Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 49 SECTION-1 2024 The petroleum sector, including refined oil, petroleum gases, and other energy products, has become an integral part of Pakistan’s export portfolio. During FY 2024, the exports of petroleum products surged due to increased global demand, higher crude oil prices, and regional energy supply disruptions, providing opportunities for Pakistan to tap into key markets. Table 37: Exports of Petroleum & Coal by Commodity During FY2024 COM MODITIES VALUE (THOUSAND US$) QUANTITY (MT) FY 2024 FY 2023 % CHANGE FY 2024 FY 2023 % CHANGE PETROLEUM & COAL EXPORT 397,721 220,520 80.36
PETROLEUM CRUDE 42,919 170,252 -74.79 64,667 227,400 -71.56 PETROLEUM PRODUCTS (EXCL TOP NAPHTA) 320,909 50,257 538.53 678,977 10,644 513.66 PETRO LEUM TOP NAPHTA 33,892
0 49,844
0 SOLID FU ELS (COAL)
11
48
1. Factors Driving Growth 1. Global Oil Prices: Rising global oil prices significantly boosted the value of Pakistan’s petroleum exports. While the volume of exports remained consistent, the higher prices increased the overall export revenue. 2. Increased Refining Capacity: Pakistan has been working to enhance its oil refining capacity, which has resulted in greater output of refined products for both domestic consumption and export. 3. Strategic Trade Agreements: During FY 2024, Pakistan expanded its petroleum export network by entering into new trade agreements, particularly with countries in South Asia, the Middle East, and Africa, contributing to the surge in export earnings. Pakistan could not export coal during FY 2024 due to a combination of internal and external factors that impacted the country’s ability and decision to engage in coal exports. Below are the key reasons why coal exports did not take place during this fiscal year: 2. Increased Domestic Demand One of the primary reasons for Pakistan’s lack of coal exports in FY 2024 was the significant rise in domestic demand. Pakistan has been increasingly relying on coal for energy production, particularly with the development of coal-fired power plants under the China-Pakistan Economic Corridor (CPEC). The country has been prioritizing coal for its energy needs, leading to a focus Table 36: Pakistan’s Surgical Goods Exports by Region FY 2024 COUNTRY EXPORT VALUE (MILLION US$) FY 2024 FY 2023 % Change SURGICAL GOODS & MEDICAL INSTRUMENTS 445 447 -0.6 U.S. America 104 102 1.2 Germany 66 69 -4.2 United Kingdom 40 37 7.3 United Arab Emirates 23 23 -0.8 China 16 17 -7.5 Brazil 14 15 -2.9 France 12 10 14.1 Italy 10 12 -13.2 Mexico 10 10 3.8 Japan 10 10 -3.8 Russian Federation 9 8 21.4 Australia 9 9 -4 Turkey 7 7 1.4 Netherlands 7 8 -11.6 South Korea 6 7 -3.3 Poland 6 6 -1.3 Belgium 5 5 -3.9 Saudi Arabia 4 3 42.8 Philippines 4 3 19.2 Tanzania 3 1 306.3 Emerging markets showed impressive growth during FY 2024. Saudi Arabia’s exports surged by 42.8 percent, while the Russian Federation and the Philippines grew by 21.4 percent and 19.2 percent, respectively. Tanzania experienced an extraordinary increase of 306.3 percent, albeit from a low base. However, some key markets, such as the Netherlands (-11.6 percent) and South Korea (-3.3 percent), saw declines, emphasizing the need for diversification and targeted strategies to stabilize overall export performance. 1.1.6. Petrolium Exports The fiscal year (FY) 2024 witnessed remarkable growth in Pakistan’s exports of petroleum products. The rising global demand for energy, alongside shifts in market dynamics, positioned these sectors as vital components of Pakistan’s export economy. The exports of the petroleum group surged by 80.3 percent during FY 2024. Additionally, exports of petroleum products increased by 606.0 percent, amounting to US$ 355 million. This growth can be attributed to increased production, favourable global prices, and new export agreements.
