ISLAMABAD: Pakistan’s recent economic performance reflects a significant positive shift, as the country’s export growth has notably outpaced the increase in external debt. This development reflects Pakistan’s focused efforts to bolster its export sector, contributing to overall economic resilience. This growth is driven by strategic initiatives and robust sectoral performance.
According to the latest data from the State Bank of Pakistan (SBP), Pakistan’s total export growth has exceeded the increase in external debt over the past five fiscal years. The External Debt to Total Exports ratio has decreased to 253 percent in FY 2023-24, down from a peak of 314 percent in FY20. This indicates that export growth has been more substantial than the growth in external debt, Topline Securities said in a brief statement.
SBP reported that Pakistan’s external debt and liabilities rose by 3.4 percent, reaching $130 billion by June 30, 2024, compared to $126.142 billion the previous year. Despite this increase, the external debt-to-GDP ratio has decreased to a six-year low of 70 percent in FY 2023-24, attributed to a faster nominal GDP growth driven by higher inflation.
Key sectors contributing to this export growth include textiles, agriculture, and IT services. Textiles, traditionally a cornerstone of Pakistan’s export sector, have continued to perform strongly. The IT services sector has also emerged as a significant contributor, leveraging global digital transformation trends. Agricultural exports have benefited from favourable global commodity prices and improved production techniques.
Strategic initiatives under the Special Investment Facilitation Council (SIFC) have played a crucial role in bolstering the export sector. These initiatives have been instrumental in enhancing the competitiveness of Pakistani products and diversifying export markets. The SIFC’s efforts have helped Pakistan achieve a record $5 billion in exports, reflecting a 15 percent increase, surpassing the rate of external debt growth.
The diversification of export markets has been particularly notable, with a 20 percent rise in non-traditional markets. This diversification not only mitigates risks associated with over-reliance on specific markets but also sets a new benchmark in South Asia.
From textiles to technology, Pakistan’s diverse sectors witnessed a 10 percent growth, excelling globally with SIFC’s strategic backing. This robust performance is underpinned by the strategic backing of SIFC. The SIFC’s initiatives have contributed to a substantial boost in exports. Notably, the country’s export growth has outpaced external debt by 8 percent, demonstrating strong economic resilience and a favourable shift in the country’s financial dynamics.
According to the latest data from the State Bank of Pakistan (SBP), Pakistan’s total export growth has consistently outpaced the rise in external debt over the past five fiscal years, further solidifying the nation’s economic stability and resurgence.
Pakistan’s export achievements are gaining recognition on the global stage, contributing to an improved economic reputation. The country’s consistent export performance, supported by government policies and SIFC initiatives, is strengthening its global economic position and providing a foundation for sustainable economic progress.
