Pakistan
Pakistan's regional exports tumble 5.7%
Islamabad: Pakistan's exports to its nine regional countries declined by 5.7 per cent in the first nine months of the current financial year mainly due to the impact of COVID-19, according to data released by the State Bank of Pakistan(SBP).
According to the Data, the country's exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives amounted to $2.788 billion, which is just 14.91 per cent of Pakistan’s total global exports of $18.688 billion in 9 months of Fiscal Year 21.
China tops the list of Pakistani exports compared to other regional countries, followed by India and Bangladesh.
Pakistan traded its borders only by sea with Nepal, Sri Lanka, Bhutan, Bangladesh and the Maldives. On the other hand, the country's trade deficit narrowed slightly as imports from regional countries also declined.
Between July and March 21-2020, China saw good and positive growth in Pakistan's exports.
Most of the regional exports, or 50.46%, are for China and the other eight countries.
Pakistan's exports to China stood at $1.407 billion in the first nine months of FY 2021, compared to $1.298 billion in the first nine months of FY20, or 8.4 per cent.
However, it is unclear whether the benefit is part-time or the result of claims by the Commerce Ministry under the second phase of a free trade agreement with Beijing that it can gain access to a preferential market for local products.
Pakistan's exports to Afghanistan were recorded at $746.328 million in FY 21, compared to $793.7 million in the first nine months of FY 20.
Until a few years ago, Afghanistan was the second-largest export market for Pakistan after the United States.
Imports of tomatoes, potatoes, onions and fresh and dried fruits from the neighbour country have improved significantly.
According to the report, Pakistan's exports to India have declined by 90.5 per cent in the current financial year, while its volume during the first nine months of the current financial year stood at $23.167 million.
The government has suspended trade relations with New Delhi.
The Cabinet's Economic Coordination Committee (ECC) had recently approved the import of cotton yarn and sugar from India by land, but the decision was rejected by the federal cabinet, leaving any possibility of trade with India. After coronavirus, the government has only allowed the import of pharmaceutical products from India.
Exports to Iran were recorded at $261,000 in the first nine months of fiscal year 21, compared to $55,000 for the same period last year which is up by almost 374 per cent. Most trade with Tehran is done through informal channels in the border areas of Balochistan.
Pakistan's exports to also Bangladesh and Sri Lanka declined by 13.5% and 24.2%, respectively. Exports to Bangladesh were recorded at $574.038 million in the first nine months of fiscal year 21, compared to $185.883 million to Sri Lanka.
It may be recalled that recently there were talks between Islamabad and Sri Lanka to facilitate trade.
Similarly, Islamabad has signed a Free Trade Agreement (FTA) with Colombo for the first time but trade between the two countries is far behind its original potential. In addition, Pakistan's exports to Nepal fell by 82.6% to $3.52 million in the first nine months of the current fiscal year.
The exports to the Maldives fell 28.96 per cent to $54.93 million from $4 million however no exports were sent to the Maldives in March.