Pakistan Export Updates

[ghazi52]

.,,.,.,.

Exports of services grew 4.6pc in July-September​

Mubarak Zeb Khan
November 6, 2022

ISLAMABAD: Service exports grew 4.63 per cent in the first quarter of the current fiscal year, mainly driven by information technology.

In absolute terms, exports rose to $1.69 billion in July-September from $1.61bn a year ago, according to the latest data compiled by the Pakistan Bureau of Statistics.

In September, the export of services dipped by 1.73pc to $565.96m from $575.94m in the same month last year.

In the previous fiscal year, the export of services grew 17.2pc to $6.968bn from $5.945bn the preceding year.

The PML-N-led coalition government has projected services’ export target at $10bn for FY23.

The highest-ever growth in IT-related services pushed up the overall export figure. Other services include finance and insurance, transport and storage, wholesale and retail trade, public administration and defence sectors.

The Pakistan Software Export Board has created an entire IT Export Strategical Framework and executed programmes and schemes accordingly through a series of projects to develop infrastructure, human capital, company capability, global marketing, strategy and research, and promote innovation and technologies.

The services sector has emerged as the main economic growth driver by contributing 61pc to GDP in 2020-21 from 56pc in 2005-06.

The import of services fell 6.21pc to $2.34bn in July-September against $2.49bn in the same quarter last year. In September, services’ imports dipped by 5.11pc to $738.38m from $778.14m the preceding year. In FY22, the import of services rose 43.52pc to $12.143bn against $8.461bn the preceding year.

Trade gap shrinks

The trade deficit in services declined by 26.22pc to $647.35m in July-September against $877.35m over the corresponding months of last year. In September trade deficit dipped by 14.73pc to $172.42m against $202.20m in the same month last year.

The services trade gap widened by 105.73pc to $5.175bn in FY22 against $2.515bn in FY21.

The previous government had announced several measures in the budget 2021-22 for the promotion of services export, especially information technology.

Published in Dawn, November 6th, 2022

 

[ghazi52]

.,.,.,

Exotic Pakistani handmade
carpets attract Chinese customers​

The Frontier Post

BEIJING: Exotic Pakistani handmade carpets attracted Chinese customers at China International Import Expo, China Economic Net (CEN) reported it on Wednesday.
“This is one of the best opportunities we have every year!” said Imran Rah, CEO of ASIYA International Trading (Shanghai) Co.,Ltd adding, “CIIE is a 6-day event, but it helps us get together with a lot of customers for 365 days a year. With branding motions here, customers who love our products continue buying from us.”


Scheduled from November 5 to 10, the 5th China International Import Expo (CIIE) provides a platform for companies from around the world to display their products, promote their brands, and find more business partners in the world’s second-largest economy.

Showcasing the exotic handicrafts, such as hand-made carpets, shawls and scarves, Imran told the reporter that “Our main goal for the expo is not just the six days. We promoted throughout the year, and we can continue to do business with the customers we met here.”

“We had a great experience in participating at CIIE because it’s helped a lot in growing our business and also interacting with other business partners,” said Javed Mohal, Assistant to the CEO of founder of WINZA Jewelry and CEO of Atlantis Co., Ltd., a Pakistani jewelry brand, adding that they would like to spread the Pakistani culture of art, handmade crafts, and share its essence and elegance with the world.

Ismail, sales manager of ASIYA, said “You can get in touch with a lot of very high-quality customers that you don’t normally meet. When the expo ends, we discuss the details of cooperation with our clients and the final turnover may be equivalent to the turnover of several of our stores in a year.”

“This pattern [on the carpet] has been passed down for hundreds of years in Pakistan. It is the most classic pattern, with classical beauty,” Ismail was presenting a carpet to coming visitors. And a carpet worth 1,000 (Rs.30,000+) was sold in a few words.

Courtesy of the booming Sino-Pak trade and investment cooperation coupled with important platforms such as CIIE, Pakistan’s overall export to China has registered steady growth in recent years.

