Pakistan Export Updates

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Pakistan begins exporting furnace oil

KARACHIakistan, which is a leading oil importing country, has become an exporter of furnace oil .

The government has bailed out the outdated refineries, but only for a period of two months. It has resumed power production from the oil-fired plants to let the overflowing refineries overcome the furnace oil supply glut.

“After February 28, the government will not take any responsibility for furnace oil and companies (refineries) will deal with it by themselves,” an official at the Petroleum Division told.

“Byco refinery has planned to export around 25,000 tons of furnace oil…,” the Petroleum Division official said. When contacted, Byco neither confirmed nor denied the development.

It remains not known what is the export destination of the Pakistani cargo. A market source, however, said it was going to an oil-rich Middle Eastern country.

He added that the refinery was exporting the cargo through a Dutch-based international oil trading firm, which had a significant stake in a local oil marketing company and had storage operations in Pakistan.

The Petroleum Division official said late last week “refineries’ stocks were piled up to the level of 105,000 tons in December 2019, which have now been reduced to 40,000 tons due to furnace oil consumption by power producers.”

Refineries are supplying furnace oil to power producers through oil marketing companies (OMCs). “OMCs procure furnace oil from the refineries as per demand of power producers,” he said.

“The production of around 2,000 megawatts of electricity from furnace oil will address the issue of excessive oil supplies at the refineries. The pricing, however, may remain an issue, going forward,” an official of a refinery said after meeting Special Assistant to Prime Minister on Petroleum Nadeem Babar last month.

It, however, remains unconfirmed how much furnace oil the power producers are taking from refineries each day and how much power is being produced using the oil these days.

The government has told the refineries that it will take supplies only till the end of February and not after that.

It happened due to two reasons. One, the government shifted power production to the environment-friendly and slightly cheaper fuel, re-gasified liquefied natural gas (RLNG) Second, the United Nations (UN) International Maritime Organisation (IMO) banned the use of high sulphur-containing furnace oil, which local refineries produced, with effect from January 1, 2020.

 

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Pakistan's sports goods enjoy a world-wide recognition mainly because of the care that goes into their designing, manufacturing and selecting of the finest raw materials.

The basic raw materials required for the production of sports goods, are leather, wood, glue, nylon guts, rubber and chemicals. Pakistan exported sports goods to 90 countries.

However, the principal importing countries are Germany, USA, UK, France and Italy. Others were Spain, Netherlands, Hong Kong, Denmark, Canada, Belgium, Dubai and Chile.

Today the sports goods sector of Sialkot is at its zenith. It has acquired an important place in the international trade of sports goods. Currently it is supplying products to almost every country of the world, directly or indirectly.

The products are mostly made for international markets and have received worldwide recognition because of the care that goes into the selection of raw material, design, manufacturing and shipping.

The product range includes .... Soccer Balls, Volley balls, Rugby balls, Beach balls, Exercise balls, Cricket balls, hockey balls, Baseball balls,Tennis balls, shuttle cocks, Nets, Gloves, Hockey sticks, Cricket bats, Baseball bats, Protective guards, Pads, Sportswear, etc.

Adidas, Nike, Micassa, Puma, Mitre, Select, Umbro, Lotto, Diadora, Decathlon, Wilsons, etc, are some of the world renowned brands sourcing a large portion of their supplies of sports goods from Sialkot; further enhancing the credibility of the city as an internationally acknowledged quality manufacturing and exporting center.

 

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Surgical Instruments Made in Sialkot

 

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Surgical goods, medical instruments worth $348.579mn






Surgical Instruments special medical tools for performing specific action during surgery or operation. Pakistan manufacturing medical tools for last many years and exporting to major countries in all over the world.

 

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Pakistan holds three trillion tonnes of marble, granite reserves

https://nation.com.pk/NewsSource/nni
NNI

FPCCI’s presidential candidate Daroo Khan Achakzai on Wednesday said Pakistan has three trillion tonnes of marble and granite which can help country earn handsome foreign exchange and cut unemployment.

