Exports grew 43% to $2.257 billion in August 2021 compared to $1.584 billion in August 2020, though the growth was affected by shipment delays caused by heavy rains, announced Adviser to Prime Minister on Commerce Abdul Razak Dawood.
In a series of tweets on Wednesday, he said that exports for August 2021 fell $143 million short of the monthly target of $2.4 billion. “I urge exporters to double their efforts to market exports in order to achieve our target,” he said.
Arif Habib Limited Head of Research Tahir Abbas confirmed that the value of exports in August 2021 was below expectations due to rains and port congestion.
Speaking to The Express Tribune, he lamented that Pakistani rupee was under pressure on account of rising imports as the economy was on a path of recovery.
“Another reason is the ambiguity about the resumption of International Monetary Fund (IMF) programme,” he voiced concern. “We believe that clarity on the IMF programme, higher exports in future, stable remittances and modest inflows through the Roshan Digital Account will ease pressure on the rupee.”
Topline Securities Chief Economist Atif Zafar added that exports declined 4% month-on-month in August, suggesting that Pakistan was unable to significantly increase foreign shipments to compensate for the rising imports.
“This, in turn, has fueled the current account deficit, which is expected to deteriorate in August,” he said. “The current account deficit, concern over discussion with the IMF and appreciation of the US dollar have weakened the rupee.”
Pakistan Businesses Forum (PBF) Vice President Ahmad Jawad was of the view that it was high time for the economic managers to act and devise out-of-the-box solutions to increase exports to enable Pakistan to cross $30 billion worth of shipments by June 2022.
He stressed the need for looking into the non-traditional products to enhance exports from Pakistan.
“For the past few years, Pakistan has been exporting products on a trial and error basis and there is no standard policy that encompasses all sectors and offers incentives for export,” said Jawad.
According to him, a high growth in exports can be expected once the traders are able to benefit from the Export Facilitation Scheme and their performance is monitored while obstacles are removed. “Similarly economic diplomacy should also help accelerate exports,” he said.
Published in The Express Tribune, September 2nd, 2021.
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