Pakistan Export Updates

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Vegetable Exporters suggest for deal with Russia to swap surplus potato with wheat​

APP
JUNE 17, 2022

PESHAWAR: All Pakistan Fruit & Vegetable Exporters, Importers and Merchants Association (PFVA) has suggested for exchange of surplus potato crop with wheat from Russia.

In a press statement issued here on Friday, Patron in Chief of PFVA, Waheed Ahmad said that country has a bumper crop of potato this year weighing around 7.5 million tons against the domestic demand of 4 million ton, showing a surplus of around three million ton for export.

Waheed continued”The Russian market is a lucrative international market for Pakistan potato for many years.”

“Since our country is also facing wheat shortage this year and this is a unique opportunity of exporting potato for import of wheat from Russia,” Waheed opined.


“The exchange of both the crops between the two countries can be made on barter basis so that the country does not to have spend valuable foreign exchange under the prevailing poor economic conditions,” he suggested.

Patron in Chief of PFVA also appreciated efforts of government and hard work of potato growers in availing bumper crop.

 

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BEIJING: Pakistan’s exports to China crossed $1.605 billion in the first five months of 2022, up 5.42% year on year, showed the official data from the General Administration of Customs of the People’s Republic of China (GACC).

Pakistan Embassy Commercial Counsellor in Beijing Badaruz Zaman said that despite Covid-19, bilateral trade has increased significantly.

“Pakistani government is also fully committed to tapping its industrialisation potential and paying specific attention to the construction of Special Economic Zones to enhance its trade with other countries,” he added.

Zaman assessed that the second phase of the China-Pakistan Free Trade Agreement provides zero-tariff market access for Pakistan’s 313 major export commodities, and has greatly promoted the manufacturing industry to expand production and exports.

“China-Pakistan free trade agreement will create more space for service trade. Bilateral trade between the two countries will cross $50 billion within the next five years. This year, the trade volume will cross $32 billion,” he projected.

The total volume of trade between China and Pakistan has amounted to $12.06 billion, up nearly 19% compared with 2021 when it stood at $10.14 billion due to Covid-19.

 

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Rice exports: new heights​

BR
21 Jun, 2022

Pakistan’s rice exports have made a fresh record this fiscal, reaching 4.5 million metric tons (MMT) during 11M-FY22. As per PBS, rice exports for fiscal year to date are up 33 percent over same period last year, despite a weak performance during May-22. With one more month to go, will exporters be able to cross the psychological barrier of 5MMT?

The strong performance during the ongoing fiscal has primarily come on the back of coarse rice exports, which are anticipated to cross 4MMT by June end (up 35 percent over the previous year).

Pakistan’s previous coarse rice record stands at 3.75MMT for FY16, against export earnings of a little over $1.4 billion. Coarse rice earnings during 11M have already added $1.65 billion to export kitty, with forecast to safely reach $1.8 billion by year end.

Meanwhile, basmati exports during the year have failed to inspire even though exported volume during 11MFY22 is also up 23 percent over the previous year. Full year volume forecast of 0.75MMT will hardly feature among top-10 basmati export years, which averaged at 0.95MMT between FY03 – FY12. Similarly, basmati export earnings may remain shy of $0.7 billion by fiscal close.

If the trend continues as projected, basmati volume and value will be less than levels touched as recent as in FY20, the pandemic year.

This isdespite a hundred dollar per ton rise in basmati prices in the export market during May-22, which have also sent local prices in a frenzy. Super basmati (new) prices in local wholesale markets have risen by at least 20 percent in the last 45 days alone. It is unclear whether export demand has strengthened during June-22, or local prices have risen in response to news of lower basmati cultivation due to canal water shortage.

Either way, full year export earnings (for all varieties) will most certainly manage to bag $2.5 billion, of which as much as three-fourths supplied by coarse rice exports (coarse rice share in export volume stands at 85 percent).