As per Ismail, in recent years, the performance of handicrafts in the Chinese market has maintained a steady growth, because now the consumption power of the Chinese people has become stronger, and people are more and more fond of handicrafts, especially the foreign ones that featured culture and style from another nation.

It is a niche market in China, he added, saying that they introduced and preserved the local Pakistani style and culture in their products which attracted more and more Chinese customers.

“China is a huge market. Thanks to platforms like CIIE, we are trying our best to do promotion in this market and promote our brand here,” Imran Rah said. (INP)

 

[ghazi52]

.,.,.,

Rice stocks: what does bank borrowing suggest?​

BR

Pakistan’s rice exports appear to be slowing down. Per PBS, volume exported declined by 9 percent during Q1-FY23 compared to the same period last year. Historically, exports usually do slowdown during the first quarter – as inventories start to run out – but the decline in the quarter ended Sep’22 appears to be stronger than usual. (For more, read “Rice exports: are good times over?”, published on November 08, 2022). Are rice exports facing strong headwinds, or will exports pick up with the arrival of the fresh crop?

Earlier this week, USDA made a strong cut to Pakistan’s rice outlook for marketing year 2022-23. The monthly update by the agency lowered rice production forecast to 6.6 million metric tons (MMT), down from 9.1MMT reported last year; and exports to 4MMT, down from record volume of 4.8MMT last year. USDA’s forecast follows the release of GoP’s own estimates during mid-October, which forecast national rice production at 5.5 MMT against the target of 8.5 MMT set in April 2022.

Although there appears to be consensus over significant damage to rice crop following the devastating floods, last month the Rice Exporters Association of Pakistan (REAP) had reportedly claimed that the “damage to the crop is minimal,” and that national production would comfortably reach 8MMT during the ongoing fiscal. It remains to be seen whether REAP’s forecast is on the money, or was an effort to calm the grain market and restrain local prices from rising out of control.


While REAP’s claim may not be without merit, it stands to reason why did rice exports slow down during Q1FY23 (Jul – Sep), if the crop has not performed so poorly? Interestingly, if commercial bank lending data is used as a proxy, rice stocks appear to have been running low long before the floods hit the country.

In the accompanied illustration, BR Research has used month-end working capital loans outstanding with rice processors as an indicator of rice stocks with the milling segment. Of course, not all procurement is financed through formal banking credit. However, since no data is available viz. stock positions, and nearly all rice mills are privately held, loans obtained for commodity financing may serve as a valid indicator of the overall market trend.

Note that since loan amount outstanding inflates naturally every year due to rising prices/inflation, 12-month data is re-based to September-end of preceding year. This is done to emphasize the seasonal movement in debt stock. Historically, rice crop harvesting in Pakistan begins in September and is completed by November; therefore, loans outstanding with the milling industry peaks by December and ebbs by September every year.

The credit data from SBP seems to suggest that loans outstanding with the milling segment fell at a far brisker rate between Dec ’21 and Sep’22 than same period last year. In fact, working capital loans to rice mills had already begun to climb up between Aug and Sep last year, while loan outstanding continues to decline during the ongoing season in these months.

But more significantly, borrowing for commodity financing did not peak at the same rate during the last marketing season (Sep – Dec 2021) as it had in the preceding year (Sep – Dec 2020). This is even though Pakistan not only achieved record rice production of 10.6MMT (official GoP estimate for FY22 varies from USDA’s), but also made record exports of 4.8MMT. Did strong demand from exporting destinations allow mills to finance procurement through own sources? Or did higher interest rates restrain formal sector financing?

Either way, both record exports, and bank data suggests that the industry began the current marketing 2022-23 with very low carryover stocks. If USDA and GoP’s forecast of poor crop performance – 5.5MMT to 6MMT - is correct, then rice prices in the local market should go berserk right about now (remember, REAP itself puts national consumption at 4.5MMT). Else, a massive slowdown in exports should be on the cards.

