ISLAMABAD: Commerce Ministry is mum on foreign trade figures of August 2020, generating speculation that silence is due to a considerable decline in exports due to recent rains in Karachi and some other factors.
Usually, Commerce Ministry releases provisional foreign trade figures on first day of each month in case of slight variation (negative or positive) in exports and substantial decline in imports. However, export figures of August have silenced the top bosses of the Ministry.
On August 26, 2020, Prime Minister's Advisor on Commerce and Investment, Abdul Razak Dawood, in a tweet stated:" it appears that because of the heavy rains, particularly in Karachi, our exports consignments are being delayed, hence exports of August may be affected."
However, exports posted over 15 per cent negative growth in August, which is unusual. It is unclear exports of which products have been affected in August despite the fact that most of the Trade and Investment Officers posted abroad, claimed in their tweets that exports have posted growth in their respective countries of posting.
Pakistan Bureau of Statistics (PBS) is expected to release provisional foreign trade figures within the next few days. However, the detailed foreign trade figures which are released during third week of each month, will unveil the sectors which are effected in August 2020.
In August 2019, a decline of 7.65 per cent in exports had been witnessed as compared to August 2018. However, exports of first two months (July-August) 2019-20 posted a growth of 2.79 per cent as compared to the corresponding period of 2018-19.
In July 2020 - first month of current fiscal year, exports posted a growth of 6 per cent as compared to the same month of 2019. However, the growth was far less as compared to growth of 16 per cent in July 2019 as compared to July 2018.
During fiscal year 2019-20, exports stood at $ 21.410 billion as compared to $ 22.979 billion of corresponding period of 2018-19, showing a decline of 6.83 per cent. Commerce Ministry had failed to achieve export target of $ 26.2 billion for FY 2019-20.
The government has missed the revenue target of August as well.
Copyright Business Recorder, 2020