Pakistan Export Updates

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Basmati rice exports surge 45pc in March​

DAWN
Apr 23, 2023

Basmati exports staged a strong rebound surging by 45 per cent to 64,274 tonnes in March from 44,137 tonnes in February despite 25pc damage to the last crop due to floods and heavy rains.

In dollar terms, rice exports jumped by 39pc to $69,475 in March from $49,875 in February.

Non-basmati export, however, registered a decline of 35.5pc to 328,344 tonnes in March against 509,271 tonnes in February. The fall in exports in dollar terms was around 21.3pc.

Total rice exports during March stood at 382,618 tonnes valuing $243,632, while Pakistan exported a total 2,907,322 tonnes of rice to earn $1,598,261 during the period July-March 2022-23.

Of them basmati variety was 428,404 tonnes worth $456,361 and non-basmati 2,478,918 tonnes valuing $1,141,900.

Rice trade expert Hamid Malik says with the current export trend Pakistan will be able to cross the $2bn export target.

An official of the Rice Exporters Association of Pakistan (Reap) said export figures in terms of quantity may be down but the way the crop has been affected, the foreign sales are comparatively satisfactory as exporters are getting fair prices.

“Ever high export prices and demand are there in the foreign markets. Though the crop is less in quantity but in terms of the value we are set to cross the $2bn mark.”

Last year Pakistan exported rice worth $2.5bn, historically the highest figure.

There is a very encouraging situation on the export front but local businesses are severely hit as scarcity of foreign exchange is preventing the import of machinery and material meant for value-addition.

“Machinery imports are stuck up. Things that are ultimately meant for exports are blocked. Letters of credit for planters, harvesters, and rice processing machines are not being opened. The companies working on sustainable production agriculture are being disallowed to import solar panels,” the official says requesting not to be named.

However, Momin Malik, Director of Seeds at Guard Agricultural Research and Services Ltd, says as basmati rice are getting a good price, particularly in the international markets, there is a growing trend of plating basmati this year instead of non-basmati varieties, which had been claiming the basmati acreage for the last few years.

Also due to delays in wheat harvesting because of late sowing as well as low temperatures in March slowing down the crop’s maturing process, the sale of rice seeds of coarse varieties has declined by over 10pc. For, he explains, the window for reaping a third crop of hybrid rice, between wheat and basmati rice, has narrowed down because of delay in wheat harvesting.

 

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Seafood valuing $406.090m exported in 10 months​

Pakistan Observer
May 26, 2023

Seafood exports from the country during first 10 months of current financial year grew by 16.22 percent as compared the exports of the corresponding period of last year.

During the period form July-April, 2022-23, over 174,703 metric tons of of fish and fish preparation valuing $406.090 million exported as compared the exports of 131,776 metric tons worth $349.429 million of same period of last year, according the data of Pakistan Bureau of Statistics.

Meanwhile, country earned $346.337 million by exporting about 79,687 metric tons of meat and meat preparations as against the exports of 49,417 metric tons costing $284.699 million of same period last year.

The exports of meat and meat products from the country during the period under review grew by 21.65 percent as compared the exports of the same period last year.
However, the exports of rice from the country decreased by 11.17 percent as about 3.258 million metric tons of rice valuing $1.822 million exported during last 10 months of current financial year as compared the exports of $2.051 billion of the same period last year.

Food commodities valuing over $4.277 billion exported during 10 months of current financial year as compared the exports of $4.457 billion of corresponding period of last year.

 

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ISLAMABAD: For the ninth month in a row, Pakistan’s merchandise exports dived by 16.69 per cent year-on-year to $2.18 billion in May, showed data released by the Pakistan Bureau of Statistics on Friday.

In the first 11 months (July to May) of 2022-23, the exports dipped 12.14pc to $25.36bn compared to $28.87bn in the corresponding period last year.

The export proceeds are declining mainly because of internal and external factors stoking up fears about the closure of industrial units, especially textile and clothing.

