Home »Top Stories » July-February: exports post 11.66 percent growth

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  • Mar 10th, 2018
  • Comments Off on July-February: exports post 11.66 percent growth
The country''s exports have posted a growth of 11.66 per cent during first eight months (July- February) 2017-18 to $ 14.854 billion against $ 13.303 billion during the corresponding period of 2016-17. In February 2018, exports achieved a growth of 16.5 per cent to $ 1.902 billion against imports of $ 4.797 billion, showing an increase of 9.72 per cent.

Exports have been rising since June 2017 and this trend continued during February 2018 when the highest monthly growth was achieved. In February of the current fiscal year, exports posted a 16 % increase in dollar terms and 22% increase in rupee terms, in comparison to February 2017, says an official statement issued by the Ministry of Commerce and Textile.

According to the Commerce Division, the current year''s export performance has contributed additional forex inflows of around $ 1.5 billion during the first eight months and is expected to generate an additional $ 2.5 billion during the remaining period of the fiscal year. Increase in economic activity in external sector reflects an increase of 0.8% of GDP, or an additional around Rs 280 billion of income to trade, industry, agricultural sectors and resultant additional employment.

The Ministry claims that these results have been achieved due to the export-friendly policies and incentives of the government and the renewed efforts towards seeking better market access by the Ministry of Commerce. The positive trend in the international demand and exchange rate correction are also expected to help sustain this rising trend in the coming months.

Imports have also responded to the steps taken to check the surge in consumer goods inflows since past few years. The imposition of Regulatory Duties on 355 non-essential consumer items by ECC on the proposal by Ministry of Commerce resulted in a reduction in the imports of these goods by 16%, while the FBR revenue registered an increase. However, since the large chunk of imports comprises essential goods such as fuels and edible oil, affected by rising price trend since July 2017, the impact of reduced imports of non-essentials, is being offset. Imports of machinery and raw materials, essential for economic growth, also contribute to the gap in the balance of trade.

However, despite all these pressures, the increase in imports has been only 9.7 % during February 2018 as compared to February 2017, bringing down the trade deficit by 21% from $ 3.636 billion in January 2018 to $ 2.895 billion in February 2018.

However, imports in July- February 2017-18 stood at $ 39.131 billion, as compared to 33.392 billion in the same period of 2016-17. The figures show that trade deficit was 23.67 per cent or $ 24.277 billion during this period.

Copyright Business Recorder, 2018


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