Pakistan is producing best quality marble and granite but only a fraction is sold after value addition which calls for intervention by the government, he said.

Speaking to the business community, Daroo Khan Achakzai said that some countries import raw marble and granite from Pakistan and sell it in the international market which must be noticed.

Pakistan is the sixth largest extractor of marble and granite but its share in global extraction remains only two per cent which can be increased through serious efforts.

The business leader said that stakeholders are focused on exports of raw material which is hindering the development of this sector.

The business leader said that 78 per cent of marble and granite reserves are located in the province of Khyber Pakhtunkhwa while the rest are in Fata, Baluchistan and Sindh facing primitive methods of mining results in wastage and poor quality.

 

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Pakistan’s rice exports may surpass 4 million tonnes in FY20

With more orders during Covid-19, basmati exports surge 42.6pc in 11MFY20

By
Hassan Naqvi
-
June 18, 2020

LAHORE: Amid Covid-19 pandemic, food security has become the first priority across the globe, cashing on which Pakistan is likely to achieve the highest volume of rice exports (4 million tonnes) in FY20.

This was stated by Rice Exporters Association of Pakistan (REAP) Chairman Shahjahan Malik in an exclusive chat with Profit.

He informed that Pakistan’s basmati exports rose 12.88pc to 92,454 tonnes in May 2020, as compared to 81,902 tonnes in the same month of last year.

Cumulatively, in the 11 months (July-19 to May-20) of this fiscal year, basmati rice exports witnessed a phenomenal increase of 42.59pc, from 597,639 tonnes during the 11 months of last fiscal to 852,177 tonnes during the period under review.

However, Malik shared, the country’s non-basmati exports in 11MFY20 remained lower by 200,000 tonnes when compared with last year.

“Overall, in this fiscal year, our rice exports will cross 4 million tonnes.”

He said that FY20 has been a satisfactory year for the country’s basmati rice exporters, as Pakistan, for the first time in history, achieved the milestone of over 100,000 tonnes of basmati exports in a month (109,140 tonnes of basmati rice were exported in April alone).

“We could have touched the magical figure of 1 million tonnes of basmati rice exports had the Pakistani rice was not more expensive than India; Indian rice is cheaper by $40/60 per tonne for C1121 steamed rice. Our overall basmati exports will be around 920,000 tonnes in FY20, much better than our last year’s exports of over 600,000 tonnes.”

Malik informed that domestic as well as international demand had spiked due to panic buying amid Covid-19, owing to which Pakistan’s exports to European Union (EU) and GCC region countries increased.

“The country’s overall rice exports are currently hovering around $2.2 billion and the government and the exporters are trying to take it up to $5 billion by 2023,” he maintained.

 

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Pakistan’s mango exports down 15% as coronavirus shrinks demand

A Pakistani fruit vendor sells mangos in a main fruit market in Islamabad. (AFP)

18 June 2020

• uspension of international flights, restrictions on border movement, rising freight charges amid the virus outbreak hit exports
• Exporters fear 40 percent decline in total mango exports by end of season, export revenue expected to decline from $90 million to $50 million

