Pakistan’s export receipts to major countries, including US, China, and UK dropped during the financial year 2023 (FY23) which affected the overall export earnings of the country.
According to the State Bank of Pakistan (SBP), the cumulative decline of export earnings from these countries stood at $1.89 billion or as compared to the overall drop in export values which stood at $4.5 billion.
The US remains the major destination of Pakistan’s exports with the earning receipts standing at $5.92 billion in FY23 as compared to export earnings of $6.80 billion in FY22, showing a drop of 12.9 percent ($879 million) year-on-year.
Exports to China, the second largest export destination, recorded a decline of 26.7 percent ($783 million) year-on-year and stood at $2.02 billion in FY23 as against $ 2.78 billion reported in FY22.
Exports income from the UK also decreased to $1.96 billion in FY23 as compared to $2.01 billion reported in FY22, showing a drop of 10.6 percent ($235 million) year-on-year.
Export earnings from other countries also dropped including Germany, the UAE, and the Netherlands. On the other hand, Spain and Italy witnessed slight growth in export receipts.
The decrease in export receipts was associated with various factors including unfavorable global and local economic situations. Also, the withdrawal of subsidies from the export-oriented sector also reduced the competitiveness of Pakistani products in foreign markets. The delays in the imports of raw materials due to foreign exchange issues also reduced the production of exportable orders to various countries, such as the export of mobile phones.
According to experts, Pakistan needs to diversify its traditional export potential by exploring new foreign markets in the EU bloc and ASEAN region. Also, export reliance should be enhanced on non-traditional sectors such as pharmaceutical and automobile.
The availability of raw materials, the competitiveness of the products, and the ease of doing business should be focused in a comprehensive plan of export promotion.
