According to the latest report of the State Bank of Pakistan, Pakistan’s exports to its neighboring countries witnessed a blossom in the first half of the financial year (2021-22). Pakistan’s exports to the seven regional countries increased by 28.
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91% and reached a market value worth $2155.287 million. The exports to neighboring countries hold a significant share of 14.14% of Pakistan’s overall exports of $15236.041 million during July-December (2021-22).
China tops the list of countries in terms of Pakistan’s exports to its neighboring export destinations with a substantial growth of 59.05 percent to $1332.768 million in six months of this year from $837.916 million during last year, while exports to Bangladesh also increased by 45.
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63 percent to $399.408 million from $274.246 million. On the other hand, the imports from China during July-December 2021-22 were recorded at $8555.260 million against the $5730.094 million during July-December 2020-21, showing an increase of 49.30% during the period.
Similarly, exports to Sri Lanka rose by 70.92 percent to $174.885 million from $102.317 million in the previous year, whereas exports to Nepal also increased by 88.60% to $4.038 million from $2.141 million; in addition, exports to the Maldives increased by 24.
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73 percent to $3.167 million from $2.539 million. However, the country’s export to Afghanistan dropped by 46.
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64% to $240.504 million this year from 0.
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772 million, whereas exports to India also dipped by 72.50% to $0.517 million from $1.880.
The imports from these countries also rose with exports. Overall, the imports from seven regional countries were recorded at $8830.045 million during the period under review compared to $5984.801 million during last year, showing an increase of 51.56%. The imports from India were worth $91.547 million against the imports of $95.985 million, a decrease of 4.70%, while imports from Afghanistan increased by 13.41%, from $79.731 million to $90.430 million. The imports from Nepal into the country witnessed an increase of 2.85% from $0.491 million to $0.505 million.
Though it is evident that the exports are increasing to various countries, it is also evident that the imports are also increasing. There has been a massive gap between imports ($8830.045 million) and exports ($2155.287 million). The gap highlights the trade deficit, which is growing alarming. The government should do prompt actions to increase exports by value-added textiles and reducing the imports of luxury and irrelevant items, which could be a quick step to reduce the trade deficit and support the country’s economy.
