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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.|
|Overall Monthly Exports 2007 to 2021|
|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.
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