Thursday December 08, 2022

Exports to US jump 23pc in 11 months on IT, services strength

By Our Correspondent
July 03, 2022

ISLAMABAD: Country’s year-on-year exports to the United States increased 23 percent in eleven months of the last fiscal year over the same period last year, mostly driven my IT and services sector, Pakistan’s envoy in Washington said on Saturday.

Last year, the total volume of exports crossed the $5 billion-mark for the first time and is expected to cross the $8 billion figure in FY2023.

“During this fiscal year, exports have already grown to $6.16 billion in the July-May 2021-22 period,” said a press release, quoting Pakistan’s Ambassador to US Masood Khan as saying.

“The figures of June, which have yet to come, would further enhance the overall volume of total Pakistan’s exports to the US.”

The ambassador said in the last financial year, Pakistan’s imports from the United States stood at $2.4 billion and in the July-May 2021-22 period, they increased to $2.72 billion.

“So, our imports from the United States have increased marginally whereas there has been a huge rise in our exports,” Khan said.

The United States is an important trading partner and the single largest export destination for Pakistan.

“The spurt in our exports is a very promising trend,” he added.

Pakistan’s total exports to the US in the sectors of services and IT crossed $2 billion.

“Pakistan’s tech sector, supported mainly by the United States’ entrepreneurs, has shown extraordinary results. It is poised to continue on its positive trajectory,” ambassador Khan said.

In recent months, the tech startups in Pakistan have invested and earned half a billion dollars. The digital enterprises in Pakistan are fast becoming global.

Last year was the best year for the budding startup sector of the country, with 81 deals made. The amount of $350 million that was raised was five-fold higher than $65 million raised in 2020.

“The Pakistan-US partnership in the tech sector will grow in strength in the years to come,” the ambassador said.

In the recent past, Pakistan has emphasised on closer trade and investment ties between Pakistan and the United States. The remarkable performance of Pakistan’s exports to the US market would reinforce such trends and deepen the engagement between the two countries.

Pakistan and the United States held an intersessional meeting of trade and investment in March 2022, which was led by Christopher Wilson, Assistant US Trade Representative, from the US side, and Secretary Commerce Muhammad Sualeh Ahmad Faruqui, from the Pakistani side. Both sides are preparing for a ministerial-level meeting under Trade and Investment Framework (TIFA) in the summer or early fall this year.