ISLAMABAD: The fiscal year 2023 was not very different from the previous many years as the external account recorded a dismal performance owing to increased debt repayment, dwindling reserves and falling exports.

The government’s only solace lay in its success in curtailing the import bill but decreased exports and poor remittance collection significantly offset any gains on that front, according to the Economic Survey 2022-23 released on Thursday.

Exports fell by 9.8 per cent during Jul-Mar FY2023 to $21 billion. The quantum in the corresponding period last year was $23.3bn.

Textiles recorded the greatest fall of 12.4pc, from $14.2bn in FY22 to $12.47bn in the current fiscal year till March. The export of cotton yarn dipped by 37pc from $908m to $573m.

The overall export of food items dropped by 3.4pc, from $3.94 to $3.81bn. The exports of fruits saw the steepest decline with 42.6 pc; from $394.5m to $226.4m. Similarly, the exports of rice fell by 10.9pc, vegetables by 5.5p and species by 12.4pc.

CAD shrinks from $13bn to $3.4bn

These government’s measures to cut import improved the current account balance by 74.1pc from a deficit of $13bn to $3.4bn during Jul-Mar FY2023.

The total imports during Jul-Mar, FY2023 stood at $43.7bn compared to $58.9 billion in the same period last year, a dip of 25.7pc.

The impact of floods also offset the imports target as cotton production fell to 4.91m bales during FY2023, compared to 8.3m bales last year, forcing the government to import the commodity to meet the domestic requirement of around 15m bales.

The survey stated that from July 2022 to Mar 2023, the quantum of remittances registered a decrease of 10.8pc and stood at $20.5bn against $23bn in the same period last year.

Published in Dawn, June 9th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

China security ties
14 Nov, 2024

China security ties

AFTER a slightly turbulent patch, during which officials publicly used uncharacteristically direct language,...
Steep price
14 Nov, 2024

Steep price

THE Hindu Kush-Himalayan region is in big trouble. A new study unveiled at the ongoing COP29 reveals that if high...
A high-cost plan
14 Nov, 2024

A high-cost plan

THE government has approved an expensive plan for FBR in the hope of tackling its deep-seated inefficiencies. The...
United stance
Updated 13 Nov, 2024

United stance

It would've been better if the OIC-Arab League summit had announced practical measures to punish Israel.
Unscheduled visit
13 Nov, 2024

Unscheduled visit

Unusual IMF visit shows the lender will closely watch implementation of programme goals to prevent it from derailing.
Bara’s businesswomen
13 Nov, 2024

Bara’s businesswomen

Bara’s brave women have proven that with the right support, societal barriers can be overcome.