Exports to Italy, remittances to Pakistan cross $2bn

July 21, 2022: The exports to Italy and remittances to Pakistan have crossed $2 billion, recording the highest ever annual growth where both the sectors observed the highest growth as compared to any other potential market.

Posting multiple records of growth, Pakistan’s earnings from Italy in exports and remittances crossed $2bn in FY22.

Substantial growth in Foreign Direct Investment (FDI) from Italy was also witnessed during the record-breaking year, said a press statement issued here.

Italy became the $7bn export country for Pakistan in the world during the year with a record growth of export volume to $114mn, while the remittances from Italy were also on the path to touch $1bn dollars soon with a total of $857mn during the year.

June 2022 also set the record for the highest exports volume ever to Italy in a single month crossing $144mn. 

Italy posted the highest growth both in worker's remittances among all countries with high numbers of Pakistan diaspora and for exports among the top ten export destinations of Pakistan.

This phenomenal growth in exports and remittances has come at a time when European economies in general and the Italian economy, in particular, are slowing down and facing multiple challenges due to the Ukraine war.

The exports to Italy of $1.15bn in FY 2021-22 are 46% higher than the previous year, while the remittances are 41% higher for the same period than the last year.

While talking to the media, Pakistan's Ambassador to Italy, Mr. Jauhar Saleem paid glowing tributes to the Pakistani exporters for their initiative and hard work and also to the Pakistani diaspora in Italy for standing by the country in a most challenging economic environment.

He also shared that Pakistan had posted a record trade surplus of $573mn during the financial year 2021-22 which is 91% higher than the previous year.

According to the envoy, the value-added sectors were the main drivers of the exceptional export growth with exports of plastic products increasing by 208%, sports goods by 80%, leather by 42%, home textiles by 36%, and garments by 35%.

The ambassador also shared that even as the pandemic hit the global footwear market witnessed a contraction of shrank demand during the year, Pakistan’s exports of footwear to Italy increased by 19% in the year and Italy has become the 3rd largest export destination for Pakistani footwear.

Italy is also the 5th largest destination for Pakistani home textiles and ranks No.6 in garments exports.

Ambassador Mr. Jauhar Saleem also informed that with the revival of market activities after the removal of pandemic-related restrictions in Italy, The Pakistan Embassy in Italy was further pacing up its activities to connect Pakistani businesses with Italian firms to sustain the exports and FDI growth.

During the just concluded financial year, Pakistan received Italian investment in the sectors of food processing, chemicals, construction, leather, footwear, energy-related equipment, and IT.

The Ambassador also shared that some of the recent joint ventures between leading Pakistani and Italian footwear firms were enabling technology transfer, international marketing skills, and supply chain management to Pakistani firms.

Moreover, Italy was also providing technical support in the agriculture sector especially related to olive and olive products.

Similarly, Italy is supporting the efforts for reduction of risks of Glacial Lake Outburst Floods (GLOF) and hydrogeological hazards in mountainous areas by establishing an evidence-based assessment and monitoring system for glaciers in Gilgit Baltistan.

Ambassador Mr. Jauhar Saleem also informed the media that Italy has announced to allow 69,700 seasonal workers from selected countries in 2022 to come to Italy for work. Pakistan has already been included in the Italian Seasonal Work Visa Programme for 2022, which would offer many opportunities to our workers in the agriculture and services sector to work in Italy.

He added that the Italian government has recently reduced the timelines for work visa processing which has been a long-standing demand from Pakistani workers.

With the record increase in remittances during the last 3 years, Italy has become the largest contributor to this financial sector from the European Union.

In 2021-22, around 25% of the total Pakistan worker's remittances from the EU came only from Italy.

The envoy stated that the dynamic diaspora in Italy had helped post the highest growth in worker's remittances among all remittances destinations in the world making Italy Pakistan`s 8th largest destination for remittances globally and number one within the EU.

Keeping in view the Italian labour market conditions and employment opportunities for Pakistani workers, the growth momentum would be maintained by connecting more Pakistani workers with the Italian job market.

APP