Pakistan’s exports of merchandise showed negative growth in July after 22 months after the economy recovered from the effect of Covid-19.
The export proceeds dropped 5.17 percent to $2.21 billion during the first month of the present fiscal year from $2.34 billion in the same month a year ago, the Pakistan Bureau of Statistics revealed data on Tuesday.
On a month-on-month basis, the export profits tumbled by 23.95 percent, showing a downward trend in the export sector. Last time, the exports showed a negative growth of 14.75 percent in August 2020.
However, in FY22, for the first time, not only the export target was attained but it also surpassed the psychological barrier of $30 billion. The country’s exports remained below this level for the last decade.
Pakistan’s exports went up 26.6 percent to $31.845 billion in the just-ended financial year, rising from $25.160 billion last year. Exports increased 6.48 percent to $2.89 billion in June, climbing from $2.72 billion in the last year and they tumbled in July.
Moreover, the textile sector has already criticized the increasing cost of energy and raw materials primarily because of massive rupee depreciation. Likewise, exporters also raised complaints about refunds that stuck with the Federal Board of Revenue.
In addition, the import bill also fell by 12.81 percent to $4.86 billion in July from $5.57 billion over the same month of last year. On a month-on-month basis, the import bill dropped by 38.31 percent.
In June alone, the import bill increased to $7.74 billion from $6.28 billion over the corresponding month last year, showing an increase of 23.26 percent. The decline in July will lessen the pressure on the rupee-dollar exchange rates.
The import bill grew 43.45 percent to $80.51 billion in 2021-22, up from $56.12 billion last year.
Meanwhile, Finance Minister Miftah Ismail stated on Twitter “Our efforts to reduce imports have finally borne fruit. Imports in July, per PBS data, were only $4.86 billion compared to $7.7 billion in June. Given that we have pulled Pakistan back from the brink of default”, he further claimed.