Pkrevenue.com

Tag: exports

  • Pakistan exports to seven regional countries up by 20.5%

    Pakistan exports to seven regional countries up by 20.5%

    ISLAMABAD: Pakistan has registered an increase in the exports to seven regional countries by 20.50 per cent in the first month of the financial year (2021-2022) as compared with the corresponding month of the last year.

    The State Bank of Pakistan (SBP) reported that the countries in the seven regional countries including Afghanistan, China, India, Nepal, Bangladesh, Sri Lanka, and the Maldives.

    These countries account for a small amount of $282.020 million which is only 12.49 percent of Pakistan’s overall exports of $2257.042 million in July 2021-22.

    China tops the list of the countries in which Pakistan exports goods to its neighboring countries except for Afghanistan and Bangladesh.

    There is an increase observed in the exports from Pakistan to China with a growth of 55.26 percent to $165.878 million in July 2022 from $106.775 million in July 2021.

    On the other hand, there is also an increase in the exports of Pakistan to Bangladesh by 5.66 percent from $5t51.033 million to $48.297 million.

    Yet the exports of Pakistan to Afghanistan have dropped by 38.57 percent to $38.557 million this year from $62.774 million. The exports of the country with India also plunged by 87.81 percent to $0.054 million from $0.443 million because of the suspension of trade relations by the government with Pakistan.

    The exports to Nepal also declined by 39.86 percent to $0.273 million from 0.454 million. However, the exports to the Maldives also fell by 1.21 percent to 0.325 million from 0.329 million.

    The exports of Pakistan with Sri Lanka increased by 68.55 percent to $235.991 million from $15.420 million in the previous year.

    However the imports of Pakistan from seven regional countries have increased by 19.36 percent to $1350.535million during July 2022 as compared to $1131.427 million in July 2021.

  • Monthly exports in March 2021 highest in decade: Razak Dawood

    Monthly exports in March 2021 highest in decade: Razak Dawood

    In a significant economic development, Pakistan’s exports soared to $2.345 billion in March 2021, marking a remarkable 13.4 percent increase compared to February 2021.

    (more…)
  • Exports cross $2 billion for four consecutive months in eight years

    Exports cross $2 billion for four consecutive months in eight years

    ISLAMABAD: Pakistan’s exports have crossed over $2 billion for the fourth consecutive months in January 2021 for the first time in last eight years, a statement said on Friday.

    A consultative meeting was held by the Advisor to Prime Minister on Commerce and Investment, Abdul Razaq Dawood, via video link to review the provisional trade data till the month of January 2021.

    He was informed that exports in January 2021 have increased by 8 percent to USD 2,135 million as compared to USD 1,978 million in January 2020.

    He was informed that this is the first time in last eight years that exports have crossed the $ 2 billion mark for four consecutive months.

    He was briefed that in January 2021, an increasing trend has been witnessed in the export of value-added and non-traditional products.

    The exports of Jerseys & Cardigans increased by 72 percent, Pharmaceutical by 55 percent, T-shirts by 43 percent, Plastics by 24 percent, Women’s Garments by 21 percent, Home Textiles by 19 percent, Textile Made-up by 11 percent, Men’s Garments by 8 percent and Rice by 7 percent as compared to January 2020.

    He was also informed that decreasing trend was noted in export of mostly non-value-added products.

    The exports of Maize decreased by 82 percent, Raw Leather by 23 percent, Cotton yarn by 11 percent, Cotton Fabric by 14 percent and Meat by 5 percent as compared to January 2020.

     The meeting was informed that geographically, in January 2021 exports increased to Canada (43 percent), Australia (42 percent), the United States (36 percent), South Africa (27 percent), China (21 percent), the United Kingdom (21 percent), Belgium (18 percent), and Saudi Arabia (14 percent).

    However, there was decrease in exports to Jordan (-68 percent), Senegal (-59 percent), Italy (-24 percent), Turkey (-21 percent), Bangladesh and the United Arab Emirates (-19 percent each).

