INP-WealthPk
Pakistan’s exports to Latin American countries show significant surge
September 10, 2022
The export of different items from Pakistan to several countries in Latin America showed a significant increase in the first month of the current fiscal, WealthPK reports. However, the exports can be further increased by removing obstacles to trade and signing agreements with these countries.
The government needs to take concrete steps to explore the potential for trade with the countries in Latin America. Pakistan exported goods worth $19.729 million to Brazil, Chile and Argentina in the first month of the current fiscal as compared to $17.143 million in the same month of the previous financial year.
The data released by the State Bank of Pakistan (SBP) shows that the exports to Brazil and Chile grew by 38% and 13%, respectively, while exports to Argentina declined by 13% in July 2022 as compared to July 2021. The volume of exports to Brazil from Pakistan reached $7.961 million in July 2022 as compared to $5.773 million in July 2021.
The exports to Chile stood at $8.188 million in July 2022 against $7.236 million in July 2021, while the exports to Argentina were $3.580 million in July 2022 as compared to $4.134 million in the same month of the previous fiscal.
On the other hand, the volume of imports from Brazil to Pakistan stood at $104.726 million. The imports from Chile were $1.922 million and from Argentina $26.213 million in July 2022. During the period under consideration, trade with Chile was in Pakistan’s favour as trade surplus was $6.266 million. The trade deficit with Brazil and Argentina was $96.765 million and $22.633 million, respectively.
The export of different goods to Brazil from Pakistan during the last financial year was $102.958 million. The exports to Chile and Argentina stood at $109.671 million and $47.361 million, respectively, during the previous fiscal. The latest report of the Trade Development Authority of Pakistan (TDAP) shows that the country has the potential to boost its exports to Brazil by more than $180 million, to Chile by $140 million and to Argentina by $65 million.
It said that Pakistan had significant potential for trade with Latin American countries but high freight costs, unfair taxation and lack of trade agreements were the main obstacles enhancing trade with these countries.
According to the report, textile products and cotton are Pakistan’s top export items to Brazil. Import items from Brazil include oil seeds and oleaginous fruits, cotton, iron and steel and sugar confectionery.
It said that Pakistan’s export items to Chile included bed linen, articles of clothing, men’s outfits and instruments and appliances. Import items from Chile include wood pulp and inorganic chemicals.
Main export items from Pakistan to Argentina include man-made staple fibres, cotton woven fabrics, sports items and toys. Import items from Argentina include animal or vegetable fats, cotton, cereals and iron and steel goods.
It said that Pakistan could save more than $310 million by importing more items from Brazil, Chile and Argentina.
“Pakistan can increase its exports to more than $390 million from just $260 million by negotiating preferential trade agreements with any of these three countries and addressing domestic obstacles, particularly the issues of textile and pharmaceutical sectors,” said the report, available with WealthPK.
Credit : Independent News Pakistan-WealthPk
