Exports drop 16.9pc to $1.6bln in July

ISLAMABAD: Pakistan’s exports dropped 16.9 percent to $1.598 billion in the first month of the current fiscal year of 2015/16 as there was a subdued demand of the country’s textiles in the European Union.
The country exported $1.92 billion worth of products in July 2014, showed the Pakistan Bureau of Statistics (PBS) data on Monday.
Economists believed that the decline in exports were due to low demand, especially of textile products, from the EU and other developed world.
They said energy shortage is hampering the industrial production.
In July 2015, imports rose four percent to $3.37 billion from $3.24 billion recorded in July 2014.
Trade deficit widened 34.6 percent to $1.77 billion in July as compared to $1.317 billion in the comparable month.
The PBS data showed that July exports dipped 20.7 percent over $2.016 billion recorded in the previous month of June.
Imports were also 23.28 percent down from $4.39 billion in June.
The country recorded trade deficit of $22.095 billion in the last fiscal year (2014/15) as against $19.963 billion in FY14.
In FY15, exports decreased 4.88 percent to $23.885 billion compared with $25.110 billion in FY14. Imports totaled $46 billion as against $45.07 billion.
Experts stressed that the country needs to diversify its exports basket and explore other exporting destinations in Latin America, Africa, Asia and the Middle Eastern countries.
They said the government should encourage technological upgrades and develop agriculture, cottage, handicrafts and jewelry sectors.
Currently, Pakistan’s exports are mainly landed in EU, US, UAE, Afghanistan and China.
The relationship with a few countries can substantially affect Pakistan’s export performance, something that the experts said needs to be changed.