By Syed Wahaj Ahmed
Pakistan’s exports have increased by 27% in Jan 24 and 12% in 7 MFY24, while imports have gone down 4.5% in Jan 24 and down 16% in 7 MFY 24.
However, the reality is, the biggest export sector, Textiles, is down in exports. Exports are up mainly due to food exports which is a natural outcome of a better crops produced this year. Within food segment, its rice exports mainly, followed by fruits, nuts, oil seeds, meat and sugar!
“Better agriculture output in wheat, rice, sugar and cotton has also led to lower import bill this year as compare to last year (we imported wheat and cotton last year due to shortage), in addition to decline in petroleum import bill (biggest share in imports) due to decline in oil prices in comparison with last year, plus continued restrictions on imports (imports not completely opened yet),” Analyst Khurram Schehzad said.
Textile exports have been down where all major segments, including cotton cloth, knitwear, bedwear, readymade, synthetics, madeups, all down, only typical non value-added cotton yarn export has been up within the segment due to better cotton output, while overall textile exports are down.
“We need to see the breakup to see what is really being done and what are the actual reasons for growth versus last year, and whether any policy intervention is yielding results or its only a natural outcome of better agriculture output this year,” he said.
