Featured Exports fall but trade balance improves

[muhammadhafeezmalik]

The Commerce Ministry said on Thursday that the country's exports have posted a downfall of 19.5 percent to $1.586 billion in August 2020 as compared to $1.969 billion in the corresponding month of last year.

The reasons of decline were discussed in an internal review meeting at the Ministry of Commerce chaired by the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood.

During the same month, imports also dropped by 20 percent, in dollar value terms to $2.968 billion as compared to $3.710 billion in August 2019.

Similarly, the overall trade balance has improved by 20.6 percent in August 2020, as compared to the same month last year. The ministry, however, has not shared any data of cumulative trade of two months (July-August) 2020-2021, indicating that exports are in two months were flat or in the negative trajectory.

Commerce Ministry, in an official statement, said that despite the decline in August, some of the products, such as tractors, iron and steel, chemicals and cement have posted a growth of 186 percent, 100 percent, 90 percent, and 30 percent respectively, in dollar value terms, as compared to August 2019. The meeting was informed that due to heavy rains in the country, there were some delays in obtaining and analysing the data.

It was further discussed in the meeting that the rains and consequential urban flooding, particularly in Karachi, caused significant problems in the existing infrastructure, disrupting the supply chains and affecting the exports for the month of August.

Power outages, slowdown in business activities, delays in transportation and hampering of port operations are some of the issues faced by exporters due to unprecedented monsoon rains in the country.

Addressing the meeting, the advisor was of the view that the exports would begin to recover in September as normalcy should return to Karachi.

He noted that although exports had temporarily fallen, the trade balance continued to improve.

“Exporters are encouraged that despite the calamity of rain and flooding, we must pursue ‘Make in Pakistan’ and export-led growth,” the statement quoted the advisor as saying.

Dawood expressed the hope that the exporters would make up for the loss in the subsequent months.

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[Morpheus]

Exports in August Dropped by 19.5% Due to Monsoon Rains: Ministry of Commerce
Posted 20 hours ago by Jehangir Nasir

Exports for the month of August 2020 have recorded a downfall of 19.5%, in dollar value, as compared to the same period last year.

This was discussed in an internal review meeting at the Ministry of Commerce today, chaired by the Advisor to the Prime Minister on Commerce and Investment, Mr. Abdul Razak Dawood.

​

During the same month, the imports also dropped by 20% as compared to August 2019. Similarly, the overall trade balance has improved by 20.6% in August 2020 compared to the same month last year.
Despite the decline in August, some of the products, like tractors, iron, and steel, chemicals, and cement have posted a growth of 186%, 100%, 90%, and 30% respectively compared to August 2019.

It was mentioned in the meeting that due to heavy rains in the country, there were delays in obtaining and analyzing the data. It was further discussed in the meeting that the rains and consequential urban flooding, particularly in Karachi, caused significant problems in the existing infrastructure, disrupting the supply chains and affecting the exports.

Power outages, slow business activities, delays in transportation, and hampering of port operations are some of the issues faced by the exporters due to unprecedented monsoon rains in the country.

​

“However, the positive sign is that regardless of this temporary decline, Pakistan’s trade balance continues to improve,” said Dawood. However, no official numbers were disclosed.

It is worth mentioning that the Commerce Ministry usually releases provisional foreign trade figures during the first few days of each month in case of slight variation (negative or positive) in exports and a substantial decline in imports.

Pakistan Bureau of Statistics (PBS) is expected to release provisional foreign trade figures within the next few days or so.

Dr. Aadil Nakhoda, an economist and Assistant Professor at IBA, Karachi, told ProPakistani,

This volatility is indeed something worrying. It can also indicate the nature of the export orders received earlier, that is diversion away from other countries as well as time-sensitivity of the orders. This also shows that supply chains are very delicate and requires better integration. There are way too many factors though. However, there is a clear need for supply chain management and better trade integration with alternate sources. That is why access to markets is extremely important and government must pursue FTAs.

The Advisor stated that the exporters are encouraged that despite the calamity of rain and flooding, they must pursue Make in Pakistan policy and export-led growth.

“I have every confidence in our exporters that they will make up for the loss of August,” the Advisor said.
On August 26, 2020, Razak Dawood said that because of heavy rains, particularly in Karachi, Pakistani export consignments are being delayed, hence exports in August may be affected.

