KARACHI: Exports to high-value markets in the US and Europe fell sharply in August, breaking the momentum of the past several months.
Shipments to the US declined by 13 per cent in August compared with the same month last year. However, exports during the first two months of the current fiscal year (July-August) still showed 9.0 per cent growth over the corresponding period of the previous year.
Pakistan faces a 19 per cent tariff on its exports to the US, compared with regional competitors Bangladesh and India, after US President Donald Trump imposed tariffs on several countries.
“The exports to the US fell because of excessive imports by American buyers during the 90-day period when tariffs were suspended,” Zubair Motiwala, a leading textile industrialist and former chief executive of the Trade Development Authority of Pakistan (TDAP), told The News.
He explained that US buyers built up inventories during that period, reducing imports from Pakistan in August. However, he expressed hope that the situation would normalisein the coming months, as higher tariffs on Indian goods remain in place.
According to TDAP data, Pakistan exported goods worth $501 million to the US in August, compared with $577 million in the same month last year.Exports to the UK fell 19 per cent to $169 million in August from $208 million in the same month of the previous year. Exports to China rose 2.0 per cent to $158 million from $155 million, while shipments to Spain increased 3.0 per cent.
Exports to Germany and the Netherlands both dropped 13 per cent, while exports to the United Arab Emirates (UAE) recorded a steep 28 per cent fall. Shipments to Belgium and Saudi Arabia also declined by 23 per cent and 24 per cent, respectively. By contrast, exports to Bangladesh and Italy rose 18 per cent and seven per cent. Overall, exports to Europe were down 9.0 per cent in August, with a 14 per cent fall in shipments to Asia. Exports to the Americas dropped 15 per cent, while sales to Africa fell 8.0 per cent. Exports to Oceania, however, grew by 4.0 per cent.
