Foreign exchange earnings from major exportable commodities witness decline during Jul-Sep FY21

October 26, 2020 (MLN): Pakistan’s exports performance during the month of September 2020 showed a growth of 29% MoM and 4% YoY to $1.95 billion.

Cumulatively, during Jul-Sep FY21, the overall exports declined by 10% YoY to $5.36 billion as compared to $5.98 billion recorded during Jul-Sep FY20.

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 period of 3MFY21.  The overall exports of the textile group nosedived by 10% YoY to $3 billion from $3.4 billion recorded in the same period last year. Within the textile group, the major exportable goods include Knitwear, Readymade Garments, Bedwears and Cotton Cloth.

The exports of Knitwear declined by 5% YoY to $707.3 million, Readymade Garments dipped by 17% YoY to $570 million, while Bedwears and Cotton Cloth plunged by 3% and 18% YoY to $563 million and $427.7 million respectively during the period under review.

The share of other Manufactured goods in the country’s total exports was 17% during the period under review. The key exportable manufactured items include Chemical and Pharmaceutical products, Leather products, Sports goods and Surgical goods and medical instruments respectively. Exports of Leather manufactures, Surgical Goods & Medical Instruments and the Sports goods increased by 13%, 8% and 1% YoY to lock in at $134.6 million, $116.4 million and $134 million respectively. Whereas, the exports of Chemical and Pharmaceutical Products dipped by 5% YoY to $243.8 million. This caused the overall foreign earnings from Manufactured items to decline 3%YoY to $884.6 million.

Food products emerged as the third leading exportable commodities accounted for 16% of the total exports. Rice and Fruits were the major sources of Foreign exchange earnings as their exports during the period recorded at $417.4 million, down by 9% YoY and $92 million, depicting a decline of 13% YoY respectively.

Moreover, the share of Petroleum group in the country’s total export basket was hardly 1% during Jul-Sep FY21. During that period, the country earned $20.85 million from exports of Petroleum Crude, $3 million from Petroleum Products and $28.6 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 56% YoY to $52.54 million from $120.7 million in Jul-Sep FY20.

In the month of Sep’20 alone, the exports of Textile and Manufactured Products witnessed an increase of 24% and 32% on MoM basis and 4% and 12% on YoY basis. On the other hand, the exports of Food group and Petroleum depicted a decline of 23% and 63% on YoY basis. On monthly basis, exports of petroleum group plummeted by 51%, while Food group exports witnessed recorded an increase of 14%.

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