INP-WealthPk
Pakistan’s trade with Qatar grows by 18% in 7 months
February 23, 2023
Raza Khan
Pakistan’s bilateral trade with Qatar increased by 18.41% during the first seven months (July-January) of the current fiscal year (2022-23), WealthPK reported. The volume of bilateral trade between the two countries was recorded at 2.27 billion during the period under review compared to $1.917 billion during the same months of last fiscal year, according to the Ministry of Commerce. Pakistan’s exports to Qatar were recorded at $97.7 million during July-January FY23 against $102.66 million during the corresponding period of FY22, showing a decline of 4.83%.
With a year-on-year (YoY) increase of 19.73%, imports from Qatar were registered at $2.172 billion during the period under review compared to $1.814 billion during the corresponding months of the last fiscal year. Pakistan has recorded a deficit of $2.075 billion in its trade with Qatar during the first seven months of FY23. Pakistan can reduce its trade deficit with Qatar by increasing exports. However, imports from Qatar are unlikely to be reduced as Pakistan imports bulk of natural gas from the Gulf country.
According to Pakistan Business Council (PBC), Pakistan has the potential to increase its exports to Qatar to at least $2 billion within a few years. The overall bilateral trade potential is around $5 billion, given Pakistan’s energy requirements, the PBC said in one of its reports.
“There are a number of products for which Pakistan has a good potential for export expansion in the Middle East, especially in Qatar, including textiles, pharmaceutical products, medical devices, sports goods including footballs, agricultural products, and technology services,” the report said. Pakistan can also send human resources to Qatar for various construction-related and other jobs, which will result in enhancing workers’ remittances, the report suggested.
The PBC also suggested the government focus on services exports to Qatar. “The top services exports of Pakistan to Qatar include IT services and fin-tech (financial technology). Exporters should be incentivised by the Government of Pakistan to compete with regional countries,” the PBC recommended.
According to the Trade Development Authority of Pakistan (TDAP), the country’s export basket for Qatar mainly consists of cereals (26.43%), other made-up textile articles (9.56%), edible vegetables (8.62%), meat (7.11%), fish (5.14%), edible fruits and nuts (4.74) and articles of apparel (3.51%). “To increase export base in Qatar’s market, it is essential to find some potential products that Pakistan already exports,” TDAP recommended.
Semi-finished products of iron and steel, floor covering of man-made textile, tufted, live sheep, and ceramic sanitary fixtures would be helpful in this regard. TDAP also suggested taking measures to enhance exports of pharmaceutical products, furniture, bedding, mattresses, machinery, mechanical appliances, electrical machinery and equipment, precious stone dust, textile and food items to Qatar.
Mohammed Tariq Yousuf, President Karachi Chamber of Commerce and Industry (KCCI), recently said that Qatar is home to large Pakistani workforce in the Gulf region. “Despite the (coronavirus) pandemic, Pakistan has sent over 53,000 plus workforce to Qatar during last three years,” he informed. The KCCI president noted that Pakistan and Qatar must work together to develop a capacity building of Pakistan’s skilled workforce to match the requirements of employers abroad.
Yousuf informed that Pakistan’s exports to Qatar were recorded at $196.6 million in FY22 compared to $149.8 million in FY21, reflecting growth of over 31% on a YoY basis, while Pakistan’s imports from Qatar rose to $2.68 billion during the last fiscal year compared to $1.32 billion during the preceding year. Urging Qatari investors to explore the opportunities available in China-Pakistan Economic Corridor (CPEC), he said that Pakistan has tremendous investment opportunities in energy, transport infrastructure, science and technology and agriculture sectors.
Credit: Independent News Pakistan-WealthPk
