Pakistan exports and remittances surpass $2b from Italy
Pakistan’s Ambassador to Italy, Jauhar Saleem, stated that Pakistan’s exports to Italy and remittances to Pakistan surpassed 2 billion dollars in 2021-22, marking the highest annual growth in the country’s history.
The ambassador stated that Italy had become the seventh largest export market for Pakistan in the world, with record growth in export volume of $1,146 million.
He added that remittances from Italy were also on track to reach a billion dollars in the near future, with a total of $857 million during the year.
During the financial year 2021–2021, Pakistan’s exports and remittances from Italy surpassed $2 billion, breaking multiple records for growth. During the record-breaking year, Italy also experienced a substantial increase in FDI.
Moreover, June 2022 also set a record for the highest export volume to Italy in a single month, surpassing $ 144 million, according to him.
Italy experienced the greatest growth in both worker remittances and exports among the top ten export destinations of Pakistan.
This phenomenal growth in exports and remittances has occurred at a time when European economies in general and the Italian economy, in particular, are decelerating and facing multiple challenges as a result of the Ukraine war.
In the fiscal year 2021-22, exports to Italy increased by 46 percent to $1.15 billion, while remittances increased by 41 percent.
Pakistan’s Ambassador to Italy, Jauhar Saleem, lauded Pakistani exporters for their initiative and hard work, as well as the Pakistani diaspora in Italy for standing by the country in the face of a particularly challenging economic climate.
Pakistan exports to Italy in the financial year 2021-22
During the fiscal year 2021-22, Pakistan posted a record-breaking trade surplus of $573 million, a 91 per cent increase from the previous year.
Pakistan posts record trade in the Covid-hit Italian market
According to the envoy, exports of plastic products increased by 208 percent, exports of sporting goods by 80 percent, exports of leather by 42 percent, exports of home textiles by 36 percent, and exports of clothing by 35 percent.
The ambassador also disclosed that Pakistan’s exports of footwear to Italy increased by 19 per cent during the year, making Italy the third largest export market for Pakistani footwear, despite the pandemic’s impact on the global footwear market, which led to a decline in demand.
Italy is also the fifth largest importer of Pakistani home textiles and the sixth largest importer of Pakistani garments.
Ambassador Saleem added that, with the resumption of market activity in Italy following the removal of pandemic-related restrictions, the Pakistan Embassy in Italy was stepping up its efforts to connect Pakistani businesses with Italian firms in order to sustain exports and FDI growth.
Pakistan received Italian investment in the sectors of food processing, chemicals, construction, leather, footwear, energy-related equipment, and information technology during the most recent fiscal year.
Joint ventures between Pakistan and Italian firms
In addition, the Ambassador disclosed that recent joint ventures between leading Pakistani and Italian footwear companies enabled technology transfer, international marketing expertise, and supply chain management for Pakistani companies.
In addition, Italy offered technical assistance in the agricultural sector, particularly for olive and olive products. Similarly, Italy is establishing an evidence-based assessment and monitoring system for glaciers in Gilgit Baltistan to support efforts to reduce the risk of Glacial Lake Outburst Floods (GLOF) and hydrogeological hazards in mountainous areas.
Italy allows workers to work in Italy in 2022
Ambassador Jauhar Saleem added that Italy has announced that 69,700 seasonal workers from select countries will be permitted to work in Italy in 2022.
Pakistan has already been included in the Italian Seasonal Work Visa Programme for 2022, which will provide our agricultural and service workers with numerous employment opportunities in Italy.
In response to a long-standing demand from Pakistani workers, the Italian government has recently reduced processing times for work visas.
With a record increase in remittances over the past three years, Italy has become the EU’s largest contributor to this financial sector. In 2021-22, Italy alone accounted for approximately 25% of the total EU worker remittances to Pakistan.
The envoy stated that the dynamic diaspora in Italy contributed to the highest growth in workers’ remittances among all remittances destinations worldwide, making Italy Pakistan’s eighth largest destination for remittances globally and the first within the EU.
In consideration of the Italian labour market conditions and employment opportunities for Pakistani workers, the growth momentum could be sustainable by connecting more Pakistani workers to the Italian job market.
