Regional exports swell over 16pc

ISLAMABAD: The first five months of the current fiscal year witnessed a double-digit growth of 16.3 per cent in exports to nine regional countries, mainly driven by an increase in shipments to China, data compiled by the State Bank of Pakistan showed on Monday.

The country’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives rose to $1.855 billion in July-November FY24 from $1.595bn over the corresponding months of last year.

In FY23, exports to regional countries dipped 21.1pc to $3.331bn on a year-on-year basis.

Pakistan’s bulk of the regional exports share, which accounts for 60pc, is with China while the rest is with the remaining eight countries.

Exports to China increased 39.45pc to $1.223bn in July-November FY24 from $877.44m over the corresponding months of last year. In FY23, the exports to China declined 27.3pc to $2.02 from $2.78bn in FY22. It was the first decrease in the post-Covid period.

The imports from China declined by 6pc to $4.741bn in 5MFY24 from $5.045bn over the corresponding months of last year.

Pakistan’s exports to Afghanistan posted a positive growth of over 9.1pc to $232.69m in 5MFY24 from $213.28m in the same period last year.

Till a few years ago, Afghanistan was the second major export destination for Pakistan after the United States. The export figures did not include proceeds materialised through the land routes. However, Pakistan has allowed in rupee with Afghanistan to encourage exports.

No exports were made to Iran on the official channel in the first five months of the current fiscal year. Most of the trade with Tehran is carried out through informal channels in border areas of Balochistan. Pakistan carried out barter trade with Iran.

The country’s exports to India remained negligible at $0.069m in the first five months of the current fiscal year. It has been reported that Pakistani imports Indian goods via Dubai and Singapore which has also multiplied the cost for Pakistani products.

Exports to Bangladesh decreased 31.91pc to $248.45m from $364.93m in July-Nov 2022. Exports to Sri Lanka surged by 7.61pc to $145.97m in 5MFY24 from $135.64m in the same period last year.

On the other hand, exports to Nepal increased year-on-year by 15.32pc to $1.43m in 5MFY24. Shipments to the Maldives increased by 15pc to $3.83m from $3.32m. No export to Bhutan was recorded in 5MFY24.