similarly, the rise and rise witnessed in prices of various coarse rice varieties including Pakistan’s has now begin to plateau, with sharp downside risks.
News from across the border indicates that the Indian central government could gradually begin to reduce the sanctions on its coarse rice exports; once Indian coarse rice varieties return to the global market, Pakistan’s rice export prospects could face a serious blowback.

But increased competition from across the border isn’t the only risk faced by Pakistan’s rice exporters. The industry has been raising short term credit from banks like there is no tomorrow, with credit to rice industry rising by 15 percent as at November 2023 (against Nov 2022), and 30 percent against Oct 2023. In fact, BR Research’s analysis shows that borrowing by the rice industry has exceeded the borrowing trend of 2021-22. Since both unit prices and crop output are significantly higher – that might make sense. However, it is worth noting that during the Q4-2021 borrowing boom, average borrowing cost was still well under 7 percent, while the average borrowing rate today has now exceeded 21 percent.

Because much of this borrowing is taking place under the seasonal cash financing lines, the industry could face margin calls against its overdraft lines if commodity prices in the international markets take a sharp turn. At twenty plus interest rate, it is hard to imagine how the industry would keep its head above water in such a scenario. For the rice exporters’ bet to play out, either the borrowing rate must fall, or the average unit price of exports must maintain current momentum and stay in the vicinity of $600 per metric ton. If either does not work out, 2024 could turn out very differently from expectations after all.

Rice exports: irrational exuberance?

Pakistan’s rice exports seem to be coming into their own. According to the monthly external trade statistics...

www.brecorder.com

 

[ghazi52]

Pakistan earns $372.930m by exporting transport services in 4 months​

by The Frontier Post

ISLAMABAD (APP): Pakistan earned US $372.930 million by providing different transport services in various countries during the first four months of the current fiscal year (2023-24) as compared to the corresponding period of last year.

This shows an increase of 26.01 percent as compared to $295.959 million earned through the provision of services during the corresponding months of the fiscal year (2022-23), the Pakistan Bureau of Statistics (PBS) reported.

During the months under review, the exports of sea transport services witnessed an increase of 120.49 percent, going up from $65.700 million last year to $144.860 million during the months under review.

Among the sea transport services, the exports of freight services dipped by 62.56 percent from $53.370 million last year to $19.980 million whereas the exports of other sea transport services however increased by 912.81 percent from $12.330 million to $124.880 million current year, the PBS data revealed.

The exports of air transport witnessed a nominal decline of 1.95 percent going down from $222.779 million last year to $218.440 million during July-October 2023.

Among the air transport services, the exports of passenger services increased by 3.57 percent, from $144.650 million to $149.810 million, whereas the exports of freight services dipped by 32.51 percent, from $ 11.350 million to $ 7.660 million, in addition, the export of other air transport services also dipped by 8.70 percent from $66.779 million to $60.790 million.

Meanwhile, the exports of road transport services during the months under review witnessed a growth of 70.15 percent going up from $4.590 million to $7.810 million during this year, it added.
Among the road transport services, the exports of freight services witnessed a decrease of 17.61 percent from $1.590 million to $1.310 million, while the export of postal and courier services decreased by 37.02 percent, from $2.890 million to $1.820 million, the data revealed.

 

[ghazi52]

Exports jump 22pc in December​

Mubarak Zeb Khan
January 3, 2024

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.

 

[ghazi52]

Pakistan's Sesame Seed exports blossom in China in 2023​

By Zafar Hussain | Gwadar Pro
Jan 3, 2024

BEIJING, Pakistan witnessed a remarkable surge in sesame seed shipments to China throughout the year 2023. This unprecedented growth has positioned Pakistan as a major player in the global sesame seed market, with Chinese consumers increasingly embracing the quality and flavor of Pakistani sesame, said Ghulam Qadir, Commercial Counsellor at the Pakistan Embassy in Beijing.

Ghulam Qadir stated that Pakistan’s export of Sesamum seeds to China was $250.85 million from January to November 2023, compared to $117.85 million in the same period last year. This marks an increase of more than 112%. Overall, Pakistan’s export of Sesamum seeds to China in 2022 was $128.44 million, while it was $120.44 million in 2021.

“Pakistan exported 143,527.875 tons of Sesamum seeds to China from January to November 2023, whereas in 2022, it was 84,985.321 tons. China imported 92,516.55 tons in 2021 and was one of the key destinations for Sesamum seeds exports from Pakistan,” he added.