At the same time, imports also plunged by 36.76pc to $4.27bn in May compared to $6.76bn in the corresponding month last year. Imports fell 29.22pc to $51.15bn during July-May from $72.28bn over the corresponding period last year.

The government has placed curbs on luxury and non-essential goods and only encouraged imports of raw materials, semi-finished products, pharmaceutical products, food and energy products. As a result, the import bill saw a deep drop in 11 months.

Trade deficit narrows over 40pc to $25.79bn in 11MFY23

Between July and May FY23, the trade deficit decelerated by 40.59pc to $25.79bn from $43.40bn over the corresponding months of last year. In May, the trade deficit fell year-on-year by 49.49pc to $2.08bn.

The exports started posting negative growth in July, barring August when a slight increase was recorded because of the backlog of the preceding month. Export contraction is a worrisome factor, which will create problems in balancing the country’s external account.

The drop in textile and clothing, which constitutes more than 60pc of total exports, shows the government would find it difficult to achieve the export target this fiscal year.

Textile exports were declining due to the federal government’s lack of strategy and inability to prioritise effectively, said the exporters.

They further said the root causes of the export decline include working capital shortages and liquidity crunch as refunds such as sales tax, deferred sales tax, income tax, drawbacks of local taxes and levies, technology upgradation fund, and duty drawbacks are being delayed.

It was highlighted that the faster refund system is not functioning as intended, with refunds now taking 3-5 months to process instead of the promised 72 hours. Additionally, the sector is facing a substantial increase in financial and energy costs, the exporters further lamented.

Additionally, the sector is facing a substantial increase in financial and energy costs, the exporters lamented.

Moreover, it has become difficult for exporters to place orders for the import of raw materials and procure other inputs locally. The State Bank of Pakistan has created hurdles in opening letters of credit which led to a decline in exports, they remarked.

 

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Tax relief measures to facilitate exporters: Dar​

Sohail Sarfraz | Zaheer Abbas
June 4, 2023

ISLAMABAD: Finance Minister Ishaq Dar Saturday assured the business community the federal budget (2023-24) would announce tax relief measures to facilitate exporters, promote the documentation, and incorporate visible recommendations of the Securities and Exchange Commission of Pakistan (SECP) to encourage investment in the stock market and the corporate sector.

Dar held meetings with the Pakistan Business Council (PBC), the Overseas Investors Chamber of Commerce and Industry (OICCI), the Karachi Chamber of Commerce and Industry (KCCI) and the Pakistan Stock Exchange at the FBR Headquarters, here.

A joint delegation of PBC and OICCI called on the Ishaq Dar at the FBR Headquarters in Islamabad.

 

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Exports of services shrink 25pc in April 2023​

Mubarak Zeb Khan
June 6, 2023


ISLAMABAD: Pakistan’s export of services shrank 24.65 per cent year-on-year to $486.09 million in April, which is the fourth monthly drop in a row, according to the data compiled by the Pakistan Bureau of Statistics.

The export of services recorded positive growth during the first half of the current fiscal year, but it started contracting in January. The export of commodities has steadily declined since the beginning of the current fiscal year.

However, the export of services posted a meagre 1.46pc growth to $6.009 billion in July-April 2022-23 from $5.923bn in the corresponding months of last year.

The export of services grew 17.20pc to $6.968bn in 2021-22 from $5.945bn in the preceding year.

At the same time, the import of services also contracted by 39.70pc to $6.413bn in July-April FY23 against $10.635bn in the corresponding months last year. Import of services in April dipped by 38.85pc to $667.04m from $1.09bn over the same month last year.

The trade deficit in services narrowed by 91.44pc to $403.45m in July-April FY23 against $4.712bn over the corresponding months of last year. In April, the trade deficit in services decelerated by 59.40pc to $180.95m against $445.74m over the preceding month.

 

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Pakistani mangoes land in China via newly opened air cargo route​

By Xiong Weisheng | China Economic Net
Jun 8, 2023

NANNING – The second batch of Pakistani mangoes arrived in Nanning, capital of China’s southwest autonomous region of Guangxi, on the afternoon of June 8, Adnan Hafeez, Director of Imperial Ventures (Pvt) Ltd, told China Economic Net (CEN) in an interview.

