Arsalan Ali

Pakistan exported goods worth $987.651 million to the member countries of the Gulf Cooperation Council (GCC) during the first five months of the current fiscal, according to data available with WealthPK. However, it is estimated that the volume of Pakistan’s exports to GCC countries can reach more than $4 billion if it streamlines its supply chain and provides incentives to exporters. According to the Pakistan Business Council (PBC), the total export potential of the country to GCC members for 50 selected products is $4 billion.

The export potential of GCC countries to Pakistan is $8.8 billion. In a report, PBC notes that the language barrier causes difficulties for Pakistani exporters in obtaining licences for doing business with the GCC countries. It adds that the government has not incentivised the development of testing facilities in Pakistan where the required quality tests can be conducted in an efficient and cost-effective manner for shipping goods to the GCC markets.

Most Pakistani exporters of agricultural products are not growers themselves. As a result, they are limited in their ability to influence their supply chains, both forward and backward. The government must provide exporters with a prompt and efficient customs clearance system as well as subsidised freight charges for non-traditional products.

The volume of Pakistan’s exports to the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman, and Kuwait on a year-on-year basis reached $193.399 million in November 2022, showing a decline of 8% as compared to $210.532 million in the same month of the previous year, according to the data released by the State bank of Pakistan. Import from GCC countries stood at $8,078.388 million during the first five months of the current fiscal. A trade deficit of $7,090.737 million was recorded with GCC countries. UAE remained the top destination of Pakistani goods followed by Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

Export from Pakistan to UAE dipped to $107.886 million in November 2022 as compared to $124.642 million in the same month of the previous year, showing a decline of $16.756 million on a year-on-year basis. Export to UAE was recorded at $557.791 million, registering a decline of 2% as compared to $570.530 million during the corresponding period of the last financial year.

Data from the UN Comtrade database shows that major export items from Pakistan to UAE include meat and edible meat offal, cereals, articles of apparel, edible fruits, nuts, peel of citrus fruit, melon, other made textile articles, sets and worn clothing. Import goods from UAE include mineral fuels, oil distillation products, iron and steel, plastics, ship, boats and other floating structures, sugar and sugar confectionery and pharmaceutical products.

Exports from Pakistan to Saudi Arabia stood at $36.965 million in November 2022, up from $36.735 million in the same month of 2021, depicting a rise of $0.230 million. During the first five months of the current fiscal, exports to Saudi Arabia grew by 12% and reached $184.017 million as compared to $163.931 million in the same period of the previous financial year.

Major export items to Saudi Arabia include cereals and other textile articles, sets, worn clothing, meat and edible meat offal, coffee, tea, spices, article of apparel, edible fruits, nuts, peel of citrus fruit and melon. Imports from Saudi Arabia include mineral fuels, oil, distillation products, plastic, organic chemical, miscellaneous products, iron and steel, fertiliser, aluminum and lead.

In November 2022, export from Pakistan to Qatar declined by 15% and dipped to $15.856 million as compared to $18.743 million in the same month of last year. However, exports to Qatar during the first five months of the current fiscal showed a rise of 10% and reached $83.444 million as compared to $75.463 million during the same period of the previous financial year.

Major export items to Qatar include ships, boats and other floating structures, meat and edible meat offal, edible vegetables and certain roots and tubers, plastics, fish, crustaceans, aquatics invertebrates, edible fruits, nuts, peel of citrus fruit and melon. Import items from Qatar include mineral fuels, oils, distillation products, plastics, miscellaneous chemical products, organic chemicals and rubber.

Pakistan’s export to Oman grew by 13% and reached $15.219 million in November 2022 as compared to $13.410 million in the same month of the previous year. The total volume of export from Pakistan to Oman grew by 18% and reached $83.141 million during the first five months of the current fiscal as compared to $70.665 million in the same period of the previous financial year.

Cereals, edible vegetables and certain roots and tubers, sugars and sugar confectionery, edible fruits, nuts, peel of citrus fruit, melon, meat and edible meat offal and electrical and electronic equipment are Pakistan’s major export items to Oman. Import items from Oman include mineral fuels, oils, distillation products, iron and steel, plastics, ships, boats and other floating structures, aluminum and organic chemical.

Pakistan’s export to Kuwait was recorded at $11.777 million in November as compared to $11.590 million in the same month of the previous year, showing a rise of $0.187 million. However, export to Kuwait declined by 9% and dipped to $48.248 million during the first five months of the current fiscal as compared to $53.158 million during the corresponding period of the last financial year.

Meat and edible meat offal,  textile articles, sets, worn clothing, fish, crustaceans, molluscs, aquatics invertebrates, oil seed, oleagic fruits, grain, seed, fruits, salt, sulphur, earth, stone, plaster, lime and cement are Pakistan’s major export products to Kuwait. Import goods from Kuwait include mineral fuels, oils, distillation products, organic chemicals, plastics, iron and steel.

Export to Bahrain in November 2022 reached $5.696 million against $5.412 million in the same month of the previous year, showing an increase of $0.284 million. The volume of total export to Bahrain was recorded at $31.010 million during the first five months of the ongoing fiscal, showing a rise of 28% as compared to $24.270 million during the same period of the previous financial year. Major export items from Pakistan to Bahrain include meat and edible meat offal, cereals, edible vegetables, certain roots and tubers, tobacco and manufactured tobacco substitutes and plastics.

Credit : Independent News Pakistan-WealthPk