Annual-Analytical-Report-on-Trade-Statistics-of-Pakistan-FY2023-24-2.pdf - Page 1

FINANCIAL YEAR oo

ANNUAL

ANALYTICAL REPORT ON EXTERNAL TRADE STATISTICS OF PAKISTAN

Pakistan Bureau of Statistics

Islamabad DR. NAEEM UZ ZAFAR Chief Statistician Pakistan Bureau of Statistics Ministry of Planning, Development & Special Initiatives Government of Pakistan 21 - Statistics House, Mauve Area, G - 9/1, Islamabad, Pakistan Tel: +92 519106515 Fax: +92 519106520 Email: [email protected],

[email protected], Website: www.pbs.gov.pk
DR. BAHRAWAR JAN Deputy Director General (Industry/Trade/Price) Pakistan Bureau of Statistics, Ministry of Planning, Development & Special Initiatives Government of Pakistan 21 - Statistics House, Mauve Area, G - 9/1, Islamabad, Pakistan Tel: +92 51 9106550 E-mail: [email protected] MS. SHAZIA BEGUM Director (Trade) Pakistan Bureau of Statistics, Ministry of Planning, Development & Special Initiatives Government of Pakistan 21 - Statistics House, Mauve Area, G - 9/1, Islamabad, Pakistan Tel: +92 51 9106524 E-mail: [email protected]

Trade Statistics

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 5

Pakistan Bureau of Statistics (PBS) is the official authority in Pakistan, entrusted with collecting, compiling and disseminating accurate and timely statistical data to support policymakers, planners and researchers. PBS releases a number of reports based on primary and secondary data, with a particular focus on the economic and social dimensions of the country. The Analytical Report on External Trade Statistics for the Period FY - 2024 provides an in-depth analysis of Pakistan’s trade performance, offering valuable insights into the country’s evolving trade landscape.

In developing economies, increased exports can lead to improved foreign exchange reserves and economic growth, while an imbalance skewed towards imports might necessitate corrective measures to stabilize the trade deficit. Overall, external trade statistics provide a comprehensive view of a country’s participation in the global economy, offering insights for sustainable economic growth and resilience.

This report aims to present a clear and comprehensive picture of Pakistan’s trade activities, enabling informed decisions to support sustainable economic development. It reveals trends that impact the broader economy such as shifts in demand, price volatility, and trade restrictions. Analysts and economists monitor these trends closely, as they influence currency value, inflation rates, and employment levels in trade- sensitive industries.

Asia remained the cornerstone of Pakistan’s trade, accounting for a significant portion of both imports and exports. Eastern Asia, in particular, emerged as a critical partner, showcasing robust trade growth during the fiscal year. At the same time, other regions like Africa and Latin America demonstrated promising potential, with exports to these regions growing substantially. Such trends highlight the importance of market diversification in reducing reliance on traditional trading partners and exploring untapped opportunities across the globe.

This report goes beyond presenting numbers by offering analytical insights into regional and sectoral trade trends. It delves into key contributors to export growth, such as textiles, agricultural products and manufactured goods, while examining factors behind the decline in imports, including energy prices and shifting domestic consumption patterns. Moreover, it emphasizes the importance of fostering trade policies that encourage innovation, competitiveness and partnerships in new and existing markets. I appreciate the dedicated team of Trade Statistics Section, under the supervision of Dr. Bahrawar Jan, Deputy Director General (Price /Trade/Industry) for their hard work & timely reporting of trade statistics.

Dr. Naeem Uz Zafar (SI) Chief Statistician Pakistan Bureau of Statistics February, 2025 FOREWORD

