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Merchandise Exports Show Strong Growth in August
Pakistan’s merchandise exports increased nearly 16% to $2.74 billion in August 2024, compared to $2.36 billion in the same month last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday. The growth momentum picked up in August due to improved international orders and exchange rate stability.
On a month-on-month basis, exports saw a substantial increase of 18.9% in August from the preceding month, demonstrating the resilience and adaptability of the export sector.
Cumulative Export Growth in July-August FY25
For the first two months of FY25, export proceeds reached $5.05 billion, marking an increase of 14% compared to $4.43 billion over the same period last year. In FY24, Pakistan’s merchandise exports grew by 10.54% to $30.64 billion from $27.72 billion in the preceding year.
Exports increased steadily from July 2023 until they turned negative in January 2024, with the downward trend persisting until April. However, growth regained momentum in May and continued into June.
Record-Breaking Exports in 2021-22 and Subsequent Decline
The highest-ever export level was achieved in FY22, reaching $31.78 billion. However, the following year saw a decline, with exports dropping to $27.54 billion. The recent surge in exports challenges the exporter associations’ claims about the potential negative impact of the tax measures outlined in the FY25 budget.
Trade Deficit Narrows Amid Rising Imports
While exports saw robust growth, imports increased by 5.67% to $8.63 billion in July-August FY25, compared to $8.16 billion over the last year. On a month-on-month basis, imports grew 4.92% in August.
The trade deficit narrowed by 4.30% to $3.57 billion in July-August FY25 from $3.74 billion over the last year. In August, the deficit further decreased by 20.54% to $1.67 billion from $2.11 billion last year. For the fiscal year 2024, the trade gap contracted to $24.08 billion from $27.47 billion in the preceding year.
Rice Exports Set Ambitious Targets
Commerce Minister Jam Kamal has urged rice exporters to aim for an export target of $5 billion for the current fiscal year. In FY24, rice exports stood at $4 billion, contributing significantly to the overall agricultural exports of $8 billion.
Sectoral Council for Rice Chairman Shahzad Malik expressed optimism about achieving a potential $10 billion rice export target by 2030, contingent on favorable climatic conditions and continued growth in export activities.
Conclusion
The latest data underscores a positive trend in Pakistan’s export sector, bolstered by external demand and improved economic indicators. Continued efforts to enhance trade relations and optimize export opportunities could further bolster the country’s economic standing in the global market.
