The government’s new plan to make a deal with GCC nations could boost Pakistan’s exports.
In the first half of this year, Pakistan’s exports Increased more towards the Middle East. The State Bank of Pakistan’s new report says exports went up by 32.33 percent, reaching $1.506 billion. Last year, it was $1.138 billion.
The surge in exports to the Middle East. Particularly in countries like United Arab Emirates (UAE), Saudi Arabia, and Kuwait, has been the main driver of this growth. However, there was a decline in exports to Qatar and Bahrain during the same period.
To further boost exports to the region. The government has taken a significant step by initiating a free trade agreement with the Gulf Cooperation Council (GCC) countries.
This agreement aims to strengthen trade relations and economic cooperation between Pakistan and the GCC member states. Specifically, there has been a substantial increase in exports to Saudi Arabia. Which rose by 48.27 percent to $328.23 million in the first half of the current fiscal year.
Similarly, exports to the UAE saw a significant surge of 37.93 percent, reaching $1 billion compared to the same period last year. However, there was a decline in exports to the UAE in the fiscal year 2023 compared to the previous year.
Pakistan’s primary exports to the UAE include a variety of products such as rice, bovine carcasses, cotton ensembles for men and boys, and fruits like guavas and mangoes. Meanwhile, exports to Kuwait increased modestly by 2.21 percent, while exports to Qatar and Bahrain declined by 14.9 percent and 1 percent, respectively.
Overall, the export performance to the Middle East marks a significant improvement compared to the previous fiscal year, where exports decreased by 12.62 percent.
Furthermore, Pakistan’s import figures also showed a downward trend, with a 7.24 percent reduction in the fiscal year 2023, indicating a positive shift in the country’s trade dynamics and potential for further growth in the international market.
