KARACHI: Pakistan’s economic outlook gained a fillip in the strong exports growth of 16.7 percent in first quarter of 2010-11. From July-Sept 2010, the exports ascended to $5.179 billion compared to $4.437 billion at this time last year. However, on a negative note, imports also increased by 19.02 percent in first quarter of this fiscal and rose to $9.029 billion.
In terms of rupees the exports improved by 21.05 percent, to Rs443.44 billion in the wake of further devaluation of rupee against the US dollar from July-Sept 2010 period.
The trade deficit actually widened by 27 percent in July-Sept 2010 period and stabilised at $3.85 billion, from $3.148 billion in the previous financial year.
In September 2010, exports rose by 7.4 percent in US dollars and 11.17 percent in local currency. In the context of value, the exports improved to $1.619 billion in September this year, from $1.508 billion in September 2009.
Foreign trade analysts said that in the first quarter of this fiscal year, exports showed promising growth, but the situation is likely to change in the second quarter as floods have devastated thousands of acres of standing crops of cotton and rice which constitute important exports.
Pakistan is facing a shortfall of about 3 million bales of cotton this year, the textile industry will have import it from different countries to meet export orders, Akbar Sheikh, a renowned member of APTMA and exporter, informed Pakistan Today on Tuesday.
He said the unit value of textile products has increased by 10-15 percent in the international markets which would hopefully augment overall profitability in 2010-11.
He concluded that the shortage of cotton would not disrupt exports in any way as textile manufacturers are importing cotton from alternative sources to meet the demand of their products in oversea markets.
Exports shows promising growth as trade balance worsens
