Pakistan Exports / Imports - Updates

Pakistan expands agricultural exports: Rice exports hit $4 billion​

The Nation
Dec 9, 2024

Pakistan’s agricultural exports are experiencing remarkable growth, driven by the efforts of the Special Investment Facilitation Council (SIFC).

In a major breakthrough, Pakistan has successfully entered the East African market by exporting tractors to Tanzania. The first consignment of Pakistani tractors was recently delivered, facilitated through a partnership with Kenya-Tanzania-based Masai Trekta Company, showcasing Pakistan’s commitment to expanding global trade partnerships.

Meanwhile, Pakistan has achieved a historic milestone in rice exports, generating $4 billion in revenue during the fiscal year 2024. This achievement reflects the effectiveness of SIFC’s initiatives in promoting the agricultural sector.

SIFC official Shahjehan Malik revealed that the target for rice exports in the next fiscal year has been set at $5 billion. He emphasized the importance of developing modern seeds and standardized agricultural practices to achieve this goal.

Pakistan’s Basmati rice, renowned for its high quality, continues to strengthen the country’s position in the global market, with over 6 million tons of various rice varieties exported last year.
 

Pakistan’s medical and surgical instrument exports to China surge​

Gwadar Pro
Dec 6, 2024

BEIJING - Pakistan’s exports of medical and surgical instruments to China have experienced a significant boost in the first ten months of 2024, marking a positive trend for the country’s healthcare manufacturing sector.
According to the latest data from the General Administration of Customs of China (GACC), the export value of medical and surgical instruments to China has risen by 5.189% compared to the same period last year. This surge is attributed to the increasing demand for high-quality medical devices in China and Pakistan’s growing reputation for producing reliable and cost-effective healthcare products.
 
In the first five months of this fiscal year (July-November 2024), goods exports grew by 12.57 per cent to $13.69bn, while services exports increased by 7.91pc to $2.6bn. Maintaining this growth trajectory is crucial for narrowing the trade deficit.

In the first five months of this fiscal year (July-November 2024), goods exports grew by 12.57pc to $13.69bn, while services exports (from July to October 2024) increased by 7.91pc to $2.6bn. Maintaining this growth trajectory is crucial for narrowing the trade deficit.

During July-November 2024, the goods trade deficit stood at $8.65bn, with imports growing by only 3.9pc year-on-year. However, as the economy begins to expand and fuel prices rise amid growing instability in the Middle East, imports are likely to grow faster, putting additional pressure on the trade deficit.

Similarly, the services trade deficit for July-October 2024 totalled $993 million, with imports increasing by 2.41pc. As the economy recovers and is projected to grow by 3pc this fiscal year, according to the Asian Development Bank, services imports are also expected to rise. Thus, faster growth in services exports is essential to keep the deficit in check.

However, challenges remain. Poor performance in wheat and cotton crops threatens to slow the growth of goods exports, while the relocation of IT businesses to Dubai has introduced uncertainty in foreign exchange inflows from this critical segment of services exports.
 

Textile exports jump to $7.6bn​


Mubarak Zeb Khan
December 18, 2024

ISLAMABAD: The textile and clothing exports increased 10.51 per cent in the first five months of the current fiscal year, Pakistan Bureau of Statistics data showed on Tuesday.

After contracting 3.09pc in the first month of 2024-25 in July, the textile exports maintained a bullish trend with robust growth of 13pc in August, 17.92pc in September, 13.11pc in October, and 10.81pc in November, respectively.

Many experts believe it would take a lot of struggle for the sector to compete with regional rivals due to the implementation of harsh taxation measures in the current fiscal year. However, the disruption in supply from Bangladesh has also boosted demand for Pakistani garments.
 
Textile and clothing exports have been static for the last two years despite having a $25 billion installed capacity due to structural issues, according to textile players.

In absolute terms, the textile and clothing exports rose 10.61pc to $7.61bn in July-November FY25 from $6.88bn in the corresponding period last year.

The government has introduced various measures, including increasing the tax rate on exporters’ personal income in 2024-25.

