Pakistan's Quarterly Tech Exports Have Jumped Over 6-Fold Since 2010

Pakistan's quarterly technology exports reached $635 million in the first quarter of the current fiscal year 2021-22, up more than 6 times since the first quarter of fiscal year 2009-10. The nation's overall quarterly merchandise exports have been relatively flat at about $6 billion average during this period. 

Pakistan's Tech Exports 2010-2021. Source: Arif Habib

Monthly technology exports soared 36% YoY to $ 215 million in September, 2021 from $158 million in the same month last year.  During 1QFY22, technology recorded exports of worth $ 635 million (40% of overall services’ exports), up by 43% YoY. 

Recent Tech Exports FY 2021-22. Source: Arif Habib. 

Pakistan also recorded the highest ever monthly exports average of $2.23 billion in fiscal year 2020-21 as textile and garment exports jumped 22.94% to reach $15.4 billion in Fiscal Year 2020-21 (July 2020-June 2021), according to data from Pakistan Bureau of Statistics.  At the same time, the country's technology exports surged 47% to set a new record of $2.12 billion for the last fiscal year that ended in June 2021. Pharmaceutical exports also saw 25.3% growth to $241 million in the first 11months of FY 2021, indicating Pakistan's export diversification with higher value added goods and services. 
Overall Monthly Exports 2007 to 2021

Overall, Pakistan's exports of goods for fiscal 2020-21 rose 13.7% to $25.63 billion. The nation's service exports increased 9.2% to $5.93 billion in fiscal 2021. Combined exports of goods and services added up to $31.56 billion in July 2020 to June 2021 period. 
Pakistan Tech Exports. Source: Arif Habib Ltd. 


Imports grew 23.2%, much faster than exports as the economy recovered from the COVID-induced slump, widening the trade gap in the process. Energy demand drove imports of oil and gas to new highs. 

Pakistan Current Account Balance. Source: Arif Habib Ltd. 

During the last two fiscal years,  Karachi has accounted for 51% of Pakistan’s exports, Lahore came in 2nd with 18%, Faisalabad 3rd with 12% and Sialkot 4th with 8.5%. 

Pakistan's Exports by Cities. Source: FBR

Record inflow of nearly $30 billion in remittances from overseas Pakistanis helped reduce the current account deficit to $1.85 billion in FY 2020-21. It's down 58.4% from $4.45 billion in FY 2019-20. 

Overseas Pakistanis' remittances represent 10% of the country's gross domestic product (GDP). This money helps the nation cope with its perennial current account deficits. It also provides a lifeline for millions of Pakistani families who use the money to pay for food, education, healthcare and housing. This results in an increase in stimulus spending that has a multiplier effect in terms of employment in service industries ranging from retail sales to restaurants and entertainment. 

Over 10 million Pakistanis are currently working/living overseas, according to the Bureau of Emigration. Before the COVID19 pandemic hit in 2020,  more than 600,000 Pakistanis left the country to work overseas in 2019. The average yearly outflow of Pakistani workers to OECD countries (mainly UK and US) and the Middle East has been over half a million in the last decade. 

 
Pakistan ranks 6th among the top worker remittance recipient countries in the world.  India and China rank first and second, followed by Mexico 3rd, the Philippines 4th, Egypt 5th and Pakistan 6th.  
 
Pakistan's technology sector is in the midst of an unprecedented boom. It is being fueled by the country's growing human capital and rising investments in technology startups. A recent tweet by Swedish fund manager Mattias Martinsson captured it well when he wrote, "Have followed Pakistan for 15 years. Can't recall any time time when VC activity was anywhere near we've seen in the last few months. Impact of reforms kicking in?".  New laws have made it easier to create startups and offered greater protection to investors.  Digital infrastructure has expanded with over 100 million smartphones and an equal number of broadband subscriptions. 
 
Soaring LNG prices are now adversely affecting Pakistan's balance of payments and threatening the nation's post-COVID economic recovery.  Pakistan's trade deficit has widened to nearly $12 billion in July-September 2021 quarter, up more than 100% from the same period last year. The nation's heavy reliance on expensive imported energy has been the main cause of prior balance of payments crises that have forced it to seek IMF bailouts more than a dozen times in the last 70 years. 
 
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Views: 51

Comment by Riaz Haq on October 20, 2021 at 12:26pm

Overseas Pakistanis sent the highest-ever $8 billion remittances during the first quarter of the current fiscal year, registering a growth of 12.5 per cent over the same period last year.

https://www.dawn.com/news/1650949

The State Bank of Pakistan (SBP) on Friday reported that with inflows of $2.7bn in September, workers’ remittances continued their strong momentum and remaining above $2bn since June 2020.

“This is the 7th consecutive month when inflows recorded around $2.7bn on average,” said the SBP. In terms of growth, remittances increased by 17pc in September compared to the same month last year, while comparing with August inflows it was 0.5pc higher.

The surging imports in 1QFY22 widened the trade deficit putting immense pressure on the rupee-dollar exchange rate which ultimately reflected in higher current account deficit. The situation for the economic managers is not comfortable except the higher remittance supported the economy beyond imagination.