Increasingly, Pakistan is establishing itself as a small but significant player in coarse rice exports (including hybrid rice), with its share in basmati export market diminishing to a little under 15 percent. On the other hand, local demand for basmati remains unsatiated, as over 80 percent of local production now goes towards domestic consumption. With Pakistan fast running out of irrigated acres to cultivate rice – while basmati prices in international market are tracking up along with a freefall in rupee value - a basmati price spiral in local market may soon become a distinct possibility.

 

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Pakistan's sesame seed export to China grew by 47 percent on a year-on-year basis in the first five months of the current year 2022, reaching $50.32 million..

 

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The total import bill of Pakistan has crossed a record $80 billion mark, showing 42 per cent increase during fiscal year 2021/2022, according to official data released on Tuesday.

The total import bill of the country increased to $80.02 billion during fiscal year 2021/2022 as compared with $58.38 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

The exports of the country also posted an increase of 25.51 per cent to $31.76 billion during the fiscal year under review as compared with $25.30 billion in the preceding fiscal year.

Pakistan posted a record trade deficit of $48.26 billion in the fiscal year 2021/2022 as compared with the deficit of $31.07 billion in the preceding year, showing an expansion in deficit of 55.29 per cent

 

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Pakistan export volumes of over $30 billion has been recorded for the first time in its history in a single financial year.

Although, as per import record wiping out the trade imbalance means the country will suffer. Data was recently shared by PBS ( Pakistan Bureau Statistics) showing the ending in financial year June 30, Exported commodities worth $ 31.76 billion or around Rs 5.66 trillions.

Exports from $25.3 billion or Rs8.98 trillion was up by 25.51% in the fiscal year 2020-21. Whereas, the imports of $80 billion or around Rs 14.25 trillion was recorded in the same period of time.

Exports increased by 41.93% worth $25.3 billion or Rs8.98 trillion in the fiscal year 2020-21. The overall deficit for the country closed down to $48.26 billion or Rs8.6 trillion

 

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Jaggery exporters demand withdrawal of ban​

Traders argue export of commodity will not cause sugar shortage

Our Correspondent
July 13, 2022

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KARACHI: Traders have asked the sugar commissioner and Sugar Advisory Board members to recommend the lifting of ban on jaggery (gur) export in an upcoming meeting slated for July 20 as millers claim the country has produced surplus sugar.

The Small and Medium Enterprises Development Authority (Smeda) has already recommended to the Ministry of Commerce to permit the export of jaggery. The federal government imposed the ban on jiggery export as sugar was being smuggled out of the country under the garb of jaggery shipments to Afghanistan.

“Jaggery is produced on a very small scale in Pakistan without the help of modern technology,” said Pakistan Businesses Forum (PBF) Vice President Ahmad Jawad. “On the contrary, jaggery is produced in India by the automated efficient plants and small sugar plants. Until we put proper processes in place with pure organic procedures, it will be difficult to increase exports,” he pointed out.

Talking to The Express Tribune, Union of Small and Medium Enterprises (Unisame) President Zulfikar Thaver claimed that the commerce ministry had acknowledged that the restriction on jaggery export was unintentional, which came into effect when the country faced shortage of sugar. He pointed out that sugarcane production stood at around 80 million tons while only about 8,000 tons of jaggery could be exported, which was not a big quantity and the two commodities had no comparison.

Hussain Ali Ratnani, a leading exporter of commodities, argued that jaggery was not a medicine or a staple food and export of 10,000 tons would not affect the domestic market. However, sugar is in surplus now and the government is considering allowing its export to fetch foreign exchange.

The Unisame president stressed that the government should not be influenced by the sugar mafia and it should allow the export of jaggery. “Export of gur needs to be based on merit irrespective of the surplus or scarcity of sugar,” he remarked.

The Lahore High Court has already passed an order, saying no provincial or federal government will create any impediment in the production of jaggery and raw sugar. Jawad pointed out that the sugarcane harvested in Peshawar-MardanCharsadda valley was diverted for commercial jaggery production and no sugarcane was available for crushing.

