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Pakistan's exports to Bangladesh increases in H1FY23

TBP Online
31 Jan 2023 17:21:18 | Update: 31 Jan 2023 17:24:15
Pakistan's exports to Bangladesh increases in H1FY23
File photo of the Chattogram port — Shamsul Haque Ripon

Although Pakistan is currently struggling through a major economic crisis, the country’s export to Bangladesh has increased 5.35 per cent to $420.83 million in the first half of FY23 from $399.43 million in the H1FY22.

However, Pakistan’s exports to Sri Lanka dipped by 8.01 per cent to $160.87 million from $174.88 million in the same period last year, reports The Dawn, citing data released by the State Bank of Pakistan.

On the other hand, the country’s exports to Nepal declined by 61.78 per cent to $1.54m from $4.03m in 6MFY22. Exports to the Maldives increased by 28.16 per cent to $4.05m from $3.16m.

A marginal export worth $0.048m to Bhutan was recorded in the first six months of the current fiscal year against $0.018m exports last year, indicating a growth of 166pc.

The country’s exports to Afghanistan, China, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives dipped to $1.897 billion — just 13.31 per cent of Pakistan’s total exports of $14.25 billion in July-December FY23.

China tops the list of Pakistan’s regional exports leaving other populous countries India and Bangladesh behind.

But Pakistan’s exports to China posted negative growth in the first half FY23 on a year-on-year basis. The bulk of the regional exports share, which accounts for 55.77 per cent, is with China while the remaining is for eight countries.

Pakistan’s exports to China declined 20.57 per cent to $1.058 billion in July-December FY23 from $1.332 billion in 6MFY22. The decrease in export proceeds was noted for the first time in the post-Covid period.

However, the imports from China increased during the period under review.

Pakistan’s exports to Afghanistan posted a positive growth of 4.60 per cent to $251.58 million in July-December from $240.50 million in July-December 2021.

Till a few years ago, Afghanistan was the second major export destination for Pakistan after the United States. The export figures did not include proceeds materialised through the land routes.

The exports to Afghanistan started to decline in August 2021. The government has allowed imports from Afghanistan in the rupee in the post-Taliban regime period. The figures did not reflect those imports made in rupees.

The government has also exempted the import of tomatoes and onions from duty and taxes from Afghanistan and Iran. As a result, the imports of these kitchen staples posted massive growth in the past couple of months to bridge the shortage in local supplies.

Pakistan’s exports to Iran on the official channel remained at $0.022 million in the first half of FY23 against no exports last year. Most of the trade with Tehran is carried out through informal channels in border areas of Balochistan.

The government has allowed the import of onions and tomatoes at Taftan and Gwadar border customs stations to meet local demands. Pakistan carried out barter trade with Iran.

The country’s exports to India declined 75 per cent to $0.126 million in 1HFY23 from $0.517 million in 6MFY22.

In the wake of the monsoon rains, the standing crops of vegetables and cotton were vastly destroyed. There is a strong demand for allowing the import of cotton as well as vegetables at the Wagah border.