Exports increase 17.3% in July: adviser

Web DeskWeb Editor

02nd Aug, 2021. 05:01 pm
Pakistan’s trade deficit swells 34% to hit $31 billion in FY21

KARACHI: The overall exports of Pakistan surged 17.3 per cent to $2.35 billion in July 2021, compared with the exports of $2 billion in July 2020, a senior government official said.

In a tweet, Adviser to the Prime Minister on Trade and Commerce Abdul Razak Dawood said: “These are the highest-ever exports in the month of July. I urge our exporters to move full speed ahead to make 2021/22 another record-breaking year for our exports,” adviser said.

Last year, phase two of the much-touted China-Pakistan Free Trade Agreement came into effect, which now allows Pakistani manufacturers and traders to export around 313 new products to the Chinese market with zero duties.

Last year, the lockdowns related to the Covid-19 caused economic slowdown in addition to building pressure on the fiscal balance of countries due to health-related costs. For some economies, such as Pakistan, the supply chain disruption created business opportunities with the diversion of export orders from the regional peers that were relatively hit hard, while the growth in Pakistan’s exports to China outpaced Pakistan’s exports to the rest of the world, he added.

The adviser said Pakistan was already enjoying zero duties on exports of 724 products to China under the first free trade pact signed between the two countries in 2006. After implementation of the second pact, Pakistan has now been allowed to export more than 1,000 products to China with zero duties.

The new facility is particularly benefiting the agriculture, leather, confectionary items, and biscuits product sectors, as well, he said.

In 2019, Pakistan also signed an agreement with China to use the Chinese currency for bilateral trade to get rid of the dollar burden in $15 billion bilateral trade.

According to the official data, Pakistan and China’s bilateral trade volume grew to some $15.60 billion in the 2019 fiscal year, up from $2.2 billion in 2005.

 

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