KARACHI: Pakistani producers of mangoes have been hit by falling international demand amid the coronavirus pandemic, an industry representative said on Wednesday, as exports of the ‘king of fruits’ declined by 15 percent as of mid-June.
Pakistan is the fifth-largest producer and third-largest exporter of mangoes in the world. On Wednesday, the country had upwards of 150,000 confirmed coronavirus cases.
“So far around 20,000 containers of mango have crossed the country’s frontiers, which is 15 percent lower compared to last year,” Waheed Ahmed, the patron-in-chief of the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association, told Arab News.
The export of Pakistan’s mangoes started on May 20 this year and exporters fear there could be a 40 percent decline in total exports by the time the season comes to an end.
“The export target is limited this year keeping in view the current situation,” Ahmed said. “The export target of the mango is set at 80,000 metric ton as compared to 130,000 ton of last year. Export revenue generated through the mango export was $90 million, which is feared will decline to $50 million this year.”
Suspension of international flights, restrictions on movement on the Iran and Afghanistan borders, rising freight charges and shrinking demand globally are some of the reasons for lower exports, industry experts say.
“The demand world over is not normal as people don’t go to the markets as often as they used to, which is one of the reasons behind demand contraction,” Ahmed said.
Exporters say airlines which were charging freight charges of Rs175 per kilo last year are now charging Rs565 per kilo for exports to Europe, while the freight charge of Rs80 per kilo to Gulf countries has increased to Rs240 per kilo.
“We are negotiating with the government to cut freight charges to a reasonable level and facilitate speedy exports at borders,” Ahmed said.
Another problem is the availability of workers due to a climate of fear and as coronavirus lockdowns have led to restrictions in movement in many parts of the country.
“Laborers fear coming to the farms to pick and package fruits and vegetables due to the coronavirus,” said Malik Asghar, the president of the Fruit Association of Punjab. “Our crops are ready but due to shortage of laborers, growers have wasted their ready crops, causing them huge financial losses.”
Pakistan’s mango crop production is also expected to suffer a blow his year due to climate change.
“This year the cold spell persisted longer than usual which has impacted the production of the mango, particularly of the Sindhari variety in Punjab,” said Dr. Hameed Ullah, the director of the Mango Research Institute.

“Though final figures will be known after the end of season, it is estimated that production would be around 1.5 million tons as compared to 1.8 million tons last year.
He said the coronavirus outbreak had also seriously affected the marketing and export of mangoes to Iran, a major market of the Pakistani mango.
Pakistan exports between 30,000-35000 metric tons of mangoes annually to its neighbors Iran and Afghanistan.

 

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Textile exports jump 14.4pc in July 2020


Mubarak Zeb Khan
18 Aug 2020

Among primary commodities, cotton yarn exports dipped by 37.88pc, while yarn other than cotton by 47.53pc. — AFP


ISLAMABAD: Pakistan’s textile and clothing exports revived in July increasing 14.4 per cent year-on-year to $1.272 billion compared to $1.112bn in the corresponding month of last year, data released by the Pakistan Bureau of Statistics showed on Monday.

The easing of lockdown in the North American and European countries — top export destinations for Pakistani textile goods will help revive the sinking exports. The Covid-19 has collapsed the demand for country’s exports during the last four months.

However, there has been a revival in international orders for Pakistani products since June whereas exports through land routes were also allowed to Iran and Afghanistan. It was only in February when the textile and clothing exports jumped nearly 17pc on a year-on-year basis. This growth was reported after a long time as the past few years had been marred by single-digit increases.

Details showed ready-made garments exports jumped by 18.04pc in value and drifted much lower in quantity by 32.82pc during July, while those of knitwear edged up 20.42pc in value and 14.49pc in quantity, bed wear posted positive growth of 25.30pc in value and 6.36pc in quantity.

Towel exports increased by 21.40pc in value and 26.98pc in quantity, whereas those of cotton cloth rose 1.15pc in value and dipped by 22.31pc in quantity.

The government lifted the ban on exports of seven products classified as personal protective equipment (PPE) in a bid to allow manufacturers to honor international orders.

Exporters are receiving inquiries about PPEs from foreign buyers as government allowed exports of disposable gowns, disposable gloves, face shields, biohazard bags, goggles, shoe covers and hand sanitisers with immediate effect.

Previously, the government allowed exports of textile masks as well. The cabinet is expected to allow export of surgical mask and N-95 on Wednesday.

Among primary commodities, cotton yarn exports dipped by 37.88pc, while yarn other than cotton by 47.53pc. However, export of made-up articles — excluding towels — surged by 26.04pc, and tents, canvas and tarpaulin increased by a massive 155.86pc during the month under review. The export of raw cotton declined by 100pc during the month under review.

The import of textile machinery dropped by 33.91pc during the first month of current fiscal year — a sign that no expansion or modernisation projects were taken up by the textile industry during the month.

The country’s textile and clothing exports posted a negative growth of over 6pc year-on-year to $12.526bn in the fiscal year 2019-20 compared to $13.327bn in the corresponding period last year.