The shipment comprising one tonne of Sindhri variety was transported by YTO Express via a newly opened cargo flight between Lahore and Nanning, the businessman told CEN reporter. “We have been working with this airline for the past four years, so we feel comfortable continuing to work with them as the level of cooperation and understanding is high.”

Known for its large size, yellow colour and ample sweetness, the Pakistani king of fruits will be shared with major Chinese B2B clients and outlets for sampling after custom clearance and necessary certifications by the relevant Chinese authorities, he noted.

Having brought Pakistani mangoes to the Chinese market over the past few years, Adnan’s team has been working to enhance mango quality as well as packaging and storage techniques, he shared with CEN. “Recently, we have conducted mango bagging activity in collaboration with the Trade Development Authority of Pakistan (TDAP) to improve quality at source.”

He added, more focus will be devoted to saving costs as air cargo is still costly. “We are trying to send the unripe and the bulk packing mangoes to save some cost.”

The first shipment of Pakistani mangoes reached Nanning on May 31, distributed directly to a major Chinese fruit outlet, Adnan revealed.

Another batch of Sindri mangoes weighing 3.5 tonnes will land in Nanning on June 10, which will be sold both online and offline, a Guangzhou-based enterprise told CEN in an interview.

It is pertinent to mention that Pakistani mangos will make their debut in China’s Xinjiang this year as a Pakistani logistics enterprise is prepared to transport the Pakistani king of fruits to Xinjiang via the land route, as per a previous CEN report.

 

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Over $7bn lost in exports, remittances​

Shahid Iqbal
June 18, 2023

KARACHI: As the PDM government keeps struggling to secure $1.1 billion from the International Monetary Fund (IMF), the country lost $7.15bn on account of shrinking exports and remittances during the first 11 months of FY23.

Despite missing out on targets for the outgoing fiscal year, the government has fixed higher exports and remittances projections for FY24.

Exports plunged by $3.491bn, or 12 per cent, to $25.380bn during July-May of FY23 compared to $28.871bn in the same period of the last year, official data showed.

Similarly, remittances fell by 12.8pc to $24.831bn during the first 11 months of the current fiscal year, posting a net loss of $3.658bn.

The combined loss from these two sectors is much higher than the country is willing to receive from the IMF and borrow from commercial banks and other multilateral lending agencies.

Combined losses surpass funding option; govt focuses on borrowing strategy

“Instead of spending time to boost exports and remittances, the government remained busy with all its efforts to borrow from the IMF and other sources,” said a senior banker.

The government struggled hard to get assurances of $3bn from Saudi Arabia and $2bn from the United Arab Emirates to get IMF’s $1.1bn.

Financial experts believe that the policymakers lack a clear strategy to control the situation, as most of the time was spent on borrowing strategy.

At the same time, the government included certain unrealistic expectations to bolster exports and remittances in the upcoming FY24 budget, without providing the rationale behind them. Analysts and experts said the new fiscal year would start under the stress of a current account deficit that has been projected at $6bn for FY23. The government has also allocated a budget of $6bn CAD, which analysts believe will likely increase due to the continuing decline in remittances.

“The government has also budgeted a $6bn CAD, which analysts believe will increase due to the continuing decline in remittances. But even taking the government figures, they imply a deficit of $300m to $700m every month,” said Faisal Mamsa, CEO of Tresmark, the company that tracks currency trends worldwide.

 

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Pakistan Exports Record 90,000 Tons of Fuel Oil in May

This trend is expected to continue as fuel oil consumption remains stagnant due to an economic slowdown and moderate weather conditions. Currently, Pakistan has over 510,000 tons of fuel oil stock, with power plants and oil marketing companies holding the majority.

To maintain smooth operations, refineries have chosen to export their stock, despite lower prices in the global market. Local consumption of fuel oil is not expected to improve soon, leading to unattractive market conditions for refineries. Power generation from fuel oil has also significantly decreased compared to the previous year.

