ISLAMABAD: Export receipts and remittances from Italy crossed $2 billion in the highest-ever annual growth in financial year 2021-22, revealed Pakistan’s Ambassador to Italy Jauhar Saleem.
The ambassador said Italy “has become the seventh billion-dollar export market” for Pakistan with record high export volume of $1.146 billion, while remittances from the European nation were also on their way towards a billion dollars with total inflows of $857 million during FY22.
“Pakistan’s earnings from Italy in the form of exports and remittances crossed $2 billion in financial year 2021-22. Similarly, a substantial growth in FDI (foreign direct investment) from Italy was also witnessed during the year,”
he said.
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June 2022 set a record in exports to Italy, which crossed $144 million in a month, he said.
The growth in exports and remittances has come at a time when European economies in general and the Italian economy in particular are slowing down and facing multiple challenges due to the
Russia-Ukraine war.
Exports to Italy were 46% higher in FY22 compared to the previous year while remittances rose 41%.
The ambassador praised Pakistani exporters for their initiatives and hard work as well as Pakistani diaspora in Italy for standing by the country in the most challenging economic environment.
Pakistan posted a trade surplus of $573 million during the financial year under review, which was up 91% than the previous year.
According to the envoy, the value-added sectors were the main drivers of export growth with shipments of plastic products increasing 208%, sports goods 80%, leather goods 42%, home textile 36% and garments 35%.
As the pandemic hit the global footwear market leading to contraction in demand, Pakistan’s exports of footwear to Italy rose 19% in FY22, he revealed.
“Italy became the third largest export destination for Pakistani footwear. It is also the fifth largest destination for Pakistani home textile and ranks sixth in garments export.”
Saleem pointed out that with the revival of market activities after the removal of pandemic-related restrictions in Italy, Pakistan’s embassy was ramping up efforts to connect Pakistani businesses with Italian firms to sustain export and FDI growth.
During the just-concluded financial year in June 2022, Pakistan received Italian investment in sectors of food processing, chemicals, construction, leather, footwear, energy-related equipment and IT.
The envoy highlighted that some of the recent joint ventures between leading Pakistani and Italian footwear firms were resulting in transfer of technology and international marketing skills, and improving supply chain management.
Moreover, Italy is providing technical support for the agriculture sector, especially for olive and olive products.
Similarly, Rome is supporting efforts being made for the reduction in risks from the Glacial Lake Outburst Floods and hydrogeological hazards in the mountainous areas by establishing an evidence-based assessment and monitoring system for the glaciers in Gilgit-Baltistan.
Italy has announced that it will open its doors to 69,700 seasonal workers from selected countries
in 2022.
“Pakistan has already been included in the Italian Seasonal Work Visa Programme for 2022, which will offer many opportunities to our workers in agriculture and services sectors,” he said.
The Italian government has also recently reduced work visa processing time, which has been a longstanding demand of the Pakistani workers.
With the record increase in remittances over the past three years, Italy has become the largest contributor to inflows into Pakistan from the European Union. In 2021-22, around 25% of Pakistani worker remittances from the EU came from Italy.
The envoy stated that the diaspora in Italy had helped post the highest growth in worker remittances among all destinations.
Keeping in view the Italian labour market conditions and employment opportunities for Pakistani workers, the growth momentum would be maintained by connecting more Pakistani workers with the Italian job market,
he emphasised.
