Ministry announces improvement in BoP

ISLAMABAD: The Ministry of Commerce announced achievements in trade sector with a year-on-year balance of payments improvement of $5.6 billion.

Caretaker Minister of Commerce Dr Gohar Ejaz said the positive trade figures and upwards trend showcases Pakistan’s resilience. The minister said, “We will continue to work towards enabling our exporters and to find new destinations for exports.”

In the first 20 days of December 2023, Pakistan experienced an year-on-year increase in exports, amounting to $479 million, reflecting an impressive growth rate of 33.1 per cent.

Unusual balance of payments

Conversely, imports during the same period saw a substantial decrease of $405 million, marking a -12.8 per cent reduction. This positive trend contributed to an $884 million improvement in the balance of trade for December 2023.

Export milestone from July to December 2023: From July 1, 2023, to December 20, 2023, Pakistan’s exports soared to $14 billion, showcasing a year-on-year increase of $709 million, translating to a substantial 5.3 per cent improvement.

Import figures during the same period (1 July 2023 to 20 December 2023) dropped to $24.3 billion from $29.2 billion in FY-2022, reflecting a notable year-on-year decrease of $4.9 billion.

This comes down to a year-on-year improvement in the balance of trade of $5.6 billion.

Sectoral Performance: - Agricultural and Food Exports: Notably, the agricultural and food exports witnessed an extraordinary 109.2 per cent year-on-year increase, totaling $574.6 million in the first 20 days of December 2023. This surge can be attributed to robust performances in maize, corn, ethyl, alcohol, tobacco, and rice exports.

• Textile and Manufacturing & Engineering Sectors: The textile sector and manufacturing & engineering sector demonstrated a commendable 15 per cent year-on-year increase in exports during the first 20 days of December 2023.

Top export Destinations: Pakistan’s exports witnessed significant growth to key destinations, including Indonesia, United Arab Emirates, Madagascar, and China.

Minister Dr Gohar Ejaz expressed confidence in the continuation of this upward trend, emphasizing the ministry’s commitment to fostering a conducive environment for trade and economic growth.

These achievements underscore Pakistan’s resilience and competitiveness in the global market.

Copyright Business Recorder, 2023