 

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Pakistan opens doors to Chinese meat enterprises​

By Zafar Hussain
Jul 1, 2023

BEIJING- "There's a lot of potential for enhancing meat exports to China," said Ghulam Qadir, Commercial Counsellor, Pakistani Embassy in Beijing, while addressing a forum titled "2023 Meat Import Development & Beijing-Tianjin-Hebei Port Cold Chain Economy New Growth Forum" on June 30.

He invited Chinese enterprises to participate in Pakistan's Agri Expo (starting from August 10) in which over 300 top Pakistani agriculture and food processing firms are expected, including meat, fisheries, oil seeds, fruits, and vegetables, food processing ones.

Ghulam Qadir stated that the Agri Expo undoubtedly will open doors to meat enterprises, unveiling the untapped potential that the country possesses. As businesses leverage the opportunities presented by the Expo, the future of Pakistan's meat sector looks bright, promising sustainable economic development and increased global recognition.

In a landmark decision, the General Administration of Customs of China (GACC) has already granted access to Pakistani boiled beef to the Chinese market, he said.

"Donkey meat is another important potential and the protocol on Donkey skin has almost been finalized by Pakistan. This is another opportunity arising. Similarly, donkey meat will be allowed to China in the next two to three months approximately," Qadir added.

He further said that the favorable climatic conditions, an abundance of grazing lands, and ample water resources contribute to the availability of high-quality feed for livestock. With a rising demand for meat, both domestically and globally, Pakistan possesses a vast potential to cater to China’s growing market.

 

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Regional exports fall as sales to China shrink by a quarter​

Mubarak Zeb Khan
July 2, 2023

ISLAMABAD: Pakistan’s exports to nine neighbouring countries recorded a significant decline of 19.68 per cent during the first 11 months of the outgoing FY23, according to data gathered by the State Bank of Pakistan (SBP).

This drop is largely attributed to a decrease in shipments to China. Notably, the decline in trade is not limited to exports alone, as imports, particularly from China, have also witnessed a sharp decrease in the 11MFY23.

In line with the government’s cost-cutting measures, the clearance of import containers had been delayed in FY23, and the SBP has given low priority to opening letters of credit for consumer goods.

The country’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives dipped to $3.353 billion — just 13.21pc of Pakistan’s total exports of $25.38bn in July-May FY23.

 

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Exports shrink 19pc in June, record 10th straight drop​

Mubarak Zeb Khan
July 4, 2023

ISLAMABAD: Pakistan’s merchandise exports dipped by 12.71 per cent year-on-year to $27.54 billion in 2022-23 from $31.78bn in the preceding fiscal year, showed data released by the Pakistan Bureau of Statistics on Monday.

The export contraction continued for the 10th month in a row, plunging by 18.72pc year-on-year to $2.36bn in June.

The export proceeds are declining because of internal and external factors stoking up fears about the closure of industrial units, especially textile and clothing.

The government has projected a $32bn target for the outgoing FY23. However, the export target was missed by a wide margin of $4.46bn.

Throughout the entire fiscal year, there was a conspicuous absence of any statements or meetings within the commerce ministry to address the causes behind the decline in exports and propose solutions to assist exporters.

The commerce minister’s engagements primarily consisted of frequent foreign tours, while failing to make any public statements regarding the diminishing exports.

Trade gap narrows 43pc to $27.54bn in FY23

At the same time, imports also plunged by 46.80pc to $4.18bn in June compared to $7.85bn in the corresponding month last year. Imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22.

The government has placed curbs on luxury and non-essential goods since December 2022 and only encouraged imports of raw materials, semi-finished products, pharmaceutical products, food and energy products. As a result, the import bill saw a deep drop in FY23.

The government has now relaxed the import restrictions and announced that the State Bank of Pakistan will not use any measures to slow down or restrict the opening of letters of credit (LCs). This was also one of the conditions before reaching a Staff-Level Agreement with the IMF for a nine-month $3bn Stand-By Arrangement.