“We don’t have the technology to make our gur an attractive item in the market,” he said, adding that farmers needed equipment for making proper cubes as well as suitable packaging material. On the request of millers for the export of surplus sugar, the PBF official was of the view that there was no harm if the surplus sweetener was exported, which would facilitate the millers in making timely payments to sugarcane farmers.

He, however, did not foresee a bumper crop in the upcoming harvesting of sugarcane because of a severe heat wave in the past two months and the drying of canals. “We hope the ongoing spell of rains may help to improve production.” “There is regular demand for gur from the Gulf, Middle Eastern and European countries,”

Thaver said, adding that India and China were exporting the commodity and earning handsome foreign exchange while Pakistan’s ministry was still mulling over it. “Gur comprises just 0.1% of the sugar production of 8 million tons per annum, so there is no comparison at all,” he remarked.

Apart from that, “the price of jaggery is higher than the sugar rate, so there won’t be any effect”. Earlier, only 8,330 tons of jaggery was exported and if its export is allowed again, it is expected that about 10,000 tons will be shipped. “It’s a very small quantity as compared to 8 million tons of sugar production; there is no justification for stopping gur export.”

 

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Pakistan’s exports to China surged 8%​

The Frontier Post

ISLAMABAD: Pakistan’s exports to China in June 2022 have increased by 8% to US$251.30 million as compared to the corresponding month of the previous year when it was recorded at US$232.74 million in June 2021, Gwadar Pro reported on Tuesday quoting Trade Development Authority Pakistan (TDAP).

Also, as compared to May 2022, Pakistan’s exports to China have shown positive signs by gaining a value of US$22.38 million. In May, the total exports to China were recorded as US$228.92 million.

Pakistan’s exports to UAE, Italy, Netherlands, UK, Spain, Bangladesh, Thailand, Canada, and France have also increased as compared to the corresponding month of June 2021.

Pakistan’s exports to all destinations of the world during June 2022 were recorded at US$2,887 million, which is 5.83% more than the corresponding month of June 2021 when the total figure was US$2,728 million.
Regarding imports, China is one of the top partner countries which shows a decrease during June as compared to the corresponding month of the previous fiscal year.


In June 2022, Pakistan’s imports from China decreased by 14% to US$1625.21 million compared to June 2021’s US$1894.16 million imports. This is a good sign for Pakistan to minimise its trade deficit.

 

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APTMA expects over 20% growth in Pakistan's textile exports in FY23​

BR
16 Jul, 2022

Patron in Chief of the All Pakistan Textile Mills Association (APTMA) Dr Gohar Ejaz on Saturday indicated that the textile industry is expecting over 20% growth in exports this fiscal year, cautiously adding that this is possible if the government continues with the policy of 'Regionally Competitive Energy Tariffs'.

APTMA, a trade organisation representing the largest industrial sector of Pakistan, said that the textile industry posted record export growth in FY22 with its expansion and investment plans under the State Bank of Pakistan’s (SBP) Long Term Financing Facility (LTFF) and Temporary Economic Refinance Facility (TERF).

“In addition, the country’s textile industry plans to import 6 million bales of cotton this year from the US and Brazil,” Gohar was quoted as saying in a statement.

The textile sector makes up a lion's share of Pakistani exports. In the first eleven months of FY22, the exports of textile commodities surged to $17.62 billion against exports of $13.74 billion in the same period of the previous year, according to latest data published by the Pakistan Bureau of Statistics (PBS) on Friday.

Earlier this month, the textile industry sought the prime minister's help for the restoration of gas to the sector, stressing that a loss of almost $1 billion in exports would take place due to energy suspension and long holidays.

Gohar, in a letter to Prime Minister Shehbaz Sharif, stated then that the textile industry had achieved a new record in terms of exports, and the momentum could be lost due to energy-suspension.

