Pakistan’s Merchandise Exports Dipped By 18.67% To $2.30 Billion In February

The exports of Pakistan have come down by 8.65 percent to $18.79 billion from July to February in the current fiscal year as compared to the exports, worth $20.57 billion during the first eight months of the previous fiscal year.

This shows that the government could hardly meet the export target in the ongoing financial year. Imports, too, have decreased by 23.56 percent to $40.09 billion during this period.

In February, the exports decreased by 18.67 percent year-on-year to $2.30 billion. Imports, too, dropped by 31.51 percent to $4.009 billion February compared to the imports during the same month last year. During the first eight months of the current fiscal year, the trade deficit decelerated by 33.18 percent to $21.30 billion from $31.87 billion during these months last year. In February, the trade deficit came down by 43.57 percent to $1.70 billion year-on-year basis.

The government’s steps to reduce the subsidies from industrial sectors, including the gas shortage and unavailability of raw materials and spare parts, caused the fall in exports. The ex-chairman of Pakistan Readymade Garments Manufacturers and Exporter Association, Ijaz A. Khokhar while talking to the media, told that the government would have come up with some measures to reverse the industry closure.

He said that the buyers had withheld their orders due to many factors, including political and economic restlessness in the country. He added, “This is a very tough condition. The government will have to support small and medium enterprises. A further increase in the interest rate on Thursday will make it impossible for SMEs to access credit.”

The government has discontinued the provision of electricity to the export sector at subsidized rates. This will greatly raise the production cost of the export items, and competing in the international market would be more difficult. Mr Khokhar said that traders from Bangladesh, Vietnam and Sri Lanka would capture the international market. Now is the time for the government should take urgent and appropriate measures in this direction.