50 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y on consumption rather than export. 3. Coal Import Reliance While Pakistan has domestic coal reserves, especially in Thar, the country continues to import coal to meet the specific needs of its industrial sectors, including cement and power production. The lower quality of domestically produced coal compared to imported coal from countries like South Africa and Indonesia limits its attractiveness for export, as the priority is to improve domestic energy efficiency. 4. Infrastructure and Logistical Constraints Pakistan’s coal mining industry still faces significant challenges, particularly in terms of infrastructure. The transportation network for coal, especially from the Thar coalfields, is underdeveloped, making it difficult to efficiently transport coal to international markets. Moreover, logistical bottlenecks, including port handling capacity and transportation costs, limit the potential for coal exports. 5. Environmental Concerns and Global Market Dynamics Coal has increasingly come under scrutiny due to environmental concerns, and many countries are moving away from coal consumption to meet climate targets. This shift has reduced global demand for coal, especially from developed nations. Pakistan, as a developing country, faces pressure from international stakeholders to limit its coal exports and focus on cleaner energy alternatives. 6. Thar Coal Development Priorities The Thar coal reserves, one of Pakistan’s largest domestic sources of coal, have been under development primarily for use in the country’s energy mix. The government’s focus is to utilize these reserves for domestic consumption rather than export them, given Pakistan’s energy needs and the relatively low international demand for lower-grade coal. 1.1.1.24. Petroleum Product Export In recent years, Pakistan has been striving to diversify its export portfolio, with petroleum products playing an increasingly significant role. As the global demand for refined petroleum products fluctuates due to economic recovery, energy transitions, and geopolitical factors, Pakistan’s petroleum exports have become an important contributor to its overall trade performance. The fiscal year 2024 (FY 2024) saw a dynamic shift in both export volumes and values for petroleum products, driven by external demand, domestic production capabilities, and pricing strategies. Pakistan’s petroleum industry primarily involves the refining and processing of crude oil, producing a range of refined products such as gasoline, diesel, kerosene, and fuel oil. Although Pakistan is a net importer of crude oil, its refining sector is equipped to process crude into exportable refined products. The main refineries operating in the country include: • Pak-Arab Refinery Limited (PARCO) • National Refinery Limited (NRL) • Attock Refinery Limited (ARL) • Pakistan Refinery Limited (PRL) These refineries collectively contribute to the production of petroleum products, some of which are consumed domestically, while the surplus is exported to regional and international markets. During FY 2024, Pakistan’s export of petroleum products registered notable growth. The demand for petroleum products surged, particularly in regional markets, with Pakistan exporting a range of refined fuels. Pakistan exported approximately USD 354.801 million worth of petroleum products during FY 2024, marking a 606.0 percent growth over the previous fiscal year. This increase in export value was driven by higher global oil prices, coupled with Pakistan’s ability to meet the growing demand in neighbouring countries and emerging markets in Africa and Asia. Key Petroleum Export Products The petroleum products exported by Pakistan can be categorized into the following: 7. Furnace Oil 8. High-Speed Diesel (HSD) 9. Base Oil 10. Bitumen 11. Naphtha The majority of Pakistan’s petroleum exports during FY 2024 comprised Furnace Oil accounted for over 84.5 percent of total petroleum exports. Top Export Markets In FY 2024, Pakistan’s petroleum product exports surged to US$355 million, a remarkable 606 percent increase from US$50 million in FY 2023. Export quantity rose significantly by 558.7 percent, reaching 728,821 metric tons compared to 110,644 metric tons in the
