ISLAMABAD: Data by Pakistan’s central bank shows the country’s exports to Afghanistan have increased by 17.02 percent during the first eight months of the current fiscal year (2022-23), the state-run Associated Press of Pakistan (APP) said in a report on Wednesday.
Hounded by dwindling foreign exchange reserves, soaring inflation and a looming balance of payments crisis, Pakistan’s exports to other countries declined by 9.65 percent over the last eight months, decreasing from $20.632 billion to $18.639 billion, the State Bank of Pakistan (SBP) said.
Devastating floods in the country last year almost wiped out the entire cotton crop, the main raw material required for the country’s textile sector, in the southern province of Sindh while also partially damaging crops in Punjab. The devastation of cotton crops was a massive blow to the textile sector, Pakistan’s biggest foreign exchange earning sector.
Exports further suffered as Pakistan imposed restrictions on imports in its bid to prevent the outflow of US dollars. As a result, several industries, including steel, textiles, and pharmaceuticals, are struggling to function, forcing thousands of plants to shut operations.
However, despite a decrease in exports to other countries, Pakistan sold more goods and services, predominately comprising rice, cement, medicines, surgical instruments, and fruit and vegetables, to neighboring Afghanistan.
“Pakistan’s export of goods and services to Afghanistan witnessed an increase of 17.02 percent during the first eight months of the current fiscal year (2022-23) as compared to the exports of the corresponding period of last year,” the APP report said, citing data from the SBP.
It said overall exports to Afghanistan were recorded at $346.522 million between July to February (2022-23) compared to the exports of $296.109 million during the same period in the last fiscal year (2021-22), thus reflecting a growth of 17.02 percent.
“On a year-to-year basis, the exports to Afghanistan also increased 60.49 percent from $38.222 million in February 2022, against the exports of US $61.345 million in the same month this year”, the report said.
Meanwhile, on a month-on-month basis, Pakistan’s exports to Afghanistan also surged by 82.58 percent during February 2023 as compared to the exports of $33.598 million in January 2022, the SBP data revealed.
On the other hand, the imports from Afghanistan into the country, during the period under review, were recorded at $13.540 million against $119.328 million last year, showing a decline of 88.65 percent in July-February (2022-23).
On a year-on-year basis, the import for Afghanistan also decreased by 98.89 percent from $13.723 million in February 2022, against the imports of $0.151 million in February 2023.
On a month-on-month basis, the imports from Afghanistan into the country increased by 11.02 percent during February 2023, as compared to the imports of US $0.136 million during January 2022, according to the data.
“The overall imports into the country witnessed a decrease of 21.02 percent, from US $47.336 billion to US $37.388 billion,” the report added.
Based on the figures, the trade of goods and services with Afghanistan witnessed an increase of 88.35 percent in surplus during July 2022 to February 2023 against the same period from the previous year.
“The surplus was recorded at $332.982 million against $176.781 million during last year, showing growth of 88.35 percent,” the report said.
