In the initial month of the current fiscal year, Pakistan experienced a 14.55% decline in exports to its neighboring regional countries, with a significant impact stemming from reduced shipments to China, according to data compiled by the State Bank of Pakistan.
Exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives collectively amounted to $260.983 million, accounting for just 12.62% of the total exports valued at in July.
This decline in exports extends beyond Pakistan, as imports, particularly from China, also saw a substantial drop in July compared to the previous year. Over the entire fiscal year 2023, exports to regional countries decreased by 21.1% to year-on-year.
China remains Pakistan's primary trading partner in the region, constituting 60% of the regional export share, although exports to China dropped by 15.32% to $147.385 million in July compared to the same period last year.
Notably, Pakistan's exports to Afghanistan experienced of 32.79%, reaching $42.173 million in July. However, the overall downward trend in exports to these regional nations raises concerns and highlights the need for measures to bolster trade ties and enhance economic cooperation within the region, especially with China, to stabilize export figures and promote economic growth in Pakistan.
In the first month of the current fiscal year, Pakistan's exports to its neighboring regional countries faced a significant setback, primarily due to a decline in shipments to China. Data from the State Bank of Pakistan reveals a 14.55% drop in exports to nine regional nations, with these exports accounting for just 12.62% of the country's total exports in July.
Imports, notably from China, also witnessed a sharp decline during the same period. While Pakistan's trade with regional countries, particularly China, plays a pivotal role in its economic landscape, the recent contraction in exports raises concerns about the need to revitalize these trade relationships to ensure stability and growth in the nation's export sector.