58 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y variety of goods such as textiles, surgical goods, and other agricultural products, which have also seen notable increases. The sharp rise in exports demonstrates the growing demand for Pakistani products in Southeast Asia and the efforts of both governments to strengthen trade ties. The success of FY 2024 is not just a testament to the improving trade relations between Pakistan and Indonesia but also a sign of the broader potential for Pakistan’s export sector. With Indonesia emerging as one of Pakistan’s major trading partners, both nations stand to benefit from this strengthened economic cooperation. Looking ahead, there is hope that this growth momentum will continue, providing opportunities for further trade diversification and expansion. This unprecedented surge in exports to Indonesia is an indication of Pakistan’s growing capabilities in the global trade arena, with agricultural products like non- basmati rice serving as key drivers of this success. As Pakistan continues to strengthen its trade relationships, the prospects for further growth in export sectors appear highly favourable. 1.1.16. Pakistan’s Exports to Malaysia Pakistan’s trade with Malaysia achieved a significant milestone in FY 2024, with exports surging by an impressive 97.6 percent. The value of Pakistan’s exports to Malaysia reached a record high of US$ 608 million, nearly doubling from the US$ 308 million recorded during FY 2023. This remarkable growth is largely driven by the substantial rise in agricultural exports, particularly rice and vegetables. One of the most notable contributors to this surge is the export of rice, which witnessed a massive growth of 277.7 percent year-on-year. Malaysia, like many other Southeast Asian nations, has increasingly turned to Pakistan’s high-quality rice to meet its domestic demand. Pakistan’s competitive pricing and the growing recognition of its rice in the global market have enabled it to secure a stronger foothold in Malaysia, positioning it as a key exporter of this essential commodity. In addition to rice, vegetable exports to Malaysia also saw a significant boost, growing by 227.2 percent during FY 2024. This sharp increase highlights the expanding demand for Pakistani agricultural products in Malaysia, with vegetables joining the list of high-performing export categories. Pakistan’s diverse agricultural production, driven by improvements in farming practices and better market access, has played a pivotal role in fuelling this growth. Table 52: Top Pakistan’s Commodities Exported to Malaysia COMMODITY EXPORT VALUE (MILLION US$) FY 2024 FY 2023 % Change TOTAL EXPORT TO MALAYSIA 608 308 97.6 Non-Basmati Rice 337 89 277.7 Vegetables 69 21 227.2 Fish & Fish Preparations 19 23 -16.3 Readymade Garments 14 14 -5.5 Bed Wear 10 14 -30.9 Knitwear 9 11 -21.3 Petroleum Products 8 7 8.2 Towels 7 8 -10.1 Silk & Synthetic Textile 5 8 -43 Cotton Cloth 4 4 -8.7 Cotton Yarn 3 3 9.5 Basmati Rice 3 11 -72.3 Oil Seeds, Nuts and kernels 3 1 75.1 Machinery Specialized for Particular Industry 2 0
Surgical Goods & Medical Instru ments 2 0
Textiles Made-up 2 2 -11.4 Footballs 2 2 -17.4 Pharmaceutical Products 1 2 -34.2 OTHER COMMODITIES 110 86 27.4 Pakistan’s export growth to Malaysia, particularly in rice and vegetables, is a testament to the country’s evolving role as a major player in the global agricultural market. As trade between the two nations deepens, both economies stand to benefit, unlocking new opportunities for future cooperation and mutual prosperity. 1.1.17. Pakistan’s Regional Export Dynamics in FY 2024 Fiscal year (FY) 2024 has shown a dynamic performance in Pakistan’s export sector, with notable variations across different regions. The data, as summarized in the table above, reveals key shifts in export volumes to Asia, Europe, America, Africa, and Australia & New Zealand when compared to FY 2023. These shifts reflect both growth opportunities and challenges in the global marketplace for Pakistan. Strong Growth in Exports to Asia Asia, which has traditionally been a major trading partner for Pakistan, continued to demonstrate its
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 59 SECTION-1 2024 importance in FY 2024. Exports to Asia surged by 21.6 percent, rising from US$9,219 million in FY 2023 to US$11,206 million. This growth can be attributed to strengthening trade relations with countries like China, Bangladesh, and other neighbouring nations. The regional proximity, coupled with trade agreements and demand for Pakistani textiles, agricultural products, and manufactured goods, played a pivotal role in this significant increase. Asia remains a cornerstone of Pakistan’s export strategy, given its potential for further expansion. Stagnation in Europe Contrasting the growth in Asia, exports to Europe in FY 2024 remained flat at US$10,561 million, the same as FY 2023. The 0.0 percent change suggests that Pakistan’s trade with European countries is stable but lacks dynamism. This stagnation could be attributed to factors such as economic uncertainty in Europe, market saturation, or stiff competition from other developing countries. Pakistan’s major exports to Europe, including textiles and leather goods, may require diversification or enhanced marketing strategies to stimulate growth in this mature market. Moderate Increase in Exports to America Exports to the American continent, which includes both North and South America, witnessed a modest increase of 3.2 percent, from US$6,098 million in FY 2023 to US$6,293 million in FY 2024. While this growth is not as robust as in Asia or Africa, it still marks a positive trajectory. The U.S. remains a critical export destination for Pakistan, particularly for textiles, apparel, and leather products. The slight improvement in exports