Pakistan's Sesame Seed exports blossom in China in 2023

BEIJING, Jan.3, (Gwadar Pro)- Pakistan witnessed a remarkable surge in sesame seed shipments to Chin

www.gwadarpro.pk

 

[ghazi52]

Pakistan's cotton export to China crosses $617 million in 2023​

By Zafar Hussain | Gwadar Pro
Jan 8, 2024

BEIJING, (China Economic Net) – Experts in Pakistani cotton expressed optimism about the growth of the country's cotton sector and yarn exports to China and other countries, which are rising annually despite floods and other challenges.

According to the Pakistan Ministry of Commerce, sources said that as per the General Administration of Customs of the People's Republic of China (GACC), China imported more than $617.62 million worth of cotton yarn from Pakistan in the first eleven months of 2023. Uncombed single cotton yarn containing 85% or above, (commodity code 52051200) crossed $ 414.70 million from January – November of 2023.

Data further showed that cotton yarn (commodity code 52051100) crossed $195.097 million in the first eleven months of 2023, while last year in the same period it was $106.76 million. Uncombed cabled cotton yarn (commodity code 52053200) crossed $5.27 million from January to November 2023. In the first eleven months of 2023, more than 237964.907 tons of cotton yarn in the top three items were imported from Pakistan.

Sajjad Mazahir, General Manager of China Operations Keywin Trading Ltd, told China Economic Net that Cotton yarn exports from Pakistan to China are one of the very organized export sectors. Suppliers have built their brands and reputation over quality, pricing, and above all strong connections over the year.

He further said that Pakistan's local textile industry has been blessed with tremendous opportunities post flood with many sectors showing strong exports, denim, towels, home textiles, and made-ups. That situation has changed Pakistan's surplus exports to local consumption and the price quantities being exported to China is sliding gradually.

 

[ghazi52]

Pakistan’s exports surge by $ 1 billion in Q2 of FY 2024: Minister​

By Fatima Javed | Gwadar Pro
Jan 18, 2024

Federal Minister for Commerce, Industries, and Investment, Dr. Gohar Ejaz, has announced a remarkable surge in the country’s international trade performance with exports increased to $1 billion during the second quarter of the fiscal year 2024.

“From potential default to record-breaking surpluses. Pakistan posted a current account surplus of $397mn in Dec 2023 and overall, a surplus of $198mn in Q2 of FY24,” the commerce minister confirmed in a statement here on Thursday.

He said the Dec 2023 surplus contrasted with a deficit of $365m in Dec 2022.

This is quite significant as the CAD has narrowed by 77% to $2.8 billion.

The minister highlighted that when the caretaker government took charge, the Jul 2023 deficit was $810mn. Higher exports and lower imports are turning the tide. “We're addressing our economic challenges head-on.”

He said that the impact of strategic policies, such as those under the Special Investment Facilitation Council (SIFC) framework, is evident in the positive trade performance and future growth targets.

“The data reflects a resilient trade performance, strategic policy initiatives, and a positive outlook for Pakistan's export-led growth in the coming months and years,” the minister added.

 

[FuturePAF]

Pakistan’s exports surge by $ 1 billion in Q2 of FY 2024: Minister​

By Fatima Javed | Gwadar Pro
Jan 18, 2024

Federal Minister for Commerce, Industries, and Investment, Dr. Gohar Ejaz, has announced a remarkable surge in the country’s international trade performance with exports increased to $1 billion during the second quarter of the fiscal year 2024.

“From potential default to record-breaking surpluses. Pakistan posted a current account surplus of $397mn in Dec 2023 and overall, a surplus of $198mn in Q2 of FY24,” the commerce minister confirmed in a statement here on Thursday.

He said the Dec 2023 surplus contrasted with a deficit of $365m in Dec 2022.

This is quite significant as the CAD has narrowed by 77% to $2.8 billion.

The minister highlighted that when the caretaker government took charge, the Jul 2023 deficit was $810mn. Higher exports and lower imports are turning the tide. “We're addressing our economic challenges head-on.”

He said that the impact of strategic policies, such as those under the Special Investment Facilitation Council (SIFC) framework, is evident in the positive trade performance and future growth targets.

“The data reflects a resilient trade performance, strategic policy initiatives, and a positive outlook for Pakistan's export-led growth in the coming months and years,” the minister added.

