Italy - Pakistan Trade Relations

Amedeo Scarpa Italian Trade Commissioner for Pakistan-UAE Office

TEXT: Italy - Pakistan have cordial relations. Italy is among the top trading partners of Pakistan and third largest in context of trade with European Union. Italy helped Pakistan acquire the EU Generalized Scheme of Preferences (GSP-Plus). Trade relations between Pakistan and Italy have been improving with the passage of time.

Economic, trade and cultural relations between Italy and Pakistan are at an all-time high. Currently, Italy is providing technical assistance in footwear, textiles, marble and agriculture through modern machinery and value addition also in agricultural sector including dairy and livestock, olives and olive products, plastics, processed food and the construction sector through transfer of technology. During the Year 2021 the overall trade volume contracted due to COVID pandemic disruption and Italy imported goods of worth 902.88 US$ million as against exports of 714.29 US$ million in the same period last year recording an increase of 26.40 %.

In the Year 2021 Italy exported goods to Pakistan worth 845.71 million US$ against 581.76 million US$ in FY20 recording an upsurge of 45.36 %.

The worker remittances from Italy hit historic high of $601 million in FY21 and as a result, Italy emerged as the seventh largest global destination for workers remittances to Pakistan and ranked first among the countries in the EU.

The Country’s trade deficit during July-June (2020-21) stood at $31.076 billion against the deficit of $23.159 billion during July-June (2019-20). During the fiscal year 2021 country’s exports registered about $25.304 billion whereas the imports $56.380 billion. (Source: PBS)

Fiscal Year 2022

(3 Quarters)

PAKISTAN’s exports of goods and services to Italy witnessed an increase of 35.58% during the first three quarters of fiscal year (2021-22) as compared to the exports of corresponding period of last year.

The overall exports to ITALY were at $758.795 million during July-March (2021-22) against exports of $559.664 million during July- March (2020-21), showing growth of 35.58%, according to (Source: SBP).

The exports to ITALY also increased by 42.79% by going up from $75.006 million during March 2021 against the exports of $107.105 million in March 2022, the SBP data revealed. The export to ITALY also witnessed surge of 30.89% in March 2022 as compared to the exports of $81.826 million in February 2022 on month-on-month basis.

Pakistan’s exports to other countries have an increase of 26.64% in nine months, from US $18.713 billion to US $ 23.699 billion.

During the first nine months of fiscal year 2021-22, the imports from Italy were observed at $620.487 million against $391.109 million last year, showing growth of 58.64%.

On year-on-year basis, the imports from Italy increased by 98.32%, by going up from $43.320 million during March 2021 against the exports of $85.916 million in March 2022. Meanwhile, on month-on-monthbasis the imports from Italy witnessed surge of 47.31% in March 2022 as compared to the exports of $58.323 million in February 2022. (Source: SBP)

Fiscal Year 2021

Pakistan’s Imports

During FY 2021, imports stood at US$ 56.38 billion as compared to US$ 44.55 billion during FY2020 showing an increase of 26.55%. Non-energy imports remained the main contributor in raising the import bill. The surge in imports may be attributed to the rising demand for intermediate goods due to the resumption of economic activities; supply shocks in agricultural products especially wheat, sugar and cotton; government’s accommodative measures to underpin the production of industrial sector in the form of removal of customs duty on import of raw-materials; and concessionary loans.

During Jul-Jun, 2021 the share of Other Asia in total imports increased to 48.04% from 46.60% during the same period of last year. The share of Middle East decreased to 24.47% from 25.88% during the same period of last year. The share of European Union decreased to 9.32% from 10.40% during the same period of last year. (Source: PBS)

Imports From Italy

Italy exports to Pakistan was US$845.7 Million during FY21, surged 45.37% comparing to 581.76 Million in FY20.

Pakistan’s Exports

The exports during July – June, 2020 - 2021 totaled $ 25,304 billion against $ 21,394 billion during the corresponding period of last year showing an increase of 18.28% as compared to the negative growth of -6.81% in FY20.

• During July-June, 2021 the share of European Union in total exports increased to 35.09% from 34.59% during the same period of last year.

• During July-June, 2021 the share of European Union in total exports increased to 35.09% from 34.59% during the same period of last year.

• The share of other Asia in total exports increased to 23.91% from 23.73% during the same period of last year.

• The share of North America increased to 21.64% from 18.65% during the same period of last year.

The share of Middle East decreased to 10.14% from 12.79% during the same period of last year.

• The share of other African countries decreased to 4.53% from 5.80% during the same period of last year. (Source: PBS)

Export To Italy

During the Year 2021 the overall trade volume contracted due to COVID pandemic disruption and Pakistan exported goods of worth 902.88 US$ million as against exports of 714.29 US$ million in the same period last year recording an increase of 26.40%. (Source: UN Comtrade)

Copyright Business Recorder, 2022