Pakistan Exports Plummet By $1.34 Billion Amid Economic Challenges

In a concerning development for Pakistan's economy, the country's exports have dropped significantly, with a total decline of $1.34 billion during the first seven months of the current fiscal year, falling from $19.58 billion to $18.19 billion, marking a 7.11% decrease. This downturn is largely attributed to weak global demand and domestic production challenges, particularly in the food sector, which saw a staggering 35% drop in exports. Despite this, the textile sector showed a slight improvement, with exports rising by 1.25% due to increased sales of raw cotton and ready-made garments. However, the economic landscape has deteriorated further as Pakistan's stock market experienced a historic sell-off in February, erasing trillions of rupees in investor wealth and challenging the government's claims of economic stabilization. The benchmark index at the Pakistan Stock Exchange plummeted from a high of 189,166 points on January 23 to around 165,000 points, a drop of more than 24,000 points, reflecting a loss of approximately 2.4 trillion rupees in market capitalization. Analysts attribute this downturn to a combination of factors, including a court ruling on the government's super tax and heightened security concerns following coordinated militant attacks in Balochistan, which have raised fears about the stability of major development projects like the $7 billion Reko Diq mining initiative.