ISLAMABAD: Pakistan’s exports have shown resilience amidst global economic challenges, recording a 2.11% increase to $9.737 billion in the first five months (July – November) of the current fiscal year 2020/2021, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.
This growth in exports is a positive sign for the country’s economy, which continues to navigate through the impacts of the COVID-19 pandemic.
In comparison, the country’s exports stood at $9.536 billion during the same period last fiscal year, indicating a modest but noteworthy improvement. This uptick in exports is seen as a reflection of the government’s efforts to enhance trade and facilitate the export sector through various incentives and policy measures.
The import bill for the country also experienced a rise, albeit at a slower pace. Imports increased by 1.29% to $19.422 billion during the first five months of the current fiscal year, compared to $19.175 billion in the same period of the previous fiscal year. This marginal increase in imports suggests a stable demand for foreign goods despite the ongoing economic uncertainties.
As a result of these movements in trade, the trade deficit of Pakistan widened slightly to $9.685 billion during the review period, up from $9.639 billion in the same months of the last fiscal year. The modest expansion of the trade deficit underscores the challenges that Pakistan faces in balancing its trade dynamics, despite growth in exports.
Focusing on the performance in November 2020, exports surged by 7.67% to $2.161 billion, up from $2.007 billion in November 2019. This significant monthly increase highlights the ongoing recovery and the strengthening of Pakistan’s export sector as global demand begins to rebound.
However, imports for November 2020 also saw a rise, growing by 7.77% to $4.229 billion from $3.924 billion in November of the previous year. This increase in imports is indicative of higher consumption and a need for raw materials and goods to support domestic manufacturing and production processes.
Consequently, the trade deficit for November 2020 widened by 7.88% to $2.068 billion, compared to $1.917 billion in the same month last year. The expanding trade deficit in November points to the ongoing challenges in managing the balance of trade, as the rise in imports outpaces the growth in exports.
The government of Pakistan continues to focus on diversifying its export base and enhancing the competitiveness of its products in international markets. The recent data suggests that while progress is being made, there is a need for sustained efforts to ensure that export growth consistently outpaces imports, thereby reducing the trade deficit and bolstering the country’s economic stability.