Data released by central bank shows massive drop in exports to India due to frosty relations
The U.S. was the top export destination for Pakistani goods in the first half of the current fiscal year (FY2019-20), while neighboring India witnessed a massive plunge, according to data released by the State Bank of Pakistan.
The central bank’s monthly report on export receipts revealed that total exports to the U.S. during July-December 2019 stood at $2,074.168 million, against $2,018.797 million in July-December 2018, showing a mild increase of 2.74 percent. Similarly, Pakistan exported $936.858 million to China in FY19-20, compared to $889.642 million in FY18-19, an increase of 5.3 percent.
Coming in third, the U.K. received Pakistani exported products valued at $863.347 million during the first half of the current fiscal year, showing a decrease of 3.54 percent from last fiscal’s $895.074 million.
The data issued by the State Bank also revealed that the Pakistani exports to the United Arab Emirates hit $827.731 million in FY19-20, against $638.221 million in FY18-19, a substantial increase of 29.69 percent. Exports to Germany, meanwhile, were recorded at $670.833 million in the current fiscal, showing an increase of 3.64 percent against the $647.285 million recorded last year.
Additionally, the data shows, exports to Afghanistan reached $543.159 million, showing little change from the $534.654 million they stood at last year. Similarly, exports to Spain hit $445.086 million this year against $448.162 million in FY18-19.
Other major trade partners that showed little change in exports between last fiscal and this year were: Italy, which hit $386.969 million in FY19-20 against $379.409 million last year; Bangladesh at $369.313 million this year against $378.193 million in FY18-19; Belgium at $266.187 million (FY19-20) against $301.740 million (FY18-19); France at $222.013 million (FY19-20) against $228.707 million (FY18-19); Singapore at $117.594 million (FY19-20) compared to $130.160 million last year; Canada at $143.424 million against $148.368 million; and Saudi Arabia at $243.213 million against $151.389 million.
Pakistan witnessed a dramatic decrease in exports to neighboring India in the current fiscal, hitting $16.878 million against the $213.655 million that was earned last year. This is a massive drop of 92.1 percent. The reduction in exports is largely linked to ties worsening between the two nations in recent years, especially in light of New Delhi unilaterally scrapping the special autonomy for Jammu and Kashmir that had been enshrined in the country’s constitution.