ISLAMABAD: Pakistan’s exports have declined by 8.46 per cent to $1.80 billion last month in the wake of COVID-19 pandemic.
According to Pakistan Bureau of Statistics, the exports have fallen from Rs1.97 billion. The decline is being attributed to suspension of retail business. Proceeds edged up 2.23pc to $17.451bn during the first nine months of 2019-20, as against $17.071bn over the corresponding period last year.
The government projects exports during the ongoing fiscal year to reach $26.187bn, from $24.656bn in FY19. In the 2019-20 budget, it reduced the cost of raw materials and semi-finished products used in exportable goods by exempting them from all customs duties.
The data showed that imports clocked in at $34.814bn during 9MFY20, down 14.42pc, from $40.679bn in the same period last year. The decline in value of imported goods in March was 19.85pc to $3.299bn against $4.116bn during the same month last year.
As a result, the trade deficit came down by 26.45pc in the first nine months of 2019-20 mainly on the back of a double-digit fall in imports.
In absolute terms, the trade gap narrowed to $17.363bn during 9MFY20, from $23.608bn over the corresponding months last year. In March, the deficit plunged 30.35pc to $1.492bn, from $2.142bn in the same period of FY19.
The Ministry of Commerce estimates that the annual trade deficit may decrease by $12bn to reach $19bn in the ongoing fiscal year, from $31bn in 2018-19.
The clothing and textile exporters associations have estimated that close to $1.3 billion worth of orders from foreign buyers for March and April have either been postponed or cancelled.
Commerce Adviser Abdul Razak Dawood said the government has released Rs47bn to the textile sector in 100 days under various schemes while the total sum released during the 20-month period of PTI, Rs93bn have despatched. To resolve the liquidity issues of the industry, especially textile, the government has released billions of rupees in relief during March.
Dawood said the government has released Rs47bn to the textile sector in 100 days under various schemes. Under the prime minister’s Rs1,240 bn stimulus package announced on March 27, the government has released Rs100bn to industry under tax refunds on Apr 2.
On top of these, the government also released Rs20.5bn under the DLTL scheme.
