Pakistan sees huge decline in exports and imports in 2022-23

F.P. Report

ISLAMABAD: Pakistan witnessed a 12.71 per cent decline in overall exports during 2022-23 when compared with 2021-22 as the total amount dipped to $27.54 billion against the previous level of $31.78bn as the country grapples with a high cost of production amid higher electricity and gas tariffs, interest rate and a weak rupee.

It was mainly because of shrinking textile exports – from $19.33bn in 2021-22 to $16.50bn in 2022-23 – that represented a 14.63pc reduction.

This fall in exports comes with another major development – Pakistan managed to bring a huge cut in the current account deficit during the same period from $17.48bn to $2.56 billion.

Read more: Current account deficit shrank to $2.56bn in FY23 against FY22’s $17.48bn: Dar

According to the data released by the Pakistan Bureau of Statistics (PBS), there was a 27.03pc decline in petroleum imports on year-on-year basis because of low consumption amid higher prices and economic slowdown.

Therefore, the petroleum imports were down to $17.01bn in the fiscal year 2022-23 from $23.31bn in 2021-22. However, the decline in term of value was 36.80pc and 38.82pc in quantity.

In this scenario, the crude oil import was reduced by 11.64pc in quantity and by 15.84pc value while the liquefied natural gas (LNG) imports fell by 24.57pc.

Economic slowdown also meant that there was very little expansion in industrial base with the machinery imports shrinking by 46.82pc to $5.80bn when compared with the previous value of $10.92bn.