“The fantastic growth was enabled by the implementation of RCET, investment of over $5 billion in expansion and establishment of 100 new textile units resulting in enhanced export capacity of $500 million per annum.

“It is inexplicable that the exporting sector which has the capacity to deliver over $2 billion in exports per month is being denied energy/gas and consequently, exports will be significantly lower, much to the detriment of Pakistan’s economy.”

Back then, Gohar stated that textile exports were expected to increase to over $25 billion in the coming fiscal year and if that momentum was lost due to energy supply and cost constraints, Pakistan would be forced to seek an additional $6 billion in loans, which under the circumstances may not be possible.

 

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IT exports have surged at the growth rate of 25.45 percent in eleven months of the last financial year. “ICT export remittances, including telecommunication, computer, and information services for the period July 2021 to May 2022 during Financial Year 2021-22 have surged to the $2.381 billion at a growth rate of 25.45 % in comparison to the $1.898 billion during the same period in FY 2020-21,” the official of the ministry told APP.

The net exports for the period July 2021 to May 2022 during FY 2021-22 were $1.809 billion which was 75.98% of $2.381 billion in ICT exports. Last year, for the same period the net exports were $1.425 billion which was 75.08% of $1.898 billion in ICT exports, he added.
On the direction of the Prime Minister, he said, steps were being taken to take ICT exports to record levels, with the implementation of the tax relief announced by the finance minister in the federal budget for the IT industry.

 

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Textile exports surge to $19.3 billion in FY22​

Shipments grow 26% due to sharp rise in global demand

Usman Hanif
July 21, 2022

Outstanding borrowing by textile manufacturers spiked to Rs1.43 trillion by the end of February 2022 compared to $1.13 trillion in the same month of the previous year.

KARACHI: Pakistan’s textile sector witnessed robust exports that reached $19.3 billion in financial year 2021-22, showing 26% surge over previous year, according to the Pakistan Bureau of Statistics (PBS).

In June alone, the exports were up 3% year-on-year, according to the Pakistan Bureau of Statistics (PBS).

Exports grew owing to increased volumetric growth of 16% YoY in the value-added segment, steep rise in global demand and record high cotton prices, said Topline Research textile analyst Saad Ziker. In terms of value, they reached Rs3.4 trillion, up 40% YoY.

“The textile sector provides a major cushion against the deteriorating economic climate since its exports account for around 60% of Pakistan’s total export volume,” said Aba Ali Habib Securities analyst Ali Asif.

However, a slowdown is expected in textile demand amid burgeoning inflationary pressures in the exporting destinations, especially in the US and European countries, which may aggravate the situation for Pakistan by increasing the trade imbalance, he predicted.

Under the value-added category, the knitwear segment remained the top performer by posting 34% YoY growth in exports to $5.1 billion in FY22 due to a sharp rise in global demand, especially in the US and European countries, Ziker said.

Other value-added segments such as ready-made garments, bed wear and towel posted year-on-year growth of 29%, 19% and 19% to $3.9 billion, $3.3 billion and $1.1 billion respectively.

Despite the global economic crisis, the textile sector is posting export growth and earning foreign exchange for the country, said textile analyst Arsalan Hanif.

However, the textile sector will not be able to maintain a similar growth trend owing to the rising cost of production due to the recent rise in energy cost along with gas and electricity load-shedding, causing fall in export orders as companies are unable to meet export commitments.

Interestingly, Pakistan’s textile exports remained four times high compared to imports in FY22. Textile exports reached $19.3 billion in FY22, whereas imports of the commodity stood at $4.8 billion, including imports of raw cotton, fibre, worn clothing, etc.

As compared to last month, Pakistan textile exports recorded 4% MoM growth in Jun-22 led by 4% MoM increase in volumetric growth mainly because of Eid holidays in May 2022. During the month, major increase was witnessed in Value-added division, especially in the Readymade garments segment, 15% MoM.

The export of Knitwear went up 11% MoM with a 28% increase in volumetric growth.

