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Pakistan’s merchandise exports declined for the seventh consecutive month in March, falling by 14.76% YoY to $2.36 billion.
This decline raises concerns about potential job losses in the country’s export sector, particularly in textiles and clothing, which account for over 60% of total exports.
The trade deficit decreased by 35.5% to $22.9 billion between July and March FY23.
Industry leaders have suggested a dialogue with the government to address the right priorities and build foreign buyers’ trust.
Without government intervention, exports may fall by 17% in April.
Pakistan’s merchandise exports have been downward, shrinking for the seventh consecutive month in March. The latest figures reveal a 14.76% year-on-year dip, with exports falling to $2.36 billion.
This continuous decline sparks fears of massive layoffs in the country’s export sector, highlighting the need for urgent measures to revive the industry.
Pakistan’s exports of goods continued to decline for the seventh consecutive month, falling by 14.76% YoY to $2.36 billion in March. This raises concerns about potential job losses in the country’s export sector.
According to data released by the Pakistan Bureau of Statistics on Monday, exports have been down 9.87% in the first nine months (July to March) of 2022-23, standing at $21.04 billion compared to $23.35 billion in the corresponding period last year.
This decline is attributed to internal and external factors, which have also increased fears of industrial closures, especially in the textile and clothing sectors.
Meanwhile, imports also saw a decline of 40.25% in March, dropping to $3.82 billion from $6.40 billion over the same period last year. For the first nine months, imports fell by 25.34% to $43.94 billion compared to $58.85 billion in the corresponding period last year.
During the first nine months of FY23, the trade deficit decreased by 35.5 percent to $22.9 billion, compared to $35.5 billion during the same period last year. In March, the trade deficit dropped by 59.75 per cent year-on-year to $1.46 billion.
Pakistan’s export sector is facing a challenging time as exports continued to decline for the seventh consecutive month in March, falling by 14.76% YoY to $2.36 billion. Has raised fears of massive layoffs in the export sector of the country. Data released by the Pakistan Bureau of Statistics on Monday shows that exports for the first nine months (July to March) of FY23 were down by 9.87% at $21.04 billion compared to $23.35 billion in the corresponding period last year.
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The decline in export proceeds can be attributed to internal and external factors, creating worries about the closure of industrial units, particularly textiles and clothing.
Textiles and clothing account for more than 60% of total exports. The government’s movability to prioritise effectively and lack of strategy have also contributed to the decline in textile exports, according to Mr Khurram Mukhtar, the Patron in Chief of the Pakistan Textile Exporters Association.
He identified working capital shortages and refunds being stuck, such as sales tax, deferred sales tax, income tax, drawbacks of local taxes and levies, technology upgradation fund, and duty drawback as root causes of the export decline.
The trade deficit decelerated by 35.5% to $22.9 billion between July and March FY23 from $35.50 billion over the corresponding months of last year. However, the trade deficit fell 59.75% to $1.46 billion YoY in March. Despite a decrease in imports, Pakistan’sPakisrnal account balance is still under stress due to the continuous decline in exports.
Pakistan’sPkitan’sle industry is facing a worrisome decline in exports and grappling with internal and external challenges. The lack of strategy and inability to prioritise effectively by the government has resulted in working capital shortages and delayed refunds, including sales tax, deferred sales tax, income tax, drawbacks of local taxes and levies, technology upgradation fund, and duty drawbacks.
Furthermore, energy costs have increased significantly, and the promised faster refund system is taking 3-5 months to process, instead of 72 hours, making it impossible for the industry to compete regionally.
According to Pakistan Apparel Forum chairman Jawed Bilwani, exporters have found placing orders for raw materials and other inputs difficult. At the same time, buyers have withheld their orders due to political and economic uncertainty in the country. To combat these issues, industry leaders have suggested a dialogue with the government to address the right priorities and build foreign buyers’ buyers.’
However, Prime Minister Shehbaz Sharif has cancelled four meetings with exporters, which has increased uncertainty in the sector. Without government intervention, exports may fall by 17% in April.