If Pakistan had its act together, and Gwadar was up and running. Pakistan could pickup companies looking to leave Dubai, as they implement a 9% corporate tax for many companies.

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[ghazi52]

Textile exports rise to $1.39bn in December​

Mubarak Zeb Khan
January 20, 2024

ISLAMABAD: The textile and clothing exports rebounded in December from the previous month’s downward trajectory, according to data issued by the Pakistan Bureau of Statistics (PBS) on Friday.

The sector expanded by 3.33 per cent, with exports reaching $1.39 billion, up from $1.35bn in the same month the previous year. Textile and garment exports fell by more than 7pc year-on-year in November.

In the first half of the year, textile and clothing exports saw growth in just two months — October and December. However, it remains uncertain whether this upward trend in growth will persist in the upcoming months.

The export of textile and clothing fell by 4.97pc to $8.28 billion in the first half of the year from $8.71bn over the corresponding period of last year. The sector has experienced a decline in exports mainly attributed to escalating production costs due to higher energy costs and a liquidity crunch.

A few months ago, the commerce ministry announced that the government would soon offer regionally competitive energy prices to textile exporters and resolve their cash flow issues by releasing pending sales tax refunds. However, the decision has yet to be implemented.

Oil imports dip 14pc to $8bn in first half of current fiscal year

The exports of textile and clothing contracted by 14.63pc to $16.50bn in FY23. However, the total merchandise exports dipped 12.71pc to $27.54bn from $31.78bn in the preceding year.

PBS data showed the exports of readymade garments shrank by 6.45pc in value in December and surged by 20.77pc in quantity, while knitwear grew 4.14pc in value and 55.68pc in quantity. Bedwear posted positive growth of 8.59pc in value and 21.88pc in quantity.

Towel exports increased by 6.57pc in value and 12.17pc in quantity, whereas those of cotton cloth declined by 11.73pc in value but grew 30.06pc in quantity.

However, the exports of raw cotton and yarn increased by over 100pc and 78.55pc during December of FY24 from a year ago.

The exports of made-up articles, excluding towels, dipped by 15.85pc, and tents, canvas and tarpaulin went up by 19.85pc in December from a year ago.

The import of textile machinery declined by 53.52pc in December, a sign that expansion or modernisation projects were not a priority. At the same time, the import of synthetic fibre declined by 28.61pc, synthetic and artificial silk yarn by 16.10pc and other textile items by 8.73pc. However, the import of worn clothes posted a growth of 33.81pc during the month under review.

In the first half of FY24, the total exports slightly increased 5.25pc to $14.99bn this year from $14.24bn over the last year.

Imports of oil

Oil imports dipped by 13.78pc in the first half of FY24 to $8.005bn from $9.285bn a year ago, PBS data showed.

A noticeable decline was observed in both the quantity and value of major imports during the period under review amid economic slowdown and a steep fall in the purchasing power of consumers.

According to the PBS data, imports of petroleum products declined by 24pc in value during July-December and 16.64pc in quantity.

Imports of crude oil increased by 7.54pc in quantity while the value decreased by 5.94pc.

Similarly, liquefied natural gas imports dipped by 4.96pc during 6MFY24 on a year-on-year basis. On the other hand, liquefied petroleum gas imports declined 2.69pc in the months under review.

The reduction in import quantities of crude oil and petroleum products is a clear indication of reduced transportation amid slowing economic activities. This also suggests lower capacity utilisation of local oil refineries compared to the last year, affecting their profitability.

Machinery arrivals

Machinery imports increased by 11.45pc to $3.6bn in July-December from $3.23bn in 6MFY23, mainly due to an increase in imports of telecom equipment, including mobile phones, electrical machinery, and office machinery. All other categories of machinery recorded a negative growth.

Mobile phone imports surged by more than 118.45pc to $792.61 million, up from $362.84m. This represents the single largest share of overall machinery import value in the first half of FY24.

The transport sector’s imports tumbled by 27.72pc to $840.60m in the July-December period against $1.163bn in the same months last year.

 

[FuturePAF]

Textile exports rise to $1.39bn in December​

Mubarak Zeb Khan
January 20, 2024

ISLAMABAD: The textile and clothing exports rebounded in December from the previous month’s downward trajectory, according to data issued by the Pakistan Bureau of Statistics (PBS) on Friday.

The sector expanded by 3.33 per cent, with exports reaching $1.39 billion, up from $1.35bn in the same month the previous year. Textile and garment exports fell by more than 7pc year-on-year in November.

