Pakistan Tech Exports Soar 69% in February 2021

Pakistan's technology exports shot up by 69% in February 2021 from the same month last year. Tech exports soared 41% for the first 8 months (July 2020-February 2021) of the current fiscal year from the same period period last year, according data released by the State Bank of Pakistan. 

Pakistan Tech Exports Trend. Source: Arif Habib Securities


Technology services exports from Pakistan continued their momentum into February 2021, rocketing up 69% to $179 million, up from $106 million in February 2020. ICT exports for the first 8 months of the ongoing fiscal year 2020-2021 rose 41% to $1.3 billion, on track to reach or surpass the $2 billion mark this year. 

In addition to jump in tech services exports, Pakistan is also seeing double-digit growth in exports of engineering goods, up 19.74% for the first 8 months of the current fiscal year.  Export of electric fans posted over 15% growth and other electrical machinery 17.16%.

There is real hope for Pakistan to dramatically increase its higher value-added exports if the current trends in tech services and engineering goods can be sustained. Seizing the opportunity to attract export-oriented investors will help Pakistan become the next Asian Asian Tiger economy. It will help the country avoid recurring balance-of-payments crises that have forced the nation to seek IMF bailouts with all their tough conditions. Focusing on "Plug and Play" Special Economic Zones (SEZs) is going to be essential to achieve this objective.

Comments

Riaz Haq said…
#Pakistan’s #exports to #US increased 11.9% to $3 billion in 8MFY21 during the (July-February). February monthly exports to US increased by 27.68% to $401.949 million from $314.8 million in February 2020 - Profit by Pakistan Today https://profit.pakistantoday.com.pk/2021/03/24/pakistans-exports-to-us-increase-11-9pc-in-8mfy21/#.YFvgnZSZFtw.twitter

Pakistan’s exports of goods and services to the United State (US) witnessed a surge of 11.86 per cent during the first eight months of the fiscal year 2020-21 (FY21) as compared to the corresponding period last year.

According to details, overall exports to the US were recorded at $3,082.2 million during the (July-February) period against exports of $2,755.2 million during the corresponding period in FY20, State Bank of Pakistan (SBP) data revealed on Thursday.

Meanwhile, on a year-to-year (YoY) basis, exports during February 2021 also increased by 27.68pc, from $314.8 million against the exports of $401.949 million.

However, on a month-on-month (MoM) basis, exports rose by 0.5pc during February 2021 in comparison with exports of $399.9 million in January 2021, SBP data said.

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Overall, the country’s exports to other countries witnessed a decline of 2.26pc in 8MFY21, from $16.438 billion to $16.065 billion.

On the other hand, imports from the US during the period under review were recorded as $1,467.5 million against $1,470.7 million last year, showing a nominal decrease of 0.24pc in 7MFY21.

The overall imports into the country increased by 8.59pc, from $29.6 billion to $32.1 billion.

Earlier, Pakistan’s exports to the United States surpassed the $400-million mark during the months of October and November 2020.

The US also remained the top export destinations of the Pakistani products during the first four months (July-Oct) of FY21, followed by United Kingdom (UK) and Germany.

Meanwhile, Pakistan’s exports to regional countries declined 22 per cent in the first eight months of the current fiscal year due to the impact of Covid-19.

Exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives fell to $1.171 billion in 8MFY21, from $1.504bn the previous year, according to the latest data compiled by the State Bank of Pakistan.

On the other hand, the country’s trade deficit with the region narrowed slightly during the period under review as imports from these countries also dipped.

Pakistan’s exports to Afghanistan fell 13.6pc to $629.324m in 8MFY21 from $728.315m in 8MFY20. A few years ago, Afghanistan was the second major export destination after the United States.
Riaz Haq said…
PKR is getting stronger against the US$ over the last few months. The rupee has recovered more than Rs12 during the last seven months since it touched an all-time low of Rs168.43 last year in August. https://arynews.tv/en/pakistani-rupee-strengthens-against-us-dollar-9/

According to the State Bank of Pakistan (SBP), the local unit closed at Rs155.39 against the greenback as compared to Monday’s closing of Rs155.85.

The local currency has gained considerable ground on the back of improved foreign exchange reserves, current account surplus, higher remittances besides less demand of dollar due to the ongoing pandemic.

The rupee has recovered more than Rs12 during the last seven months since it touched an all-time low of Rs168.43 last year in August.