Exports in August Dropped by 19.5% Due to Monsoon Rains: Ministry of Commerce

Exports for the month of August 2020 have recorded a downfall of 19.5%, in dollar value, as compared to the

propakistani.pk

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This should finailly show people the real value of Karachi. We control the faith of Pakistan in terms of money, and to certain degree security. Yet supporters of PPP are so blinded, they will continue to support the party even when there is plenty of evidence of how they loot Karachi/Pakistan.

 

[muhammadhafeezmalik]

Exports in August 2020 were 19.5% below August 2019, 25.7% below August 2018 & 19.8% below August 2017.

Clearly PTI has failed to increase exports.

What will be PTI’s solution?

Maybe a new NAB case against

https://twitter.com/x/status/1301473202686898176

 

[volatile]

So Very early the propaganda of reviving of economy is over .Last month celebration of Current Account + .As in fundamental this scenario is going to effect Pakistan very badly .

 

[Mrc]

So Very early the propaganda of reviving of economy is over .Last month celebration of Current Account + .As in fundamental this scenario is going to effect Pakistan very badly .

Current account probably will still be positive in August as both imports and exports fell respectively. Trade balance is nearly same as last month

 

[RoadRunner401]

Exports in August 2020 were 19.5% below August 2019, 25.7% below August 2018 & 19.8% below August 2017.

You mean when PML_N was borrowing heavily to artificially inflate rupee value vs dollar and still trade balance was negative billions as oppose to free floating rupee and trade balance almost balanced..

I don't have time, so, I am not going to sit here writing a detailed post, but anybody with a tiny bit of intelligence and brain of course can see how big of achievement that is alone.

19.5 % are due to manufacture not being able to ship good on time due to weather related issues unless you are going to claim that PMIK is controlling the weather.

 

[ziaulislam]

Exports in August 2020 were 19.5% below August 2019, 25.7% below August 2018 & 19.8% below August 2017.

Clearly PTI has failed to increase exports.

What will be PTI’s solution?

Maybe a new NAB case against

https://twitter.com/x/status/1301473202686898176

month to month dat ais meaningless
if ports close for even a day shipement are delayed
second exports arent going to go up in corona virus environment
lastly why we need to add more ports and linkages.

i believe gawadar port is too far, something in between was needed to offload karachi

 

[tman786]

We are going through a pandemic and idiots are asking why our exports have not been increased

 

[HaMoTZeMaS]

You mean when PML_N was borrowing heavily to artificially inflate rupee value vs dollar and still trade balance was negative billions as oppose to free floating rupee and trade balance almost balanced..

I don't have time, so, I am not going to sit here writing a detailed post, but anybody with a tiny bit of intelligence and brain of course can see how big of achievement that is alone.

19.5 % are due to manufacture not being able to ship good on time due to weather related issues unless you are going to claim that PMIK is controlling the weather.

But yeah People here Especially Mahan Patwaris know nothing of logistics or they dont wanna know

 

[HaMoTZeMaS]

Exports in August 2020 were 19.5% below August 2019, 25.7% below August 2018 & 19.8% below August 2017.

Clearly PTI has failed to increase exports.

What will be PTI’s solution?

Maybe a new NAB case against

https://twitter.com/x/status/1301473202686898176

Please before copy pasting all the crap, give a moment of your thoughts and logics.
It will help us save our time. Gracious

 

[Dr-who]

If exports have fallen, then how come trade balance has improved?

 

[volatile]

Current account probably will still be positive in August as both imports and exports fell respectively. Trade balance is nearly same as last month

This is reducing the size of current account and is very dangerous

 

[Samlee]

Fact Is That Had Peoples Party Built Proper Stormwater Managment We Would Have Had A Great Month Like July

 

[Pandora]

We are lucky that our trade balnce is not tipping over toward import as in the past. There is a consistent trend where our Trade deficit and current account deficit is reducing tremendously which is what we need for a stable economy.

There is no need to import billions of dollars worth luxury goods if we are unable to export with the same pace. Imports should be dropped further bcz there are still so many areas where we are wasting our money. I would recommend high tax over goods imported by Pakistani Elitiyas. An ordinary Pakistan in middle income and lower bracket has no sense of branded good and those who are eager can easily pay double for it.

http://www.sbp.org.pk/ecodata/BOP-Services/bop.pdf

 

[Mrc]

This is reducing the size of current account and is very dangerous

This is not intended reduction but due to flooding...

Both imports and exports will rise in current month