The free trade agreement signed recently between Pakistan and the GCC countries has proved to be a pivotal factor in driving export growth. The agreement has led to a significant rise in Pakistan's exports to numerous GCC nations, said Mr. Waqas, Joint Secretary at the Ministry of Commerce, while talking to WealthPK. Data shows a surge in demand for Pakistani products, particularly from key nations such as the United Arab Emirates, Saudi Arabia, and Kuwait, he said. "In the first five months of year 2023, the exports increased by 28.98% to $1.257 billion. This is a big improvement from $974.50 million earned in the same period last year. It shows Pakistan is doing much better in selling things to other countries," he added. He pointed out that in the preceding fiscal year (FY23), Pakistan witnessed a contraction of 12.62% in exports to the Middle East, a total of $2.332 billion compared to $2.669 billion in the previous year. Concurrently, imports saw a decline of 7.24% to a total of $17.488 billion in FY23, down from $18.853 billion in the preceding year.

Breaking down the regional dynamics, exports to Saudi Arabia experienced a substantial increase of 50% in the first five months of FY24, reaching $275.65 million compared to $183.73 million during the corresponding period last year. Saudi Arabia, Pakistan's second-largest market in the region after the UAE, has seen exports grow by 13.1% to $503.40 million in FY23. "Despite this positive trend, exports to Saudi Arabia have remained relatively stagnant at around $500 million over the past decade, primarily due to the limited market access compared to the UAE. Key export products to Saudi Arabia include rice, bovine carcasses, tents, and textile materials," Mr. Waqas highlighted. In the UAE case, Pakistan experienced a notable 33% surge in exports during the first five months of FY24, amounting to $817.978 million compared to $614.864 million over the same period last year. The bulk of these exports, a total of $655.90 million, was destined for Dubai, representing a substantial 17.59% increase.

However, it is essential to note that Pakistan faced a 20.23% decline in exports to the UAE in FY23, a total of $1.474 billion compared to $1.848 billion in FY22. Top export products to the UAE include rice, bovine carcasses, cotton ensembles, guavas, and mangoes. Exports to Kuwait experienced a positive growth of 7.4%, reaching $51.81 million in the first five months of FY24 from $48.24 million during the same period last year. Conversely, exports to Qatar saw a decline of 15.84%, a total of $96.66 million in FY24 compared to $83.44 million in FY23. Similarly, exports to Bahrain declined by 6.35% to $29.04 million in 5MFY24 from $31.01 million over the corresponding period last year. Concluding, Mr. Waqas said Pakistan's rebounding exports to the Middle East, fuelled by increased demand from key countries and facilitated by trade agreements, signalled a positive economic momentum for the nation in the current fiscal year.

Credit: Independent News Pakistan (INP)