 

[SoulSpokesman]

@ghazi52

Ghazi sb,

Rice exports may have fallen even if the crops didnt suffer ( and I am not necessarily saying that they didnt) because traders may be hoarding stock in anticipation of sharp price rise for cereals given the overall scenario. The other possibility is smuggling out of grains.

Regards

 

[ghazi52]

//.

FY22 trade with US soars 38.3pc to $10.5bn YoY, NA told​

Naveed Butt | Zulfiqar Ahmad
December 3, 2022

ISLAMABAD: Federal Minister for Commerce, Naveed Qamar Friday informed the National Assembly that bilateral trade between Pakistan and the US during the last financial year (2021-22) was recorded at $10.5 billion compared to $7.8 billion in the fiscal year 2020-21 registering an increase of 38.3 percent.

In a written reply to a question, he said that bilateral trade between Pakistan and the US witnessed an increase of over 38.3 percent and touched $10.5 billion during the last fiscal year.

He said that as a result of the Commerce Ministry’s efforts, it is expected that exports to the US will continue to grow in the coming years.


He said that the ministry is actively engaged with the Animal and Plant Health Inspection Service (APHIS) of the United States Department of Agriculture (USDA) to get further market access for Pakistani agricultural goods i.e. mangoes and dates.

He said that regular engagement is maintained with the private and public sectors of the US through our Trade and Investment Officers (TIOs), adding additionally, various promotional activities are held through the Trade Development Authority of Pakistan (TDAP) and our TIOs in the US.

Answering a supplementary question, the Parliamentary Secretary for Commerce, Javed Ali Shah, told the house during question hour that “we are actively engaged with the US to get further market access for Pakistani agricultural goods including mangoes and dates”.

He was confident that our exports to the US will continue to grow in the coming years, adding Pakistan is negotiating a free trade agreement with the Gulf Cooperation Council (GCC) to get market access for goods and services.

He said that Pakistan is also engaged with Saudi Arabia under the ambit of the Supreme Coordination Council to enhance exports to the Kingdom.

In another written reply to the house, Minister for Economic Affairs Ayaz Sadiq said that an amount of loans taken by the government i.e. disbursements of foreign loans from August 2018 to December 2021 is $43.047 billion.

Responding to a calling attention notice, Minister for Parliamentary Affairs Murtaza Javed Abbasi said that a new system is being introduced for Central Superior Service (CSS) examination from January next year.

He said that under the system approved by the federal cabinet, the candidates will have to appear in an entry test before the CSS examination.

He said the upper age limit for appearing in the CSS examination is 30 years but the candidates belonging to Balochistan, Rural Sindh, FATA, Gilgit-Baltistan, and Azad Kashmir have been given a relaxation of four years. Minister for National Health Services, Regulations and Coordination Abdul Qadir Patel moved “the Pakistan Nursing Council (Amendment) Bill, 2022” for joint-sitting of Parliament for passage as passed by the National Assembly and not passed by Senate within 90 days.

Minister for Parliamentary Affairs Murtaza Javed Abbasi moved “the State-Owned Enterprises (Governance and Operations) Bill, 2022” for joint-sitting of the Parliament for passage as the bill passed by the National Assembly and not passed by the Senate within 90 days.

Copyright Business Recorder, 2022

 

[ghazi52]

.,.,,.
Pakistan’s leather garment exports were up by 22% in October 2022 with an export value of Rs. 5.6 Billion compared to Rs. 4.5 Billion in October 2021.

 

[ghazi52]

.,.,

Furniture export 80% surge in five months​

by The Frontier Post

ISLAMABAD (APP): The furniture exports during the first five months of current fiscal year (2022-23) swelled by 80.46 percent compared to last corresponding period, Chief Executive Officer Pakistan Furniture Council Furniture Mian Kashif Ashfaq said on Sunday.

Chairing board of directors meeting here today he informed that during the period under review furniture worth US$ 6,791,000 was exported compared to the exports of US $ 3,642,000 during the same period of last year.

