Exports are likely to touch $25 bn mark in FY 2010-11
June 17, 2011
Exports from Pakistan during July to June 2011 will likely touch over $25 billion, representatives of leading export sectors said.
They said the country for the first time was expecting to cross $22 export target set for 2010-11 by the government.
They said this was due to higher demand for textile made-ups and garments, raw cotton, leather products and leather, increased demand for marble and onyx, surgical and hand knitted carpets besides non-traditional goods to USA, EU and Far East countries.
Pakistan kept the pace of export achievement of over $2 billion mark on average for the last six months and exports figure in May 2011 was recorded at $2.308 billion.
“If we could maintain the average target of $2.31 in June 2011, the final figure will come in mid July. So the country can surpass the overall export target of $22 billion by a margin of $3.2 billion during the fiscal 2010-11,” a leading textile exporter said. Pakistan’s exports during May 2011 were valued at $2.308 billion, which was 33 percent higher than the level of $1.736 billion during May 2010.
“The exports as percentage of imports have increased by 6 percent in the current year as compared to the same period last year,” he added.
Cumulative value of exports for the period July-May 2010-11 was $22.446 billion against $17.509 billion, registering a growth of 28.2 percent over the same period last year. While, cumulative value of imports for the period July-May 2010-11 was $36.551 billion against $31.486 billion, registering a growth of 16.09 percent over the same period last year.
Imports during May 2011 were valued at $4.288 billion, registering a growth of 27.5 percent over the level of imports valued at $3.363 billion in May 2010.
The country has witnessed current account surplus of $748 million during July-April 2010-11 mainly because of phenomenal increase in remittances, robust growth in exports and stable exchange rate, according to the Pakistan Economic Survey 2010-11.
As per the latest data released by the State Bank of Pakistan (SBP), remittances in May settled at $1.05 billion, crossing the billion mark for the third consecutive month. Cumulative remittances for 11MFY11 reached $10.1 billion, an increase of 25 percent YoY compared to $8.1 billion remitted last year.
However, the economic survey said the trade deficit showed a nominal improvement of $240 million to $12.10 billion during July-April 2010-11 from $12.34 billion with exports of $20.2 billion and imports of $32.3 billion.
The growth in exports remained broad-based as almost all the groups (textile and non-textile) witnessed a high positive growth, but major contributions came from textile (61.8 percent) and food (18.1 percent), said the survey.
The imports increased to $32.3 billion in July-April 2010-11 from $28.1 billion in the comparable period of last year, showing an increase of $4.1 billion, or 14.7 percent, mainly due to higher global crude oil and commodity prices, it added.
Decline in services accounts deficit by 28.2 percent during July-April 2010-11 was the result of 24.7 percent growth in services export as services imports rose only by 6.6 percent. Robust growth in services exports came from logistic support receipts ($743 million), transportation ($1,188 million), travel ($289 million) and other business services ($573 million), said the economic survey.
Net inflows in the financial accounts declined to $412 million in July-April 2010-11 as against $3,533 million during the same period of last year.
Portfolio investment provided a cushion against worsening of financial account and recorded inflow of $298 million.
Foreign direct investment (FDI) registered much of the decline in the non-debt creating inflows as it fell 28.7 percent as a result of fall in equity capital and reinvested earnings mainly because of deteriorating law and order situation, energy crisis, circular debt and weak economic activity, said the survey.
The survey said remittances would cross $11 billion at the end of this financial year as they totaled $9.1 billion in the first 10 months of this financial year, registering an increase of 23.8 percent over the last year.
The build up in foreign exchange reserves to $17.1 billion, surplus in the current account balance and sufficient inflow of remittances through official banking channels has strengthened the rupee against the US dollar. The rupee fell 2.2 percent against the dollar against 6.6 percent depreciation in the same period of last year, said the survey.
It may be mentioned that after witnessing significant growth in exports first half of current fiscal year, the export target was revised upward to $22 billion as compared to $20 billion set earlier for FY10-11.
Mukhdoom Amin Fahim, Federal Minister Commerce had taken this step in February 2011, keeping in view the record-breaking exports during the last three months, culminating in an achievement of $2.329 billion in the month of January 2011, which was 38.2 percent higher than the level of $1.685 billion during January 2010.
If the trend continues and exports increase with the same pace, the yea-on-year growth would be 14 percent over the achievement of $19.313 of FY 2009-10.
Pakistan can take up its exports to significant high if some problems persist here are ended, an exporter said. The country can supply engineering goods to regional countries including sugar and cement plants, industrial equipment, ships, automobiles, small aircrafts, machine tools, domestic appliances, and defence equipment, which is second to none, he said.
“Pakistan needs to improve law and order situation and do a little more for consistency in policies with stress on implementation to grow, he said. However, the he said, situation in Pakistan is not as bad as pictured by foreign media.