Pakistan: 3MFY2021-21 exports mixed

Pakistan’s Federal Bureau of Statistics (FBS) has released cement and clinker export data for the first quarter (July-September) of FY2021-22. Both value and quantity of exports slid during this period on a cumulative basis compared with the equivalent months in FY20-21, but growth was recorded MoM.

Between July-September 2021, Pakistan’s cement industry earned US$55.2m of export revenue by dispatching 1.555Mt of cement and clinker overseas, compared to US$72.29m from 2.206Mt of exports in the year-ago period. The export figures represent a significant fall of 23.6 per cent in dollar terms and 29.5 per cent in volumes YoY, as reported by FBS. The same pattern was also noticed in local currency despite the depreciation of the Pakistani rupee against the US dollar during this period. The export value decreased by 24.2 per cent to PKR9.13bn (US$55.2m) from PKR12.05bn during 3MFY21-22.

However, in September 2021 export revenues rose to US$33.81m and volumes to 1.02Mt from US$9.42m and 235,203t1t, respectively during this reporting period. This export indicates a growth of 258.8 per cent and 334 per cent in terms of value and volume, respectively. Likewise, the export volume in September 2021, if compared with US$27.78m earned on the export of 820,107t in September 2020, represents a growth of 21.7 per cent and 24.5 per cent YoY.

Local research house, AKD Securities Ltd, while reviewing the export performance of the first three months of Pakistan, reports that exports were hit due to an increase in freight rates and a shortage of vessels has created supply chain bottlenecks. In addition, political uncertainty in Afghanistan has slowed down exports to Afghanistan while export to India is still suspended. However, the north contributed most to the decline in export during this period.