Published in Dawn, August 18th, 2020

 

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East Wharf, Karachi.

 

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Pakistan's Textile exports crossed the $1 billion mark in July 2020 to reach $1.27 billion.
Textile exports were up by 33% month-on-month and 14% year-on-year.

 

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Spike in cotton prices helps raise Pakistan's textile exports

Pakistan’s textile shipments surge 33% to $1.27b in July 2020

August 19, 2020

KARACHI: Following improvement in economic indicators of the country coupled with enhanced demand for Pakistan’s textile products in western nations, textile exports surged 33% to $1.27 billion in July 2020.

According to the Pakistan Bureau of Statistics, the country exported $959 million worth of textile merchandise in June 2020.

According to a report of Shajar Research, the rise in textile exports from Pakistan was mainly led by higher cotton prices in the international market, which translated into higher sales revenue. It elaborated that cotton prices rose 3% in July 2020 to an average of $63 per pound.

“The spike in international cotton prices came on the bank of a phenomenal recovery in global economic activities,” the report said.

It pointed out that Pakistan’s textile exports surged 14.4% on a year-on-year basis as exports stood at $1.11 billion in July 2019.

“This came as the US dollar and euro strengthened against the Pakistani rupee by 4.41% and 11% on a year-on-year basis respectively in July,” it said. “Euro rose to an average of Rs197 against the rupee while the dollar closed at Rs168 in July 2020.”

However, the report pointed out that average prices of cotton declined 2% compared to July 2019, when prices stood at $64 per pound. The textile sector also grew owing to a recovery in demand from the large-scale manufacturing sector.

According to Taurus Securities, textile production, the biggest contributor to the Large-Scale Manufacturing Index (LSMI), fell 6.8% in June 2020 against the same month of last year, after falling 30.5% year-on-year in May.

“The recovery can be attributed to the ease in lockdowns and the resumption of full operations,” it said.

Generally, the LSMI was down 10.2% year-on-year and up 16.8% month-on-month in June 2020.

Pakistan-Kuwait Investment Company Assistant Vice President Adnan Sami Sheikh said textile demand had accumulated in those foreign countries which imported Pakistani textile items in huge quantities.

The steps taken by Pakistan’s government to help exporters also played a major role in the spike in textile exports last month, he said. “However, this uptrend will flatten once the demand is met.”

Published in The Express Tribune, August 19th, 2020.

 

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Mango exports exceed target

20 Aug 2020

country exported 130,000 tonnes of mangoes in 2019.

KARACHI: Pakistan exported 125,000 tonnes of mango — well above the 80,000 export target set for 2020 amid the Covid-19 pandemic — fetching the country $72 million in foreign exchange.

Highlighting that the country exported 45,000 tonnes above the set target, All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) Patron-in-Chief Waheed Ahmed anticipated that within the next one-and-a-half month, an additional 25,000 tonnes of mangoes would be exported before the season ends.

The country exported 130,000 tonnes of mangoes in 2019. Waheed said that during the current season, mango production fell by 35 per cent, bringing the volume to 1.3 million tonnes compared to last year’s 1.8m tonnes.

The PFVA head termed the current mango season as one of the most difficult seasons in the history of exports due to the challenges posed by coronavirus.

He noted that exporters moved to sea and land routes for shipments after airlines shutdown flight operations due to the pandemic and subsequent lockdowns globally.

Afghanistan emerged as one of the top countries which imported Pakistani mangoes while United Arab Emirates, Iran and Oman proved to be major international markets.

Published in Dawn, August 20th, 2020

 

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Pakistan's IT exports surge 24% despite Covid-19

Minister says IT industry progressing swiftly, creating high-paying jobs


August 20, 2020

ISLAMABAD: Federal Minister for Information Technology and Telecommunication Syed Aminul Haque on Wednesday said that Pakistan’s IT industry was progressing rapidly and all possible steps were being taken to facilitate the industry.

