Adviser notes clear clear signs of recovery of exports of Pakistan.

The Prime Minister’s adviser on Commerce and Investment, Abdul Razak Dawood said this, while chairing a meeting to discuss export strategy of Pakistan, at Ministry of Commerce today.

Adviser notes clear clear signs of recovery

He said the exports of Pakistan are showing clear signs of recovery, due to the efforts of the exporters to diversify the products, in the wake of new opportunities arising amid Covid 19 pandemic.

According to Ministry of Commerce’s press release, seniors officers of the Ministry of commerce also attended the meeting.

While commenting on the trends of exports, he underscored that the govt has given a new impetus to the export sector. It allowed the export of Personal Protective Equipment.

However, it barred three items, which is indicated by the surge of exports in the month of June.

He added that other policies of the Government, for diversification of exports and international markets, will enable us to continue the thrust in the current fiscal year as well.

The Adviser noted that the traditional exports of Pakistan, like garments and bed wear etc., are also picking up. It would show improved performance in the new financial year 2020-21.

Export strategy

PM’s Adviser reiterated greater emphasis on product diversification, including engineering products, pharmaceuticals, agro products and services.

He underlined the beginning of export of home appliances and geographical diversification of cement export to China and Philippines as clear signs of success.

Razak Dawood added that he remains optimistic towards achieving the export targets in the new fiscal year.

He said the policy of product and geographical diversification will continue to be actively pursued for success in this regard.

During the briefing, the current facts and figures related to the trend of exports presented to the Adviser.

An increase of 14% in Dollar value terms

Prior to the outbreak of the pandemic near the end of February 2020, Pakistan’s exports noted an upward trajectory.

It showed an increase of 14% in Dollar value terms, as compared to the same month last year.

This momentum for February 2020 continued despite the initial outbreak of Covid-19 in the country, as the first 10 days of March 2020 registered an increase of 13% as compared to last year, release said.

In mid March, because of a lockdown to control the spread of the pandemic together with global economic slowdown, the export-oriented industry in Pakistan suffered.

That reflected in March 2020 figures, which showed the decline in growth by 8% compared to same period last year.

The situation persisted and, in April 2020, the exports showed a downward trend of 54% as compared to April 2019.

According to press release, after the month of April and with the efforts of the Government to encourage the export sector, the first signs of recovery were observed in the month of May 2020.

It only saw 33% decline in exports as compared to same month last year.

June 2020

The momentum continued in June 2020. The downward trend, which stood at 54% in April, 33% in May, has been brought down to single digit figure of 6% in dollar value terms.

In addition to a positive trend of exports, the figures also indicate the strategies for geographical and product diversification are bearing fruits.

For instance, there is significant improvement in exports to Africa, which is an outcome of ‘Look Africa Policy’, as well as the Middle East, press release added.

Similarly, export of Meat products has shown good growth, while Tobacco shows a promising future.

Similarly, in the overall textile sector, value-added products have shown improvement.

At the same time, the export of cotton yarn and fabric has gone down.

As a result of overall progress, the trade balance has improved by $8.7 Billion.

That shows that the Current Account Deficit also remains at manageable levels.

GTV