The start of the year 2021 is a good one for Pakistan as exports in the first seven months of FY21 increased 5.53% over the previous period’s value. According to the recently published summary on trade by the Pakistan Bureau of Statistics (PBS).
According to a World Trade Organization (WTO) statement titled “World trade volume rallies in the third quarter after Covid-19 shock”, the third quarter of 2020 showed a recovery in global trade as the volume of business increased 11.6% compared to the second quarter of 2020. Although the figures were lower than the values reported in December 2020, the year-on-year growth rate of exports was impressive, at 8.11%. On the other hand, imports too continued to increase year-on-year, at 14.85%
According to the report of East Asian economies drive global trade recovery, Pakistan’s exports of textile products increased 7.8% in dollar terms in the first seven months of FY21 over the same period of the previous year. Exports of knitwear, bed wear, and towels grew by more than 16%. Interestingly, the exports of cotton cloth declined 7.7%. Exports of leather manufactures showed a growth of 6.4%, driven by exports of leather gloves. On the other hand, textile machinery imports increased by 28.2%, while office machinery rose by 42.4%. Furthermore, there is an increase in imports of raw cotton and synthetic fiber, indicating an increase in the textile sector activity.
The government is also moving in the right direction. The State Bank of Pakistan (SBP) facilitates startups, fintech, and exports in the right direction. Furthermore, there is a need to upgrade machinery and equipment to ensure better competitiveness of domestic producers.