Pakistan’s exports to nine countries in the region recorded an increase of 31.56pc while the country’s imports grew by around 43pc during the first quarter of the current fiscal year (1QFY22) compared to last year.
According to data from the State Bank of Pakistan, the exports to China, Sri Lanka, Afghanistan, Bangladesh, India, Nepal, Iran, Maldives, and Bhutan made up for an amount of $946.218 million which is only 13.5pc of the country’s total global exports that amounted to $6.997 billion in 1QFY22.
In terms of Pakistan’s exports to its neighbors, China leads the list. Pakistan carried out border trade with farther neighbors comprising of Sri Lanka, Nepal, Bhutan, Maldives, and Bangladesh through sea only.
Meanwhile, imports from these countries rose up to $4.128bn between July and September this year against $2.894bn during the same period last year, a jump of 42.6pc. The huge imports have resulted in Pakistan’s trade deficit with the region widening during the period under review.
Pakistan’s exports to China recorded positive growth in July-Sept FY22. A huge portion of the regional exports, which make up 59pc, is with China while the rest is for eight countries. The country’s exports to China posted an increase of 69.7pc to $559.158 million during the first three months of the current year from $329.421m in FY21. The growth in export proceeds was recorded in the post-Covid period, especially the exports of rice.
Meanwhile, imports from China increased by 43.6pc to $4.012bn during the period under discussion against $2.793bn over the previous year. The bulk of 97.1pc imports is from China alone while the remaining imports are received from other eight countries.
Pakistan’s exports to Afghanistan recorded negative growth of 39.17pc to $127.647m during FY22 from $209.868m during the same period in FY21. The drop in exports to Afghanistan is primarily owing to uncertainty in the post-Taliban takeover of Kabul and the subsequent issues in banking channels. Afghanistan was the second major exporter to Pakistan following the United States, only a couple of years ago.
Imports from Afghanistan recorded an increase of 88.49pc to $33.589m compared to $17.820m over the last year mostly driven by higher arrivals of essential kitchen items consisting of potatoes, onions, and tomatoes along with fresh and dried fruits. After the Taliban takeover, the government has facilitated imports at Torkham and Chaman border stations especially of essential food items such as fruits and vegetables.
The country’s exports to India dropped 90.4pc to $0.099m this year from $1.035m last year (FY21). The imports from New Delhi plunged 14.9pc to $42.502m compared to $49.947m during last year. The government has suspended trade relations with India. Since the emergence of the Covid-19 pandemic, the government has permitted only the import of pharmaceutical products from New Delhi.
Pakistan’s exports to Iran went unrecorded during the first three months of the ongoing fiscal year. A large portion of trade with Tehran is carried out via informal channels using the border areas of Balochistan. No imports were made from Iran in the period under review.
Exports to Bangladesh rose 37.57pc to $175.389m during the first three months of FY22 from $127.487m. Imports from Dhaka recorded an increase of 43.96pc to $17.446m this year compared to $12.118m during the last year.
