Exports plummet 54pc in April as pandemic curtails global demand for goods.

Byline: Mubarak Zeb Khan

ISLAMABAD -- Exports during the month of April plunged by 54 per cent to $957 million from $2.08 billion a year ago following the order deferrals and cancellations due to the impact of coronavirus on the global economy.

The data released by the Pakistan Bureau of Statistics (PBS) on Tuesday showed the impact of global economic slowdown mainly in the north American and European countries - top export destination for Pakistani goods - brought down the country's total export proceeds during the month.

Exports were expected to fall during the month of April as only a few buyers were honouring their import commitments with local manufacturers following the demand contraction in the wake of pandemic.

In comparison, the impact of the coronavirus during March was significantly less as exports during the month declined by 8.46pc year-on-year to $1.807bn.

The steep fall in exports during April, however, is also due to the closure of shipping lines as arrival of exports containers at ports also declined by 27pc during the month. Exporters withheld their consignments after receiving cancellation or deferment messages from their international buyers.

In addition to this, as many as 7,000 export cargo containers are currently parked at Karachi ports with nowhere to go as global shipping has also come to a halt.

Moreover, exports through the land routes were almost non-existent during the month as Iran, Afghanistan and Pakistan shutdown their respective borders to contain the pandemic.

Cumulatively, exports during July-April fell to $18.408bn compared to $19.16bn over the corresponding months of last year, indicating a decline of 3.92pc.

In order to offset some of the impact of falling exports, the government has recently allowed exports of textile masks.

On the flipside, exporters have said that they are now receiving export orders regarding anti-bacterial and anti-fungus cloth, pillows cover, medical gowns, towel, bedsheets, and masks. Provincial governments of Sindh and Punjab have also allowed industries to resume operations which spur economic activity and help increase exports.

In the pre-covid-19, the government projected exports during the ongoing fiscal year to reach $26.187bn, from $24.656bn in FY19.

Meanwhile, the imports continued their downward trend, providing some breathing space to the country despite a plunge in exports.

The data showed imports falling to $37.905bn during the first 10 months of current fiscal...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT