Amir Khan

In a remarkable development on the economic front, Pakistan witnessed an impressive 64% surge in agricultural and food exports during the initial half of the ongoing Fiscal Year 2023-24, strategically narrowing down the trade deficit, Joint Secretary of Commerce Mr. Waqas told WealthPK. The growth in agriculture and food exports played a pivotal role in the overall merchandise exports, which experienced a commendable 5.17% increase and reached $14.98 billion in 1HFY24, he said. Official data reveals that the cumulative exports of agricultural and food products skyrocketed to $3.847 billion from July to December 2023-24, compared to $2.345 billion in the corresponding period last year. “Concurrently, imports plummeted by 16.28% to $26.13 billion from the prior $31.21 billion during the same period last year,” he added. The nation's heavy reliance on agri-food proved instrumental in achieving a higher growth rate in the overall exports. It contributed to a notable 34.3% reduction in trade deficit, which now stands at $11.14 billion for the first half of the fiscal year. However, despite the impressive quantity growth in agri-food exports, data reveals that the prices did not increase proportionately. The most substantial revenue was generated from rice exports, experiencing an impressive 96% surge.

He pointed out that the export of rice reached $1.64 billion during 1HFY24 — a significant leap from the $841 million recorded in the same period last year. Exporters anticipate that with governmental support to cultivation and market exploration, rice exports could potentially breach the $3 billion mark by the end of the fiscal year, with an ultimate earning potential of $10 billion. Rice exports, in terms of quantity, saw a vigorous 71% increase, with prices fetching a 15% premium compared to the previous year. Despite the high quality of rice, Pakistan lags behind Vietnam and Bangladesh in the global market. He highlighted that maize exports soared threefold to $262 million from $85 million in the corresponding period last year. The exports of sesame seeds and ethyl alcohol surged by 273% and 497%, respectively. Sesame seed exports reached $364 million compared to $98 million last year, while ethyl alcohol exports jumped to $259 million from $43 million. The meat export sector showed a noteworthy 23% increase, reaching $239 million in July-December 2023-24 compared to $195 million in the same period last year. He concluded that not all sectors witnessed growth, as the export of animal or vegetable fats and oils saw a significant decline to $15 million from $51 million in the first half of FY23.

Credit: INP-WealthPk