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

Type: Document | Status: ready

52 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y Argentina, with a 30.3 percent value growth, highlight the sector’s expansion potential. Despite challenges in some regions, the overall performance reflects a positive trajectory for Pakistan’s football exports. Table 40: Pakistan’s Foot Balls Exports by Region (FY 2024) COUNTRY EXPORT VALUE (MILLION US$) EXPORT QUANTITY (TH. DZ) FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change FOOT BALLS 254 237 7.4 4,726 4,419 6.9 Germany 35 32 10.2 557 529 5.2 Netherlands 25 26 -3.7 407 435 -6.5 U.S. Amer­ ica 25 26 -5.8 395 374 5.7 Spain 19 17 9.9 351 328 7 United Arab Emirates 16 8 90.8 456 276 65.2 Italy 12 9 44.9 236 165 43.1 China 12 8 43.8 184 128 44.3 United Kingdom 12 17 -30.8 258 358 -27.9 Denmark 9 10 -1.4 148 136 8.9 Mexico 8 5 67.5 167 98 71 Argentina 6 5 30.3 125 97 28.9 Turkey 6 6 6.6 117 111 5.4 Korea, Re­ public of 6 4 45 83 48 74.3 Brazil 5 5 11.4 104 100 4.3 Chile 5 4 23.3 95 84 13.2 Japan 5 6 -16.2 64 80 -20.6 France 3 4 -15.7 46 59 -22.8 Canada 3 2 22.8 46 42 8.9 Australia 3 3 6.7 51 55 -6.4 Colombia 2 2 12.6 41 38 7.4 1.1.8.  Engineering Goods Exports Pakistan’s engineering goods industry is an important yet underdeveloped sector within the country’s economy. In recent years, however, there has been a growing emphasis on increasing exports in this field, as the government and private sector recognize the significant potential for growth. Engineering goods, which include items such as machinery, electrical equipment, industrial tools, and automotive components, contribute to economic diversification and provide a more sustainable alternative to traditional exports like textiles and agricultural products. During 2024, Pakistan’s exports of engineering goods saw moderate growth despite facing challenges such as global supply chain disruptions, rising costs of raw materials, and competitive international markets. However, increasing demand in Africa, the Middle East, and Central Asia provided new avenues for growth. The engineering goods industry in Pakistan covers a wide range of products, including heavy machinery, electrical appliances, automotive parts, and industrial tools. The sector plays a pivotal role in industrial growth, economic development, and trade. While traditionally overshadowed by textiles and agriculture, engineering goods have emerged as a significant component of Pakistan’s exports in recent years. Table 41: Exports of Engineering Goods by Commodity COMMODITIES EXPORT VALUE (MILLION US$) FY 2024 FY 2023 % Change ENGINEERING GOODS 351 307 14.5 a) ELECTRIC FANS 31 31 0.1 b) TRANSPORT EQUIPMENT 26 16 59.8 c) OTHER ELECTRICAL MACHINERY 51 42 21.2 d) MACHINERY SPECIALIZED FOR PARTICULAR
DUSTRIES
49 44 9.2 e) AUTO PARTS & ACCESSORIES 24 23 5.1 f) RUBBER TYRES & TUBES 88 57 55.6 g) OTHER MACHINERY 83 94 -11.4 Challenges Faced by Pakistan’s Engineering Goods Exporters 1.  High Cost of Raw Materials: The global surge in raw material costs, including steel, aluminium, and copper, affected the production costs of engineering goods, reducing profit margins. 2.  Technological Gaps: While Pakistan’s engineering sector is growing, it still faces technological gaps compared to more advanced manufacturing countries like China and Germany. This limits the ability to compete on innovation. 3.  Logistics and Supply Chain Disruptions: Supply chain disruptions due to global events like the Russia-Ukraine conflict and higher transportation costs have impacted the timely export of goods, especially heavy machinery and electrical equipment. 4.  Limited Access to Finance: Exporters of engineering goods often face challenges in accessing affordable financing for upgrading their production facilities and meeting international quality standards. Key Export Markets for Engineering Goods in 2024 In FY 2024, Pakistan’s engineering goods exports rose by 14.5 percent to US$351 million from US$307 million in FY 2023. Afghanistan remained the top market, increasing by 24.6 percent to US$81 million, while the U.S. showed impressive growth of 66 percent,

279,456

U.S. America 8 2 285.3 159,870 37,418 327.3 Tanzania 8 5 52.6 182,788 130,344 40.2 Qatar 5 0

