Arsalan Ali

The export of food items from Pakistan increased by 6% during the first quarter of the current fiscal as compared to the corresponding period of the previous financial year, WealthPK reports.

The data released by the Trade Development Authority of Pakistan (TDAP) shows that the export of the food group reached $1.078 billion during the first quarter of the current fiscal against $1.019 billion during the corresponding period of last year, depicting a rise of $59 million.

However, compared to the fourth quarter of the previous fiscal, the export of food items declined by 27% in the first quarter of the current financial year.

The report shows that the export of agro-food items forms a significant portion of foreign exchange earnings because they provide raw materials for other industries to use as inputs and contribute positively to the country’s economy.

The export of all agro-food items has shown significant growth in the first quarter of the current fiscal. However, the import of rice decreased by 5%, fruits by 31%, spices by 19%, and oil seeds by 18% during the first quarter of the current fiscal as compared to the same period of the previous financial year.

The report shows that fish and fish preparation, vegetables, tobacco, meat and meat preparation are the major export items of the food group. It says that the export of the food group declined in the first quarter of the current financial year as compared to the fourth quarter of the previous year due to the recent flash floods, which devastated crops standing on millions of acres in Pakistan.

The export of rice declined by 5% and dipped to $402 million in the first quarter of current fiscal as compared to $423 million during the same period of the previous fiscal. As compared to the fourth quarter of previous year, the export of rice declined by 44% as its volume was recorded at $719 million.

The devaluation of the Pakistani rupee against the US dollar has affected Pakistan’s rice competitiveness in the world market.

The export of meat and meat preparation grew by 22% and reached $95 million as compared to $78 million during the first quarter of the previous fiscal. The export of meat increased by 2% as compared to the fourth quarter of the previous year when it stood at $93 million.

The export of fish was recorded at $80 million as compared to $57 million in the first quarter of the previous fiscal, showing a rise of $23 million. However, the export of fish witnessed a decline of $41 million when compared to the fourth quarter of the previous year.

The report shows that the export of fruits declined by 31% and dipped to $79 million in the first quarter of the current fiscal against $114 million in the same period of the previous year. As compared to the fourth quarter of the previous fiscal, the export of cotton cloth declined by 3% when it stood at $82 million.

The major increase in transportation and logistics costs owing to instability in Afghanistan is cited as the main reason for the decrease in the export of fruits. The data from the UN Comtrade database on international trade shows that agricultural goods are major export items from Pakistan to Afghanistan. In 2021, Pakistan exported fruits worth $53.98 million.

However, the exports of vegetables from Pakistan grew by 44% and reached $72 million in the first quarter of the current fiscal as compared to the same period of the previous financial year when it was recorded at $50 million. During the fourth quarter of the previous fiscal, vegetable exports stood at $69 million.

The export of tobacco was recorded at $14 million in the first quarter of the current fiscal against $8 million in the same period of the previous year, showing a growth of 75%. However, the export of tobacco showed a decline of 7% when compared to the fourth quarter of the previous fiscal.

A decline in the export of spices and oil seed, nut, and kernel was observed in the first quarter of the current financial year as it was recorded at $19 million and $37 million, respectively, as compared to the same period of the previous fiscal when it stood at $23 million and $45 million, depicting a decline of $4 million and $8 million.

The export of all other food items amounted to $280 million in the first quarter of the current fiscal against $221 million during the same period of the previous financial year, showing an increase of 27%, according to the report available with WealthPK.

Credit : Independent News Pakistan-WealthPk