could be attributed to a recovering demand in the U.S. post- pandemic. However, challenges such as tariff regulations and competition from other low-cost exporters may have capped the growth rate. Substantial Growth in African Markets One of the standout performances in FY 2024 came from the African market, where Pakistan’s exports surged by 52.7 percent. Exports to Africa jumped from US$1,498 million in FY 2023 to US$2,287 million in FY 2024, representing the highest percentage increase among all regions. Africa’s growing middle class, increasing demand for affordable textiles, pharmaceuticals, and machinery, coupled with Pakistan’s competitive pricing, likely contributed to this remarkable rise. This trend suggests that Africa could become an increasingly important destination for Pakistani exports in the future, presenting opportunities for further trade development and investment. Decline in Exports to Australia and New Zealand On the downside, Pakistan’s exports to Australia and New Zealand experienced a decline of -6.3 percent, dropping from US$344 million in FY 2023 to US$323 million in FY 2024. While this market is relatively smaller in comparison to other regions, the decrease could signal reduced demand for specific goods or increased competition from other exporters. The reasons for this decline might also include logistical challenges or shifts in trade policies. This downward trend underscores the need for Pakistan to re-evaluate its trade strategy with these distant markets. Table 53: Region-wise Pakistan’s Export Destinations REGION FY 2024 (MILLION US$) FY 2023 (MILLION US$) % Change TOTAL EXPORT 30,675 27,724 10.6 ASIA 11,206 9,219 21.6 WESTERN ASIA 3,402 3,008 13.1 EASTERN ASIA 3,048 2,739 11.2 SOUTH-CENTRAL ASIA 2,526 2,257 11.9 SOUTH-EASTERN ASIA 2,230 1,214 83.7 EUROPE 10,561 10,561 0 WESTERN EUROPE 4,190 4,362 -3.9 SOUTHERN EUROPE 2,975 3,051 -2.5 NORTHERN EUROPE 2,657 2,517 5.5 EASTERN EUROPE 740 631 17.3 AMERICA 6,293 6,098 3.2 NORTH AMERICA 5,684 5,537 2.7 SOUTH AMERICA 351 302 16.3 CENTRAL AMERICA 180 193 -6.8 LATIN AMERICA 78 66 17.8 AFRICA 2,287 1,498 52.7 EASTERN AFRICA 1,113 790 40.9 WESTERN AFRICA 609 247 146.1 NORTHERN AFRICA 201 179 11.9 SOUTHERN AFRICA 195 218 -10.7 MIDDLE AFRICA 170 64 165.9 AUSTRALIA AND NEW ZEALAND 323 344 -6.3 In conclusion, Pakistan’s export performance in FY 2024 has shown a mixed but generally positive trend. While Asia and Africa have emerged as high-growth regions, Europe has stagnated, and Australia & New Zealand have seen a slight decline. The overall data highlights the importance of diversifying trade relations, capitalizing on emerging markets, and addressing challenges in mature markets. As Pakistan continues to
60 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y strengthen its export sector, it will need to adapt to global economic conditions and explore new opportunities to maintain and enhance its competitiveness on the world stage.
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 61
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 63 SECTION-2 2024 2. IMPORTS OF PAKISTAN Pakistan’s import structure in FY 2024 reflected a mix of economic challenges and the country’s growing demand for essential goods, machinery, energy, and raw materials. With total imports reaching USD 54.779 billion, the country faced pressure from a rising import bill, driven by both higher global commodity prices and the depreciation of the Pakistani rupee. Despite these challenges, certain sectors saw increases in imports, while others remained relatively stable or declined. Pakistan’s total imports in FY 2024 reflecting a slight decrease of 0.8 percent compared to FY 2023. This decline was primarily due to the government’s efforts to reduce imports in response to a widening trade deficit and foreign exchange pressures. Figure 8: Monthly Import of Pakistan The year saw a significant drop in imports during the first five months, with July, August, and September all experiencing declines of over 25 percent compared to the same months in the previous year. However, imports began to recover starting in October, with a 6.1 percent increase. The trend of fluctuating imports continued through the rest of the fiscal year, with notable increases in March (29.3 percent), April (62.5 percent), and May (14.2 percent), although some months, such as November and December, still saw declines. The rise in imports during the later months reflects an uptick in demand and possibly the need for raw materials or capital goods to support economic activity. The overall decrease in imports reflects the government’s policies aimed at managing foreign exchange reserves and controlling inflation. Despite the decline, certain sectors such as energy and machinery continued to drive the import bill. Table 54: Pakistan’s Monthly Import Month EXPORT VALUE (MILLION US$) FY 2024 FY 2023 % Change July 3,691 4,981 -25.9 August 4,474 6,054 -26.1 September 3,950 5,293 -25.4 October 4,863 4,581 6.1 November 4,525 5,154 -12.2 December 4,635 5,144 -9.9 January 4,756 4,826 -1.5 February 4,306 3,935 9.4 March 4,855 3,755 29.3 April 4,846 2,981 62.5 May 4,915 4,304 14.2 June 4,964 4,189 18.5 TOTAL 54,779 55,198 -0.8 Energy Imports – A Major Contributor to the Import Bill Energy remains Pakistan’s largest import category, accounting for nearly 30.9 percent of the total import bill during FY 2024. The country heavily relies on imported petroleum, LNG (Liquefied Natural Gas), and coal to meet its energy needs. The rising global energy prices in FY 2024 exacerbated the import costs, despite a marginal reduction in the overall import volume. Although petroleum product imports declined by 12.9 percent, Petroleum Crude, LNG and LPG imports increased significantly, reflecting growing energy demand in sectors such as industry and power generation.