The trade deficit decelerated by 43.03pc to $27.54bn in FY23 from $48.35bn in the preceding fiscal year. In June, the trade deficit fell year-on-year by 63.32pc to $1.81bn.

The exports started posting negative growth in July 2022, barring August when a slight increase was recorded because of the backlog of the preceding month. Export contraction is a worrisome factor, which will create problems in balancing the country’s external account.

The drop in textile and clothing, which constitutes over 60pc of total exports, was one of the main factors for the decline in overall exports in FY23.

Textile exports were declining due to the federal government’s lack of strategy and inability to prioritise effectively, said the exporters.

The faster refund system was not functioning as intended, with refunds now taking 3-5 months to process instead of the promised 72 hours. Additionally, the sector is facing a substantial increase in financial and energy costs, lamented the exporters.

In FY23, it became difficult for exporters to import raw materials and procure other inputs locally. The central bank imposed restrictions on LCs which led to a decline in exports, they remarked.

 

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Pakistan’s copper products exports to China cross $485 million in first five months of 2023​

By Zafar Hussain
Jul 4, 2023

BEIJING - In the first five months of 2023, Pakistan's copper products exports to China have crossed $485 million, according to Pakistani official sources.

This noteworthy trade between the two nations highlights the growing demand for copper products in China and Pakistan's ability to meet this demand.

Speaking to Gwadar Pro, the trade and investment counsellor of the Pakistani Embassy in Beijing, Ghulam Qadir, said that the Pakistani government is eager to increase exports of copper and related products to China. He added that copper exports to China have increased in recent years and he hopes that refined products of copper will increase the value of exports from Pakistan to China.

He added that one of the biggest players in China's copper industry, Metallurgical Corporation of China (MCC), operates in Pakistan and plays a very important role in the development of Saindak copper mines since 1995.

“From January to May 2023, refined copper products in raw form, community code (74031900) generated $201.098 million in sales, compared to $244.62 million last year during the same period," he said. Similarly, unrefined copper, copper anodes for electrolytic refining, community code (74020000) reached $167.21 million from January to May 2023, while it was $134.32 million in the same period in 2022," Pakistani sources said.

Muhammad Imran, an international trade expert, told Gwadar Pro that increasing economic ties between the two countries further underscore their commitment to promoting mutually beneficial trade relations.

“Pakistan needs technology because mining and processing copper requires cutting-edge technology and expertise that Chinese companies have, and we need these things to improve our capabilities and export to the world,” he added.

He added that China was promoting imports from Pakistan and offering a preferential tariff rate of zero percent. Similarly, he said, Pakistan with large copper reserves can take advantage of mining these reserves with the help of Chinese expertise.

 

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Exports shrink 19pc in June, record 10th straight drop​

Mubarak Zeb Khan
July 4, 2023

ISLAMABAD: Pakistan’s merchandise exports dipped by 12.71 per cent year-on-year to $27.54 billion in 2022-23 from $31.78bn in the preceding fiscal year, showed data released by the Pakistan Bureau of Statistics on Monday.

The export contraction continued for the 10th month in a row, plunging by 18.72pc year-on-year to $2.36bn in June.

The export proceeds are declining because of internal and external factors stoking up fears about the closure of industrial units, especially textile and clothing.

The government has projected a $32bn target for the outgoing FY23. However, the export target was missed by a wide margin of $4.46bn.

Throughout the entire fiscal year, there was a conspicuous absence of any statements or meetings within the commerce ministry to address the causes behind the decline in exports and propose solutions to assist exporters.

The commerce minister’s engagements primarily consisted of frequent foreign tours, while failing to make any public statements regarding the diminishing exports.

Trade gap narrows 43pc to $27.54bn in FY23

At the same time, imports also plunged by 46.80pc to $4.18bn in June compared to $7.85bn in the corresponding month last year. Imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22.

The government has placed curbs on luxury and non-essential goods since December 2022 and only encouraged imports of raw materials, semi-finished products, pharmaceutical products, food and energy products. As a result, the import bill saw a deep drop in FY23.