The PBS data showed exports of readymade garments rose 23.10pc in value and 13.61pc in quantity during 5MFY25, while knitwear rose 18.42pc in value and 8.87pc in quantity. Bedwear grew 15.05pc in value and 14.86pc in quantity.

Towel exports rose 7.08pc in value and 6.90pc in quantity 5MFY25, whereas cotton cloth went up 4.18pc in value and contracted 2.09pc in quantity, respectively.

Yarn exports dipped 38.70pc in 5MFY25. The exports of made-up articles, excluding towels, increased by 11.61pc, and tents, canvas and tarpaulin went up by 9.63pc in 5MFY25. No export of raw cotton was recorded during the period under review.

The import of synthetic fibre shrank 18.20pc, and the arrival of synthetic and artificial silk yarn increased by 4.30pc. However, other textile items’ import increased by 68.73pc the period under review.

The import of raw cotton surged 104.33pc from a year ago. However, the import of second-hand clothes grew 20.22pc.

In July-November FY25, the country’s total exports increased by 12.82pc to $13.72bn, up from $12.16bn in the same months last year.
 

Pakistan’s rice exports surge by 35.4% in first five months of FY 2024-25​

The Nation
Dec 21, 2024

Pakistan’s rice exports witnessed a significant increase of 35.40% during the first five months of the current fiscal year (2024-25) compared to the same period last year, according to data from the Pakistan Bureau of Statistics (PBS).

From July to November 2024, the country exported over 2.377 million metric tons of rice, including basmati and other varieties, valued at $1.515 billion. This marks a sharp rise from the 1.721 million metric tons valued at $1.119 billion exported during the same period in the previous fiscal year.

Exports of basmati rice alone increased by 34.64%, reaching 370,282 metric tons worth $386.116 million, compared to 244,664 metric tons valued at $286.778 million during the same period last year.

Non-basmati rice exports also rose substantially, with 2.006 million metric tons shipped, generating $1.129 billion in revenue. This reflects a significant growth from the 1.476 million metric tons exported last year, valued at $832.523 million.

The rise in rice exports underscores Pakistan’s growing foothold in global markets and its strong agricultural performance in the current fiscal year.

 

Imports cross $5 billion after two years​


Trade deficit widens 35% in December as imports grow

Our Correspondent
January 02, 2025

tribune


ISLAMABAD: Pakistan's trade deficit widened 35% to $1.8 billion in December 2024 after the government let imports grow to more than $5 billion for the first time in two years.

Pakistan Bureau of Statistics (PBS) reported on Wednesday that trade deficit – the gap between imports and exports – widened 35% in December compared to the same month of last year. The key reason behind the jump in deficit was $5.3 billion worth of imports – the highest since December 2022. It was for the first time in two years the authorities allowed imports to cross $5 billion. There was a $650 million, or 14%, increase in imports last month.

Import restrictions, mostly informal, have been in place for the past almost three years due to external sector challenges. The government has managed to bring the current account deficit under control on the back of compressed imports and some increase in the formal non-debt creating inflows. Imports have been controlled around $4.5 billion a month due to less availability of foreign exchange and the central bank's policy to buy dollars from the market to build its reserves.
 
Exports continued their upward movement and remained above $2.8 billion in December. However, the growth in exports remained stagnant last month on a yearly basis.

There has been a healthy momentum in exports and remittances from overseas Pakistanis during the current fiscal year – the two most critical non-debt creating sources of foreign inflows. This provides an additional cushion of at least $600 million per month to the government.

But this has been achieved by keeping the dollar price high at Rs278, which Deputy Prime Minister Ishaq Dar believes is overvalued by at least Rs40 per dollar. He has estimated the parity at around Rs235-240. The gross official foreign exchange reserves remained below $12 billion, also below the minimum threshold that can provide three months of import cover.



During the first half (July-December) of the current fiscal year, imports grew over 6%, or $1.6 billion. Imports stood at $27.7 billion in six months.

