ISLAMABAD: Pakistan’s merchandise exports slowed in November and fell into the single digit due to a reduction in international demand, according to data released by the Pakistan Bureau of Statistics on Monday.
The growth momentum picked pace in July owing to improved orders from the international community and stability in the exchange rate. The exports grew 11.83 per cent in July, followed by 16pc in August, 13.52pc in September, 10.64pc in October and 8.98pc in November.
The exports reached $2.80bn in November against $2.57bn in the corresponding month last year. On a month-on-month basis, exports dipped 5.97pc.
In the first five months, export proceeds stood at $13.69bn in July-November FY25 against $12.16bn over the corresponding months of last year, showing an increase of 12.57pc.
Trade gap narrows 18pc in Nov
Global buyers have redirected clothing sourcing from Bangladesh and China and placed orders with Pakistan in the past few months. It allows Pakistani exporters to capitalise on the opportunity and capture the market.
The exporters, especially the textile sector, were unhappy with the government’s decision not to release refunds and rebates under different categories. According to the exporters, this squeezes their margins and limits their capacity to reinvest and expand operations.
They said immediate action is needed to prioritise export sector liquidity by fast-tracking refunds and resolving taxation issues. Making exports a top priority will allow businesses to optimise their potential and contribute significantly to the economy.
Trade deficit
According to the PBS data, imports grew 3.90pc to $22.34bn in July-November FY25 from $21.50bn over the last year. The imports dipped 3.83pc in November to $4.39bn from $4.52bn in the same month last year.
Month-on-month, imports declined 3.83pc. The IMF revised its import forecast downward by $3.3bn from $60.5bn to $57.2bn for the FY25, converging with the government’s projection of $ 57.3bn.
In FY24, imports fell by 0.84pc to $54.73bn compared to $55.19bn in FY23. The trade deficit in July-November FY25 decelerated by 7.39pc to $8.65bn from $9.34bn over the last year. In November, the deficit decreased by 18.60pc to $1.58bn from $1.95bn last year. The trade gap contracted to $24.08bn in FY24 from $27.47bn in the preceding year.
Published in Dawn, December 3rd, 2024
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