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Featured Alarming: Pakistan’s exports plunge to 4-year low

Discussion in 'Pakistan Economy' started by Devil Soul, Jul 17, 2015.

  1. Devil Soul

    Devil Soul ELITE MEMBER

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    Alarming: Pakistan’s exports plunge to 4-year low
    Published: July 17, 2015

    ISLAMABAD:
    Pakistan’s exports have plunged to a four-year low of $23.9 billion in the recently ended financial year – missing the target by $3.1 billion and tattering the much-trumpeted ‘Vision 2025’ that promises six times increase in exports in the next 10 years.


    The country exported goods worth $23.9 billion during the last financial year 2014-15, which were $1.3 billion or 4.9% less than the previous fiscal year, reported the Pakistan Bureau of Statistics (PBS) on Thursday.

    It was a poorer performance compared to Pakistan Peoples Party’s (PPP) last year in office, which is generally considered as a bad year in terms of economic policies and governance. In the last year of the PPP government, the exports had increased to $24.5 billon.

    It was also the lowest number since 2011-12 when the country had exported goods worth $23.6 billion.

    The country’s exports are falling at a time when its regional peers are increasing their shares in global trade. Pakistan’s exports amount to only 0.15% of the global receipts from exports.

    While the exports dropped by almost 5%, the imports in the same period grew on an average of 2.1% to $46 billion, widening the trade deficit by 10.7%.

    For the last fiscal year, the government had targeted to increase the exports to $27 billion -a mark that it missed by a margin of $3.1 billion. The imports also exceeded the target by $1.9 billion. Resultantly, the gap between imports and exports stood at $22.2 billion, which was $5.2 billion higher than the official estimates.

    Read: Textile sector: Identifying causes for low exports

    This would have a direct bearing on the official foreign currency reserves, which remained far below the IMF’s projections of $15.4 billion for the last fiscal year. The foreign currency reserves held by the central bank stood at $13.5 billion by end of the last fiscal year, almost $2 billion less than the IMF’s projections.

    Decrease in international prices of commodities, increase in cost of production due to increase in energy and other input costs, energy crisis and lack of research and development have impeded growth in exports, admitted the Ministry of Finance in its latest publication, the Economic Survey of Pakistan 2014-15.

    Since assuming office in June 2013, the incumbent government has slapped Rs830 billion additional taxes and most of these taxes are regressive, making exports uncompetitive in international markets.

    All Pakistan Textile Mills Association – the representative body of the exporters – has already announced to shut their factories, as they argue that doing business was no more profitable due to unprecedented level of taxation and high energy prices.

    Last year, the PML-N government had launched its economic vision, the ‘Vision 2025’, which promises to address all the obstacles, which are pulling back economic growth. One of the important targets of the ten-year plan is increasing the exports to $150 billion.

    In the last fiscal year, the exports had to be increased to $37.5 billion to achieve the overarching goal, which it missed by a margin of $13.6 billion. The trend is going to continue.

    The latest projections of the International Monetary Fund show that the new fiscal year 2015-16 will be as bad as the last fiscal year in terms of growth in exports.

    Read: Both India and Pakistan need to ease trade restrictions

    Although the government has projected the exports to grow to $25.5 billion by end of this year, the IMF estimates show that export receipts will marginally increase to $24.5 billion. Similarly, the IMF has portrayed a negative growth in imports and has estimated that the imports will remain around $40 billion this year.

    The local industry is highly dependent on imported raw material and negative growth in imports will also have adverse implications on overall industrial growth.

    Yearly statistics

    The yearly trade figures also portray almost similar trends. In June alone, the trade deficit widened 3.4% to $2.4 billion, according to the PBS. The exports remained at almost last year’s level of $2 billion, showing a marginal contraction of 0.1%. The imports in last month increased to $4.4 billion – higher by 1.8% over imports in the same month of last year.

    Monthly statistics

    On a monthly basis, the trade deficit in June widened by 25.5% over May due to 3.2% expansion in exports and 14.2% increase in imports, data from the PBS showed.

    Published in The Express Tribune, July 17th, 2015.
     
  2. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    LOL NAWAZ sharif and his targets lol

    Electricity in 90 days missed
    Gas import kerna ....missed
    Dams in 2 yeas missed
    Kalabagh dam ... missed
    Metro in Karachi ...missed
    bachi for every bacha ....missed
    Metro bus that is not submerged ...missed
    Laptops outside of Lahore ...missed
    Saudi walla se ur paisa mangna...missed
    PATRON-in cheif , Hockey olympic qualifying...missed

    Only thing he does not miss is dates with Modi in International cities
     
    Last edited: Jul 17, 2015
  3. Dr. Strangelove

    Dr. Strangelove SENIOR MEMBER

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    let the tajarbakar team do its job they are already chocking the countries textile industry
    they r doing a fine job
     
    Last edited: Jul 17, 2015
  4. Viny

    Viny SENIOR MEMBER

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    Open the trade routes to your biggest neighbor and see surge in export figures.
    If you are keeping your doors closed to 2nd populous market in the world you are obviously missing it big time.
     
  5. FunkyGen

    FunkyGen SENIOR MEMBER

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    Well, this is shameful...
     
  6. senses

    senses FULL MEMBER

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    They suck at everything except building infrastructure such as roads.
     
  7. The Great One

    The Great One BANNED

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    hehehe
     
  8. WishLivePak

    WishLivePak SENIOR MEMBER

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    So you want metro?

    Don't build metro, bad. Build metro, bad.
     
  9. Ryuzaki

    Ryuzaki SENIOR MEMBER

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    After CPEC this small figure will become almost zero.
     
  10. IrbiS

    IrbiS FULL MEMBER

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    Soon we'll start exporting ready made metro for whole cities and countries
     
  11. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Metro bhi Turkey company ki hai, rented

    T.A.J.A.R.B.A.K.A.R Team

    [​IMG]

    Oye paratha kahan hai tajarba dekhana hai
     
  12. Zaki

    Zaki MODERATOR

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    If the present government had faced severe natural calamities like predecessors (God Forbid), if the present government had faced oil prices above 100 dollars per barrel, if the present government had not received free of cost economic and financial grants from brotherly nation, if the present government was not able to secure deal with IMF on their terms

    This present government would be a laughing stock long ago... And may have been overthrown by the likes of anarchy march.
     
  13. IrbiS

    IrbiS FULL MEMBER

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    License production :enjoy:
     
  14. PatriotLover

    PatriotLover FULL MEMBER

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    We are too dependant on China. We must increase our own manufacturing rather than depend on China to import everything. If that continues the Indians will soon call us "Made in China" and we will have absolutely no manufacturing capacities of our own.
     
  15. Jango

    Jango MODERATOR

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    THis government has to be honest, had a way toooo easy time than PPP (not justifying PPP here).

    Only thing they are good at is making infrastructure in record time by using a shitload of money and then making tall claims about super investments by China etc.

    In this election, the slogan was "motorway banayi thi", in the next one it will be "metro banayi thi".

    They should start a construction company to be honest, partnering with Malik Riaz.