Compared to that, six-month exports amounted to $16.6 billion, up $1.6 billion, or 10.5%. In the last fiscal year, rice exports had significantly contributed to Pakistan's total exports. But India has now lifted the ban on its rice exports. Trade deficit during the first half remained manageable at $11.2 billion. On a month-on-month basis, the PBS data showed that trade deficit increased 47% in December to $2.4 billion.

Exports amounted to $2.8 billion last month, higher by $8 million. But imports jumped to $5.3 billion, an increase of 17.5%.

Prime Minister Shehbaz Sharif has launched the National Economic Transformation Plan this week after postponing it three times. The plan aims to increase exports related to information technology and freelancing services by $5 billion by 2029 – a goal that clashes with the current IT policies. IT exports are part of the broader plan to boost overall exports to $60 billion in five years. Achieving this requires a VPN-free, unrestricted social media environment.

Under the goal of e-Pakistan, the plan targets the production of 75,000 IT graduates annually, expansion of cellphone users to 192 million and increase in broadband subscriptions to 135 million.

It also includes the creation of over 250 higher education-recognised universities, a 178% increase in IT exports and the establishment of more than 100 software technology parks.

One of the ambitious goals is to have at least one Pakistani unicorn company with $1 billion market valuation. Currently, no Pakistani company earns $1 billion from exports.

In 2023, the highest export value of any company was less than $550 million, achieved in the textile sector.
 

Export of services reaches $676 million in November​

Mubarak Zeb Khan
January 4, 2025

ISLAMABAD: Export of services grew 6.51 per cent to $675.69 million in November 2024 as against $634.39m in the corresponding month last year.

The growth has returned since February 2024 thanks to a consistent increase in information technology exports, except August, which saw a 6.5pc contraction.

In rupee terms, the exports improved by 3.63pc to Rs187.713 billion in November against Rs181.131bn in FY24, according to statistics issued by the Pakistan Bureau of Statistics on Friday. In the first five months, export of services rose 7.58pc to $3.27bn against $3.04bn in the corresponding months last year.

In FY24, the services exports posted a paltry growth of 2.77pc to $7.8bn from $7.59bn in the preceding year.

Pakistan emerged as the second top country with the number of freelancers in the world last year and IT products and services were exported to 170 countries.

A new framework for freelancers has been introduced to further ease the opening of their bank accounts and allow higher amounts to be retained in their foreign currency accounts.

The government has an export target of $15bn for IT exports in the next five years.

The State Bank of Pakistan has increased the allowable retention limit in Exporters’ Specialised Foreign Currency Accounts from 35 to 50pc. This development has motivated IT exporters to bring back profits to Pakistan, significantly increasing overall export numbers.

The exchange rate stability incentivised IT companies to engage in business activities and repatriate their earnings.
 

US, China, and UK remain top 3 destinations of Pakistani exports: SBP​


APP | Dawn.com
January 14, 2025

The United States (US) remained the top export destination of Pakistani products during the first five months of the current fiscal year, followed by China and the United Kingdom (UK).

Total exports to the US during the period were recorded at $2512.809 million as compared to last year’s $2299.165m, showing an increase of 9.29 per cent, according to the State Bank of Pakistan (SBP).
 
SBP data signified exports to China decreasing by 13.93pc, where Pakistan exported goods worth $1053.161m in FY25 against last year’s $1223.702m.

The UK was noted to be among the top export destinations for the country as Pakistan exported products worth $935.018m, according to SBP.

In a previous Dawn report, it was noted that exports to European countries grew 8.62pc in the first five months of the current fiscal year, mainly due to higher shipments to western states.
 
The resurgence in exports to Europe in the current fiscal year was due to a slight increase in demand for Pakistani goods in western, eastern and northern Europe.

In absolute terms, Pakistan’s exports to the European Union (EU) reached $3.866 billion in July-November FY25 from $3.559bn in the same period last year, according to data.

In FY24, Pakistan’s exports to the EU dipped 3.12pc to $8.240bn despite its GSP+ status, which allows duty-free entry into most European markets.

Among other countries, Pakistani exports to UAE stood at $925.594m against US $817.848 million last year, while Pakistan’s exports to Saudi Arabia were recorded at $303.421m during the current year compared to US $275.619m last year.
 
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