Exports increase 13.6% to reach $20.9bn in FY2020-21

ISLAMABAD: The exports from the country during July-April 2020-21 had reached $20.9 billion compared to $ 18.4 billion during the same period last year, showing an impressive growth of 13.6 percent.

The country’s exports shown a growth of 13.6 percent in the last 10 months of current FY 2020-21, as compared to negative growth of 3.9 percent in the same period during 2019-20.

According to Economic Survey 2020-21, Pakistan’s exports bounced back owing to proactive measures taken by the government and it was among those countries whose exports recovered more rapidly.

The government has taken Initiatives to uplift the export-oriented industries amidst the COVID-19 outbreak. This includes the provision of gas and power subsidies through the industrial support package and extensions in the validity of subsidized power and gas utilities under erstwhile zero-rating certificates.

The government has approved Rs 190 billion enhancement in the limits of refinancing for banks under the Export Finance Scheme (EFS) and the Long-Term Financing Facility (LTFF).

Pakistan’s exports bounced back after a sharp hit during the strict lockdown in the last fiscal year, mainly due to export-oriented government policies and strong economic recoveries in export markets.

Exports were targeted at $22.7 billion for the fiscal year 2021. Exports during July-March FY2021 amounted to $18.7 billion as compared to $17.4 billion in the same period last year, which shows an impressive growth of 7.1 percent as compared to the 2.2 percent in the same period last year.

Among the top export destinations, the USA continued to be the largest export market for Pakistan during July-March FY2021. Exports to the USA moderately increased from 17.3 percent in FY2020 to 19.7 percent in FY2021.

Similarly share of exports to China increased from 8.0 percent to 9.7 percent during the period under review. Pakistan’s exports to Central Asia, Afghanistan and Iran increased from $813.59 million to $870.26 million during July-March FY2021.

Pakistan’s exports to the Afghanistan increased to US$ 779.39 million during July-March FY2021, despite a continuing ban on export of wheat and sugar.

Total bilateral trade between Pakistan and Africa was recorded at US$ 3.15 billion during July-March FY2021. Pakistan’s exports to European Union (EU) increased by 4 percent to US$ 4,549.82 million during July-February FY2021.

At the same time, Pakistan’s imports decreased by 3 percent to US$ 2,539.07 million. The trade balance is in favor of Pakistan with trade surplus amounting to US$ 2,010.75 million.