Exports cross $2bn mark for fourth consecutive month

ISLAMABAD: Pakistan’s exports grew for the fifth consecutive month in January to $2.14 billion, up to eight per cent from $1.98bn in the corresponding month last year, data released by the Ministry of Commerce (MoC) on Monday showed.

Commerce Adviser Razak Dawood in a statement said that Pakistan’s exports had maintained growth and for the first time in eight years have crossed the $2 billion mark in four consecutive months.

According to provisional figures issued by the MoC, exports for Jul-Jan 2020-21 increased by 5.5pc to $14.245bn as compared to $13.507bn over the corresponding months of last year. “Our cumulative exports for seven months of FY21 are showing a rising trend,” the adviser said.

The increase in overall exports is mainly driven by double-digit growth in proceeds from textile and clothing sectors as well as engineering products, surgical instruments and value-added leather products.

According to PM’s aide Razak Dawood, exports have fetched $14.245 billion in 7MFY21

Mr Dawood said that Pakistani exporters have achieved this feat despite difficulties created by the Covid-19 pandemic, regional export situation and contraction in major markets. “Exporters please go full speed ahead in exporting your products and in case of any hurdle, inform MoC”, the adviser said.

Exports in the new fiscal year started on a positive note, but witnessed a steep decline of 19pc in August before rebounding in September, October, and November.

To promote exports of textile and non-textile products, the government is providing cash subsidies besides slashing duty and taxes on import of raw materials.

According to a report by the Federal Board of Revenue (FBR), the spread of Covid-19 had impacted the flows of containers from the country to the lowest level of around 12,000 in April last year. Since then a gradual improvement was seen in container shipment from the country.

Export facilitation measures have led to an increase in the number of exports Goods Declarations (GDs) from 71,190 in July 2020 to 79,756 in Dec 2020, posting an increase of 11pc.

Under the initiative of “Make in Pakistan”, the Duty Drawback rates for at least eight sectors were revised upwards by the FBR. During the whole exercise, more than 434,000 claims were disposed of and approximately 7800 exporters have benefited from this Initiative.

To realise the objective of facilitation/promotion of exports, an automated system of filing the claim to the final sanctioning of Duty Drawback Claims for the payment of Duty Drawback Claims to the exporter were rolled out on October 1, 2020.

As a matter of fact, export Goods Declaration filed in Customs WeBOC system is being considered as the Duty Drawback Claim. The State Bank of Pakistan credits the system sanctioned payments in the accounts of exporters online directly.

In FY20, exports fell by 6.83pc or $1.57bn to $21.4bn, compared to $22.97bn the previous year. Data showed visible improvements in export orders from international buyers, mainly in the textile and clothing sectors since May.