ISLAMABAD: Pakistan experienced a notable surge of 40.36% in the export of goods and services to China in the initial four months of the current fiscal year (2023-24) as against the corresponding period of the previous year, reports WealthPK.
According to the State Bank of Pakistan (SBP), the total exports to China during the period in question (July to October) amounted to USD952.216 million, marking a significant increase from USD678.386 million recorded in the same period of the Fiscal Year 2022-23.
On a year-to-year basis, the exports to China also surged by 79.74 percent from $177.386 million in October 2022 against the exports of $318.842 million in October 2023.
As per the data, imports decreased by 17.32 percent to $21.550 billion during the first five months of the current fiscal year from $26.064 billion for the same period of the last fiscal year.
During the July-October period of FY2023-24, the central bank data reveals that exports to all the destination countries worldwide amounted to $9,617 million, marking a 0.66% increase from $9,554 million recorded during the first four months of the previous financial year.
Talking to WealthPK, Dr Ghulam Samad, Senior Trade Economist and an expert in international trade and commerce, said, “The significant uptick in trade activity between Pakistan and China indicates a strengthening economic relationship, propelled by various factors that contribute to the growth of exports. Bilateral trade agreements and collaborative initiatives between the two nations are likely pivotal in fostering this upward trajectory.”
“The country’s exports are still low despite the support given by the government to the industrial sector over the period,” he maintained.
He added, “The stagnancy in Pakistan’s exports brings about several challenges, such as increasing the current account deficit, the burden of foreign debt, and other macroeconomic problems.”
Pakistan’s potential export areas remain limited since China outpaced Pakistan in almost all of its major producing sectors. For instance, the textile industry is the main pillar of Pakistan’s exports. Since China is a major textile manufacturer, the trade volume could not be raised adequately, although Pakistan has been exporting low-value-added products to China.
Dr Ghulam Samad said the China-Pakistan Free Trade Agreement (CPFTA) provided opportunities for Pakistani exporters to enhance their exports to the Chinese market.
“The CPFTA is a good agreement for both sides and Pakistani exporters need to take full advantage of it,” he added.
Pakistan’s top exported commodities to China are cotton, copper, cereals, fish, crustaceans, aquatics invertebrates, oil seed, grain, seed, fruits, beverages, aluminium, apparel, salt, sulphur, plaster, lime and cement, leather, and plastics. According to WealthPK research, Pakistan’s imports from China are electrical and electronic equipment, machinery, nuclear reactors, boilers, pharmaceutical products, mineral fuels, oils, distillation products, organic chemicals, iron and steel, vehicles other than railway, plastics, fertilizers, rubbers, tanning, dyeing extracts, tannins, derivatives, pigments, miscellaneous chemical products, glass and glassware, yarns, copper, footwear, toys, games, and sports requisites.
