Foreign exchange earnings from key exportable items in FY20 remained insipid

July 29, 2020 (MLN): Pakistan’s overall exports performance during FY20 showed a decline of 7% YoY, to $22.5 billion as compared to $24.25 billion recorded during FY19 and $24.768 in FY18.

The worldwide demand and Supply shocks caused by Covid-19 pandemic have sternly affected Pakistan’s foreign trade. Prior to the pandemic, however, Pakistan’s export performance was satisfactory both in terms of products and destination diversification.

According to the data issued by State Bank of Pakistan (SBP) on export receipts by commodities, the Textile products remained the major exportable goods for Pakistan as it accounted 57% of the total exports during FY20.  The overall exports of the textile group witnessed a decline of 6% YoY to $12.78 billion. Within the textile group, the major exportable goods include Knitwear, Readymade Garments, Bedwears and Cotton Cloth.

The exports of Knitwear shrank by 6% YoY to $2.68 billion, while the exports of Readymade Garments marginally by 1% YoY to $2.59 billion. Moreover, the exports of Bedwear and Cotton Cloth dipped by 5% and 11% YoY to $2.2 billion and $1.9 billion respectively during FY20.

Food products emerged as the second leading exportable commodities accounted for 20% of the total exports. Rice and Fruits were the major sources of Foreign exchange earnings as their exports during the period recorded at $2.2 billion, up by 2% YoY and $393.3 million, depicting a decline of 4% YoY respectively.

The share of other Manufactured goods in the country’s total exports was 16% during the period under review. All key exportable manufactured items such as Chemical and Pharmaceutical products, Leather goods, Sports goods and Surgical goods and medical instruments observed a decline in their exports.

Exports of Chemical and Pharmaceutical Products, Sports Goods, Surgical Goods & Medical Instruments and the goods that made up of leather such as leather garments, leather gloves and other leather manufactures plunged by 15%, 6% 4% and 11% YoY to lock in at $962.46 million, $381 million, $447million and $427.7 million respectively.

Moreover, the share of Petroleum group in the country’s total export basket was hardly 2% during FY20. During that period, the country earned $172.29 million from exports of Petroleum Crude, $75.6 million from Petroleum Products and $120.74 million earned from the exports of Solid Fuel including Naphta. In addition to this, the total foreign exchange earnings from the exports of these products declined significantly by 45% YoY to $368.68 million from $675.65 million in FY19.

In the month of June’20 alone, the exports of Textile, Food, Petroleum and Manufactured Products witnessed a decline of 2%, 6%, 65% and 10% respectively on YoY basis. Whereas, on MoM basis, the exports of these products saw a significant increase of 31%, 23%, 3761% and 24% respectively.

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