The minister expressed these views while speaking at the IT Export Awards 2019, organised by the Pakistan Software Export Board (PSEB) - an attached department of the Ministry of IT and Telecommunication.

Haque said the role of IT and telecommunication was vital in the development and economic growth of Pakistan and the government was interested in working closely with the information and communication technology (ICT) sector and implementing the policies and measures that would effectively energise both exports and technology adoption.

He stated that the IT industry was growing at a phenomenal rate, earning foreign exchange for the country, creating high-paying jobs, improving the nation’s productivity and quality of life through innovative technological solutions.

Moreover, he told the audience that fiscal year 2019-20 had been a great year for IT and IT-enabled services (ITeS) exports.

“A record $1.231 billion has been received in IT and ITeS export remittances at a growth rate of 23.71% as compared to FY19,” he added.

“We are setting a target of $5 billion for IT export remittances by FY23 and will provide all the necessary support to achieve the target.”

Haque stressed that Pakistan’s IT industry had reached an important milestone in its journey and positioned itself to become one of the leading players in the software and outsourcing services market.

He declared that the IT industry could become one of the largest industries, adding that the national exchequer was growing due to IT exports.

The federal minister said IT exports registered a record increase despite the Covid-19 pandemic.

Speaking about IT parks, Haque said work was under way on the IT Park in Islamabad and its groundbreaking would be conducted by the end of this year. However, the IT Park in Gilgit would be inaugurated soon and work was also under way on the IT Park in Karachi, he added.

“Events such as these need to be held more frequently. The Ministry of Information Technology and Telecommunication and Pakistan Software Export Board are making all possible efforts to facilitate the IT industry. My doors are open for viable suggestions for improving the IT industry growth,” he concluded.

The minister congratulated all the export award winners and praised their efforts for boosting much-needed export earnings of Pakistan, their investment in the country and generating employment opportunities for the youth.

Published in The Express Tribune, August 20th, 2020.

 

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Pakistan's earns US $489 million from travel services' export during FY 2019-20

Pakistan earned US $ 489.074 million by providing different travel services in various countries during the fiscal year 2019-20.
This shows growth of 15.59 percent as compared to US $ 423.120 million same services were provided during the corresponding period of fiscal year 2018-19, Pakistan Bureau of Statistics (PBS) said.

During the period under review, the personal travel services grew by 15.48 percent, from US $ 418.780 million last year to US $ 483.604 million during July-June (2019-20).

Among these personal services, the exports of personal expenditure and education related expenditure decreased by 51.41 and 26.74 percent respectively.

 

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Unpredictable export growth during pandemic

Businesses need right set of incentives to further boost exports, tap new opportunities


Aadil Nakhoda

KARACHI: The numbers on the trade pattern published by the Pakistan Bureau of Statistics (PBS) for July 2020 indicate a significant reversal of the trend in prior months.
Exports surpassed $2 billion, a month-on-month increase of 25.1% and year-on-year growth of 6.1%. On the other hand, imports decreased slightly, month-on-month and year-on-year. The balance of trade continued its downward trend, receding by 19.9% month-on-month and 7.7% year-on-year.
Pakistan has recovered from the earlier plunge in exports experienced in late March 2020. Exports in February 2020 were $2.1 billion, the highest level reported for FY20. Interestingly, imports did increase 30% in June 2020 to $3.7 billion over the value reported in May 2020. They maintained this level in July 2020.
On the other hand, India’s exports recovered sharply in May 2020 from the sharp fall in April but since then the trajectory has been flatter.
Data shows India’s exports stood at $19.1 billion in May 2020, up from $10.4 billion in April. Exports in July 2020 were $23.6 billion. Exports had peaked at $27.7 billion in February 2020.
Imports into India were calculated at $41.1 billion in January 2020, which decreased to $17.1 billion in April 2020 and recovered to $28.5 billion in July 2020.
Similarly, according to data extracted from Bangladesh’s Export Promotion Bureau, a decline of 16.9% was reported in its total exports from July 2019 to June 2020 over the same period of previous year. Total exports met only 74% of the target. Exports of readymade garments were a major casualty.
Factors that may have contributed to the quick recovery in exports from Pakistan were the easing of the strict lockdown imposed in March 2020 that allowed exporters to restart work and meet their export demand as well as the incentives provided by the government to the exporters to recuperate their losses borne during the lockdown.


