Exports decline 3.4 percent YoY

The country's exports declined by 3.4 per cent in January 2020 as compared to same month of 2019, due to a number of factors, well-informed sources told Business Recorder.

However, according to provisional foreign trade figures exports during the first seven months July-Jan, 2019-20 recorded a rise of slightly above one percent.

Growth in exports during the first half (July-December) 2019-20 of current fiscal year recorded a growth of over 3 per cent but in July-January growth declined to 1.2 per cent. However, imports during the first seven months of current fiscal year posted a negative growth of 5.84 per cent - $ 26.70 billion from 32.54 billion during the same period of last year.

According to sources, exports in January 2020 have shown a negative growth of 3.4 per cent - in total terms $ 1.96 billion from $ 2.03 billion in corresponding month of last fiscal year, whereas imports registered negative growth of 14.5 per cent - $3.82 billion from $ 4.47 billion.

However, official spokesperson of Commerce Ministry stated that there is 2.2% growth in exports from July-Jan, 2019-20, adding that there are a few reasons for slow growth in January such as liquidity crunch because sales tax refunds have not yet been cleared.

The sources said, a 12-day transporters strike due to increase in fines also contributed to a slowdown in growth as no containers could go to the ports or get loaded; and strike on account of axle load also has a negative impact on exports.

The spokesperson maintained that axle load increased freight and affected competitiveness. In addition, there were lower exports of wheat as compared to last year (due to domestic shortages). However, Commerce Ministry maintains that it has been able to sustain exports because of aggressive efforts on its part.

On January 8, 2020, Commerce Ministry claims it was not in a state of shock but in a state of satisfaction as exports are increasing. The sources said Ministry of Commerce will analyze the reasons for the decline in exports at a time when there is dire need for export growth.