He stressed the urgent need for exploring more new foreign markets as Pak hand engraved wooden furniture is in great demand in global markets.

He demanded government to declare furniture industry as a full fledged sector which can earn millions of dollars of foreign exchange. He urged the Trade Development Authority of Pakistan (TDAP) to organise more single country expos to showcase Pak products and invite foreign investors to Pakistan for joint ventures.
He also urged the government to establish expo centres at all provincial headquarters and big cities for displaying Pak products under one roof.

He said visiting foreign trade missions and investors delegation should also be taken to expos for their B2B (Business to Business) meetings.

 

[ghazi52]

.,.,.
Pakistan’s exports to nine regional countries were down by 11.93% in the first half of FY23 mainly driven by a drop in shipments to China, as per the data released by the State Bank of Pakistan.

Exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives dipped to $1.897 billion that is just 13.31% of Pakistan’s total exports of $14.25bn in July - December FY23.

Pakistan’s exports to China declined by 20.57%. China tops the list of Pakistan’s regional exports leaving India and Bangladesh behind. But Pakistan’s exports to China posted negative growth in the first half of FY23 on a year on year basis.

 

[ghazi52]

.,.,

Potato to boost vegetable exports​

Bumper potato crop offsets falling exports of onion

February 04, 2023

Potato is one of the very rare cases in which Pakistan is not just self-sufficient for domestic use and seed development, but also an exporter.

In the first four months of current fiscal year, overall vegetable exports of Pakistan swelled by 90% in quantity and 57% in value thanks to brisk potato shipments.

“Vegetables were exported every year depending on their availability but potato and onion hold a big share. A bumper potato crop has proved highly helpful in offsetting the falling exports of onion,” said Waheed Ahmed, Patron-in-Chief of All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA).

Last year, floods in Sindh and Balochistan devastated onion crops, while potato production soared to 7.937 million tonnes in FY22 from 5.873 million tonnes in FY21, up by 35% as floods did not hit Punjab, which is a hub of potato production.

However, the industry is still facing a lot of challenges. “Potato is not a crop for poor people because its initial cost of production is high. Some 35-40% of the cost goes to seeds,” said Syed Ijazul Hassan, Director of Potato Research Institute.

 

[ghazi52]

,.,.
In a significant development for Pakistan's rice industry, the country's rice exports to China have surged by 53% in the year 2022. This increase is an encouraging sign for Pakistan, which has been striving to enhance its exports to China, one of the world's largest markets.

The growth in Pakistan's rice exports to China is largely attributed to the recent trade agreement between the two countries. Under the agreement, China has granted access to Pakistani rice exports and reduced import tariffs, making it easier for Pakistani rice exporters to enter the Chinese market.

Pakistan's rice is highly regarded for its superior quality, and the Chinese market has traditionally been dominated by Indian rice. However, the recent surge in Pakistani rice exports to China is expected to alter this landscape, with Pakistani rice exporters seeking to capture a larger share of the Chinese market.

 

[ghazi52]

,.,.,.,.
Pakistan's rice export to China in 2022 surpassed USD 455 million with a volume of more than one million tonnes, for the first time between China-Pakistan rice trade, said Ghulam Qadir Commercial Counsellor at Pakistan's Embassy Beijing, China.

Ghulam Qadir indicated that according to the General Administration of Customs of the People’s Republic of China (GACC), last year, bilateral trade in agriculture products increased significantly and China imported more than 1.19 million tons of different types of rice from Pakistan, an increase of 53% year on year.

“Our rice exports to China surpassed one million tons for the first time, due to facilitation from both governments and hard work of businessmen. With the opening up of China, these exports are forecasted to grow more”, he added.

 

[ghazi52]

.,.,

SBP expedites proceedings against exporters for realisation of e-forms​

Hamid Waleed

LAHORE: The State Bank of Pakistan (SBP) has expedited proceedings against exporters for realization of E-forms by forcing them for an early performance of the same, causing worries among the later ones, said sources.

