Exports and Imports | Business Upturn

Pakistan suffers massive loss of exports & remittances in FY-23: Report

Sidharth Badlani — Sun, 18 Jun 2023 14:16:48 +0000

A prominent English newspaper in Pakistan- the Dawn has reported that Pakistan has suffered a massive loss of $ 7.15 billion during the first 11 months of FY 23.

Why is Pakistan Facing this Loss?

The loss has been on account of dwindling exports and remittances. With the world and particularly the West entering into a recession, Pakistan’s exports have taken a massive hit. Concomitant to that have been the layoffs in Western companies which have forced Pakistan’s workers to return home.

The stringent inflation afflicting most of Europe and North America has hit the pockets of even those workers who have somehow managed to retain their jobs. The increased prices of daily-use commodities have further impaired the ability of these workers to send money back home.

What do the Critics Say?

The critics are accusing the Pakistan’s Government of lacking a vision and clear strategy. They are accusing the government of being preoccupied with borrowing from the International Monetary Fund and seeking funding from Saudi Arabia and UAE while ignoring more prominent issues.

The critics are saying that even if all things go as planned and the government does secure $3 billion from Saudi Arabia, $2 billion from the UAE and $1.1 billion from the IMF, yet the total funds would be less than the $7.15 billion loss attributable to loss of exports and remittances. Moreover, Pakistan would incur the interest and repayment burdens associated with these borrowings.

The critics are this demanding the government to focus on exports, remittances and other such pertinent issues rather than borrowings from foreign governments and international organisations.

Indian exports to cross $750 billion comfortably this year: Commerce Secretary

Pranay Maniar — Sat, 03 Sep 2022 13:03:55 +0000

In a media briefing, the commerce secretary BVR Subrahmanyam announced that Indian exports were 17% higher and were holding firm despite the grim situation worldwide.

The Ukraine-Russia war has impacted the prices of food grains and petroleum which has led to inflation worldwide. Despite the serious economic situation worldwide, he said,”Indian exports to cross $750 billion comfortably this year.

He further added, “Service exports will cross $300 billion and goods exports will cross $450 billion on the lower bound. Our own estimate is 470 billion dollars for the year.”

The commerce secretary mentioned that the export in August remains flat at $33 billion.

Government data shows that imports in August were up by 37% which translated to $61.68 billion and the trade deficit broadens to $28.68 billion and a 45% rise in imports between April to August YoY.

The trade deficit is expected to be $160-$180 billion this year.

The electronic and chemical sectors have been the best performing sectors with 50% and 14% rise respectively.

The Secretary of Commerce assured by saying that India is not in an uncomfortable position with respect to trade.

India’s trade deficit gap widens further to $24.69 billion in May

Dipankar Ray — Wed, 15 Jun 2022 10:52:19 +0000

India’s trade deficit has taken a turn for the worse and the gap has widened due to the sharp increase in the gold imports and the non-oil exports which led to the trade deficit of $24.69 bn, according to the latest report released by the Ministry of Trade and Commerce on Wednesday, June 15, 2022.

India has another problem that it has to tackle shortly which includes the rising prices of global fuel. Due to the hike in prices, India’s import bill has risen by 62.83% year-on-year to $63.22 bn whereas, on the other hand, the exports rose by 20.55% to $38.94 bn.

“Based on the performance in April-May 2022. We foresee the current account deficit to widen to $26 billion. In the ongoing quarter compared to the $ 23 billion during the previous quarter”. Aditi Nayar, Chief Economist ICRA said.

“The merchandise exports in May 2022 were $38.94 billion. As compared to $32.30 billion in May 2021, exhibiting a positive growth of 20.55 percent. The estimated value of services export for May 2022 is $23.28 billion. Exhibiting a positive growth of 30.32 percent vis-a-vis May 2021 ($17.86 billion)”. The commerce and industry ministry said in a statement.

From April-May 2022 India’s total exports have $124.59 billion which had exhibited a positive growth of almost 26%, and the total merchandise export stood at almost $79 billion as opposed to 63.05 billion a year ago in 2021.

According to the World Bank, global trade is on the verge of being affected more due to the Russia-Ukraine war. “Russia and Ukraine account for a small share— under 3 percent—of global exports. However, many global industries rely on supplies of key commodities produced in the two countries. Especially in Russia,” the World Bank report stated. The report stated how the war has caused disruptions around the world surrounding global supply chains. As well as the distribution of materials.

Further details are yet to be received.