Pakistan exports its products all over the world. However, in the last fiscal year, the exports of the country saw a sudden drop. Except Australia, New Zealand, and Europe, the exports of Pakistan decreased heavily in all other regions. This led to the call of reviewing the country’s economic policies and trade missions.
On Friday, the export destination-wise receipt was released by the State Bank of Pakistan. This receipt gives a fair estimate of business conducted with other companies through exports. According to that report, the exports of the country dived straight down in almost all of the regions except Europe, only because Pakistan enjoys the status of duty-free exports there.
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Despite having duty-free status, Pakistan could not fully use that benefit. The exports of Pakistan to the European Union increased by only 3.1% in the last fiscal year, which estimates to be $7.28 billion. On the other hand, total exports to Australia and New Zealand were calculated to be $300.4 million. These exports were 16.3% higher than those recorded in the previous fiscal year.
One-Fourth decrease in exports
Since the PMLN government has taken over Pakistan, the exports of the country have decrease by one-fourth of the original amount. According to the International Monetary Fund (IMF), the main reason for the decrease in exports is an overvalued local currency. As compared to the US currency, the rupee was overvalued at 10%, says the IMF.
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Rs1.3 trillion additional tax
One more reason that leads to the decrease in exports is the high cost of doing business. In the last five years, the government has imposed a tax of Rs1.3 trillion in additional taxes.
The Ministry of Commerce also started with the goal of enhancing Pakistan’s exports by setting up trade with different countries. However, it didn’t reach the goal it intended to achieve. The exports of the country to Latin America reached $33 million, which is lower than the previous fiscal year. Exports to South America were recorded to be only $239.5 million, which were also 4.3% less than the previous year.
Exports to Central American countries stood at $125.5 million. Although Pakistan hosts more than six trade missions in the North America, the exports to this region still declined to $3.9 billion. Despite having five trade missions in the United States, exports from Pakistan still declined to $3.7 billion.
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In fiscal year 2013-14, Pakistan’s exports to East Asian countries stood at $3.8 billion. Despite having four trade missions in China, exports decreased by 14% to $1.62 billion. The only area where Pakistan’s exports increased by 2% was India. Exports to India stood at $408 million.
The export data of the last four years showed an overall decrease of 37% in Pakistan’s exports to other regions of the world which shows the tragic situation of the country’s economy.
Source: ET