The country had received record remittances of $29.4bn in FY21 which helped it curtail the current account deficit.

“The proactive policy measures by the government and SBP to incentivise the use of formal channels, curtailed crossborder travel in the face of Covid19, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year,” the central bank said in statement.

Comment by Riaz Haq on October 20, 2021 at 12:32pm

Overseas Pakistanis sent the highest-ever $8 billion remittances during the first quarter of the current fiscal year, registering a growth of 12.5 per cent over the same period last year.

https://www.dawn.com/news/1650949



The highest remittances were received from Saudi Arabia but they were 2.6pc less than the same period of last year. During July-September 2021-22 the remittances from Saudi Arabia were $2.025bn against $2.080bn last year. The contribution of Saudi Arabia in the total remittances during the first quarter of FY22 was almost 25pc. In September, Pakistan received $691m from the kingdom against $694m in the same month of last year.

The remittance from the United Arab Emirates was second highest as it witnessed a growth of 8.7pc while it amounted to $1.545bn during the first quarter of FY22.

The inflows from UK and USA noted a growth of 13.2pc and 32pc amounting to $1.115bn and $836m respectively. The growth in the first quarter of FY21 was 71.5pc for UK and 63pc for USA.

For the first time, the inflows from EU countries surpassed the total inflows from other GCC countries. The inflows from EU countries rose $889m compared to $880.7 from the GCC countries. The remittances from EU countries increased by 47.8pc compared to the same period of last fiscal year.

Comment by Riaz Haq on November 5, 2021 at 7:16pm

#Pakistan #exports register record in October 2021, rise 17.5% to $2.47 billion, highest ever for month of Oct. During the July-Oct 2021 period, Pakistan's exports grew by 25% to $9.468 billion, compared to $7.576 billion during the same period last year.
https://www.dawn.com/news/1655336

Pakistan’s exports posted a 17.5 per cent growth in October, rising to $2.471 billion as compared to $2.104 billion in Oct 2020.

"This is the highest-ever export [figure] in any October in our history," a statement issued by the Ministry of Commerce said on Monday.

It added that the export target for Oct 2021 was $2.6 billion.

During the July-Oct 2021 period, Pakistan's exports grew by 25pc to $9.468 billion, compared to $7.576 billion during the same period last year. The ministry's target for July-Oct 2021 was $9.6 billion.


Meanwhile, during the Jul-Oct 2021 period, imports rose by 64pc to $24.99 billion as compared to $15.19 billion during the same period in 2020.

"About 40pc of this increase is investment-driven (capital goods, raw material and intermediates), which indicates [an] expansion of industry and enhanced activity by industry," the ministry said.

The remaining 60pc of the imports were made up of petroleum, coal and gas (34pc); vaccines (11pc); food (8pc); consumer goods (2pc); and all others (5pc). "Most of this is inelastic in nature," the commerce ministry noted in its press release.

In absolute terms, the net increase in imports over the four-month period was $9.801 billion. This comprised consumer goods worth $239 million, food $823 million, capital goods $1.620 billion, raw material and intermediates $2.209 billion, petroleum, coal and gas $3.364 billion, vaccines $1.068 billion, and all others $478 million.

Trade deficit rises 109.4pc YoY
According to commerce ministry data, the trade deficit in Oct 2021 rose 109.4pc over the same month last year. It was $1.803 billion in Oct 2020 and more than doubled to $3.775 billion in Oct 2021.

Similarly, the trade deficit in Jul-Oct 2021 stood at $15.525 billion as compared to $7.617 billion during the same period in 2020 — registering an increase of 103.8pc.


Comment by Riaz Haq on November 19, 2021 at 9:06am

Pakistan Receives $635 Million by Exporting the Information Technology Services

https://www.phoneworld.com.pk/pakistan-earns-635-million-by-exporti...


The Pakistan Bureau of Statistics is a federal agency of the Government of Pakistan tasked with providing reliable and comprehensive statistical research as well as commissioning national statistics services. According to figures from the Pakistan Bureau of Statistics (PBS), the exportation of Information Technology services increased by 40.90 percent between July and September 2021, rising from $348.4 million in the previous financial year to $490.89 million this year. During the first quarter of the financial year 2021-22, Pakistan earned more than $635 million by supplying various IT services to different countries

-------------
Ovais
@Sabbandkardo
·
2h
Pakistan IT Exports in OCT 2021 were 195 M$
The momentum of IT exports persisted and IT exports are projected to reach around 2.5 B$ by FY end .
Pakistan should aim to reach 5 B$ soon
#PakistanMovingForward

https://twitter.com/Sabbandkardo/status/1461707968664285188?s=20

Comment by Riaz Haq on November 19, 2021 at 2:31pm

From Twitter:

Arif Habib Limited
@ArifHabibLtd

During Oct’21, technology exports was up 29% YoY to $ 195mn. During 4MFY22, technology recorded exports worth $ 830mn contributing 39% to the overall services’ export and marking a 39% YoY jump.

@StateBank_Pak

@Hammad_Azhar

@aliya_hamza

@MuzzammilAslam3

#Pakistan #Economy #AHL

https://twitter.com/ArifHabibLtd/status/1461747220114550791?s=20

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