Ten-year High Exports in Pakistan in Fiscal Year 2021
The goods exports of Pakistan have raised to a historic high of $25.3 billion in the fiscal year 2020-21 despite the Coronavirus pandemic, announced Adviser Abdul Razzak Dawood.
Dawood stated in a press briefing, that Pakistan’s export growth has increased 18% in the last financial year. In June, exports were $2.7 billion, the highest in a single month.
Dawood admired exporters for the high volume. In the services sector exports were $6 billion, so the total exports were $31 billion (goods plus services).
According to Dawood, he was not in favour of increasing tariffs to increase government revenue.
“Changing tariffs is not easy and it should be a three or four-year plan,” he stated. “6,000 tariff lines have been changed during the last three years.” About Forty-two percent of the import of machinery and raw materials has become duty-free but tariffs need to be further reduced still, he said.
Next year, tariffs on iron ore, agriculture, and warehousing will be decreased. However, tariffs have already been reduced in few sectors including pharmaceuticals, tourism, footwear, food processing, and fiber optics.
The rise in few sectors:
- Textile exports - 18.85%
- pharmaceutical exports - 27%.
- Copper and copper derivatives exports - 44%.
The decline in few sectors:
- Rice exports - 8%
- Cotton yarn exports - 2%
- Raw leather exports - 16%
- Plastic exports - 6%.
“It is a good sign that our exports have raised despite the Coronavirus lockdowns worldwide,” he stated. “The pandemic results in exports dropping in all countries in the region, except Bangladesh. Its exports increased 13%.”
According to Dawood, they were hopeful that Pakistan's exports will rise in the coming two years.
With Uzbekistan, the special trade agreements need to be signed and the Silk Road route project is required to be discussed, he stated. The preferential trade and transit trade agreements will also be signed with Afghanistan, said Dawood.