Country’s Merchandise Exports Started to Decline
After 22 months, the country’s merchandise exports started to decline in July as the economy recovered from the effects of Covid-19.
According to data released by the Pakistan Bureau of Statistics on Tuesday, export revenues decreased 5.17 percent to $2.21 billion in the first month of the current fiscal year from $2.34 billion in the same month last year.
The export revenues decreased by 23.95 percent month over month, demonstrating a decreasing trend in the export industry. The exports last time showed a decline of 14.75 percent in August 2020.
Pakistan’s Exports Have Remained Below
For the first time, in FY22, the export goal was not only met but also exceeded the $30 billion psychological threshold. For the past ten years, Pakistan’s exports have remained below this mark.
Pakistan’s exports rose 26.6 percent to $31.845 billion in the just-ended fiscal year from $25.160 billion the previous year. Exports increased 6.48 percent to $2.89 billion in June from $2.72 billion in June of last year.
The textile industry has previously voiced concerns about increased energy and raw material costs, which are mostly the result of the sharp depreciation of the rupee. Exporters have also expressed dissatisfaction with refunds that were held by the Federal Board of Revenue.
Import Bill Decreased By 38.31% Month
The import cost also decreased, going from $5.57 billion in July 2017 to $4.86 billion in July 2018, a 12.81 percent decrease. The import bill decreased by 38.31% month over month.
The import bill increased somewhat in June, from $6.28 billion to $7.74 billion, representing a 23.26 percent increase from the same month last year. The rupee-dollar exchange rate will have less pressure following the fall in July.
The import bill climbed from $56.12 billion to $80.51 billion in 2021–2022, a 43.45 percent rise.
Finance Minister Miftah Ismail declared on Twitter, “Our efforts to limit imports have finally paid off. According to PBS data, imports dropped to $4.86 billion in July from $7.7 billion in June.” He added that we had saved Pakistan from going into default because of this.
The minister went on to say, “Our government is committed to minimising the significant current account deficit left by PTI.”