Goods exports jump 18pc to hit all-time high level of $25.3 billion in FY2020-21

ISLAMABAD   –  Pakistan’s exports rose to $25.3 billion in last fiscal year, highest ever in country’s history. 

“Our exporters have done it. It gives me immense pleasure to share that our exports of goods during FY2020-21 stand at USD 25.3 billion. These are the highest-ever exports of goods in the history of Pakistan. The previous highest was USD 25.1 billion in 2013-14,” said Abdul Razak Dawood, Adviser to the Prime Minister on Commerce and Investment, in a tweet on Thursday. He further said that the exports of goods in June 2021 were highest for any month in our history at USD 2.7 billion. The previous highest was USD 2.6 billion in Sept 2013. Further, the export of services during the FY 2020-21 is estimated to be USD 5.9 billion. 

Pakistan’s exports have gone beyond $25 billion after a gap of almost eight years. Last time, exports had crossed $25 billion benchmark during the tenure of Pakistan Peoples Party (PPP) in fiscal year 2013-14. However, later, the PML-N government could not maintain or increase the exports, which declined to above $23 billion. The PTI government after coming into power in 2018 had allowed to depreciate the local currency and gave reduced duties on raw materials. In first two years of its tenure, the incumbent government could not take the exports to $25 billion benchmark. However, the exports went beyond $25 billion level in third year of the present government. 

Meanwhile, the Ministry of Commerce said that Pakistan’s export of goods grew by 18 percent to $25.3 billion during the fiscal year 2020-21 which is the highest ever in the history of Pakistan. The exports on June 2021 were also the highest in any month in our past, at USD 2.7 billion. The exports of services for the year is projected to be USD 5.9 billion. The cumulative exports of goods and services during FY 2021 will therefore cross USD 31 billion. 

Adviser to Prime Minister on Commerce and Investment, Abdul Razak Dawood said: “This is a remarkable achievement by our exporters considering the difficulties created by COVID-19 at home and resultant contractions in our major markets. It was not an easy task as many countries went into lockdown, and severely affected the business. Not only our exports survived the crisis but also we have enhanced it in many sectors. I salute our exporters on achieving the milestone.”

The Ministry of Commerce (MOC)’s Tariff Policy Board was formed under the National Tariff Policy with the major objective to improve the competitiveness of the industry through gradual reduction of Customs Duty (CD), Additional Customs Duty (ACD), Regulatory Duty (RD), time bound tariff protection to strategic import substitution industries and simplification of tariff structure and procedures. 

Since 2018-19, tariff on more than 4000 inputs (i.e. raw materials, intermediate and capital goods) has been rationalized. As a result, almost 40% of total inputs in terms of number of tariff lines as well as value of imports are at 0% duty. This has improved competitiveness of the industry witnessed in 13% growth in LSM and 17% increase in exports despite COVID pandemic. 

In the current budget 2021-22, major rationalization in textile value chain, iron steel raw materials for all kind of flat products, pharmaceutical raw materials, machinery equipment, inputs for footwear, glass, poultry, food processing industry would further lead not only to revival of industrialization in the country but also enhanced exports. With the current measures exports are expected to grow by 5% in next two years.

Tariff rationalization efforts in last two a half years have brought trade weighted average tariff of Pakistan down from 9.07% in 2018-19 to 7.07% in 2021-22. Thus bringing tariff at par with the regional competitors, reducing the cost of manufacturing, generating employment, attracting new investment, and enhancing consumer welfare.

Tariff reforms will continue in the coming years. It is planned to study, analyse and reform tariff structure of the agriculture and transport logistics sectors next year. Time bound phased out protection to import substitution industry, further reduction in overall tariff including CD, ACD RD and simplification of tariff structure will continue.

Article source: https://nation.com.pk/02-Jul-2021/goods-exports-jump-18pc-to-hit-all-time-high-level-of-dollar-25-3-billion-in-fy2020-21