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ISLAMABAD:
Barring Europe, Australia and New Zealand, Pakistan’s exports plummeted to all other regions of the world during the last fiscal year, highlighting the need to review economic policies and the rationale of keeping huge trade missions.
The State Bank of Pakistan (SBP) on Friday released the export destination-wise receipts data for fiscal year 2016-17 that gives a fair understanding of how the country performed in the last fiscal year. The data showed that except for Europe where the country enjoys duty-free status, the exports sunk in almost all other countries.
Even in the European Union member countries, Pakistan could not fully exploit the duty-free benefit, as its exports marginally grew to $7.28 billion during the last fiscal. These were just $215 million or 3.1% higher than the preceding year, showed the central bank data.
Pakistan’s trade deficit widens to historic level
In case of Australia and New Zealand, total exports stood at only $300.4 million. These were $42 million or 16.3% higher than the previous fiscal year. Exports to Southeast Asian region also slightly picked but remained at only $1.1 billion.
Since June 2013 when the PML-N government came into power, Pakistan’s exports have cumulatively decreased by one-fourth to only $20.9 billion. The independent experts and the International Monetary Fund (IMF) blame an overvalued local currency as one of the main reasons behind the slump in exports.
The IMF assessment shows that rupee was overvalued by at least 10% against the US currency, which significantly eroded Pakistan’s competitiveness in the global market. However, the federal finance ministry does not agree to this assessment and has decided to maintain the current exchange rate parity.
The other reason is the high cost of doing business that has made the industries uncompetitive. In its five budgets, the current government slapped more than Rs1.3 trillion in additional taxes.
The Ministry of Commerce has also set up huge trade formations in various parts of the world with a single motive of enhancing Pakistan’s exports. However, the export data suggests that the trade missions have not lived up to expectations.
Pakistan’s exports to Latin America stood at a mere $33 million in fiscal year 2016-17, lower than the preceding year. The exports to South America stood at a meagre $239.5 million – down by 4.3%. This is despite the fact Pakistan has a trade mission in Sao Paulo, Brazil. In fiscal year 2013-14, Pakistan’s exports to South America were $344.8 million.
The exports to Central American countries amounted to only $125.5 million. Despite having more than half a dozen trade missions in North American countries, Pakistan’s exports to this region remained even below last year’s level. The export receipts from North America stood at $3.9 billion. The exports to United States decreased to $3.7 billion in spite of five trade missions in Chicago, Houston, Los Angles, New York and Washington.
Pakistan’s exports to African continent were also below previous year’s level. The country has trade missions in places like Nairobi, Kenya and Casablanca, Morocco. The receipts from East Africa stood at $646.5 million – down by roughly 3%. From Middle Africa, these amounted to just $57.5 million. To North Africa, the exports stood at $167.7 million – down by 16.5%.
The situation was not different in Asia as well where the country could not gain strong footholds despite signing three Free Trade Agreements; with China, Sri Lanka and Malaysia. The exports to North East Asian countries decreased one-tenth to only $2.36 billion.
Compared with the last four years data, the decline in exports was over 37%. In 2013-14, Pakistan’s exports to East Asian countries stood at $3.8 billion. The exports to China dropped over 14% to only $1.62 billion last year despite Pakistan having four trade missions located in Beijing, Chengdu, Hong Kong and Shanghai.
‘Govt responsible for decline in textile exports’
South Asian region was not an exception where exports decreased 9.3% to just $2.5 billion. Exports to Afghanistan declined by about 9% to $1.12 billion. The exports to Bangladesh also decreased to just $623.3 million.
India was the only exception where exports increased by 2% to $408 million.
https://tribune.com.pk/story/1463589/pakistans-exports-regions-plunged/
Barring Europe, Australia and New Zealand, Pakistan’s exports plummeted to all other regions of the world during the last fiscal year, highlighting the need to review economic policies and the rationale of keeping huge trade missions.
The State Bank of Pakistan (SBP) on Friday released the export destination-wise receipts data for fiscal year 2016-17 that gives a fair understanding of how the country performed in the last fiscal year. The data showed that except for Europe where the country enjoys duty-free status, the exports sunk in almost all other countries.
Even in the European Union member countries, Pakistan could not fully exploit the duty-free benefit, as its exports marginally grew to $7.28 billion during the last fiscal. These were just $215 million or 3.1% higher than the preceding year, showed the central bank data.
Pakistan’s trade deficit widens to historic level
In case of Australia and New Zealand, total exports stood at only $300.4 million. These were $42 million or 16.3% higher than the previous fiscal year. Exports to Southeast Asian region also slightly picked but remained at only $1.1 billion.
Since June 2013 when the PML-N government came into power, Pakistan’s exports have cumulatively decreased by one-fourth to only $20.9 billion. The independent experts and the International Monetary Fund (IMF) blame an overvalued local currency as one of the main reasons behind the slump in exports.
The IMF assessment shows that rupee was overvalued by at least 10% against the US currency, which significantly eroded Pakistan’s competitiveness in the global market. However, the federal finance ministry does not agree to this assessment and has decided to maintain the current exchange rate parity.
The other reason is the high cost of doing business that has made the industries uncompetitive. In its five budgets, the current government slapped more than Rs1.3 trillion in additional taxes.
The Ministry of Commerce has also set up huge trade formations in various parts of the world with a single motive of enhancing Pakistan’s exports. However, the export data suggests that the trade missions have not lived up to expectations.
Pakistan’s exports to Latin America stood at a mere $33 million in fiscal year 2016-17, lower than the preceding year. The exports to South America stood at a meagre $239.5 million – down by 4.3%. This is despite the fact Pakistan has a trade mission in Sao Paulo, Brazil. In fiscal year 2013-14, Pakistan’s exports to South America were $344.8 million.
The exports to Central American countries amounted to only $125.5 million. Despite having more than half a dozen trade missions in North American countries, Pakistan’s exports to this region remained even below last year’s level. The export receipts from North America stood at $3.9 billion. The exports to United States decreased to $3.7 billion in spite of five trade missions in Chicago, Houston, Los Angles, New York and Washington.
Pakistan’s exports to African continent were also below previous year’s level. The country has trade missions in places like Nairobi, Kenya and Casablanca, Morocco. The receipts from East Africa stood at $646.5 million – down by roughly 3%. From Middle Africa, these amounted to just $57.5 million. To North Africa, the exports stood at $167.7 million – down by 16.5%.
The situation was not different in Asia as well where the country could not gain strong footholds despite signing three Free Trade Agreements; with China, Sri Lanka and Malaysia. The exports to North East Asian countries decreased one-tenth to only $2.36 billion.
Compared with the last four years data, the decline in exports was over 37%. In 2013-14, Pakistan’s exports to East Asian countries stood at $3.8 billion. The exports to China dropped over 14% to only $1.62 billion last year despite Pakistan having four trade missions located in Beijing, Chengdu, Hong Kong and Shanghai.
‘Govt responsible for decline in textile exports’
South Asian region was not an exception where exports decreased 9.3% to just $2.5 billion. Exports to Afghanistan declined by about 9% to $1.12 billion. The exports to Bangladesh also decreased to just $623.3 million.
India was the only exception where exports increased by 2% to $408 million.
https://tribune.com.pk/story/1463589/pakistans-exports-regions-plunged/