In Jun-22, all items in basic textiles witnessed a negative MoM and YoY change to $301 million, down 13% MoM and 9% YoY.

In comparison with June 2021, Pakistan textile exports are up by 3% YoY, higher 35% YoY in Pakistan in terms of Pakistani rupee in June 2022.

Expected increase in energy tariffs, fall in global economies and decline in cotton prices are key challenges the textile sector could face going ahead, though rupee depreciation would provide some cushion, Ziker said.

Published in The Express Tribune, July 21st, 2022.

 

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Plastic export increases 32.76% in FY 2022

News desk
July 27, 2022

The plastic material exports witnessed an increase of 32.76 percent during the twelve months of fiscal year 2021-22 as compare to the corresponding of period of last year.

Pakistan exported plastic material worth $428.424 million during July-June (2021-22) as against the export of $322.709 million during July-June (2020-21), showing growth of 32.76 percent, according to Pakistan Bureau of Statistics (PBS).

In term of quantity, the plastic export however decreased by 16.89 percent, from 299,104 metric tons to 248,581 metric tons, the data revealed.

Meanwhile, on year-on-year basis, the export of plastic material also dipped by 17.24 percent.—APP

 

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July exports down 24pc to $2.219bn MoM​

BR
Tahir Amin

ISLAMABAD: Pakistan’s exports declined by 24 percent on a month-on-month (MoM) basis in July 2022 and remained $2.219 billion compared to $2.918 billion in June 2022, says the Pakistan Bureau of Statistics (PBS).

The bureau released imports, exports, and trade balance data on Tuesday, according to which, the trade deficit narrowed by 46.76 percent on MoM and stood at $2.642 billion in July 2022 compared to $4.962 billion in June 2022.

Imports declined by 38.31 percent on MoM basis and remained $4.861 billion in July 2022 compared to $7.880 billion in June 2022. Trade deficit narrowed by 18.33 percent on a year-on-year (YoY) basis and remained $2.642 billion in July 2022 compared to $3.235 billion in July 2021. Exports declined by 5.17 percent on YoY basis and remained $2.219 billion in July 2022 compared to $2.340 billion in July 2021.

Imports declined by 12.81 percent on YoY basis and remained $4.861 billion in July 2022 compared to $5.575 billion in July 2021.

Copyright Business Recorder, 2022

 

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Pakistan's exports to China expected to reach $4b​

Exports to China already increased by 11% in 2022

APP
August 03, 2022

SMEs, particularly in the engineering sector, have not been able to contribute adequately to the country’s exports due to the limitations on access to technology. Photo: file

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BEIJING: Pakistan’s exports to China have reached an 11% increase in the first half of 2022 and with this momentum it is likely to reach $4 billion by the end of this year.

The exports to the neighbouring country crossed $1.918b in the first half of this year, up by 10.97% from $1.728b in the same period compared to the previous year.
It continues to increase on yearly basis, as per the official data from the General Administration of Customs of the People’s Republic of China (GACC).

According to the State Bank of Pakistan (SBP), the country exported goods worth $2.78b during the 12 months of fiscal year 2021-22 against the exports of $2.04b during the same year, showing an increase of 36.08%.

According to sources, despite the epidemic of COVID-19, bilateral trade has increased significantly.

In the first half of this year, the total volume of trade between China and Pakistan increased nearly 15%, amounting to $14.39b as compared with the same period in 2021 which was $12.55b due to COVID-19.

Compared with the data of the first half of 2021, this year Pakistan’s exports to China in January increased by 17.80% amounting to $382.22m; in February it was up by almost 30% crossing $287.65m; in March it increased 7.23% amounting to $367.71m; however, COVID-19 impacted Pakistan’s exports in April causing a decrease of 21.15% standing at $283.53m; but in May it increased nearly 3% reaching $280.97m, while in June the increase was nearly by 54% crossing $316.36m.

