ISLAMABAD: Mer­cha­ndise exports continued upward trend for the third consecutive month in November marking a potential shift in the economic landscape.

In absolute terms, the export proceeds were recorded at $2.57 billion in November against $2.38bn over the corresponding month last year, indicating a growth of 7.66 per cent. However, on a month-on-month basis, the export proceeds decreased 4.39pc.

The export of goods in the first five months of FY24 increased by 1.93pc to $12.17bn against $11.94bn in the corresponding period last year.

The uptick in export proceeds in November suggests that the textile and clothing sectors are beginning to secure orders from global clients following a year of downturn. However, the full scale of the export resurgence will become apparent in the forthcoming months.

According to a preliminary report, the increase in overall export value was mostly driven by semi-finished goods in the textile sector, while value-added garment exports remained negative. Furthermore, in the non-textile sector, the export earnings of food goods, particularly rice and beef, have posted unprecedented increases in recent months.

The commerce ministry reported that over 1,600 textile units had clo­sed down in the PDM government. However, the mi­nistry has yet to an­­no­u­nce the strategic fra­mework to provide regi­o­nal competitive ene­rgy pricing, working capital support, speedy ref­u­­nd payments, enhanced market access, and diversification of products.

However, the imports de­­­clined by 13.47pc to $4.46bn in November from $5.15bn in the same mon­th last year. On a month-on-month basis, the imp­o­rts increased by 8.31pc. The import bill fell 17.32pc to $21.55bn in July-November FY24 from $26.06bn over the corres­ponding months last year.

The imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22. The government has projected an import target of $58.69bn for FY24 against $55.29bn in FY23, an inc­rease of $3.4bn or 8.14pc.

The trade deficit narrowed 33.59pc to $9.37bn in July-November FY24 from $14.12bn over the corresponding months of last year. The trade deficit contracted 31.72pc to $1.88n in November from $2.76bn over the corres­p­onding month last year.

Published in Dawn, December 2nd, 2023