Pakistan Exports Up Last Month; Kinnow And Rice Likely To Get Boost

Economists believe that growth in exports open various opportunities for any nation’s economy because exports are a main component of Gross Domestic Products (GDP).

It is also being mentioned that the relationship between exports and growth is a significant one in economics, mainly for developing nations that seek to enhance the livelihoods of their citizens through economic reform. Growth in exports can also have a knock on effect to related service industries. They also urged that the strength of exports has a large role in determining the current account deficit.

In the past few years, Pakistan has had a persistent current account deficit, which many attribute to the government’s relative poor export performance. According to the provisional statistics recorded by the Pakistan Bureau of Statistics (PBS), exports from Pakistan during May, 2018 amounted to Rs247,534 million (provisional) as compared to Rs246,167 million (provisional) in April, 2018 and Rs169,711 million during May, 2017 explaining a rise of 0.56 percent over April, 2018 and of 45.86 percent over May, 2017. In terms of US dollars the exports in May, 2018 was $2,144 million (provisional) as against to $2,133 million (provisional) in April, 2018 explaining a rise of 0.52 percent and by 32.35 percent as against to $1,620 million in May, 2017. PBS also mentioned that exports during July-May, 2017–2018 totaled Rs2,333,088 million (provisional) as compared to Rs1,938,456 million during the same period of previous year explaining a rise of 20.36 percent. In terms of US dollars the exports during July-May, 2017-2018 totaled $21,346 million (provisional) as compared to $18,516 million during the same period of previous year explaining a rise of 15.28 percent.

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Pakistani exporters highlighted the statistics which showed that presently kinnow exports could also receive a boost as the Government of Pakistan is predicted to get an opportunity to export fruits and vegetables to a huge market of China under CPEC, which offers easy access to China via road. The government can export 50,000 to 80,000 tons of kinnow to China in the next three years. Pakistani exporters also highlighted that Pakistan’s kinnow exports reached a record high at 370,000 tons in the FY2017-18 season, up 45,000 tons as against to shipments of 325,000 tons in last year. Statistics also revealed that kinnow exports during FY2017-18 season were predicted to have fetched $222 million. Exports of the citrus fruit commenced in December 2017 and continued till the beginning of May 2018. It is also said that an excellent crop of kinnow in the country and low production by major producers like Morocco contributed to higher exports from Pakistan to the Russian market. However, for the last seven consecutive years, statistics also showed that the export of kinnow to the Iranian market, having potential for 60,000 to 80,000 tons, has not resumed.

Despite of all the exporters are also focusing to exports rice from Pakistan. Sources highlighted that exports of rice from Pakistan have recorded a sizeable growth of overall 31 percent in the 11 months of FY2018. This year exporters exported total 3.51 million metric tons of rice amounting to US$1.74 billion, whereas last fiscal year in the same period they had exported 2.97 million metric tons of rice amounting to US$1.32 billion.

Statistics also showed that only Basmati rice exports showing 35 percent rise in value for the said term. Further, this growth was also become possible because of the present two tenders of Indonesian authority BULOG for total 200,000 metric tons of Pakistani rice, which fetched an extraordinary foreign exchange for Pakistan. Other countries like Thailand, Vietnam, China avail 2-3 rice crops in a year and their yearly production of rice is almost 100 million tons, whereas Pakistan’s yearly rice production is hardly 7 million tons, that is why Pakistani rice export is stagnant to almost 4 million tons since last many years. On the other hand, according to the provisional facts registered by the officials of PBS, main products/commodities of exports during May, 2018 were knitwear (Rs29,885 million), readymade garments (Rs25,788 million), bedwear (Rs23,086 million), cotton cloth (Rs22,129 million), cotton yarn (Rs15,024 million), towels (Rs7,983 million), wheat (Rs7,616 million), madeup articles (excl. towels & bedwear) (Rs6,793 million) and Sugar (Rs6,236 million).