    The 7-months’ performance of exports was also discussed in the meeting.

    The advisor was informed that the provisional export data for the period July-January 2020-21 showed that the exports increased by 5.5 percent, to USD 14,245 million as compared to USD 13,507 million during the same period last year.

    During July-January 2020-21, the exports of value-added and non-traditional products increased especially for Tents & Canvas (49 percent), Jerseys & Cardigans (37 percent), Pharmaceuticals (28 percent), Cutlery (27 percent), Socks & Stockings (26 percent), Women’s Garments (22 percent), Home Textiles (17 percent) and Textile Made-ups (9 percent) as compared to the same period last year.

    He was informed that as compared to the same period in the previous year, during July-January 2020-21 the export decrease was observed in mostly non-value added products, such as Cotton (-96 percent), Maize (-49 percent), Raw Leather (-30 percent), Cotton yarn (-24 percent) and Cotton Fabric (-9 percent).

    Dawood was informed that on the basis of export growth Pakistan’s Top markets for 7-months’ period are Indonesia (43 percent), Australia (22 percent), the United States (21 percent), the United Kingdom (21 percent), Poland (14 percent), Germany (12 percent), the Netherlands (11 percent) and China (9 percent).

    He was further informed that compared to last year, the markets showing declining exports during July-January 2020-21 were Thailand (-43 percent), Malaysia (-24 percent), Sri Lanka (-23 percent), the United Arab Emirates (-21 percent), Bangladesh (-18 percent), Italy (-7 percent) and Spain (-5 percent).

    Dawood advised the officials of the commerce ministry that much more needs to be done. He paid rich tributes to Pakistan’s exporters for this performance during difficult times despite the COVID-19 pandemic and contraction in Pakistan’s major markets. He urged them to aggressively focus on capturing a larger share of international exports.

  • Pakistan’s exports grow by 2.11 percent in five months

    Pakistan’s exports grow by 2.11 percent in five months

    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.

    (more…)
  • Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    ISLAMABAD: The exports have registered 19.5 percent decline in August 2020 owing to torrential rains and significant urban flooding in Karachi.

    (more…)
  • Withholding income tax rates for exporters updated

    Withholding income tax rates for exporters updated

    ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding income tax rates for exporters for tax year 2021.

    The FBR updated withholding tax card for 2020/2021 after incorporating amendments made to Income Tax Ordinance, 2001 brought through Finance Act, 2020.

    Under Section 154 of Income Tax Ordinance, 2001 every authorized dealer in foreign exchange required to collect / deduct withholding tax from exporters at the time of realization of the export proceeds.

    The withholding tax rate under Section 154(1) shall be one percent of the gross value.

    The tax shall be final.

    Under Section 154(2) every authorized dealer in foreign exchange is required to collect/deduct withholding tax from non-export indenting agent, export indenting agent/export buying house at the time of realization of foreign exchange proceeds or indenting commission.

    The tax rate under this section shall be on realization of proceeds on account of commission to;

    I. Non-export indenting agent: 5 percent of gross value

    II. Export indenting agent / export buying house: 5 percent of gross value

    The tax shall be final tax liability.

    Under Section 154 (3), every banking company is required to collect/deduct tax from exporters at the time of realization of proceeds on account of sale of goods to an exporter.

    The tax rate shall be one percent on realization of proceeds on account of sale of goods to an exporter under inland back to back LC or any other arrangement as may be prescribed by FBR.

    The tax shall be final tax liability.

    Under Section 154 (3A), Export Processing Zone (EPZ) authority is required to collect / deduct withholding tax from industrial undertaking located in the export processing zone at the time of export of goods.

    The tax rate shall be one percent and this is final tax liability.

    Under Section 154(3B), direct exporters/export house registered under DTRE Rules 2001 required to collect/deduct withholding tax from indirect exporters (defined under sub-chapter 7 of the chapter XII of the Customs Rules, 2001) at the time of payment against a firm contract.

    The tax rate is one percent of the gross value and it is final tax liability.

