Currently Reading: Pakistan Experienced Trade Surplus With Italy For The First Time Ever
Pakistan has long suffered from the incessant brunt of ineffective economic policies resulting in hard to comprehend losses. The fiscal year of 2018-19 proved to be extremely unhealthy for Pakistan’s economic setup as a whole. However, PTI government took legitimate steps in this regard and forced many countries to invest a fortune in Pakistan. The government recently announced country’s latest achievement in the trade market with one of the biggest economies of the world, Italy. Pakistan experienced trade surplus with Italy for the first time ever. The tables have turned quite a bit because Pakistan earned a healthy $210 million profit in trade with Italy, as compared to $164 million in deficit in the fiscal year of 2018-19.
Pakistan has achieved a trade surplus of $210 million with Italy during the fiscal year 2019-20 as compared with a trade deficit of $164 million during 2018-19. pic.twitter.com/tPmNxzE66I
— Developing Pakistan (@DevelopmentPk) July 25, 2020
Trading With Italy
Pakistan and its people are seriously defamed for their sheer reliance on imported goods, completely disregarding the focus on local industry which results in a trade imbalance where the cost for imports rises higher than the revenue earned by Pakistani goods that are exported to other countries. This has changed quite a bit in the phase of the most recent fiscal year as Pakistan exported about $731 million worth of goods to Italy, while imported only about $521 million from Italy, according to Pakistan’s Ambassador to Italy Jauhar Saleem.
Pakistan’s major exports to a country home to luxury brands like Gucci and Versace are mainly leather, textile, rice and ethanol. Rice is one of the most exported products from Pakistan, famous worldwide for the long grain and great taste as well as visual appeal. Pakistan is surprisingly the leader in international rice market and it holds 38% share in the Italian rice market. Jauhar Saleem also mentioned that Thailand held a 12% share with $19 million export and India at number three held 10% with 17 million.
The Ambassador took pride in mentioning his talk via web-link that Pakistan had managed to achieve this great surplus revenue amidst one of the most challenging times for the entire mankind, Corona-virus pandemic. Where every country has suffered to unbounded extents economically, Pakistan’s business community managed to come out on the top. He also said that Pakistan had recorded a 45% increase in Italian investment in June 2020.
Pakistan’s Future With Italian Business Community
Mr. Jauhar Saleem when asked, told that the Italian business giants had invested in energy, chemicals, pharmaceutical companies and Information Technology (IT). He said that majority of the investments were recorded in the energy sector and Italy also plans to invest in the renewable energy sector of Pakistan in the near future. The ambassador informed that Italy has become the largest contributor from the European Union in home remittances to Pakistan. He said that in fiscal year 2019-20, Italy registered 29% growth which is in fact, far higher than our national growth in remittances to put the value in some context.
Pakistan is working to expand Italian interests to dairy and livestock, the construction sector, olives and olive products, processed food, plastic. The actual forum for bilateral economic engagement between the two countries is expected to meet in Rome in the last quarter 2020.
We hope Pakistan keeps up to this positive trend in the future as well.
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