Pakistan’s exports reach $2.35 billion, the highest-ever levels in July

However, the Pakistani rupee has been in a constant decline.

Major Exports of Pakistan: Rice, Cotton, Mangoes & More | Zameen BlogPakistan’s exports witnessed a surge in the first month of the current fiscal year, amounting to $2.3 billion. These are the highest-ever figures for exports in July.

This was communicated by the Advisor to the Prime Minister on Commerce & Investment, Abdul Razak Dawood, in a tweet on Monday.

According to Dawood, Pakistan’s exports grew to $2.35 billion in July 2021 compared to $2 billion in July 2020. This is a 17.3% increase on a year-on-year (YoY) basis.

The Advisor also urged Pakistani exporters to move at ‘full speed’ to break the records of the exports for the fiscal year 2021-2022 (FY22).

The surge in the exports is mainly due to the high overseas demand for textile products in July.

Nevertheless, economic analysts, cited by The News International, remark that the radical devaluation of the rupee during the last three years cannot be excluded.

It is pertinent to note that the rupee devaluation makes Pakistan’s exports to other countries cheaper, and thus, more competitive.

However, at the same time, it makes the world’s products, including crude oil and petroleum, food items, and others, more expensive for Pakistanis to import, resulting in inflation.

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The analysts further added that there has always been a trade-off between the current account deficit (CAD) and the GDP growth.

If the exports are not increased any further, this seesaw will keep on continuing. This will only give the government two options: either go ahead with growth or safeguard itself on the external front financially.

Meanwhile, in its latest monthly economic outlook, the Ministry of Finance projected the exports would remain at a constant level.

Consequently, the trade balance in goods and services will grow in the coming months.

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