ISLAMABAD: Pakistan’s exports to the United States have experienced a continuous decline for the second year in a row, contracting 8.42 per cent in 2023-24 compared to the preceding year.
The decline in exports of textiles and clothing to the US is the primary reason for the fall, according to the data compiled by the State Bank of Pakistan.
Pakistan’s merchandise exports to the US fell 8.42pc to $5.432 billion in the outgoing fiscal year 2023-24 from $5.93bn over the same period last year. Pakistan’s exports to the US stood at $5.17bn in FY23, down 23.28pc from $6.74bn in the previous fiscal year.
Contrary to this, Pakistan’s exports to China rose 33.68pc to $2.707bn in FY24 from $2.025bn over the same time last year. However, the US remained Pakistan’s biggest export destination in FY24.
The fall in exports to US markets can be attributed to several key factors. These include a shortage of capital, which has hindered businesses’ ability to invest in their export operations. Additionally, there have been issues with refunds, such as delays in receiving sales tax refunds, deferred sales tax payments, and income tax refunds.
Imports from the US also dropped 15.34pc to $1.876bn during FY24 from $2.216bn a year ago. In FY23, imports from the US also dipped 30.73pc to $2.11bn compared to $3.05bn in the same months last year.
Published in Dawn, July 31st, 2024
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