Exports surge by 22.21pc to $2.812bn in December

ISLAMABAD: In a welcome development, Pakistan’s exports went up to $2.812 billion in December 2023 — an 18-month high — showing a remarkable increase of 22.21 percent if compared with the exports of $2.301 billion registered in the same month of 2022.

The country’s exports also remained on a positive trajectory during the first 6 months of the current financial year 2023-24 and went up by $737 million to $14.981 billion during the July–December period of 2023, if compared with exports of $14.244 billion registered in the same period of 2022.

Dr Gohar Ejaz, Federal Minister for Commerce, Industries, and Investment, while talking to The News, said Pakistani exports are on their way up to 2.812 billion dollars per month in December 2023.

“The country has the current capacity to increase exports up to 3 billion dollars per month. We will soon achieve our capacity and then move forward to the next step. Our goal is export-led growth, and we are going to fix the target of achieving 8 billion dollars in exports per month, which will be attained through the New Industry Policy, which is in the making under the SIFC framework. And after the implementation of new industrial policy, Pakistan will be bound to rise economically.”

“The trade deficit in December 2023 climbed down by 40.13 percent (1.141 billion) to 1.702 billion dollars, compared to $2.843 billion in the same month of 2022.”

The trade data shows that in December 2023, the country’s exports stood at 2.812 billion dollars, but the imports stayed at 4.515 billion dollars, showing a trade deficit of $1.702 billion. In the same month of December 2022, the exports were at $2.573 billion and imports were at $4.539 billion, with a trade deficit of $1.966 billion.

However, during the July–December period of 2023, the country’s exports remained at 14.981 billion dollars, up by 5.17 percent if compared with exports of $14.244 billion registered in the same period in 2022. The imports in the first six months of 2023 remained at 26.129 billion dollars, whereas imports in the same period of 2022 stayed at 31.209 billion dollars, showing a decrease in imports by 16.28 percent. The trade deficit in the first six months of 2023 remained at $11.148 billion, down by 34.29 percent when compared with the trade deficit of 16.965 billion dollars registered in the corresponding period of 2022.

Meanwhile, the Pakistan Bureau of Statistics (PBS) said Tuesday exports surged 22.2 percent year-on-year to $2.812 billion in December, the highest since June 2022, when they reached a record $2.918 billion. Imports dropped 12.25 percent to $4.51 billion, resulting in a trade deficit of $1.7 billion, down 40.1 percent from a year earlier and 13.4 percent from November.

The nearly quarter increase in dollar terms underscores the nation’s growing sales abroad. In rupee terms, the exports achieved a historic record high of Rs7,926 billion, attributed to the devaluation of rupee against the greenback. Previously, in dollar terms, exports reached a historic high at $2.918 billion in June 2022. The positive momentum in December’s export figures bodes well for the country’s economic outlook, signaling a promising start to the new year and reinforcing its position in the international market. December exports represent a 9.3 percent increase from November 2023’s $2.57 billion showcasing a significant improvement over the consistent declines witnessed since October 2022 (except for four months from September to December 2023).

The four-month positive trend started in September with a 1.6 percent increase, followed by a 12.84 percent jump in October, 7.7 percent in November, and now over 22 percent in December. In contrast, imports decreased to $4.51 billion in December 2023, reflecting a 0.55 percent decline from the previous month’s $4.539 billion and a 12.25 percent drop from a year ago when imports stood at $5.14 billion, according to data from the Pakistan Bureau of Statistics (PBS). In the first half from July to December 2023, exports totaled $14.98 billion, marking a 5.17 percent increase over the same period in the last fiscal year. In contrast, imports during July-Dec 2023/24 fell by 16.28 percent to $26.13 billion compared to the same period in the previous fiscal year. The trade deficit shrank by 34.3 percent to $11.15 billion in the first half of FY24 from $16.965 billion in the corresponding period of FY23.

Notably, in the last FY23, Pakistan’s trade deficit decreased by 43 percent to $27.55 billion from $48.35 billion in FY22. Total exports dipped by 12.7 percent to $27.7 billion, while imports contracted by 31 percent to $55.3 billion.