Islamabad: In the last four months amid the Coronavirus outbreak, Pakistan had faced a decline in exports. Fortunately, there is a gradual increase in the exports of Pakistan in May.
According to the Pakistan Bureau of Statistics:
” In May, Pakistan’s exports fell for the third consecutive month, falling 33.6 percent year-on-year to $1.39 billion from $2.09 billion in the same month last year.”
Compared to the shortfall of 54pc in April, when exports fell to $957 million. The monthly revenue in May outperformed due to a gradual recovery in textile and clothing shipments to international markets.
North America and European countries are the higher exporters for Pakistani goods. Due to the global lockdown amid COVID outbreak the country’s export demand has declined badly.
Reasons behind the revival of Exports
Whereas the data showed an increase in the exports for May by 45.35pc. One of the certain reasons for the increase in exports is the revival of international markets due to ease in lockdown.
Many of the international orders were canceled in the last four months due to the strict lockdown all over the world.
Moreover, the government eases the lockdown in Pakistan and allows exports through land route also. Exports are allowed through land route for Iran and Afghanistan. This resumption is playing a major role in the improvement of the overall exports of Pakistan.
Overall, exports during July-May fell to $19.79 billion from $21.25 billion in the same month last year. This indicates a decrease of 6.87pc.
The government allowed the Punjab and Sindh industries to resume their actions and play their vital role in elevating the economy. Further, the government allowed the exports of personal protectives.
On the contrary, the exporters kept complaining about not receiving orders for anti-bacterial and anti-fungus clothing, pillows cover, medical gowns, towels, bedsheets, and masks.
However, this pandemic brings a liquidity crunch for exporters. The government of Pakistan decides to release some funds as well as cash subsidies to overcome this crux.
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