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 51 SECTION-1 2024 previous year. The UAE emerged as the largest market, with export value skyrocketing by 1,089.7 percent to US$197 million and quantity surging by 1,519.8 percent to 415,129 metric tons. Singapore, China, and Italy also became notable destinations, collectively accounting for substantial export volumes, though their FY 2023 data was unavailable for comparison. South Africa saw a 50.6 percent rise in export value and a 37.4 percent increase in quantity, showcasing growing demand. However, exports to Qatar and Afghanistan experienced sharp declines, with values dropping by 70.6 percent and 98.2 percent, respectively. Afghanistan’s export quantity plummeted by 97.5 percent, signalling a significant loss in this market. Conversely, newer markets like Nigeria and Cameroon recorded exports, albeit on a smaller scale, indicating Pakistan’s expanding global footprint in petroleum products. Table 38: Pakistan’s Petroleum Exports by Region (FY 2024) COUNTRY EXPORT VALUE (MILLION US$) EXPORT QUANTITY (MT) FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change PETROLEUM PRODUCTS 355 50 606 728,821 110,644 558.7 United Arab Emirates 197 17 1,089.70 415,129 25,628 1,519.80 Singapore 83
171,970
China 33
49,733
Italy 16
27,406
South Africa 11 7 50.6 29,846 21,728 37.4 Malaysia 8 7 8.2 17,852 24,750 -27.9 Qatar 4 13 -70.6 9,846 32,923 -70.1 Nigeria 2
4,995
Cameroon 1
1,602
Afghanistan 0 6 -98.2 127 5,163 -97.5 1.1.7. Sports Goods Exports Pakistan is globally renowned for its high-quality sports goods manufacturing, especially in the city of Sialkot, where thousands of businesses operate to produce sports equipment, including footballs, cricket gear, and other athletic accessories. This sector plays a crucial role in Pakistan’s economy, contributing significantly to employment and export earnings. In fiscal year (FY) 2024, Pakistan’s sports goods exports continued to grow, driven by strong demand for its products in key international markets In FY 2024, Pakistan’s sports goods exports totalled US$396 million, reflecting a slight decline of 2.09 percent compared to FY 2023. Footballs remained the top-performing category, with exports valued at US$254 million, a 7.41 percent increase, and quantities rising by 6.94 percent to 4,726 thousand dozen. This growth highlights Pakistan’s strong reputation as a leading supplier of high-quality footballs, particularly for global events. However, exports of gloves experienced a significant decline, falling by 16.54 percent in value to US$56 million and by 62.36 percent in quantity to 833 thousand dozen. This sharp drop indicates challenges in demand or production efficiency in the gloves segment. Other sports goods, categorized as “others,” also saw a 14.79 percent decrease in export value, dropping to US$86 million. Despite the overall dip, the sustained growth in football exports underscores Pakistan’s competitive edge in niche markets, emphasizing the need to address challenges in other segments to diversify and strengthen its sports goods industry. Table 39: Exports of Sports Goods by Commodity COUNTRY EXPORT VALUE (MILLION US$) EXPORT QUANTITY (TH. DZ) FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change SPORTS GOODS 396 05 -2.09 a) FOOT BALLS 254 237 7.41 4,726 4,419 6.94 b) GLOVES 56 67 -16.54 833 2,213 -62.36 c) OTHERS 86 101 -14.79 Key Export Destinations for Foot Balls in FY 2024 In FY 2024, Pakistan’s football exports reached US$254 million, a 7.4 percent increase from US$237 million in FY 2023, while export quantity rose by 6.9 percent to 4,726 thousand dozen. Germany remained the top importer with a 10.2 percent increase in value to US$35 million and a 5.2 percent rise in quantity. The UAE saw the most significant growth, with export value surging by 90.8 percent to US$16 million and quantity rising by 65.2 percent to 456 thousand dozen. Other notable markets, such as Italy, China, and Mexico, recorded value increases of 44.9 percent, 43.8 percent, and 67.5 percent, respectively, reflecting growing demand. However, some key markets experienced declines. Exports to the UK dropped by 30.8 percent in value and 27.9 percent in quantity, while Japan and France also saw double-digit declines in both metrics. On the other hand, emerging markets like Korea, with a 45 percent increase in value and 74.3 percent in quantity, and