    Under Section 154(3C), the collector of customs is required to collect withholding tax at one percent from exporter of goods at the time of export of goods. This tax shall be final tax liability.

  • Exports exhibit growth in July after four months decline

    Exports exhibit growth in July after four months decline

    ISLAMABAD: The exports of the country registered growth of 5.8 percent in July 2020, in dollar value terms, as compared to July 2019.

    This growth was recorded after a decline in exports for the last four months, since March 2020, when there was a drop of 8 percent compared to same period last year.

    This declined widened in April 2020, with a drop of 54 percent in exports, which improved but remained at 35 percent in May 2020, improving further to only 6 percent fall in exports in June 2020, as compared to same period last year.

    This was revealed at a meeting chaired by Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, at Ministry of Commerce on Tuesday, to review the recent trade statistics and devise plans for improving the exports.

    The meeting was attended by senior officers of the Ministry.

    The latest statistics of exports and imports of Pakistan were reviewed in the meeting.

    The strategies for product and geographical diversification were also reviewed in the meeting, in context of the recent trade statistics.

    One of the major sectors which showed good progress is Food Processing sector where a growth of over 300 percent was observed in July 2020.

    Similar growth was witnessed in Made-Upsand Clothing Accessories sectors.

    In addition, Fish and Fish Products sector recorded a healthy growth of 50 percent, while Home Textiles sector, which was declining in the previous months, is now back up with 24 percent growth.

    In terms of exports, a major decline is witnessed in rice and cement, which fell down to 24 percent and 12 percent respectively in July 2020, as compared to same period last year.

    There is also a decline in the export of raw leather and cotton yarn, which is a clear indication that the Government’s policy to pursue value-added exports is showing results.

    On the import side, a decline of 4.2 percent, in dollar value terms, was recorded in July 2020, as compared to July 2019.

    Due to this increase in exports and decline in imports, a 14.7 percent improvement in trade balance is witnessed in July 2020 as compared to July 2019.

    On the geographical diversification, not much progress has been shown in July 2020 as the exports still seem to be heavily dependent on traditional export markets.

    Talking in the meeting, Abdul Razak Dawood appreciated the exporters as well as the government departments for coordinating their efforts in the testing times during the ongoing pandemic.

    He added that this achievement is particularly noteworthy because of the fact that a decline was being observed until the last month and a turnaround of around 12 percentage points has been achieved in just one month.

    Dawood underlined that the Ministry of Commerce will be evaluating its geographical diversification in order to re-align the focus towards new opportunities.

    He also advised the Ministry officers to extend all kind of necessary support to the exporters in order to achieve the targets, not only in terms of numbers but also with regards to intended policy outcomes.

  • FPCCI suggests measures to boost exports

    FPCCI suggests measures to boost exports

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has suggested measures to boost exports of the country.

    The apex trade body in its proposals for budget 2020/2021 suggested measures to improve exports.

    The FPCCI said that if the proposals are implemented that those would create domestic demand suppression to promote investment– both local and foreign in exporting sector.

    The apex trade body suggested following measures to improve exports:

    i. Pakistan should formulate strategies to decrease dependence on traditional exports like textiles, leather, carpet, sports goods, stainless steel, surgical goods rice etc. There needs a shift in the composition of its exports that means promoting exports of high/ medium technology products whose participation in the world trade is increasing.

    ii. Either Zero rated or on reduced rate (say) 6 percent or 9 percent should be allowed on all inputs of five export sectors including the Packaging materials or refunds claims be paid within the stipulated time period.

    iii. To make Pakistan’s exports competitive in the international market, the exports be allowed 50 percent air freight subsidy from EDF.

    iv. Support from the government should be provided to establish Showrooms and warehouses and exhibition areas in mega departmental stores.

    v. Warehouses be established at borders of neighboring countries.

    vi. Land routes to the neighboring countries (Iran & Afghanistan) should be strictly controlled to stop smuggling.

