ISLAMABAD-Pakistan’s exports increased by 5.80 percent in July 2020 as compared to the same month of last year. On the import side, a decline of 4.2pc, in dollar value terms, was recorded in July 2020 as compared to July 2019. This was disclosed during an internal strategy meeting chaired by advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood here Tuesday. The meeting reviewed the latest statistics of exports and imports of Pakistan and devised plans for improving the exports.
The data for July 2020 shows an export growth of 5.8%, in dollar value terms, as compared to July 2019. Exports in July 2020 stood at $1.998 billion as compared to around 1.889 billion dollars exports in July 2019.
This growth was recorded after a decline in exports for the last four months, since March 2020, when there was a drop of 8% compared to same period last year. This declined widened in April 2020, with a drop of 54% in exports, which improved but remained at 35% in May 2020, improving further to only 6% fall in exports in June 2020, as compared to same period last year.
The strategies for product and geographical diversification were also reviewed in the meeting, in context of the recent trade statistics. One of the major sectors which showed good progress is food processing sector where a growth of over 300% was observed in July 2020. Similar growth was witnessed in made-ups and clothing accessories sectors. In addition, fish and fish products sector recorded a healthy growth of 50%, while Home Textiles Sector, which was declining in the previous months, is now back up with 24% growth.
In terms of exports, a major decline is witnessed in rice and cement, which fell down to 24% and 12% respectively in July 2020, as compared to same period last year. There is also a decline in the export of raw leather and cotton yarn, which is a clear indication that the government’s policy to pursue value-added exports is showing results.
On the import side, a decline of 4.2%, in dollar value terms, was recorded in July 2020, as compared to July 2019. Imports in July 2020 stood at $3.540 billion as compared to $3.696 billion imports in July 2019.
Due to this increase in exports and decline in imports, a 14.7% improvement in trade balance was witnessed in July 2020 as compared to July 2019. Trade deficit in July 2020 stood at around $1.542 billion as compared to trade deficit of $1.808 billion in the same period of last year.
On the geographical diversification, not much progress has been shown in July 2020 as the exports still seem to be heavily dependent on traditional export markets.
Talking in the meeting, Abdul Razak Dawood said that this achievement is particularly noteworthy because of the fact that a decline was being observed until the last month and a turnaround of around 12 percentage points has been achieved in just one month.
Dawood underlined that the Ministry of Commerce will be evaluating its geographical diversification in order to re-align the focus towards new opportunities. He also advised the Ministry officers to extend all kinds of necessary support to the exporters in order to achieve the targets, not only in terms of numbers but also with regards to intended policy outcomes.