Regional exports fall as sales to China shrink by a quarter

Pakistan’s exports to nine neighbouring countries recorded a significant decline of 19.68 per cent during the first 11 months of the outgoing FY23, according to data gathered by the State Bank of Pakistan (SBP). This drop is largely attributed to a decrease in shipments to China. Notably, the decline in trade is not limited to exports alone, as imports, particularly from China, have also witnessed a sharp decrease in the 11MFY23. In line with the government’s cost-cutting measures, the clearance of import containers had been delayed in FY23, and the SBP has given low priority to opening letters of credit for consumer goods. The country’s exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives dipped to $3.353 billion — just 13.21pc of Pakistan’s total exports of $25.38bn in July-May FY23. China has emerged as the top destination for Pakistan’s regional exports, surpassing populous countries like India and Bangladesh. However, in the first 11 months of the outgoing fiscal year, Pakistan’s exports to China experienced negative growth compared to the same period last year.