ISLAMABAD: The Commerce Ministry has analysed key reasons behind the decline in exports to various regions and individual countries, to develop a new strategy to reverse the trend and eliminate trade barriers.
Commerce Minister Jam Kamal Khan, along with senior officials from the Ministry of Commerce, held a brainstorming session to scrutinize trade figures for the first quarter of the current fiscal year, with particular attention given to export performance. A major concern raised during the meeting was the decline in exports to China, one of Pakistan’s key trading partners.
According to trade statistics, Pakistan’s exports to East Asia declined by 20 percent, falling to $978 million from $1.217 billion in the first quarter.
Jul-Oct exports up 13.45pc to $10.88bn YoY
Exports to China, in particular, dropped to $826.15 million from $1.051 billion, while exports to South Korea fell to $51.57 million from $68.73 million, and exports to Hong Kong decreased to $10.18 million from $13.57 million. However, exports to Taiwan and Japan saw a slight increase.
Exports to Vietnam declined to $94.87 million from $132.13 million, to Malaysia dropped to $142.18 million from $165.90 million, and to Indonesia fell to $43.82 million from $65.93 million. Exports to Cambodia and East Timor also declined, with figures falling to $9.25 million from $10.20 million and $0.63 million from $1.43 million, respectively.
Exports to Turkey also recorded negative growth, dropping to $74.61 million from $117.98 million, and exports to Russia fell to $18.90 million from $24.14 million.
On the positive side, exports to the European Union (27 countries) and the United Kingdom grew by 13 percent, reaching $3.858 billion in the first quarter of FY 2024-25, up from $3.403 billion during the same period in FY 2023-24. Additionally, exports to the United States, Canada, Chile, Mexico, and Haiti grew by 16 percent, rising to $2.342 billion from $2.021 billion. Exports to Africa also saw a significant increase of 29 percent, following the government’s “Look Africa” policy.
According to trade figures for July-October 2024-25, overall exports grew by 13 percent to $10.8 billion, compared to $9.6 billion during the same period in 2023-24. Imports, however, increased by 5 percent.
During this period, the textiles and apparel sector achieved an 11 percent growth, reaching $6.162 billion from $5.567 billion, with an increase of $592 million in both value and quantity. Exports of agricultural products and food grew by 12 percent, reaching $2.482 billion during the first quarter of FY 2024-25, compared to $2.208 billion in the corresponding period of FY 2023-24.
At the meeting, Commerce officials provided a comprehensive overview of trade performance with key partners, highlighting emerging export destinations and newly introduced export items. The briefing also included practical suggestions for enhancing market access and addressing technical barriers to trade, ensuring that Pakistani products reach a broader global audience.
The impact of external factors, such as global economic fluctuations and geopolitical uncertainties, was also discussed. Strategies to mitigate these challenges and sustain export growth were presented for consideration.
Commerce Minister Jam Kamal Khan remarked, “The success of our economy depends on a strong export base. This requires serious commitment and collaborative efforts from all stakeholders, including provinces and relevant departments.”
He emphasised the importance of executing export-led growth strategy, urging all sectors to work cohesively to unlock Pakistan’s full trade potential.
“We must act decisively to enhance our market share globally and ensure our exports become the driving force of economic development,” he concluded.
The meeting underscored the need for a unified approach to overcoming trade barriers and achieving sustainable economic growth through exports.
Copyright Business Recorder, 2024
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