Goods exports reach $2.57bn in November, marking third consecutive monthly increase

Merchandise exports sustained their upward trajectory for the third consecutive month in November, suggesting a potential turning point in the economic landscape.

According to official data, export proceeds totaled $2.57 billion, reflecting a 7.66 percent increase compared to the same month last year, which saw $2.38 billion. However, there was a 4.39 percent month-on-month decrease in export proceeds.

In the first five months of Fiscal Year 2024, goods exports rose by 1.93 percent, reaching $12.17 billion compared to $11.94 billion in the corresponding period of the previous year.

The November surge in export proceeds implies a positive trend for the textile and clothing sectors, hinting at a rebound from a year-long downturn. The full extent of this export resurgence is expected to unfold in the coming months.

Preliminary reports indicate that the overall increase in export value was primarily driven by semi-finished goods in the textile sector, while exports of value-added garments remained negative.

Additionally, in the non-textile sector, unprecedented increases in export earnings were observed for food goods, particularly rice and beef.

Despite the positive export trends, challenges persist in the textile industry. Over 1,600 textile units reportedly closed down during the previous government’s tenure. The current ministry has yet to announce a strategic framework to address issues such as regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and product diversification.

On the import front, there was a notable decline of 13.47 percent in November, amounting to $4.46 billion compared to $5.15 billion in the same month last year.

However, on a month-on-month basis, imports increased by 8.31 percent. The import bill for July-November FY24 fell by 17.32 percent to $21.55 billion, down from $26.06 billion in the corresponding period of the previous year.

Notably, imports witnessed a significant drop of 31 percent in Fiscal Year 2023, totaling $55.29 billion compared to $80.13 billion in Fiscal Year 2022. The government has projected an import target of $58.69 billion for Fiscal Year 2024, representing an increase of $3.4 billion or 8.14 percent from the previous fiscal year.

The trade deficit has shown improvement, narrowing by 33.59 percent to $9.37 billion in July-November FY24 from $14.12 billion during the same months the previous year.

In November alone, the trade deficit contracted by 31.72 percent, amounting to $1.88 billion compared to $2.76 billion in the corresponding month last year.