Highlights
- Trade between Pakistan and Australia has remained $450 – $1bn in the last 5 years
- Pakistan’s major exports to Australia include textile products, rice, iron and steel products
- Australia exports pulses, live animals, LNG and coal to Pakistan
Pakistan and Australia are not big trading partners, no surprise their bilateral trade has remained under the $1-billion mark.
However, since July 2020, there has been a constant increase in trade volume with imports and exports witnessing an increased demand.
Muhammad Ashraf, the Consul General of Pakistan in Sydney, told SBS Urdu that during the first nine months of the current financial year, Pakistan’s exports to Australia have increased by 29 per cent compared with the corresponding period last year.
“The main reasons for the increase in exports are Pakistan’s decision to open up its economy early in the wake of the pandemic compared with its competitors, the trend of diversification of supply chains by Australian importers due to coronavirus-related disruptions in them from traditional sources and the concern amongst Australian importers due to their conflict with a major trading partner,” he said.
Pakistan’s major exports to Australia consist of textile products, basmati rice and iron and steel products.
A shopper is seen browsing a retail clothing store in Brisbane, Wednesday, May 6, 2015. Source: AAP Image/Dave Hunt
Recent data supplied by the Consulate General of Pakistan in Sydney shows a significant jump in LNG and coal imports from Australia as well as a surge in exports of textile products to Australia.
COVID-19: Challenge for some, opportunity for others
The pandemic has caused the complete collapse of many industries while others are staring the face of a similar fate. While some businesses have seen devastation, many others have registered growth.
Elaborating on this, Mr Ashraf said that whilst the pandemic has “rattled the global economic order… it has brought its own set of opportunities and created new winners and losers in terms of countries, sectors and enterprises.”
“For instance, there is an increased trend of digitalisation of the workplace and service delivery mode, which has created opportunities for countries like Pakistan with a strong IT supply base especially in fintech, Internet of Things, robotics, artificial intelligence and blockchain,” he added.
Australia Pakistan trade (2010 - 2020) figures for the last ten years. Source: ABS
However, at 66 per cent, Pakistan’s main export to Australia has been its textile products.
“Since Pakistan is a major producer of textiles and garments, a large number of leading Australian chain stores and brands source them from Pakistan. During the July-March period of the current financial year, their export has increased by 28 per cent compared with the corresponding period last year. An increase of 37 per cent export of garments and 21 per cent in textile was registered,” Mr Ashraf said.
Australian is one of the major importers of Home Textile products from Pakistan. Source: Trade Developlement Authority of Pakistan (TDAP)
New opportunities
The Consul General also told SBS Urdu that they have been planning work on the post-COVID scenario and engaging with Australian businesses in new industries.
“In the post-pandemic environment, we have identified IT and IT-enabled services as one of the highest-potential sectors of exports to Australia. We have rolled out a comprehensive market penetration strategy,” he added.
As part of the strategy, a series of activities including virtual trade delegations and B2B sessions are being conducted to connect the Australian IT businesses with Pakistan’s robust IT supply base.
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