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 7 PREFACE External trade statistics measures the country’s economic health, reflecting its global trade dynamics and economic priorities. These statistics encompass data on imports, exports, and trade balance, shedding light on which goods and services are most exchanged between countries. For policymakers, understanding external trade statistics aids in identifying trade deficits or surpluses, designing tariffs, and developing strategies to enhance trade relations. The FY2024 analytical report is offering a comprehensive and detailed analysis of the country’s trade dynamics. It meticulously analyses import and export patterns, highlights key sectors driving economic growth, and identifies shifts in global trade relations. By exploring both macroeconomic factors and sector- specific developments, the report provides a clear understanding of the opportunities and challenges faced by the country in the global market. Additionally, it offers strategic recommendations to optimize trade performance and enhance the nation’s competitive position in international commerce. In FY 2024, Pakistan witnessed a notable transformation in its trade dynamics. In FY 2024, Pakistan’s exports saw modest growth across various economic categories, contributing to the country’s total export revenue of US$ 30.675 billion. Exports grew by an impressive 10.6 percent, a testament to the country’s enhanced output, diversification of export products, and penetration into new markets. This growth reflects the resilience of Pakistan’s export sectors amid global economic challenges, including inflationary pressures, geopolitical tensions, and supply chain disruptions. On the other hand, imports experienced a slight decline of 0.8 percent, signalling prudent resource management and a focus on reducing trade imbalances. This combination of export growth and import moderation underscores progress toward achieving greater trade sustainability. The hard work and dedication demonstrated by the PBS team in completing this document have been truly remarkable. I commend the efforts of the Trade Statistics Section with Ms. Shazia Begum, Director and Mr. Atif Hassan, SO, who are innovating the data reporting with diversified tools and analysis. I trust that this publication will meet the expectations of all stakeholders and serve as a valuable resource of knowledge, information, and reference. Any feedback and suggestions for further improving the document are warmly encouraged encouraged and welcomed. Dr. Bahrawar Jan Deputy Director General (Price/Trade/Industry) Pakistan Bureau of Statistics February, 2025

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 9 Trade Statistics Team

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 11 Table of Contents FOREWORD.................................................................................................................................................................................5 PREFACE.......................................................................................................................................................................................7 Trade Statistics Team....................................................................................................................................................................9 EXECUTIVE SUMMARY.........................................................................................................................................................19 1. EXPORTS OF PAKISTAN 25 KEY DRIVERS BEHIND PAKISTAN’S EXPORT GROWTH.............................................................................................25 CHALLENGES TO EXPORT GROWTH...............................................................................................................................26 1.1. Sector-wise Export Performance of Pakistan in FY 2024.............................................................................27 1.1.1. Textile Manufactures Exports.......................................................................................................................27 1.1.1.1. Knitwear Exports..........................................................................................................................................................29 Key Markets and Demand Trends............................................................................................................................................29 1.1.1.2. Readymade Garments Exports...................................................................................................................................30 Key Markets and Regional Trends............................................................................................................................................30 1.1.1.3. Bedwear Exports...........................................................................................................................................................30 Key Markets and Regional Trends............................................................................................................................................30 1.1.1.4. Cotton Cloth Exports..................................................................................................................................................31 Key Export Markets and Performance.....................................................................................................................................31 1.1.1.5. Towel Exports ..............................................................................................................................................................32 Key Export Markets and Performance:....................................................................................................................................32 1.1.1.6. Cotton Yarn Exports....................................................................................................................................................32 1.1.1.7. Textiles Made-up (Excluding Towel & Bedwear) Exports......................................................................................33 Key Markets for Made-Up Textiles...........................................................................................................................................33 1.1.1.8. Silk & Synthetic Textiles Exports:..............................................................................................................................34 Key Export Markets for Silk & Synthetic Textiles...................................................................................................................34 1.1.2. Agriculture & Food Exports..........................................................................................................................35 1.1.1.9. Rice Exports..................................................................................................................................................................35 Key Trends...................................................................................................................................................................................36 Key Export Markets for Pakistani Rice....................................................................................................................................36 Key Markets for Pakistan’s Non-Basmati (Other) Rice:.........................................................................................................37 1.1.1.10. Meat Exports...............................................................................................................................................................37 Key Export Destinations of Meat..............................................................................................................................................38 1.1.1.11. Vegetable Exports.......................................................................................................................................................38 Major Export Destinations for Vegetable Exports..................................................................................................................38 1.1.1.12. Fish & fishery product Exports................................................................................................................................39 Major Export Destinations........................................................................................................................................................39 1.1.1.13. Oil seeds, nuts and kernels Exports.........................................................................................................................40 Key Export Destinations............................................................................................................................................................40 1.1.1.14. Fruit Exports...............................................................................................................................................................40 Key Fruit Export Markets..........................................................................................................................................................41