In the first half of the year, textile and clothing exports saw growth in just two months — October and December. However, it remains uncertain whether this upward trend in growth will persist in the upcoming months.

The export of textile and clothing fell by 4.97pc to $8.28 billion in the first half of the year from $8.71bn over the corresponding period of last year. The sector has experienced a decline in exports mainly attributed to escalating production costs due to higher energy costs and a liquidity crunch.

A few months ago, the commerce ministry announced that the government would soon offer regionally competitive energy prices to textile exporters and resolve their cash flow issues by releasing pending sales tax refunds. However, the decision has yet to be implemented.


The exports of textile and clothing contracted by 14.63pc to $16.50bn in FY23. However, the total merchandise exports dipped 12.71pc to $27.54bn from $31.78bn in the preceding year.

PBS data showed the exports of readymade garments shrank by 6.45pc in value in December and surged by 20.77pc in quantity, while knitwear grew 4.14pc in value and 55.68pc in quantity. Bedwear posted positive growth of 8.59pc in value and 21.88pc in quantity.

Towel exports increased by 6.57pc in value and 12.17pc in quantity, whereas those of cotton cloth declined by 11.73pc in value but grew 30.06pc in quantity.

However, the exports of raw cotton and yarn increased by over 100pc and 78.55pc during December of FY24 from a year ago.

The exports of made-up articles, excluding towels, dipped by 15.85pc, and tents, canvas and tarpaulin went up by 19.85pc in December from a year ago.

The import of textile machinery declined by 53.52pc in December, a sign that expansion or modernisation projects were not a priority. At the same time, the import of synthetic fibre declined by 28.61pc, synthetic and artificial silk yarn by 16.10pc and other textile items by 8.73pc. However, the import of worn clothes posted a growth of 33.81pc during the month under review.

In the first half of FY24, the total exports slightly increased 5.25pc to $14.99bn this year from $14.24bn over the last year.

Imports of oil

Oil imports dipped by 13.78pc in the first half of FY24 to $8.005bn from $9.285bn a year ago, PBS data showed.

A noticeable decline was observed in both the quantity and value of major imports during the period under review amid economic slowdown and a steep fall in the purchasing power of consumers.

According to the PBS data, imports of petroleum products declined by 24pc in value during July-December and 16.64pc in quantity.

Imports of crude oil increased by 7.54pc in quantity while the value decreased by 5.94pc.

Similarly, liquefied natural gas imports dipped by 4.96pc during 6MFY24 on a year-on-year basis. On the other hand, liquefied petroleum gas imports declined 2.69pc in the months under review.

The reduction in import quantities of crude oil and petroleum products is a clear indication of reduced transportation amid slowing economic activities. This also suggests lower capacity utilisation of local oil refineries compared to the last year, affecting their profitability.

Machinery arrivals

Machinery imports increased by 11.45pc to $3.6bn in July-December from $3.23bn in 6MFY23, mainly due to an increase in imports of telecom equipment, including mobile phones, electrical machinery, and office machinery. All other categories of machinery recorded a negative growth.

Mobile phone imports surged by more than 118.45pc to $792.61 million, up from $362.84m. This represents the single largest share of overall machinery import value in the first half of FY24.

The transport sector’s imports tumbled by 27.72pc to $840.60m in the July-December period against $1.163bn in the same months last year.

“However, the exports of raw cotton and yarn increased by over 100pc and 78.55pc during December of FY24 from a year ago.”

Headlines don’t tell the whole story. We need to cut electricity and transport costs to make sure raw materials are not shipped out and only value added finished products.

 

[ghazi52]

Food exports surge 112pc in December​

Mubarak Zeb Khan
January 21, 2024

ISLAMABAD: The export of raw food products recorded an upsurge of almost 111.63 per cent in December compelling domestic consumers to pay higher prices.

These unchecked exports pushed the food inflation to a staggering 28.8pc in December 2023 as prices skyrocketed affecting accessibility to essential commodities, particularly wheat flour, rice, sugar, meat and vegetables.

Since October 2023, the country’s raw food exports have increased dramatically, although manufacturing sector exports have remained flat for several months.

Food exports grew 49.84 per cent in the first half of fiscal year 2023-24 to $3.48 billion from $2.32bn in the corresponding months of last year, according to data released by the Pakistan Bureau of Statistics (PBS).