Although it may be too early to determine the direct impact of each individual measure to counter the losses due to Covid-19, the measures adopted by the government have collectively increased exports and averted an impending economic disaster predicted by several experts in earlier days of the lockdown.
Policy responses
Our World in Data is an excellent repository for the latest data on not only the trend and indicators to measure the spread of Covid-19 across the world but also on the policy responses adopted by countries since the start of the pandemic.
The dataset provides a stringency index for government response that weighs different types of closures such as schools, workplaces and travel bans.
Pakistan, India and Bangladesh adopted stringent measures to counter the spread of the virus in the second week of March 2020. By the third week of March, the three countries were in a complete lockdown.
The three countries then started easing the restrictions in mid-April. By early June, the lockdown was significantly eased across the three countries. However, by mid-August, Pakistan had relaxed its restrictions more than its regional counterparts.
Pakistan, India and Bangladesh have continued to maintain school closures, however, Islamabad has gradually relaxed restrictions on workplace closures, public gatherings and transport. This easing of restrictions has likely benefitted export-oriented industries as well as the related supply chains.
The ease in the lockdown, accompanied with incentives to lower losses, has likely propelled exports.
Central bank measures
The State Bank of Pakistan (SBP) has taken several measures to counter the adverse impact of Covid-19 on Pakistan’s economy.
Apart from reducing the policy rate by 625 basis points in three months since March 2020, it approved the refinancing of wages to prevent layoffs worth Rs138 billion for 2,200 businesses by late July 2020.
Furthermore, Rs640 billion was provided till mid-August 2020 in the form of deferred payments of the principal amount of loans as part of the debt restructuring offered to households and businesses.
Exporters were provided relief under the Export Financing Scheme (EFS) and the Long-Term Financing Facility (LTFF). Furthermore, financing of Rs21 billion was approved to facilitate new investments across all sectors of the economy.


The State Bank also issued Rs992 billion worth of fresh currency notes to banks across Pakistan for circulation.
The biggest increase in exports in July 2020 over July 2019, as reported by the PBS, was in textile products and leather manufactures.
Shipments of textile products increased by 14.4% in dollar terms while those of leather manufactures rose by 33.8%. Knitwear exports increased by 20.4%, bedwear 25.3%, towels 21.4% and readymade garments 18.04%. Exports of leather gloves increased by 56.8% and of leather garments by 17.4%.
On the other hand, Pakistan reported a decline of 15.5% in exports of food products. Exports of rice declined by 23.5% while zero exports of wheat and sugar were reported.
However, exports of fish and fish preparations increased by 53.6%. PBS also reported a surge in exports of petroleum products.
Although imports were 0.7% lower in July 2020 compared to imports in July 2019, the imports of food products were higher by a walloping 82.1%.
Imports of dry fruits increased by more than six times while imports of palm oil and sugar rose by 189% and 125.9% respectively.
Imports of the machinery group decreased but imports of power generating machinery increased by 27.3%. There was also a revival in imports of completely built units (both of motor cars and buses) as they increased by 196.7%.
Imports of petroleum products decreased by 24.9% as oil prices fell. Unfortunately, imports of textile machinery decreased by 33.9%. This lack of replacement and upgrading is a matter of concern and poses a challenge to sustainability in the revival of exports from the textile industry.
In essence, the rate of recovery in exports of Pakistan was rather unexpected. The challenge now is to ensure that such growth rates are sustainable.
It is essential to ensure that exporters are not only facilitated through improved processes and procedures but a right set of incentives are provided to businesses to further boost export sales and tap the new opportunities emerging in the wake of Covid-19.
The writer is the Assistant Professor of Economics & Research Fellow at CBER, IBA


Published in The Express Tribune, August 24th, 2020.