Exports to US plunge 24pc in July-August

Pakistan’s merchandise exports to the United States persistently declined during the first two months of the current fiscal year, primarily attributed to a decrease in the export of textile products. The exports dipped by 23.77 per cent to $0.934 billion in July-August from $1.22bn in the same period last year, according to the data compiled by the State Bank of Pakistan. In the last fiscal year, exports to the US witnessed a decline of 14.45pc to $5.92bn from $6.92bn in FY22 when merchandise exports had not only been on the rise, but the US also emerged as Pakistan’s primary export destination. The decline in overall exports can be attributed to several key factors. These include a shortage of capital which has hindered the ability of businesses to invest in their export operations. Additionally, there have been issues with refunds, such as delays in receiving sales tax refunds, deferred sales tax payments, and income tax refunds.