Managing foreign trade By: Muhammad Tariq - Articles Detail
Article Details

Managing foreign trade  Back
By: Muhammad Tariq
According to State Bank of Pakistan, foreign exchange reserves held by the Central Bank declined to US$ 8.141 billion while reserves held by banks improved to about $ 4.918 billion during the week. This should be a cause of concern keeping in view Pakistan's paltry exports, which are not enough to finance imports. The situation has not turned precarious because of robust inflow of remittances, hovering around one billion US dollars a month.
One of the positive points is that exports have remained robust despite looming energy crisis. Reportedly country's export during first seven months of the current fiscal year grew by 7 per cent as compared to the same period last year. Exports during this period totaled $14.06 billion as against $13.11 billion during the corresponding period of last year. 
On the other hand, imports during July-January (2012-2013) totaled $ 25.68 billion as against $ 28.32 billion during the corresponding period of last year, showing a decrease of 2.44 %. Meanwhile, imports into Pakistan during January, 2013 amounted to $3.76 billion as against $3.67 billion in December 2012 and $ 3.69 billion during January 2012, showing an increase of 2.5 % over December, 2012 and of 3.1% over January, 2012. The main commodities of imports during January, 2013 were petroleum products ($ 692 million) and petroleum crude ($ 450 million).
On monthly basis exports during January, 2013 amounted to $ 2.02 billion as against $ 1.96 billion for December, 2012 and $ 1.91 billion during January, 2012, showing an increase of 2.7 % over December, 2012 and of 5.6% over January, 2012. Main commodities of exports during January, 2013 were cotton cloth ($ 207 million), readymade garments ($ 161 million), cotton yarn ($ 154 million) and rice ($ 246 million). 
Pakistan is often called 'cotton country' and the silver fibre continues to play a key role. Export of textiles and clothing from the country increased by 8.39 per cent during the first seven months of the current fiscal year as compared to the same period last year. 
During the month of January 2013, exports of textile products increased by 8.72 percent and 0.49 percent when compared to the exports of January 2012 and December 2012 respectively.
Export of textiles and clothing during first seven months of current financial years were recorded at $7.51 billion against the exports of $6.92 billion during the same period last year.
The major textile products contributing to this positive growth in exports included cotton yarn growing from $942.076 million to $1.248 billion or an increase of 32.44 per cent. Similarly, the exports of yarn (other than cotton yarn) increased from $22.263 million to $29.271 million, showing an increase by 31.48 per cent.
The other textile products witnessing increase in exports included cotton cloth from $1.334 billion to $1.496 billion, growth of 12.16 per cent while exports of towels increased from $376.902 million to $444.829 million, increase of 18.02 per cent. The exports of tents, canvas and tarpaulin also witnessed increase of 35.15 percent by going up from $50.274 million to 67.936 million and exports of readymade garments increased by 12.51 per cent, from $938.591 million to $1.058 billion.
Exports of knitwear increased by 0.92 per cent, from $1.197 billion to $1.208 billion while exports of art, silk and synthetic textile decreased by 17.73 per cent, from $307.503 million to $252.986 million.
Other textile products which witnessed decline included raw cotton, exports of which decreased by 58.57 per cent by going down from $208.708 million to $90.642 million. Along with this bed wear exports declined from $1.082 billion to $1.021 billion, showing decrease of 3.8 per cent. The exports of made up articles (excluding towels bedwear) increased by 6.81 per cent by going up from $322.878 million to $344.877 million. 
Back