Business

11-month economic slump ends, as exports increase in Sept

Published

1 year ago

Farwa

4.2% increase was recorded in Sept this year.
In Sept last year, exports stood at $2.437 billion.
Imports fell sharply by 25.3% to $3.95 billion.

ISLAMABAD: The Pakistan Bureau of Statistics (PBS) reported an increase in exports by 1.15% to $2.465 billion in September 2023, for the first time in 11 months, overturning a lengthy slump attributed to the country’s dwindling economy.

According to PBS data reported by The News, the exports stood at $2.437 billion in the same month last year. The growth, it added, was modest but significant, as it happened in the wake of 11 consecutive months of year-on-year reductions ranging from 3.25% to 26.2%.

As the exports rose by 4.2% over those in August 2023 which stood at $2.366 billion, the turnaround was apparent on a monthly basis, the PBS mentioned in its report.

The shift was seen last month in August when the pace of decline slowed to single-digit from earlier sharp declines seen since October last year. Notably, year-on-year in October 2022, exports reduced by 3.25%, November 17.6%, December 16.3%, January 14.15%, February 22.7%, March 14.6%, April 26.2%, May 16.2%, June 19.1%, July 8.09%, August 4.7%, but now in September it increased by 1.15%.

The imports fell sharply by 25.3% to $3.95 billion in September 2023 from a year ago, mainly due to lower oil prices, reduced demand for machinery and raw materials, and tight import controls by the government to curb the trade deficit.

On a monthly basis, imports dropped by 12.7% from $4.5 billion in August 2023. As a result, the trade deficit narrowed by 47.9% to $1.49 billion in September 2023 from $2.86 billion in September 2022. In August 2023, the deficit was $2.16 billion.

In the first quarter of the current fiscal year (July-September 2023-24), exports fell by 3.8% to $6.9 billion, while its imports declined by 25.4% to $12.2 billion, compared with the same period of the previous fiscal year. The trade deficit shrank by 42.15% to $5.29 billion in the first quarter of FY24 from $9.16 billion in the first quarter of FY23.

In FY23, Pakistan’s trade deficit fell by 43% to $27.55 billion from $48.35 billion in FY22, as total exports dipped by 12.7% to $27.7 billion and imports contracted by 31% to $55.3 billion.

The data also showed that the trade deficit in services widened by 174% to $463 million in July-August 2023-24 from $169 million in July-August 2022-23 due to higher demand for foreign services as the economy reopened.

From July to August 2023-24, Pakistan spent $1.6 billion on the services it hired from abroad and offered its services of $1.14 billion. Similarly, in the same period last year, exports were $1.1 billion and imports of $1.28 billion. During these two months, exports increased by 2% while imports up by 24.7%. In August, services exports were valued at $600 million, while imports amounted to $789 million, resulting in a deficit of $189 million.

In July 2023, exports were at $535 million, imports at $809 million, and the deficit at $274 million. During the month under review, services exports increased by 12.14%, and imports decreased by 2.45% compared to the previous month. Comparing August 2023’services trade performance to the same month of the previous year, exports were up by 2.34%, and imports also increased by 9.1%.

Business

SFD and Pakistan Sign Two Deals Totaling $1.61BLN

Published

2 days ago

Farwa

Two agreements totaling $1.61 billion have been inked by Pakistan and the Saudi Fund for Development to improve their bilateral economic cooperation.

Business

Saudi Arabia and Pakistan sign an MOU to strengthen their auditing industry collaboration.

Published

2 days ago

Farwa

A spokesperson for the office of the Auditor-General of Pakistan (AGP) announced on Monday that the two countries have signed a Memorandum of Understanding (MoU) to strengthen cooperation in public sector auditing through improved cooperation between audit institutions of both countries, as well as training programs and the exchange of trainers.

This comes as a group from Saudi Arabia’s General Court of Audit (GCA), headed by GCA President Dr. Hussam bin Abdulmohsen Alangari, arrived in Pakistan on Sunday for a four-day visit.

The agreement was signed during AGP Muhammad Ajmal Gondal’s meeting with the Saudi delegates, aiming to strengthen audit cooperation, enhance knowledge-sharing, and improve governance, transparency and accountability in government spending.

Public relations officer Muhammad Raza Irfan of the AGP’s office told Arab News that the deal will further advance bilateral collaboration between Saudi Arabia and Pakistan in addition to enhancing professional ties between the two nations’ auditing institutions.

In a statement released from his office, AGP Gondal was cited as saying, “This collaboration marks a significant step toward fostering international cooperation in auditing.”

“The exchange of ideas and methodologies will undoubtedly strengthen our capacity to meet emerging challenges and set new benchmarks for public accountability.”

Discussions at Monday’s meeting focused on fostering closer ties between the Supreme Audit Institutions (SAIs) of Pakistan and Saudi Arabia, sharing innovative audit methodologies, and planning collaborative initiatives for the future, according to the AGP office.

The two parties decided to increase their knowledge of theme, environmental, and impact audits as well as to exchange best practices in audit standards, performance audits, and citizen participation audits.

The statement added, “It also agreed to exchange trainers, address new auditing challenges, plan cooperative audits, including a performance audit on the oil and gas sector in 2025, and work together on training programs.”

Both sides reaffirmed their shared commitment to promoting transparency, accountability and excellence in public sector auditing.

Business

The government chooses to continue the PIA privatization process.

Published

2 days ago

Farwa

The Pakistan International Airlines (PIA) privatization process will be restarted by the federal government, and expressions of interest would be requested within the month. Officials stated that the Prime Minister’s Committee on Privatization will convene to make the final decision.

Usman Bajwa, the secretary of the Privatization Commission, gave a briefing on the updated procedure to the National Assembly Standing Committee on Privatization. Additionally, he disclosed that airlines other than PIA are now able to compete with regional carriers thanks to IMF-approved aircraft tax concessions.

Farooq Sattar, the chairman of the privatization committee, underlined the importance of giving PIA workers at least five years of job security. Employee protection will continue to be a top priority and will be resolved prior to bidding, the Privatization Commission promised.

PIA’s liabilities totaling Rs650 billion have already been assumed by the government, and an additional Rs45 billion in outstanding debts must be paid before the privatization process can begin. As of the now, PIA has assets around Rs155 billion and liabilities worth Rs200 billion. It will be necessary for the new buyer to expand the fleet by 15 to 20 aircraft.

Additionally, the Privatization Committee has sought a timeline for the privatization of Faisalabad, Gujranwala, and Islamabad Electric Supply Companies. Officials stated that after the appointment of a financial advisor, the privatization process for these companies will accelerate.