ISLAMABAD: Pakistan’s central bank has revealed that the country’s export of goods and services to Afghanistan saw an increase of 10.58 percent during the first seven months of the current fiscal year (2022-23), a Pakistani state-owned news agency reported on Tuesday, notwithstanding the current economic crisis that has severely affected the export sector.
The cash-strapped country’s exports to other countries witnessed a decrease of 7.40 percent in the last seven months, from $17.742 billion to $16.429 billion, according to the State Bank of Pakistan (SBP). The situation was aggravated by the devastating floods in the country last year, that almost wiped out the entire cotton crop, the main raw material for the textile sector, in the southern province of Sindh. The floods also partially damaged the crop in the eastern province of Punjab, causing a huge setback to the country’s biggest foreign exchange earning sector.
Exports also continue to suffer after the government imposed an import ban, including the import of several raw materials, until a lifeline bailout is agreed with the International Monetary Fund (IMF) to keep the economy afloat. As a result, several industries, including steel, textiles and pharmaceuticals, are barely functioning, forcing thousands of plants to close.
Despite a decrease in exports to other countries, Pakistan steadily sold goods and services, predominately comprising rice, cement, medicines, surgical instruments, and fruit and vegetables, to the neighboring Afghanistan.
“Pakistan’s export of goods and services to Afghanistan witnessed an increase of 10.58 percent during the first seven months of the current fiscal year (2022-23) as compared to the exports of the corresponding period of last year,” the Associated Press of Pakistan (APP) reported, citing central bank data.
The report said overall exports to Afghanistan were recorded at $285.177 million from July 2022 to January 2023, against the exports of $257.888 million from July 2021 till January 2022.
“On a year-to-year basis, the exports to Afghanistan also increased by 93.26 percent from $17.384 million in January 2022, against the exports of $33.598 million in January 2023,” it read.
On a month-on-month basis, Pakistan’s exports to Afghanistan decreased by 12.24 percent during January 2023 as compared to the exports of $38.297 million in December 2022, the SBP data revealed.
The report said that imports from Afghanistan into the country during the period under review were recorded at $13.389 million against $105.605 million last year, showing a decline of 87.32 percent from July 2022 till January 2023.
On a year-on-year basis, imports from Afghanistan witnessed decreased by 99.10 percent, while on a month-on-month basis, imports from the neighboring country dropped by 92.13 percent in January.
The overall imports into Pakistan witnessed a decrease of 20.91 percent, from $42.297 billion to US $33.451 billion, according to the data.
Based on the trade figures, the trade of goods and services with Afghanistan witnessed an increase of 78.47 percent in surplus during July-January as compared to the corresponding period of the last year.
The surplus during the period under review was recorded at $271.788 million against $152.283 million, showing a growth of 78.47 percent, the data revealed.
