Pakistan’s exports to nine regional nations declined by 1.32 percent in the first four months of the current fiscal year compared to the same period last year, according to the latest data from the State Bank of Pakistan. The decline was primarily driven by a decline in export revenues to China.
In July-October, Pakistan’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives amounted to $1.264 billion, or 13.22 percent of the country’s total global exports of $9.56 billion.
China tops the list of regional exports from Pakistan, leaving India and Bangladesh in the dust. In contrast, Pakistan’s exports to China decreased during the first four months. The lion’s share of regional exports, 53.66 percent, goes to China, while the remainder is distributed among eight countries.
In July-October, Pakistan’s exports to China decreased 11.15 percent, from $763.57 million in 4MFY22 to $678.38 million. For the first time in the post-Covid era, a decline in export revenues was noticed.
Pakistan’s exports to Afghanistan increased by 10.89 percent, from $158.72 million in July-October 2021 to $176.01 million in July-October 2022. Before a few years ago, Afghanistan was Pakistan’s second-largest export market after the United States. The export data did not reflect revenues that were realized via land channels.
In July-October, China’s revenues experienced their first post-Covid decline of over 11 percentage points.
In August 2021, shipments to Afghanistan began to fall. In the post-Taliban era, the government has permitted maximal imports from Afghanistan in rupees via land route. Imports made in rupees were not included in the calculations.
The administration has also exempted tomatoes and onions imported from Afghanistan and Iran from duty and taxes. As a result, the import of these kitchen basics has increased dramatically over the past few months to compensate for the depletion of local supply.
In FY23, Pakistan’s exports to Iran through the official channel remained at $0.018 million, compared to zero exports in FY22. The majority of trade with Tehran is conducted through informal routes in Balochistan’s border regions.
To accommodate local demand, the administration has authorized the importation of onions and tomatoes at the Taftan and Gwadar border customs stations.
In July-October of this year, the country’s exports to India decreased 8.33 percent to $0.110 million from $0.125 million in 4MFY23. Following the monsoon rains, the standing vegetable and cotton crops were severely damaged.
There is significant interest in enabling the import of cotton and vegetables at the Wagah border.
Exports to Bangladesh climbed 20.68 percent from July-October 2021 to $294.86 million in July-October 2022. Similarly, exports to Sri Lanka rose by 2.37 percent to $111.48 million from $108.90 million in the same months of the previous year.
In contrast, Pakistan’s exports to Nepal decreased by 69.46 percent, from $3.34 million in 4MFY22 to $1.02 million in 5MFY23. Exports to the Maldives rose 19 percent to $2.62 million from $2.20 million.
In the first four months of the current fiscal year, a negligible export of $0.045m was recorded to Bhutan, compared to zero exports in the same period of the prior fiscal year.
