• Wednesday, August 21, 2019

Exports decline despite subsidies, devaluation

Discussion in 'Pakistan Economy' started by maithil, May 16, 2019.

  1. maithil

    maithil BANNED

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    Despite currency devaluation and subsidies offered to various sectors, the country’s exports declined by 1.54 per cent during April, according to latest data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.

    PBS data shows that exports during the month of April declined to $2.094 billion compared to $2.127bn during the same period last year.

    Moreover, export proceeds during the first 10 months of the current fiscal year also fell by 0.12pc to $19.169bn compared to $19.191bn last year. Cumulatively, in rupee terms, exports recorded 23pc growth during the period under review.

    The country’s exports have declined since February despite claims by the Commerce Division that the steps taken by government including currency devaluation, subsidies to export-oriented sectors will likely result in improving overall proceeds.

    Last week, Adviser to Prime Minister on Commerce Razak Dawood also shared his concern over the falling proceeds. He said that “exports are not showing growth the way we were expecting,” adding that the trend might reverse in the next few months.

    This decline comes despite China’s decision to allow $1bn worth of additional market access to products including rice, yarn etc at zero duty in the current fiscal year. Of these, traders have exported $300m worth of commodities so far.

    In addition to this, the government had also extended cash assistance to major sectors, mainly textile and clothing but these measures too failed to boost exports.

    On the other hand, total imports during the 10 months fell by 7.88pc to $45.471bn from $49.360bn during the same period last year.

    However, during April, imports declined by further 6.42pc to $4.753bn, from $5.079bn in same month last year.

    As a result of higher decline in imports, the trade deficit also fell to $26.302bn in July-April period this year from $30.169bn over the corresponding months of last year, reflecting a decline of 12.82pc. The government’s corrective measures vis-à-vis imports are finally bearing fruit in the shape of decline in trade deficit.

    On a monthly basis, trade deficit dipped by 9.93pc to $2.659bn in April, from $2.952bn over same month last year.

    The decline in deficit — decreasing by $3.867bn during July-April — is estimated to reach around $5-6bn by the end of the ongoing fiscal year.

    This contraction is mainly attributable to a steep fall in the overall import bill even though export proceeds posted a mixed trend during the period under review.

    https://www.dawn.com/news/1482566
     
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  2. TopCat

    TopCat ELITE MEMBER

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    its good that import is not growing anymore... Pakistan should be careful of what it imports before sorting out the export.
     
  3. KhanBaba2

    KhanBaba2 FULL MEMBER

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    Didn't they announce 25 billion export for the year. Just 6 billion needed in the next 2 months.
     
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  4. Abdussamad

    Abdussamad BANNED

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    This is because of deindustrialization that took place during the past regimes due to the energy shortage, poor security situation and overvalued rupee. Many industrialists set fire to their own factories in order to defraud insurance companies and make a quick exit from their loss making businesses. They started investing in importing and trading goods and in real estate speculation. This situation cannot be reversed overnight. It'll take years to build up this capacity again even if the conditions are right for it.
     
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  5. Enigma SIG

    Enigma SIG FULL MEMBER

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    Pakistan should look for increase in exports of the IT services sector. We have a lot of IT graduates now.
     
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  6. Fawadqasim1

    Fawadqasim1 SENIOR MEMBER

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    A margenal decline at what cost.
    More than 40% of devaluation of currency
    Aysee economy Tau may bhee Chala sakta hoon.
     
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  7. Möbius Curve

    Möbius Curve FULL MEMBER

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    Count us, Electrical, Electronic, Civil, Mechanical, Computer Hardware, Computer Software, and ........many many others too!

    And YOU DO NOT have only Graduates but Ph.D's too, unemployed & sacked everywhere!

    Please come out of Utopia! Say farewell to your little utopian imagination!
     
  8. Enigma SIG

    Enigma SIG FULL MEMBER

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    IT is a very broad field mate.
     
  9. Enigma SIG

    Enigma SIG FULL MEMBER

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    Free market economy. This is what happens when Ishaq Dar type economic nonsense tries to buoy the currency using borrowed dollar reserves. Should have happened sooner than later.

    Economic hitmen laid out mines which are going off as the government is trying to fix fiscal issues prevalent since time immemorial.

    Bright side; import bill is reduced. Exports have to catch up which takes time.
     
  10. SHAH820

    SHAH820 FULL MEMBER

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    with some simple math assume pakistan's export is about 19.1 bln of 10 month which is 1.91 bln per month
    19.1/10 =1.91 and for 12 months 12 x 1.91 =22.92 or approx 23 bln recently officials told export will be 24 bln not 25
     
  11. RoadRunner401

    RoadRunner401 SENIOR MEMBER

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    All good entering Pakistan, tax and duty free destined for Afghanistan were being sold in Pakistan, causing Pakistan billions in loss revenue plus killing our industry, From what I am told that the issue is being addressed now.

    Our experts took a hit because of Rupee losing some value, that is going to stabilize in the long term as previous government were keeping the value high artificially
     
  12. Sunan

    Sunan FULL MEMBER

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    Youthia govt is corrupt,incompetent and selected,What more you expect from them?They r desastor for the country.
     
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  13. KhanBaba2

    KhanBaba2 FULL MEMBER

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  14. Type59

    Type59 FULL MEMBER

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    In rupee terms exports have increased. Can someone elaborate on this?
     
  15. Abdussamad

    Abdussamad BANNED

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    They've also increased in zim dollar and venezuelan bolivar terms. The rupee is down what 30+% so exports only increasing 23% is an overall decline in exports.

    The rupee was devalued months ago but overall exports have declined. There has been more than enough time for the rupee devaluation to show up in export figures.