Trade and economic cooperation between Ukraine and the Islamic Republic of Pakistan

06 May 2020 14:00

Trade, economic and investment cooperation

Pakistan is a developing, import-dependent, agrarian-industrial state with a chronic deficit of the foreign trade balance. The major share of GDP ($340.64 billion) is the service sector (61.4%), namely retail and wholesale trade (18.17%) and transportation, communication (12.31%). The commodity production sector accounts for 38.6% of GDP, and is evenly distributed between industry (19.29%) and the agricultural sector (19.31%).

GDP growth in 2023 amounted to +0.29%

Inflation rate: 29.2%

Unemployment rate: 6.3%

According to the Trade Development Authority of Pakistan, in fiscal year 2023, the country's turnover amounted to USD 83 bln; the value of Pakistani exports amounted to USD 27.7 bln, while imports - USD 55.3 bln. The negative balance of foreign trade amounted to USD 27.6 bln.

The main trade partners of Pakistan in 2023 are: USA, China, UK, the Netherlands.

Main export items: textiles (knitted goods, clothes, bed linen), food (rice, fruits, vegetables).

According to the geographical structure, the largest importers to Pakistan are China, UAE, Indonesia, Saudi Arabia, etc.

Pakistan's imports consist mostly of energy and raw materials, namely oil and refined products, agricultural products, engineering, food and metal products.

Pakistan is an important economic partner of Ukraine in the South Asian region.

In 2021, Pakistan ranked 27^th among Ukraine's trading partners in the world in terms of exports, and in the Asia-Pacific region - 5.

In 2021, bilateral trade in goods reached USD 751.21 mln (+ 82.4%), including Ukrainian exports USD 658.37 mln (+ 98.8%), Pakistani imports USD 92.84 mln (+ 14.2%), the positive trade balance for Ukraine amounted to USD 565.52 mln.

According to the State Customs Service of Ukraine, in 2022 the volume of bilateral trade amounted to USD 181.73 mln, which decreased by 73.7% to the previous year of 2021.

Ukrainian exports to Pakistan amounted to USD 126.27 mln, which is 79.1% less than in the corresponding period of 2021. The import of Pakistani goods to Ukraine decreased by 63.4% and amounted to USD 55.46 mln.

In 2022, exports of services from Ukraine to Pakistan reached USD 11.1 mln (+250%). Imports of services from Pakistan amounted to USD 1.2 mln (-19.4%). The positive balance for Ukraine amounted to USD 9.9 mln. The volume of trade in services reached USD 12.3 mln (+200%).

During 2023, trade between Ukraine and Pakistan increased by 221% and amounted to USD 613.2 mln. Ukrainian exports to Pakistan amounted to USD 58.6 mln, which is 54% less than in 2022. The import of Pakistani goods to Ukraine increased by 768% and amounted to USD 554.6 mln. The balance of bilateral trade in 2023 was negative for Ukraine - USD 496 mln.

As of first half of 2024, the turnover between Ukraine and Pakistan amounted to USD 148.3 mln. Ukrainian exports to Pakistan amounted to USD 104.7 mln. The import of Pakistani goods to Ukraine amounted to USD 43.6 mln. The bilateral trade balance has been positive for Ukraine at USD 61.1 mln.

The main groups of exports to Pakistan in 2023:

wheat (77%): ↓-32%; USD 45.4 mln;

other goods (10%): USD 6.3 mln;

dried legumes (5%): ↓-45%; USD 2.9 mln;

medicines (4%): USD 2.3 mln. (not exported in 2022);

oil and oil products (1.1%): ↑+548; USD 0.65 mln.

The main groups of imports from Pakistan in 2023:

other goods (86%): USD 475.6 mln;

textile materials and products (11%): ↑+64%; USD 62.5 mln;

plant products (1%): ↓-60%; USD 5.3 mln;

leather products (0.6%): ↓-25%; USD 3.6 mln;

medical and surgical devices (0.3%): ↑+50%; USD 1.8 mln.