161,390

Gabon 5 1 494.8 149,403 22,500 564 Sierra Leone 5 4 31.9 122,066 83,500 46.2 Cameroon 4 1 338.3 130,210 26,835 385.2 Yemen 4 6 -31.3 111,515 135,851 -17.9 Seychelles 3 2 57.3 56,543 31,448 79.8 Mozambique 3 0

81,247

Benin 2 1 67.9 66,180 38,200 73.2 Cote d'Ivoire 2

48,450

Guinea-Bissau 1

30,000

Reunion 0 1 -51.3 10,780 20,100 -46.4 Pakistan’s cement exports saw a remarkable increase in FY 2024, with a 40.4 percent rise in value to US$267 million and a 66.9 percent surge in quantity, reaching 7.09 million metric tons. Afghanistan remained the largest market, with exports growing by 25.9 percent in value and 44.5 percent in quantity. Other key markets, such as Bangladesh and Sri Lanka, showed steady growth, with exports increasing by 7 percent and 29.3

54 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y percent, respectively. Notably, emerging African markets like Ghana, Gabon, and Cameroon saw extraordinary growth, with Ghana’s exports skyrocketing by 353.9 percent in value and 395.4 percent in quantity, while Gabon and Cameroon also posted impressive increases. On the other hand, markets like Yemen and Reunion experienced declines, highlighting the diverse performance of Pakistan’s cement exports across global markets. Pakistan’s Export Destinations During FY 2024 Table 45: Top 20 Pakistan’s Exports Destinations COUNTRY FY 2024 FY 2023 % Change VALUE (M US$) % SHARE VALUE (M US$) % SHARE TOTAL EXPORT 30,675 100 27,724 100 10.6 U.S. America 5,292 17.3 5,176 18.7 2.2 China 2,574 8.4 2,222 8 15.8 United Kingdom 2,019 6.6 1,935 7 4.3 United Arab Emirates 1,581 5.2 1,391 5 13.6 Germany 1,562 5.1 1,553 5.6 0.5 Netherlands 1,486 4.8 1,560 5.6 -4.7 Spain 1,410 4.6 1,410 5.1 0 Afghanistan 1,140 3.7 977 3.5 16.8 Italy 1,121 3.7 1,165 4.2 -3.8 Bangladesh 719 2.3 725 2.6 -0.8 Saudi Arabia 699 2.3 563 2 24 Belgium 647 2.1 725 2.6 -10.8 Malaysia 608 2 308 1.1 97.6 Indonesia 535 1.7 142 0.5 275.4 France 471 1.5 496 1.8 -5.1 Poland 420 1.4 347 1.3 21.1 Viet Nam 408 1.3 232 0.8 75.8 Canada 392 1.3 361 1.3 8.7 Sri Lanka 386 1.3 294 1.1 31.6 Kenya 382 1.2 312 1.1 22.4 Others 6,825 22.2 5,830 21 17.1 The U.S. remained the largest export market, contributing 17.3 percent of total exports with a 2.2 percent increase in value. China followed with a significant rise of 15.8 percent in exports, reaching US$2.574 billion. The United Kingdom and the United Arab Emirates also saw notable growth, with the former up by 4.3 percent and the latter increasing by 13.6 percent. However, exports to some European countries, including the Netherlands, Italy, and Belgium, showed declines, with the Netherlands seeing a 4.7 percent drop. Meanwhile, emerging markets such as Malaysia, Indonesia, and Vietnam demonstrated strong growth, with Indonesia’s exports soaring by 275.4 percent and Malaysia’s by 97.6 percent. These shifts reflect both the strength of traditional markets and the increasing diversification of Pakistan’s export destinations. 1.1.10.  Pakistan’s Exports to the USA Pakistan’s trade relationship with the United States has historically been one of its most significant partnerships. In FY 2024, the economic landscape showcased a nuanced picture of Pakistan’s export trends to the U.S., marked by resilience amidst global challenges. During the fiscal year 2024 (July 2023 to June 2024), Pakistan’s exports to the United States were valued at U$5.292 billion. This represented a 2.2 percent increase compared to US$5.176 billion during the same period in FY 2023. Despite certain challenges, this marginal growth highlighted Pakistan’s ability to maintain its export volumes to its largest trading partner. The overall positive trajectory in FY 2024 exports to the U.S. was mainly driven by an uptick in textile and apparel exports, even though some product categories saw slight declines. Textiles remained the cornerstone of Pakistan’s exports to the U.S., with bed linens, cotton fabrics, and garments making up a substantial portion. Other notable export categories included surgical instruments, sports goods, and leather products. Pakistan’s exports to the U.S. in FY 2024 highlight both opportunities and challenges. While the textile sector remains a key driver, Pakistan must diversify its export base to include higher-value-added products. Further investments in technology, improved supply chains, and