Exports surge to $2.79 billion in May, marking a three-year high M Haris

Pakistan witnessed a significant boost in exports, reaching $2.79 billion in May. This marks the highest monthly growth in three years, with an impressive 19% increase from the previous month. This 18.76% month-on-month rise is the largest since June 2021, when exports surged by 63.32%.

According to the Pakistan Bureau of Statistics, May’s exports also showed a robust year-on-year growth of 27.08%, up from $2.19 billion in May 2023. This increase ended a four-month streak of declining export figures.

May’s imports were reported at $4.9 billion. Meanwhile, the Federal Board of Revenue (FBR) has issued Rs438.11 billion in tax rebates for the fiscal year 2024 to date. Despite the recent growth in exports, the earlier months of 2024 saw a downward trend with declines of -8.38% in January, -0.39% in February, -7.49% in March, and -1.06% in April.

From July 2023 to May 2024, Pakistan’s total exports amounted to $28.07 billion, reflecting a 10.65% increase from $25.36 billion during the same period the previous year.

The trade deficit for May stood at $2.1 billion, with imports at $4.9 billion, marking a slight year-on-year increase of 0.14%. Over the first eleven months of FY24, the trade deficit narrowed by 15.25% to $21.73 billion, compared to $25.64 billion in the same period last year.

The government aims to significantly boost exports to $100 billion by FY28. However, the International Monetary Fund (IMF) remains skeptical. During its first review of the previous $3 billion Stand-by Arrangement, the IMF projected more modest increases, with exports expected to grow from $30.84 billion in FY24 to $39.46 billion by FY28.

In a positive development, the Federal Board of Revenue reported a 38.98% increase in tax refunds and rebates, issuing Rs438.11 billion during the first eleven months of FY24, compared to Rs315.22 billion in the same period last year.

This recent surge in exports, combined with improved tax rebates, offers a hopeful outlook for Pakistan’s economy despite ongoing challenges.