Pakistan’s merchandize exports have shown double-digit growth rate of 10.5 percent in the first half of 2024-25. This must be deemed a good performance for two reasons.

First, this is significantly faster than the growth rate in the corresponding periods of 2023-24 and 2022-23, of 5.2 percent and negative 5.7 percent, respectively, and second; world trade has lacked buoyancy and shown growth of only 3.3 percent in 2024.

There has been some variation in performance of the different segments of exports. Agricultural exports have shown the fastest growth, which has approached 20 percent. Next in performance are exports of textiles, with a growth rate of just over 10 percent. Exports of other manufactures have shown a relatively low growth rate of 5 percent.

The buoyancy of agricultural exports is due to the extraordinary growth in rice exports of over 35 percent. This was attributable to the bumper crop of almost 10 million tons, which was 34 percent higher. Also, India had temporarily introduced a ban on rice exports which created more space for Pakistan’s exports of rice.

The double-digit growth in textiles exports in July to November 2024 was concentrated in value-added textiles. Knit wear exports increased by 19 percent while the increase in readymade garment exports was even higher at 21 percent.

The rise in both these exports is due both to price and........

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