Arsalan Ali

Pakistan’s manufacturing group exports grew by 18.4% to reach $4.105 billion in the previous financial year 2021-22 (FY22), up from $3.467 billion in FY21, WealthPK reports, quoting the data released by the Trade Development Authority of Pakistan.

(TDAP).

TDAP/WealthPK research

The manufacturing sector in Pakistan is mainly made up of small and medium enterprises, surgical, fans, auto, light engineering, footwear, plastics and gloves. On quarterly basis, the manufacturing sector exports grew 25% to reach $1.122 billion during the fourth quarter (April-June, Q4) of FY22 from $896 million in the same period of FY21.

The sector reflected a growth of 6% in Q4 of FY22 compared to Q3 of the same year.

TDAP/WealthPK research

The TDAP report highlighted that exports of gloves, cutlery, onyx manufactured, transport equipment, particular industries, jewellery and cement decreased by 7%, 39%, 17%, 6%, 6%, 40%, and 57%, respectively, during Q4 of FY22 compared to the same period of last year.

In addition, exports of carpet rugs and mats, leather manufactured, footwear, chemical and pharmaceutical products, engineering goods, gems, furniture, guar, and guar products increased by 12%, 17%, 22%, 56%, 10%, 153%, 25%, 76%, respectively, during Q4 of FY22 compared to the same period of last year.

According to the ministry of finance, the manufacturing sector contributes 12.79% to GDP and employs 16.1% of the country’s labour force. The share of the manufacturing sector in the export of Pakistan was 13% during FY22.

According to the TDAP report, pharmaceutical products exports increased by 9% during Q4 of FY22 compared to the same period of FY21 amid surge in global demand for Pakistani medicines and personal protective equipment. There was an uptick in pharmaceutical exports to Afghanistan, the Philippines, Myanmar, Sri Lanka, South Africa, Sudan and Cambodia.

Cement exports, however, decreased by 57% to $24.6 million in Q4 of FY22 compared to $57.9 million in Q4 of FY21 owing to rising costs of fuel, electricity, coal and other raw material. Because of high cost of production, cement prices in the domestic market will continue to rise. According to the TDAP report, cutlery exports decreased by 39% in Q4 of FY22 due to higher freight costs and a lack of value addition. Meeting international standards to compete in the market also became difficult.

Sports goods exports increased by 28% during Q4 of FY22 compared to the same period of last year. The report said that Pakistan has one of the world's largest sports goods industries. International brands like Nike, Adidas, Puma, Umbro, Lotto, Wilson, Mitre, Micassa, Diadora, and Decathlon buy Pakistan’s sporting goods. The TDAP report said the government is aiding the engineering and manufacturing sectors through various schemes. Export Facilitation Scheme 2021 is one of them. The scheme addresses liquidity problems of exporters, expedites their sales tax refunds and duty drawbacks. It also helps ensure ease of doing business.

Independent News Pakistan-Wealthpk