Consumers are paying unprecedented prices for meat, chicken and rice

The surge in food exports can be attributed to the unprecedented rupee depreciation. In addition, persistent disruptions in the supply chain and higher prices in the international market have led to soaring demand for food products.

The PBS data showed the country’s rice exports rose 76.53pc in July-December FY24 led by basmati rice, which had been falling since last year.

The export of basmati rice experienced a notable surge of 30.03pc, reaching $367.39 million in July-December FY24 from $282.53m in the corresponding period last year.

India’s recent decision to impose a ban on rice exports has emerged as a key driver behind the surge in basmati rice exports.

According to PBS data, the export of non-basmati rice rose 96.88pc to $1.64 billion in July-December 2023-24 from $645.38m in the same period last year.

Due to a sustained surge in export figures over the past two years, the average price of basmati rice has surged to Rs380 per kg from Rs150, restricting buying from domestic consumers.

Pakistan exported $239.71m worth of meat in 6MFY24 from $191.91m over the last year, showing a growth of 24.90pc. The reason for the increase in meat exports is the introduction of new markets like Jordan, Egypt, and Uzbekistan.

At the same time, several new enterprises are registering to export meat to the United Arab Emirates, Saudi Arabia and other Gulf nations. Malaysia also cleared another three slaughterhouses for export/processing. Furthermore, one meat exporting company was granted market access for heat-treated meat shipments to China.

The prices of meat in the domestic market have experienced an unparalleled surge in recent years. In two years, the average price of buffalo meat has jumped from Rs700 per kg to Rs1,250 per kg. This increase has caught the attention of market observers and stakeholders alike. The price of chicken has also experienced an unprecedented surge, reaching its highest level in the last two years.

The export of fruits saw an increase of 9.31pc in the first half of FY24 to $171.28m against $156.69m over the last year. The export of all other food products saw an increase of 22.62pc to $616.81m in 6MFY24 from $503.03m over the corresponding months of last year.

Pakistan exported fish and fish products worth $199.02m in the first half of FY24, showing a decline of 11.63pc from a year ago of $225.21m.

Published in Dawn, January 21st, 2024

 

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Record rice leads exports​

BR Research
January 25, 2024

December 2023 goods’ exports surged to $2.8 billion – breaking the string of low export earnings – recording the highest in 18 months. This ranks third on the list of highest-ever monthly export earnings. More than the value, it is the composition of exports that makes for an interesting reading.



Barring the peak-Covid month of April 2020, where industrial activity was almost at a standstill – December 2023 is the first time in at least 15 years that textile’s share in exports has dipped below 50 percent. For context, textile’ share in total goods’ exports since 2011 has been an average 60 percent. Of course, one month is not a trend, but looking at 1HFY24 numbers, a trend does seem to be appearing – where textile share at 55 percent is the lowest in 10 years.

This marks a very rare occasion in Pakistan’s trade history when overall exports show positive growth despite decline in textile earnings. Textile exports dipped 5 percent year-on-year – with major categories from knitwear to readymade garments posting a decline, that is largely driven by a sharp reduction in unit values. Export quantities, on the other hand, have registered modest growth year-on-year, but multiyear low unit values have dragged overall exports down for the key textile categories.

The biggest dip in unit values is seen in knitwear segment – with a decline of 38 percent year-on-year during 1HFY24, followed by readymade garments, where average unit value of export has dipped to $3.1 per piece – down 15 percent year-on-year. The ratio of readymade to knitwear unit export price has gone down by a third from a 10-year average of 3x to 12-month moving average of 2x – indicating Pakistan’s value-added exports may well be fetching lower-end segments than earlier.

On the other end of the spectrum, food group is singlehandedly keeping exports alive – having registered a remarkable 50 percent year-on-year growth during 1HFY24. At 30 percent share in total exports in December 2023, this is the highest monthly contribution by the group ever, barring April 2020. The march is led by rice exports – which went up 48 percent year-on-year in quantity terms at 2.5 million tons, the highest–ever half-yearly number. Rice export unit value also jumped 19 percent to $637/ton – taking the 1HFY24 exports to $1.6 billion – up 77 percent year-on-year.

Overall exports were higher by $0.7 billion during 1HFY24 in absolute terms – whereas rice alone added $0.7 billion to the export tally in the period, more than making up for the $0.4 billion loss in textile export earnings. Pakistan’s goods’ exports are well on way to cross $30 billion in FY24 – only for the second time in history. Much will depend on how the upcoming government deals with energy price and currency.