ISLAMABAD: Pakistan’s export sector posted a strong 18 percent growth in December, firming up on the path of robust recovery with the business-as-usual well ingrained in the government’s policy, commerce adviser said on Friday.
Sharing provisional trade data on twitter, Adviser to Prime Minister for Commerce and Investment Razak Dawood said exports for December have grown 18.3 percent year-on-year or $364 million to $2.357 billion.
“This is the highest export ever in the month of December,” said Dawood. “This shows the resilience of the economy of Pakistan and it is a vindication of the government’s policy to keep the wheels of economy running during COVID-19 pandemic.”
For July-December 2020, exports increased 4.9 percent to $12.104 billion as compared to $11.533 billion in the corresponding period last year.
Exports sector is still showing modest growth if economic shutdown impact is taken out. The sector was further beaten by coronavirus-driven lockdown. However, the government’s realization that its survival depends on economic activities and policy intervention it took to buoy trade and industry helped in improving economic indicators.
Nonetheless, the energy crisis should be subdued before it stops business momentum, according to industrialists. Time warrants the government has to show political maturity to iron out petty differences over gas contribution and ownership with Sindh to keep the economic wheel running.
Dawood also flattered exporters “for achieving this feat during these testing times.”
“[I] urge them to aggressively focus on capturing a larger share of int'l trade. Exporters you are a great asset for our country and i salute you all.”
Total exports are expected between $23 to 24 billion this fiscal year, according to industry estimates. Improvements are mainly coming from textile exports, both in terms of quantity and prices. The central bank projects export values in the range of $23.4 to 23.8 billion in FY2021 – higher than the $22.5 billion recorded in FY2020. The government set an annual export target of $22.7 billion.
The sustainability of this momentum will depend on how the world aggregate demand improves and the global economies recover from coronavirus pandemic, said Ehsan Malik, chief executive officer of Pakistan Business Council.
“Demand in the west for the cheaper spectrum of apparel has not suffered as much as it has for higher value-added textiles. Also people working and staying at home are renewing towels, bed-sheets more often than they did hitherto,” Malik said earlier last month.