ISLAMABAD: Pakistan’s merchandise exports rose 13.45 per cent to $10.88 billion in the first four months of the current fiscal year from $9.59bn in the same period last year, according to data released by the Pakistan Bureau of Statistics on Friday.
The growth momentum picked pace in July owing to improved orders from the international community and stability in the exchange rate. The exports grew 11.83pc in July, followed by 16pc in August, 13.52pc in September and 10.64pc in October.
The exports reached $2.97bn in October against $2.68bn in the corresponding month last year. On a month-on-month basis, exports rose a paltry 4.90pc.
Global buyers have redirected clothing sourcing from Bangladesh and China and placed orders with Pakistan. It allows Pakistani exporters to capitalise on the opportunity and capture the market.
Trade deficit narrows to $6.97bn in July-October period
The FBR paid Rs169bn in refunds to taxpayers in the first four months, up from Rs159bn in the same period last year, representing a 6.28pc increase. The FBR paid Rs23bn in refunds in October compared to Rs30bn in the same month last year, a 23.33pc reduction.
An official announcement said all pending sales tax refund payment orders of exporters amounting to Rs32bn processed faster up to Sep 30, 2024, will be disbursed on Nov 1. However, the FBR did not confirm if the reimbursements were released on Friday.
The exporters, especially the textile sector, were unhappy with the government’s decision not to release refunds and rebates under different categories. According to the exporters, this squeezes their margins and limits their capacity to reinvest and expand operations.
They said immediate action is needed to prioritise export sector liquidity by fast-tracking refunds and resolving taxation issues. Making exports a top priority will allow businesses to optimise their potential and contribute significantly to the economy.
In FY24, Pakistan’s merchandise exports rose 10.54pc to $30.64bn from $27.72bn in the preceding year.
Trade deficit
According to the PBS data, imports grew 5.17pc to $17.85bn in July-October FY25 from $16.97bn over the last year. The imports dipped 8.02pc in October to $4.47bn from $4.86bn in the same month last year.
Month-on-month, imports declined 3.33pc. The IMF revised its import forecast downward by $3.3bn from $60.5bn to $57.2bn for the FY25, converging with the government’s projection of $ 57.3bn.
In FY24, imports fell by 0.84pc to $54.73bn compared to $55.19bn in FY23.
The trade deficit in July-October FY25 decelerated by 5.59pc to $6.97bn from $7.38bn over the last year. In October, the deficit decreased by 31.09pc to $1.49bn from $2.17bn last year. The trade gap contracted to $24.08bn in FY24 from $27.47bn in the preceding year.
Published in Dawn, November 2nd, 2024
