Exports cross $2 billion mark for fifth consecutive month

ISLAMABAD – For the fifth consecutive month, Pakistan’s exports have crossed $2 billion mark in February that would help in maintaining foreign exchange reserves.

“Ministry of Commerce would like to share that, Alhamdolillah, for 5th consecutive month, our exports have crossed the USD 2 billion mark,” said Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Twitter on Monday. He further said that country’s exports for February this year stood at $2.044 billion as compared to $2.140 billion in same period of the previous year (Feb-2020), showing a decline of 4.5 per cent.

Adviser also shared the eight months exports figures. Pakistan’s exports in first eight months (July to February) of the current fiscal year have increased by 4.2 per cent to $16.3 billion as against $15.64 billion in the corresponding period of the previous year. “We wish to congratulate our exporters for their hard work in earning the foreign exchange for the country and urge them to market their exports even more aggressively,” he concluded.

Exports in first eight months of current fiscal year have increased by 4.2pc to $16.3 billion as against $15.64 billion in corresponding period of previous year

However, Adviser to the Prime Minister on Commerce and Investment, has not shared the figures of imports, which are increasing from last few months, resulting in widening of trade deficit of the country. The ministry of finance in its recent monthly report noted that after a very strong monthly increase in December 2020, partly due to seasonal effects, imports came back to the normal levels in January 2021, resulting in a month on month (MoM) improvement in the trade balance. Although they remain supported by the ongoing economic recovery and further increases in international commodity prices, imports in Feb 2021 are expected to remain lower or at around the same level observed in Jan 2021. On the other hand, owing to incentives provided to export-oriented industries, exports are expected to kick off up to a higher level. As a consequence, in the baseline scenario, the trade balance is expected to show further improvement as compared to the two previous months.

As per PBS, exports during Jul-Jan FY 2021 increased by 5.6 per cent to $14.3 billion ($13.5 billion last year). Pakistan’s exports grew by 8.8 per cent ($2.1 billion) in Jan 2021 ($1.9 billion last year). The textile sector exports increased by 8.2 per cent over the last year. Value added exports increased by 13.4 per cent. The decrease in quantities of value-added exports was compensated by higher unit price. The total imports in Jul-Jan FY2021 increased to $29.3 billion ($27.3 billion last year), thus grew by 7.2 per cent. The petroleum group decreased by 20.9 per cent while import of petroleum crude decreased by 26 per cent in value and increased by 14.7 per cent in quantity. Import of petroleum product increased by 43.2 per cent (quantity) and decreased by 15.3 per cent (value).

The food group import jumped by 51.9 per cent during Jul-Jan FY2021 and reached $4.6 billion ($3.0 billion last year). The government allowed import of wheat and sugar to bridge the local shortages.

Article source: https://nation.com.pk/02-Mar-2021/exports-cross-dollar-2-billion-mark-for-fifth-consecutive-month