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Pakistan exports continue to rise despite challenges
July 01, 2011
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The export may have been more than what is being achieved if the conditions especially those arose due to the power crisis. Hours of load shedding export oriented industries have to face during the current year and previous year. The prolonged power failure negatively impacted the industrial growth in general and export oriented industries in particular.
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Despite unfavorable economic conditions at home and abroad export sector of the country has staged best performance by increasing share of Pakistan made products in the international market? Country’s exports, for the first time have soared to above $22.42 billion in the 11 months of fiscal year 2010-11.
Pakistan export surged by 28 percent during July 2010 to May 2011, as Federal Bureau of Statistics FBS data shows. The final figures for the outgoing fiscal year are expected to be more than $25 billion dollar, historic achievement.
The export may have been more than what is being achieved if the conditions especially those arose due to the power crisis. Hours of load shedding export oriented industries have to face during the current year and previous year. The prolonged power failure negatively impacted the industrial growth in general and export oriented industries in particular.
The energy crisis are deepening in Pakistan and no prudent long term measures have been taken so far to steer the country out of these crisis. Rental power plants which the authorities told the public that are solution to the power crisis have been marred by the corruption and are said to be the brainchild of mighty petroleum lobby.
However, exporters, disappointed by the performance of government machinery, managed to meet export demands by resorting to power generation via generators etc.
According to the export data, the textile sector played vital role in the export from the country, increased by 34 percent. Raw cotton exports increased by 68 percent while cotton carded or combed rose to more than 90 percent. Cotton yarn during the period surged by 54 percent, cotton cloth 40 percent and readymade garments rose by 38.2 percent.
Data shows that the food group export increased by 32 percent with two commodities wheat and leguminous vegetables registered huge 66,329 percent and 5,878 percent respectively in dollar terms. Pakistan has exported 1401687 MT wheat during July-May 2010-2011.
Exports of petroleum group also rose by 30 percent with 41 percent rise registered in the exports of petroleum products excluding Naphta. However, exports of coal remained negative 63 percent, according to the FBS data.
The commodities which registered negative growth included rice, oil seeds, tents and canvas, fertilizer manufactured, pharmaceutical products, jewelry, furniture, molasses and cement etc.
Pakistani exporters achievement is also plausible because the conditions at the international market were also hostile due to economic slow down being witnessed. The economic activity was slowed down and the growth in many advanced economies is still weak, considering the depth of the recession.
According to the Asian Development Bank the mild slowdown observed in the second quarter of 2011 is not reassuring. Growth in most emerging and developing economies continues to be strong. Overall, the global economy expanded at an annualized rate of 4.3 percent in the first quarter, and forecasts for 2011–12 are broadly unchanged, with offsetting changes across various economies. However, greater-than-anticipated weakness in U.S. activity and renewed financial volatility from concerns about the depth of fiscal challenges in the euro area periphery pose greater downside risks.
“Risks also draw from persistent fiscal and financial sector imbalances in many advanced economies, while signs of overheating are becoming increasingly apparent in many emerging and developing economies. Strong adjustments, credible and balanced fiscal consolidation and financial sector repair and reform in many advanced economies, and prompter macroeconomic policy tightening and demand rebalancing in many emerging and developing economies are critical for securing growth and job creation over the medium term”, ADB said.
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