Exports from Pakistan’s manufacturing sector registered a growth of 3 percent and reached $978 million during the first quarter Q1 (July-Sep) of the current fiscal year compared to $945 million during the corresponding period of the last fiscal year, while compared to Q4 (April-June) of the Fiscal Year 22, the exports showed a decline of 13%, reports WealthPK.
According to the Ministry of Finance, the manufacturing sector contributes 12.79 percent to the Gross Domestic Product (GDP) and employs 16.1 percent of the country's workforce. The latest report published by the Trade Development Authority of Pakistan (TDAP) shows that exports from leather manufacturing experienced a negative growth of 15%, onyx manufacturing 47%, cutlery 46%, chemical and pharmaceutical products 5%, plastic material 20% and cement 16% during Q1 of FY22-23 compared to the corresponding period of the last fiscal year.
Exports of engineering goods rose by 18% to $63 million in Q1 of the current fiscal year against $53 million during the corresponding period of the last fiscal year. Exports of engineering goods in all subcategories have shown a positive growth except the machinery for particular industries which declined by 31% during Q1 of the Fiscal Year 22-23 compared to the corresponding period of the last fiscal year.
Exports of pharmaceutical products witnessed an increase of 15% and reached $84 million during Q1 of FY23 compared to $73 million during the same period of the previous fiscal due to the currency devaluation that made the demand for pharma products more competitive in the international market. The exports of pharm products however grew by 23% compared to the Q4 of the previous fiscal year.
Exports of electric fans surged by 17% to $7 million in Q1 of Fiscal Year 23 as against $6 million during the corresponding period of the last fiscal year. The fan industry is mainly located in Gujrat and Gujranwala. Exports from leather-tanned and leather manufacturers grew by 2% and 3% respectively to $45 million and $159 million in Q1 of FY23 as against $44 million and $155 million during Q1 of FY22.
According to the TDAP report, Italian investors showed a positive response for investment in Pakistan's priority sector leather, which will help increase the bilateral investment portfolio over the long run. Exports of footwear and leather footwear stood at $49 million and $41 million respectively during Q1 of FY23 as against $39 million and $32 million during the corresponding period of the last year.
Cutlery exports decreased 46% in Q1 of FY23 to $15 million compared to $28 million during the same period of the previous fiscal year. Exports of surgical instruments were recorded at $108 million during Q1 of the Fiscal Year 23, showing a growth of 10% compared to the same period of the previous year when it was recorded at $98 million.
According to the report, Pakistan is the most important global supplier of surgical instruments which are then remarketed by the western countries under their famous brands. Cement exports recorded a decline of 16% and reached $46 million in Q1 of the current fiscal year compared to $55 million during the corresponding period of the last fiscal year.
According to the All-Pakistan Cement Manufacturers Association (APCMA), exports of cement declined due to the rise in the prices of fuel, electricity, coal and other raw materials. The high cost of production led to an increase in the cement prices, thus impacting exports. The other factors that affect cement exports are political and economic instability in Afghanistan and rising international freights.
Exports of sports goods grew by 31% to $102 million in Q1 of FY23 from $78 million during the same period of the previous fiscal, while compared to Q4 of FY22, the exports showed a decline of 3%, standing at $105 million, according to the report available to WealthPK.
Credit : Independent News Pakistan-WealthPk