Pakistan exports only 12 percent to Regional Countries

September 14, 2023

According to data compiled by the State Bank of Pakistan, the first month of the current fiscal year witnessed a significant 14.55 percent decrease in exports to nine regional countries, primarily driven by a decline in shipments to China.

In July, Out of total exports of $2bn, Pakistan’s exports to regional countries Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives collectively amounted to mere $260.983 million or 12.5 percent of the total.

This decline in trade is not limited to exports; imports, especially from China, also experienced a sharp drop compared to the same period last year. In FY23, exports to regional countries saw a year-on-year decline of 21.1 percent, totaling $3.331 billion.

China represents the majority of Pakistan’s regional exports, making up 60 percent, with the remaining eight countries sharing the rest. Exports to China decreased by 15.32 percent to $147.385 million in July compared to $174.056 million in the corresponding month of the previous year. In FY23, exports to China declined by 27.3 percent, dropping from $2.78 billion in FY22 to $2.02 billion, marking the first decrease in the post-Covid period.

Notably, Pakistan’s exports to Afghanistan saw positive growth, rising by 32.79 percent to $42.173 million in July from $31.757 million in the same month last year. However, Afghanistan’s position as Pakistan’s second major export destination, after the United States, has declined in recent years.

The data does not include exports made through land routes. There were no official exports to Iran in July, as much of the trade with Iran takes place through informal channels in the border areas of Balochistan, involving barter trade.

Exports to India saw a significant decline of 48.9 percent to $0.024 million in July, compared to $0.047 million in the corresponding month of the previous year. Exports to Bangladesh also decreased by 28.69 percent to $50.731 million from $71.147 million in July 2022. Similarly, exports to Sri Lanka declined by 27.29 percent to $20.463 million in July, down from $28.146 million in the same period last year.

Meanwhile, exports to Nepal saw a year-on-year decline of 26.59 percent to $0.207 million in July, while shipments to the Maldives increased by 18.51 percent to $0.544 million from $0.459 million. No exports to Bhutan were recorded in July.