12 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 1.1.3. Chemical Exports...........................................................................................................................................41 Breakdown of Chemical Exports by Product Category.........................................................................................................41 1.1.1.15. Plastic Exports............................................................................................................................................................42 Pakistan’s Plastic Exports by Region (FY 2024)......................................................................................................................42 1.1.1.16. Pharmaceutical Exports............................................................................................................................................42 Key Markets of Pharmaceutical products................................................................................................................................43 1.1.4. Leather & leather products Exports.............................................................................................................43 Breakdown of Leather Exports by Category............................................................................................................................43 Challenges Faced by the Leather Industry...............................................................................................................................44 1.1.1.17. Leather Tanned Export ............................................................................................................................................44 Key Export Markets....................................................................................................................................................................44 1.1.1.18. Leather Garments Export..........................................................................................................................................45 Key Export Markets....................................................................................................................................................................45 1.1.1.19. Leather Gloves Export...............................................................................................................................................45 Key Export Markets....................................................................................................................................................................45 Challenges Faced by the Leather Industry...............................................................................................................................46 1.1.1.20. Leather Tanned Export ............................................................................................................................................46 Key Export Markets....................................................................................................................................................................46 1.1.1.21. Leather Garments Export..........................................................................................................................................47 Key Export Markets....................................................................................................................................................................47 1.1.1.22. Leather Gloves Export...............................................................................................................................................47 Key Export Markets....................................................................................................................................................................48 1.1.1.23. Leather Footwear Export...........................................................................................................................................48 1.1.5. Surgical good & Medical Instruments Export............................................................................................48 Key Markets:................................................................................................................................................................................49 1.1.6. Petrolium Exports...........................................................................................................................................49 1.1.1.24. Petroleum Product Export........................................................................................................................................50 Key Petroleum Export Products...............................................................................................................................................50 Top Export Markets....................................................................................................................................................................51 1.1.7. Sports Goods Exports....................................................................................................................................51 Key Export Destinations for Foot Balls in FY 2024................................................................................................................51 1.1.8. Engineering Goods Exports..........................................................................................................................52 Challenges Faced by Pakistan’s Engineering Goods Exporters.............................................................................................52 Key Export Markets for Engineering Goods in 2024.............................................................................................................53 1.1.9. Exports.............................................................................................................................................................53 Key Export Markets....................................................................................................................................................................53 Pakistan’s Export Destinations During FY 2024.....................................................................................................................54 1.1.10. Pakistan’s Exports to the USA ....................................................................................................................54 1.1.11. Pakistan’s Exports to China.........................................................................................................................55 1.1.12. Pakistan’s Exports to the UK.......................................................................................................................56 Opportunities:.............................................................................................................................................................................56 1.1.13. Pakistan’s Exports to the UAE.....................................................................................................................56