An economic expert stated that, “China has opened up its market for Pakistani goods. The two countries can benefit from long-term relationships and Pakistani traders can export more goods to China, which is the second largest economy in the world.”

He also added, “Pakistan can also become a food basket for China because the Chinese market is huge and has good purchasing power, therefore Pakistan should take advantage of its good relationship and China can help relocate its industries and technologies to Pakistan, resulting in an increase of exports to not only China but to the world”.

 

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Trade deficit with neighbours widens in FY22​

Mubarak Zeb Khan
August 9, 2022

Pakistan’s exports to nine regional countries rose 16.97 per cent while imports grew by nearly 28.84pc in FY22 from a year ago, the latest data released by the State Bank of Pakistan showed.

The country’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives account for a small amount of $4.590 billion — just 14.43pc of Pakistan’s total global exports of $31.79bn in FY22.

China tops the list of Pakistan’s regional exports leaving other populous countries India and Bangladesh behind. Islamabad carried out trade with its farther neighbours Nepal, Sri Lanka, Bhutan, Bangladesh and the Maldives via sea only.
On the other hand, imports from these countries edged up to $17.814bn in FY22 against $13.826bn over the corresponding period last year, an increase of 28.84pc.

Exports grew 17pc, but imports swelled close to $18 billion

As a result of huge imports, Pakistan’s trade deficit with the region expanded during the period under review.

Pakistan’s exports to China posted positive growth in 2021-22. The bulk of the regional exports share, which accounts for 60.58pc, is with China while the remaining is for eight countries.

Pakistan’s exports to China posted growth of 36.12pc to $2.781bn in FY22 from $2.043bn in FY21. The increase in export proceeds was noted in the post-Covid period especially the exports of rice.

Contrary to this, imports from China grew 30.03pc to $17.296bn during the period under review against $13.301bn over the last year. The bulk of 97.09pc imports is coming from China alone while the remaining imports are from other eight countries.
Pakistan’s exports to Afghanistan posted a negative growth of 43.8pc to $552.518m in FY22 from $983.314m in the same period in FY21. Till a few years ago, Afghanistan was the second major export destination for Pakistan after the United States. The export figures did not include proceeds that were materialised in the local currency.

Imports from Afghanistan posted a negative growth of 17.84pc to $147.249m against $179.223m over the last year mainly driven by higher arrivals of essential kitchen items including tomatoes, potatoes and onions as well as fresh and dried fruits.

The government has allowed maximum imports from Afghanistan in the rupee on a land route in the post-Taliban regime period. The figures did not reflect those imports made in rupees.

The country’s exports to India plunged 44.47pc to $1.292m this year from $2.327m in FY21. The imports from India slightly increased 2.11pc to $187.663m against $183.785m over the last year.

Pakistan’s exports to Iran on the official channel remained zero in FY22. Most of the trade with Tehran is carried out through informal channels in border areas of Balochistan. No imports were made from Tehran during the period under review.

Exports to Bangladesh increased 41.28pc to $870.604m in FY22 from $616.202m. Imports from Dhaka grew 28.06pc to $97.500m this year against $76.134m over the last year.

Similarly, exports to Sri Lanka increased by 38.72pc to $373.412m in FY22 from $269.168m in the previous year. The imports from Sri Lanka dipped 3.96pc to $81.728m from $85.102m over the previous year.

On the other hand, Pakistan’s exports to Nepal increased by 26.2pc to $5.775m in FY22 from $4.576m the previous year. However, imports rose by 12.62pc to $1.401m this year against $1.244m over the last year.

Exports to the Maldives increased by 14.29pc to $6.917m from $6.052m. Import jumped 1,314pc to $1.301m this year against $0.092m over the last year.

Export proceeds to Bhutan were recorded at $0.082m in FY22 against $0.159m over the last year, a decline of 48.42pc. The imports from Bhutan were noted at $2.499m in FY22 against $0.075m over the previous year, an increase of $2.424m or 3232pc.

Published in Dawn, August 9th, 2022