Merchandise exports shrink 19pc in February

Pakistan’s exports of merchandise shrank for the sixth month in a row dipping by 18.67 per cent year-on-year to $2.30 billion in February, stoking fears of massive layoffs in the industrial sector. In the first eight months (July to February) of 2022-23, exports were down 8.65pc at $18.79bn compared to $20.57bn in the corresponding period last year. The drop shows the government would find it difficult to achieve the export target this fiscal year. Imports dipped 31.51pc to $4.009bn in February compared to $5.85bn over the corresponding month of last year. In the first eight months, the imports fell 23.56pc to $40.09bn this year from $52.45bn over the corresponding period last year. Between July and February FY23, the trade deficit decelerated 33.18pc to $21.30bn from $31.87bn over the corresponding months of last year.Trade deficit narrows 33.8pc in first eight months of FY In February trade deficit fell 43.56pc to $1.70bn on a year-on-year basis.The export proceeds are declining mainly because of internal and external factors raising fears about the closure of industrial units, especially textile and clothing. The exports started posting negative growth in the first month of the current fiscal year — July — barring August when a slight increase was recorded because of the backlog of the preceding month. Export contraction is a worrisome factor, which will create problems in balancing the country’s external account.