Pakistan’s exports decline by 19.5% YoY in August
"The record-breaking monsoon rains took a toll on Pakistan's exports after the country's exports for August dropped by 19.5% compared to August 2019," the PM's aide said in a series of tweets.
During August, Pakistan’s exports recorded a downfall of 19.5% in dollar terms compared to the same period last year.
Interestingly, the dip in August export figures comes after a surge in exports during July 2020, when Covid-19 restrictions were more strictly in place.
As per a statement issued on Thursday, Adviser to Prime Minister on Commerce Abdul Razak Dawood attributed the significant decline in August exports to unprecedented monsoon rains, which disrupted the supply chain.
“The record-breaking monsoon rains took a toll on Pakistan’s exports after the country’s exports for August dropped by 19.5% compared to August 2019,” the PM’s aide said in a series of tweets.
… our trade balance continues to improve. Exporters are encouraged that despite the calamity of rain and flooding, we must pursue Make in Pakistan policy and export-led growth. I have every confidence in our exporters that they will make up for the loss of August 2020. 2/2
— Abdul Razak Dawood (@razak_dawood) September 3, 2020
“However, the positive sign is that our trade balance continues to improve regardless of this temporary decline. Exporters are persuaded that despite the calamity of rain and flooding, we must continue “Make in Pakistan” policy and export-led growth.”
He also manifested confidence that the country’s exporters would make up for the losses suffered during the last month.
Earlier on Thursday, the Ministry of Commerce had examined issues related to a fall in exports during a review meeting chaired by Razak Dawood.
It was disclosed that during the month under review, the imports also dropped by 20% compared to August 2019. Likewise, the overall trade balance improved by 20.6% in August 2020 compared to the same month last year.
Notwithstanding the decline in exports, some products like tractors, iron & steel, chemicals, and cement posted a positive growth of 186%, 100%, 90%, and 30%, respectively, compared to August 2019.
During the meeting, it was informed that there were some delays in obtaining and analyzing the data due to heavy rains. Dawood was told that rains and significant urban flooding, particularly in Karachi, caused substantial problems in the existing infrastructure, disturbing the supply chains and affecting August’s exports.
Power outages, overall stagnation in business activities, transportation delays, and hampering of port operations were also among the officials’ reasons.
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