Pakistan’s exports touch $22.038b in July-May 2014-15

Despite government efforts to boost local exports and shrink imports, the country’s export declined by 4.2 percent while imports went up by 1.49 percent in last 11 months.

The export stood at $22.038 billion in 11 months of the current fiscal year, which is down by 4.2 percent or $938 million compared to the same period last year.

However, the country’s import slightly moved upward by 1.49 percent or $561 million in last 11 months and stood at $37.525 billion, the data released by the State Bank of Pakistan (SB) said on Wednesday.

The trade deficit of the country stood at $15.487 billion in July-May this year compared to $15.110 billion. The trade deficit is up by 2.4 percent or $377 million.

“The Trade Development Authority of Pakistan (TDAP) is behind the shrinking exports as they are doing nothing for the country’s trade,” said Shabbir Ahmed, textile exporter and a member of Karachi Chamber of Commerce and Industry.

He said the exports of the country were stagnant in between of this figure only because of TDAP’s mismanagement. Law and order situation and load shedding has been the second issue, which the previous governments failed to provide in last seven years.

The current account deficit, which was stood at $3.027 billion in 2013-14, has now decreased up to 52 percent or $1.040 billion and stood at $1.985 billion this year. An analyst said: “The continued rise in workers’ remittances provides significant balance of payments support. The country has received an amount of $16.633 billion remittances in last 11 months, which is up by 13 percent compared to the last fiscal year. The country is likely to receive IMF 7th tranche of $506 million under EFF arrangement.

The IMF had said that Pakistan’s economy continues to gradually improve, helped by macroeconomic stability, lower oil prices, robust remittances, and higher supply of gas and electricity. Real GDP growth is expected to reach 4.1 percent this fiscal year and accelerate to 4.5 percent next year. Remittance inflows have continued to increase over the years, and these remittances will cover around 45 percent of the country’s imports amount.

Remittances are likely to go up as migrants remit additional amounts in Ramazan and ahead of Eid to their families. The country’s total foreign investment stood at $2.629 billion in last 11 months of the current fiscal year, which is 31.6 percent lower than 2014-15.

The country reserves stood at $17.446 billion on June 05, 2015 after increasing SBP’s Liquid FX Reserves increased by $400 million to $12,313 million, compared to $11,913 million in the previous week. The country’s services sector export went up by 7.37 percent or $396 billion, which stood at $5.368 billion compared to $4.772 billion.