The government has now relaxed the import restrictions and announced that the State Bank of Pakistan will not use any measures to slow down or restrict the opening of letters of credit (LCs). This was also one of the conditions before reaching a Staff-Level Agreement with the IMF for a nine-month $3bn Stand-By Arrangement.

The trade deficit decelerated by 43.03pc to $27.54bn in FY23 from $48.35bn in the preceding fiscal year. In June, the trade deficit fell year-on-year by 63.32pc to $1.81bn.

The exports started posting negative growth in July 2022, barring August when a slight increase was recorded because of the backlog of the preceding month. Export contraction is a worrisome factor, which will create problems in balancing the country’s external account.

The drop in textile and clothing, which constitutes over 60pc of total exports, was one of the main factors for the decline in overall exports in FY23.

Textile exports were declining due to the federal government’s lack of strategy and inability to prioritise effectively, said the exporters.

The faster refund system was not functioning as intended, with refunds now taking 3-5 months to process instead of the promised 72 hours. Additionally, the sector is facing a substantial increase in financial and energy costs, lamented the exporters.

In FY23, it became difficult for exporters to import raw materials and procure other inputs locally. The central bank imposed restrictions on LCs which led to a decline in exports, they remarked.

Excellent news.... Hope the corrupt military establishment burns in hell.

 

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Record meat exports fetch $427m in a year​

Aamir Shafaat Khan
July 23, 2023

KARACHI: Despite surging domestic prices, the country exported record 100,194 tonnes of meat and meat preparations in FY23 exceeding the previous peak of 95,648 tonnes recorded in FY21.

As per data issued by the Pakistan Bureau of Statistics (PBS), the country earned foreign exchange of $427 million in FY23 versus $331m in FY21. The exporters fetched an average per tonne price (APT) of $4,258 as compared to $3,467 in FY21.

The exports rose 30pc in quantity and 25pc in value when compared with 76,868 tonnes ($341m) in FY22 at an APT of $4,436.

Meat dealers continued to blame higher exports as one of the main reasons for pushing up domestic prices.

As per data from the Sensitive Price Index (SPI), beef with bone (average quality) price is now tagged at Rs600-1,050 per kg against Rs400-700 per kg during June 2021.

The national average price of mutton (average quality) swelled to Rs1,400-2,000 per kg from Rs810-1,350 in June 2021.

In the last 12 years, meat-related exports remained in the range of 56,000-85,000 tonnes.

“Linking increase in local meat prices to exports is a misconception created by the market retailers as 100,000 tonnes of exports is just a consumption of 10 days in Pakistan,” CEO PK Livestock, Saqib Butt told Dawn on Saturday.

The meat exports have reached a saturation point rather than showing any significant jump in the last two years, he said, adding that they can rise manifold if we target Iran and Afghanistan through legal channels.

He said new markets like Egypt have emerged in the last one to two months while exporters are also exploring Jordan and Malaysia.

Mr Butt said Pakistani exporters struggling to compete with African countries as they offer competitive prices for shipments to the Middle East.

He said countries like Somalia, Ethiopia, Tanzania and Kenya have set up slaughterhouses in the Middle East where Pakistan exports 98pc of meat and meat preparations out of its total shipments. These countries are giving quite a tough time to local exporters.

In case exporters could not tap new markets like Iran, Afghanistan, Malaysia, Egypt and Jordan then exports are unlikely to record any major boost in FY24, he feared.

He said high food inflation has hit the buying power of people and meat consumption is going down. “I observed that the number of animals slaughtered this year during Eidul Azha is lower than last year due to squeezing purchasing power of people,” he added.

Contrary to this, the Economic Survey FY23 says that cattle, buffalo and goat production soared to 55.5 million, 45m and 84.7m during FY23 from 51.5m, 42.4m and 80.3m in FY21. Beef and mutton production rose to 2,544,000 tonnes and 799,000 tonnes in FY23 from 2,380,000 and 765,000 tonnes in FY21.