Riaz Haq said…
#Pakistan's monthly #exports reach decade-high of $2.3b in March, 2021: SAPM for Commerce Razzak Dawood: “This is also the first time since 2011 that exports have crossed the $2 billion mark for six consecutive months" #trade #economy https://www.geo.tv/latest/342898-pakistans-exports-reach-decade-high-of-23b-in-march

Exports for March in Pakistan reached a decade-high of $2.3 billion, with monthly figures showing growth year-on-year and over the previous month, Adviser to Prime Minister for Commerce and Investment Razak Dawood said Thursday.

“[The] ministry of commerce is glad to share that according to provisional figures, in March 2021 our exports increased to $2.345 billion. This is an increase of 13.4% over February 2021. It is the monthly highest in last 10 years,” Dawood wrote on Twitter.

“This is also the first time since 2011 that exports have crossed the $2 billion mark for six consecutive months,” she said.

The commerce adviser, however, termed the annual growth as misleading because last year’s lockdown kept the industrial wheel extremely slow.

“The export growth of 29.3% over March, 2020 should not be considered as it is misleading since there was a lockdown last year,” Dawood said.

For the nine-month period of July-March of the current fiscal year, exports increased 7% to $18.6 billion as compared to $17.4 billion in the corresponding period last year, according to the Ministry of Commerce’s data.

Due to a shortage in cotton, exports are expected to get an upset. Cotton is the main industrial input of textile industry that accounts for more than 60% of total exports.

The government is uncertain about giving a go-ahead to cotton and yarn import from India, the world’s largest cotton producer. Analysts said textile industry’s growth is tied with cotton import from India to keep up momentum of textile exports from the country.

Read more: EU accepts Pakistani rice exporters' plea on why India shouldn't get exclusive rights to export basmati

“It’s extremely important as there is significant shortfall in cotton production this year. Lack of cotton will result in reduced textile output and hence exports,” Saad Hashemy, an executive of Karachi-based BMA Capital said.

Although some analysts said banning Indian cotton would not deprive Pakistan’s textile industry of the raw material, they still believe cross-border trade is more cost-effective.

“Eventually we will be importing from China and Europe as we are doing it right now,” said Tahir Abbas, head of Research at Arif Habib Limited.


Riaz Haq said…
Remittances continued their record run of above $2bn for 10th consecutive month in Mar. At $2.7bn, they were up 20% compared to Feb & 43% compared to Mar20. Cumulatively, they have risen to $21.5bn during Jul-Mar FY21, up 26% over the same period last year

https://www.sbp.org.pk/ecodata/Homeremit.pdf
Riaz Haq said…
Mar-21 IT exports up by 58% YoY to USD213mn. 9MFY21 IT exports up by 44% YoY to USD1.5bn 💪

https://twitter.com/samigodil/status/1385680384034283525?s=20



Riaz Haq said…
#Pakistan welcomes surge in knitwear #exports. Exports of leggings, t shirts, sweaters & underwear jumped 30% in the first 10 months of the current fiscal year as the industry continued its recovery from the negative impact of the #coronavirus #pandemic. https://www.knittingtradejournal.com/circular-knitting-news/14571-pakistan-welcomes-surge-in-knitwear-exports

Total knitwear exports were US$3.1 billion, up from from $2.3 billion over the same period in the previous year, according to the latest data from the Pakistan Bureau of Statistics (PBS).
Riaz Haq said…
#Pakistan reports 10-year high #exports in fiscal year 2021 despite #covid19 #pandemic. #Tech exports reached record $2 billion. #Textile exports increased 18.85% while #pharma exports increased 27%. Exports of #copper and copper derivatives increased 44%.

https://www.samaa.tv/money/2021/07/pakistan-reports-ten-year-high-exports-in-fiscal-year-2021/

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Pakistan's exports increase to $31.3 bln in FY21: Razak Dawood


https://dunyanews.tv/en/Business/608729-Pakistan-exports-increase-to-$31.3-bln-in-FY21-Razak-Dawood

Adviser to Prime Minister on Commerce and Investment, Abdul Razak Dawood said Thursday that the country’s exports increased to 31.3 billion during the last fiscal year (2020-21), reflecting government’s successful trade policy.

As Compared to the previous financial year (FY2020), exports increased by 18 percent during 2020-21, despite the negative impact of Covid-19, the adviser said this while addressing a press conference here.

He said that during the outgoing financial year, country’s merchandize exports stood at $25.3 billion, while services exports reached to $ 6 billion. He said that during the last month of June 2020-21, domestic exports exceeded $2 billion.

Similarly, Information Technology (IT) exports remained above $2 billion in last Fiscal Year, he added.

He said that the government would sign a Preferential Trade Agreement (PTA) with Uzbekistan on July 7.

He said the government was working on ‘Tariff Rationalization’ and would rationalize 4,000 tariff lines in the next financial year 2022.

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