November exports jump 33 percent to $2.9 billion

ISLAMABAD: Pakistan’s exports grew at their fastest pace in the current fiscal year in November thanks to post-pandemic recoveries in trading partners that pushed up demand for merchandise, a government official said on Wednesday.

Exports in November soared 33 percent to $2.9 billion from a year earlier -- an all time monthly high, Abdul Razak Dawood adviser to the Prime Minister on Commerce said in a tweet.

“We are glad to inform that Pakistan’s exports during November 2021 increased by 33 percent to a historic monthly high of $2.903 billion as compared to $2.174 billion during the corresponding period last year. Our target for the month was $2.6 billion.”

Dawood said the cumulative exports in the first five months from July to November 2021 recorded at $12.365 billion against $9.747 billion in same period of the last fiscal, depicting a growth of 27 percent. The government was eyeing $12.2 billion worth of exports during the period.

The adisor did not share imports data, expecting to be released soon and also outpace exports by a wide margin. For the last several months high imports have dented the country’s fragile foreign currency reserves and also affected the country’s balance of payment outlook. The country’s current account deficit (CAD) has already turned red, as the trade deficit is continuously ballooning. During October 2021, CAD recorded the highest deficit of $1.66 billion during the current fiscal. In previous month, it was at $1.3 billion. And from July to October, the combine deficit $5.08 billion against $1.33 billion surplus in same period of FY21.

Analysts viewed higher international commodity and products prices have helped support Pakistan’s exports in dollar terms though the trade volume is almost stagnant.

The economy’s trade deficit during July-October increased by 97 percent to $14.8 billion, while during these four months of the last year, it was at $7.5 billion.

Similarly, during the last fiscal (2020-21) trade deficit stood at $31.1 billion, 34.3 percent more than $23.159 billion recorded in FY2019-20. In FY2021, imports clocked in at $56.405 billion and exports $25.30 billion. During FY2020, the exports hit $21.39 billion, while imports came in at $44.55 billion, a deficit of $23.159 billion.

The government and the State Bank of Pakistan have recently imposed measures to contain the less necessary imports by increasing 100 percent margin. It is also mulling to further put some restriction on import of good especially completely built units (CBU) vehicles and other products to curtail the imports bill.