    vii. The prevailing non-tariff barriers have restrained the volume of Pakistan’s exports to China and EU. Pakistani exporters are facing non-tariff barriers in safety and quality standards under the sanitary and phytosanitary (SPS) agreement. Sanitary and phytosanitary measures apply to trading commodities.

    viii. The importance of research cannot be neglected in today’s fast-changing world. Especially in high technology products, the need for research and development is to a greater extent. It will make the government more efficient in terms of production up-gradation and opportunities that arise from increasing technological export base. The relations between research institutions and the firms should be established and firmed.

    ix. All steps including increase in acreage under cotton crop, quality seed development and removal of weeds and eliminating of insects need to be adopted in this connection.

    x. To enhance the subsidized credit for exporters on higher interest rates.

    xi. To lower the imports tariff rates on the basis of cascading allowing effective protection rate to local industries – import substitution and export oriented – as per WTO agreement.

    xii. To enhance credit limit to SMEs to encourage the value chain of exports.

    xiii. There is a need of improving the export strategy to ensure sustainable growth and the role of fiscal responsibility to avoid recurrent external account crises.

    xiv. There is also a need of shifting from inward orientation to an outward looking economy as it puts a greater emphasis on exports to achieve high and sustainable growth. Moreover, different contours of an export oriented strategy that Pakistan should adopt in order to remain competitive in international market especially with regards to countries like India and Bangladesh.

    xv. Pakistan needs to penetrate the global synthetic products market which have overtaken cotton as synthetic / MMF, particularly polyester fibre (PSF) has substantially replaced cotton based fibre production. But Pakistan still lag behind MMF based production as a result is limiting itself to only some products.

  • Exports fall by 54 percent in April amid COVID-19 pandemic

    Exports fall by 54 percent in April amid COVID-19 pandemic

    ISLAMABAD: Pakistan’s exports have declined by 54 percent in April 2020 owing to ongoing lockdown and cancellation of foreign orders.

    According to trade data released by Pakistan Bureau of Statistics (PBS) the exports were at $957 million in April 2020 as compared with $2.09 billion in the same month of the last year.

    The massive decline in exports can be attributed to cancellation of foreign orders due to outbreak of coronavirus. Besides, the manufacturing activities were remained halted due to lockdown to prevent the COVID-19 pandemic.

    The existing situation also reduced the import bill in the month under review. The imports fell by 34.5 percent to $3.09 billion in April 2020 as compared with $4.714 billion in April 2019.

    The exports in first ten months (July – April) 2019/2020 also fell by four percent to $18.41 billion as compared with $19.16 billion in the corresponding period of the last fiscal year.

    On the other hand the import bill fell by 16.5 billion to $39.9 billion in the first ten months of current fiscal year as compared with $45.4 billion in the corresponding period of the last fiscal year.

    The trade deficit shrank by 25.68 percent to $19.49 billion during July – April 2019/2020 as compared with the deficit of $26.23 billion in the same period of the last fiscal year.

  • Gwadar Port starts exports operation: Razak Dawood

    Gwadar Port starts exports operation: Razak Dawood

    KARACHI: Gwadar Port has become operational for exports as a vessel loaded with three containers of seafood left for Far Eastern ports, said adviser to prime minister.

    Abdul Razak Dawood, in his tweet on Saturday made this announcement about the exports through Gwadar Port.

    “Gawadar becomes operational for Exports! Seafood export, in reefer containers, using WeBOC system, started on 19 Nov 2019 through COSCO’s KGS service.”

    “The vessel loaded 3 containers of fish for Far Eastern ports.”

    The adviser said that average value of cargo was $50,000/container.

    This would reduce time taken for trading across borders and also reduce port congestion at Karachi.

    Gwadar is Pakistan’s largest infrastructural project since independence.

    After the completion of the first phase of Gwadar port, billions of dollars have been invested in Gwadar and in the next one or two years the investment can cross the figure of trillions.

    China is a major investor in Gwadar, and has spent $248 million in the first phase of Gwadar port, according to official website of Gwadar Port Authority.