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 13 1.1.14. Pakistan’s Exports to the Afghanistan........................................................................................................57 1.1.15. Exports to Indonesia....................................................................................................................................57 1.1.16. Pakistan’s Exports to Malaysia....................................................................................................................58 1.1.17. Pakistan’s Regional Export Dynamics in FY 2024....................................................................................58 Strong Growth in Exports to Asia.............................................................................................................................................59 Stagnation in Europe..................................................................................................................................................................59 Moderate Increase in Exports to America...............................................................................................................................59 Substantial Growth in African Markets...................................................................................................................................59 Decline in Exports to Australia and New Zealand.................................................................................................................59 2. IMPORTS OF PAKISTAN 63 Energy Imports – A Major Contributor to the Import Bill...................................................................................................63 Machinery Imports – Vital for Industrial Growth.................................................................................................................64 Raw Materials Imports– Essential for Pakistan’s Manufacturing Sector.............................................................................64 Food Imports – Decreasing Because of Domestic Production.............................................................................................65 2.1. Pakistan’s Import Sources During FY 2024....................................................................................................65 2.1.1. China: Pakistan’s Largest Import Partner....................................................................................................66 2.1.2. Arab Emirates (UAE): A Key Energy Supplier...........................................................................................66 2.1.3. United States: A Diverse Import Partner.....................................................................................................66 2.1.4. Saudi Arabia: A Major Oil Supplier..............................................................................................................67 2.1.5. Other Key Import Sources .........................................................................................................................67 2.1.6. Regional Analysis of Imports........................................................................................................................67 3. PAKISTAN’S TRADE BY ECONOMIC CATEGORY 71 3.1. Export by economic category...........................................................................................................................71 3.1.1. Pakistan’s Export Composition by Economic Category FY 2024.............................................................71 Primary Commodities................................................................................................................................................................71 Semi- Manufactured & Manufactured Goods........................................................................................................................71 Services Sector Export ..............................................................................................................................................................71 Emerging Sectors........................................................................................................................................................................72 3.1.2. Key Drivers of Export Growth by Economic Category.............................................................................72 Several factors contributed to the growth across Pakistan’s economic categories in FY 2024:.........................................72 3.2. Pakistan’s Import Data by Broad Economic Category (BEC) .....................................................................72 3.2.1. Intermediate Goods: Steady Demand Despite Marginal Decline............................................................72 3.2.2. Consumer Goods: A Subtle Decline Amid Shifting Consumption Patterns..........................................72 3.2.3. Capital Goods: A Notable Contraction in Investment..............................................................................72 3.2.4. Overall Trends and Implications..................................................................................................................73 4. TRADE DEFICIT – COMPOSITION 77 4.1. MAJOR CONTRIBUTING FACTORS TO THE TRADE DEFICIT..........................................................77 4.2. Government Policies and Measures to Address the Trade Deficit...............................................................77 4.3. Impact of Global Economic Conditions.........................................................................................................77

14 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 5. TRADE INDICES 81 5.1. Unit Value Index of Exports and Imports.......................................................................................................81 5.1.1. Pakistan’s Export Unit Value Index (FY 2024)............................................................................................81 5.1.2. Pakistan’s Import Unit Value Index (FY 2024)...........................................................................................81 5.2. Terms of Trade....................................................................................................................................................81 5.3. Pakistan’s Quantum Index of Exports and Imports During FY 2024.........................................................82 5.3.1. Pakistan’s Quantum Index of Exports (QIE) During FY 2024.................................................................82 5.3.2. Pakistan’s Quantum Index of Imports (QII) During FY 2024..................................................................82 5.3.3. Factors Driving the Surge in Trade Volumes..............................................................................................82 5.3.4. Economic Implications of the Surge in Trade Volumes.............................................................................82 Annexure: A.................................................................................................................................................................................89 Annexure: B ................................................................................................................................................................................91 Annexure: B ................................................................................................................................................................................93 DATA SOURCE..........................................................................................................................................................................93 SALIENT FEATURES OF THE NEW BASE..........................................................................................................................93 BASE YEAR SELECTION AND REBASING PARAMETERS FOR COMPILATION OF TRADE INDICES.............94 SELECTION OF BASE YEAR..................................................................................................................................................94 SELECTION OF ITEMS/COMMODITIES...........................................................................................................................94 COMPARISON OF SELECTED ITEMS.................................................................................................................................94 SELECTION BY VALUES.........................................................................................................................................................94 SELECTION BY ITEMS/HS CODES......................................................................................................................................94 COMMODITY CLASSIFICATION.........................................................................................................................................94 BASKET OF GOODS / COMMODITIES AND ASSIGNED WEIGHTS .........................................................................94 COVERAGE OF EXPORT / IMPORT DATA ......................................................................................................................96 TRADE STATISTICS MANAGEMENT INFORMATION SYSTEM (TSMIS).................................................................96 COMPILATION OF TRADE DATA.......................................................................................................................................96 TREATMENT OF RAW DATA................................................................................................................................................96 COMPILATION METHODOLOGY FOR TRADE INDICES............................................................................................96 COMPUTATIONAL STEPS TAKEN FOR COMPILATION OF TRADE INDICES.......................................................96 FORMULAS USED FOR COMPUTATION ........................................................................................................................97 COMPARISON OF INDICES (OLD BASE V/S NEW BASE)............................................................................................................................. 98 QUARTERLY COMPARISON OF INDICES.........................................................................................................................99 COMPARISON OF TRADE INDICES (SITC V/S. HS CODING SCHEME) ..................................................................99

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