Pakistan exports hit record high, exceeds $25 billion in FY21

Pakistan exports hit record high, exceeds $25 billion in FY21

Exports expected to further increase by 5% in the next two years

Pakistan’s exports of goods grew 18% year over year to hit a new record of $25.3 billion in fiscal year 2020-21. The country’s exports of goods in June 2021 were highest for any month in history at $2.7 billion, according to a statement of the Ministry of Commerce, released on July 1 said.

These are the highest-ever exports of goods in the history of Pakistan. The previous highest was USD 25.1 billion in 2013-14.

The country’s exports of Services for the year are estimated to be $5.9 billion, taking the aggregate exports of Goods and Services for the year over $31 billion.

“Export value of services for the full fiscal year is projected at $5.9 billion,” said the statement. “Hence, the cumulative export of goods and services during FY21 is likely to cross $31 billion.”

Adviser to Prime Minister of Pakistan for Commerce and Investment Abdul Razak Dawood praised exporters on the achievement saying that they not only survived the Covid-19 pandemic, but also enhanced foreign shipments from many sectors.

“This is a remarkable achievement by our exporters considering the difficulties created by COVID-19 at home and resultant contractions in our major markets,” said the PM aide.

“It was not an easy task as many countries went into lockdown, and severely affected the business. Not only our exports survived the crisis but also we have enhanced it in many sectors. I salute our exporters on achieving the milestone,” he went on adding.

Major rationalization in various sectors, including textile value chain, iron and steel raw material, in the budget for fiscal year 2021-22, are expected to further enhance exports. “With current measures, exports are expected to grow by 5% in the next two years,” added the statement.

Tariff rationalization efforts in the last 2.5 years had decreased the weighted average tariff of Pakistan from 9.07% in 2018-19 to 7.07% in 2021-22 and “now the levies are at par with regional competitors,” said the PM aide.

Since 2018-19, tariff on more than 4000 inputs (i.e. raw materials, intermediate and capital goods) have been rationalized. As a result, almost 40% of total inputs in terms of number of tariff lines as well as value of imports are at 0% duty. This has improved competitiveness of the industry witnessed in 13% growth in LSM and 17% increase in exports despite COVID pandemic.

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