In most of the notices, it has been pointed out that the exporters had given undertaking in E-forms that they would repatriate the full amount of proceeds through banks within six months from the date of shipment/export.

Since they have failed to repatriate the full amount of sale proceed within the prescribed period and contravened the provisions of Foreign Exchange Regulation Act, 1974, by delaying the same.


It may be noted that the federal government is authorised to prohibit export of goods unless a declaration is furnished for repatriation of sale proceed within the prescribed period except where sale is delayed or payment for the goods is made otherwise then in the prescribed manner.

According to the sources in the export community, they are receiving notices from the SBP to explain their position in respect of the contravention of law. It is worth noting that the SBP also ensures undertaking regarding a full explanation as to the circumstances resulting in non-realization. In the event of short-realization, the exporters are also bound to furnish a fully documented account sale certificate by the chamber of commerce of the country of import.

The SBP is authorised to impose penalty not exceeding five times the amount or value involved or five thousand rupees that may extend to Rs 2,000, calculated at the prevailing rate of exchange, for every day during which the contravention or default continues.

Some exporters exporting indigenous goods to Iran via land route have informed that they were facing problem in realization of sale proceed because the Iranian buyers were issuing cheques of cash payments which are dishonoured on presentation to the local banks in Iran.

According to them, it has been provided in the foreign exchange manual that legal proceedings for recovery of export proceeds in case of default by a foreign buyer will be carried out in consultation with the SBP Banking Service Corporation, but no such legal assistance is provided with by the Corporation and the exporters are supposed to handle the issue alone.

Copyright Business Recorder, 2023

 

[ziaulislam]

can we lock this thread till ishaq dar is gone ?

 

[ghazi52]

.,..,

Pakistan’s exports to Middle East fall 12pc​

UAE market suffers decline of 19.91pc to $0.945bn in 8MFY23 from $1.180 over the corresponding months last year.

 

[ghazi52]

.,.,

Pakistan’s textile exports plunge 22.6% in March​

• Sector's exports clock in at $1.26bn, says PBS
• Data shows exports in first nine months of FY23 decrease by 12.4% to $12.48bn

BR Web Desk
April 18, 2023

Exports of Pakistan’s textile sector witnessed a significant decline of 22.6%, clocking in at $1.26 billion in March 2023 compared to $1.63 billion recorded in the same month of the previous year, showed latest data released by the Pakistan Bureau of Statistics (PBS).

Data showed textile exports in the first nine months of FY23 decreased by 12.4% to $12.48 billion, declining from $14.24 billion a year earlier.

The decrease in the key textile exports is concerning for the South Asian economy, which is dealing with low foreign exchange reserves.


Forex reserves held by the State Bank of Pakistan (SBP) are currently at $4.04 billion, barely enough for a month of essential imports.

Textile exports may fall by $3bn this year, warns APTMA

On a month-on-month basis, textile exports registered an increase of 6.6%, as compared to $1.18 billion recorded in February.

“Increase is indicative of an MoM recovery in global textile demand. Textile manufacturers of Pakistan have seen improved orders from Europe and USA for value-added segment,” said Nasheed Malik, an analyst at Topline Securities in a report on Tuesday.

The brokerage house said that a drop in demand from major export markets and recent hike in tariffs are key challenges going forward. “However, order clarity exists till Jun-2023 and tariff hikes are currently at a previous stay position till the end of FY23 as per our channel checks,” it said.

“We expect textile exports to clock in at a range of $16-17 billion in FY23 as compared to APTMA’s targets of $25 billion and last year’s FY22 textile exports of $19 billion,” it added.

Meanwhile, Pakistan’s exports during July-March (2022-23) were recorded at $21.046 billion against the exports of $23.350 billion in July-March of 2021-22, showing a decline of nearly 10%, according to the trade data released by PBS earlier this month.