EXPORTS FROM PAKISTAN

S.M. ABBAS ZAIDI,
Research Analyst
, PAGE
Dec 01 - 07, 2008

During the first four months of the current financial year, the exports from Pakistan have increased by 16.62 percent over the same period of the financial year during 2007-08. The exports during July-October, 2008-9 were recorded at $ 6.762 billion as against $5.798 recorded in July-October, 2007-08. Exports during October 2008 recorded increase of 10.24 percent over the same month of last financial year. Exports during October 2008-09 were recorded at $ 1.519 billion as against $1.378 billion during October 2007-08. However, as against the September 2008, the exports from the country were decreased by 14.62 percent. Exports during September were recorded at $ 1.779 billion. Trade deficit during the first four months of the current financial year was recorded at $7.522 billion, showing an increase of 33 percent over the same period of last financial year. However, during the last financial year the exports of Pakistan were $ 19.05 bn. Pakistan's major exports are textile goods (garments, bed linen, cotton cloths, and yarn), rice, leather goods, sports goods, chemicals manufactures, carpets and rugs along with many other products.

EXPORTS OF PAKISTAN
(Million U.S.$)
YEARS EXPORTS
2000-2001 9,202
2001-2002 9,135
2002-2003 11,160
2003-2004 12,313
2004-2005 14,391
2005-2006 16,451
2006-2007 16,976
2007-2008 19,052
Source: FBS

EXPORT COMMODITIES FROM PAKISTAN

MAJOR EXPORTS COMMODITIES
COMMODITIES % CHANGE FOR VALUE IN MILLION RUPEES IN OCTOBER, 2008 OVER
. SEPTEMBER, 2008 OCTOBER, 2007
Cotton cloth 10.98 30.44
Knitwear -13.55 37.29
Bed wear -9.55 16.33
Readymade garments 0.66 7.40
Cotton yarn -2.90 13.18
Rice others 14.92 247.28
Rice basmati -12.47 148.80
Towels 2.87 68.94
Petroleum products -15.15 101.38
Art, silk & synthetic textile -30.07 82.92
Source: FBS

The exports from Pakistan during October, 2008 amounted to Rs.122, 206 million (provisional) as against Rs.137, 319 million (provisional) in September, 2008 and Rs.83, 626 million during October, 2007 showing a decrease of 11.01% over September, 2008 but an increase of 46.13% over October, 2007. Main commodities of exports during October, 2008 were Cotton cloth (Rs.12,611 million), Knitwear (Rs.11,403 million), Bed wear (Rs.11,262 million), Readymade garments (Rs.7,764 million), Cotton yarn (Rs.7,692 million), Rice others (Rs.7,088 million) Rice basmati (Rs.7,071 million), Towels (Rs.4,879 million), Petroleum products (excl Top Naphtha) (Rs.4,233 million), Art, silk & synthetic textile (Rs.3,856 million).

CUMULATIVE EXPORTS BY MAJOR COUNTRIES (Million Rs.)
COUNTRIES JUL-2008 TO JUL-2008 JUL-2007 TO JUL-2007
. VALUE % SHARE VALUE % SHARE
Total 132,665. 05 100.00 8 8,878.85 100.00
U.S.A. 24,203.71 18.24 21,303.47 23.97
United Arab Emirates 12,947.32 9.76 7,363.52 8.28
Afghanistan 9,664.04 7.28 6,019.41 6.77
India 6,670.21 5.03 1,129.51 1.27
United Kingdom 6,140.99 4.63 5,047.40 5.68
Germany 5,446.85 4.11 4,065.82 4.57
China 5,055.33 3.81 3,485.82 3.92
Italy 4,042.03 3.05 3,107.69 3.50
Saudi Arabia 3,530.24 2.66 1,429.06 1.61
Netherlands 3,315.39 2.50 2,324.35 2.62
Spain 3,053.99 2.30 2,150.30 2.42
Hong Kong 2,927.94 2.21 3,172.45 3.57
Turkey 2,759.10 2.08 2,535.98 2.85
Belgium 2,380.59 1.79 1,862.53 2.10
Bangladesh 2,370.97 1.79 1,123.57 1.26
Oman 2,356.49 1.78 618.15 0.70
South Africa 2,203.57 1.66 1,555.79 1.75
Iran 2,171.98 1.64 326.89 0.37
France 1,822.83 1.37 1,876.33 2.11
Malaysia 1,582.01 1.19 289.95 0.33
Others 28,019.47 21.12 18,090.86 20.35
Source: FBS

CONCLUSION

The Exports of Pakistan were raised by 15 percent during FY2007-08. The government of Pakistan has revised its exports growth of 15 percent by targeting exports of $ 22.10 bn during FY 2008-09. The Textile Ind contributes the highest exports for Pakistan. However, today the industry is in crisis because the govt is not supporting the research and development of the textile sector, for this reason the Govt may not be able to achieve export targets for the current fiscal year. The exports of textile products in July-October 2008 have decreased by 0.9 percent as compared to corresponding period of last year. The country exported the textile products worth $3.53 billion from July to October 2008 while during the last corresponding period the total exports earned a foreign exchange of US $3.57 billion. The main priority of this Govt should be to encourage the investors in order to increase the manufacturing plants which will ultimately make a positive impact on the exports.