Exports to US surge to $9b
With local demand picking up due to restrictions on imports, the recent rise in exports will come to an end. PHOTO: AFP
Pakistan’s Ambassador to the United States Masood Khan has said that Pakistan’s exports to the US soared to $9 billion at a growth rate of 35% in financial year 2021-22.
Pointing out that the volume of exports in the previous year was $7 billion, the envoy said the net increase in one year came in at $2 billion.
According to a press release issued by the embassy, imports from the US amounted to $3 billion in FY22 compared to the previous year’s $2.4 billion, boosting the total Pakistan-US trade volume to $12 billion, compared with nearly $9.5 billion a year ago.
“We have a big trade surplus with the US,” the ambassador emphasised.
The impressive growth of Pakistan’s exports to the US, he said, was a trendsetter for the country’s other export destinations around the world, with the US maintaining its position as Pakistan’s largest export destination.
“If exports continue to grow at the pace of 35% per year, overall Pakistan-US trade volume will cross $20 billion in the next three years, which will still be a modest goal given the immense potential between the two markets,” he said.
The impressive performance of Pakistan’s exports in the US market should boost the confidence in domestic markets and amongst foreign investors. Besides, he said, the remarkable growth of overall Pakistan’s exports should contribute to the stability of the national economy and assuage the emerging fears.
“What we need the most is market confidence,” the ambassador remarked.
Out of the total volume of $9 billion, goods export fetched $6.8 billion while services export, including IT, earned $2.2 billion.
Pakistan exported IT products worth nearly $1.4 billion to the US. However, IT exports of June 2022 have yet to be included in the total.
Last year, Pakistan-based tech startups earned around $800 million. Of these, 60% was funded by the US-based venture capital firms, primarily in San Francisco, the statement said.
Top American venture capital firms like Kleiner Perkins, Tiger Global and Sequia have started supporting Pakistan’s successful startups at the pre-seed, seed and incubation stages.
Published in The Express Tribune, July 31st, 2022.
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