Pakistan’s export to Italy grew by 49 percent to $786 million during FY 2020-21 – the highest ever in the history of Pakistan – despite the fact that the Covid-19 pandemic had hit the Italian market.
Pakistan’s Ambassador to Italy Jauhar Saleem said Pakistan posted a trade surplus of $300 million with Italy in Fiscal year ended June 30, which is 49 percent higher than the previous year’s figure, according to a statement of the embassy shared with the media.
Italy has been among the first countries in Europe that were severely hit by the pandemic. Italian GDP fell as low as 9.6 percent in 2020, which is the highest fall since World War-II. Moreover, Italian imports from non EU countries declined 14 percent.
However, despite these difficult conditions, Pakistan has not only recovered from the pandemic led export challenges but it has registered impressive growth of 9.1 percent in FY 2020-21, said Mr. Saleem.
The trade surplus has been created by export enhancement and import contraction, the Ambassador said. The value added sectors were the main drivers of this growth, he added.
While responding to a question, the Ambassador said that despite the Indian false claim over Basmati`s exclusive Geographical Indication (GI) rights in the EU and Italian market, Pakistan maintained its position as market leader in rice with 37.4 percent share whereas India supplied only 12 percent of the total imported rice in Italy.
Workers’ remittances from Italy reach all-time high
In addition, workers’ remittances from Italy during FY 2020-21 reached $601 million, which is an all-time high figure, Jauhar Saleem added. He said this is 66 percent higher than $369 million recorded during FY 2019-20. This made Italy, Pakistan`s 7th largest destination for workers’ remittance globally and No.1 from the EU.
Saleem expected this growth streak to continue in the FY 2021-22.
Pak-Italy seek new dimensions to enhance economic ties
The Ambassador further said that Pakistani-Italian bilateral relations are looking at new dimensions to enhance mutual cooperation and economic activities in different sectors.
Negation between the two countries on enhancing cooperation in the fields of trade, labor market, tourism, agriculture, energy, investment, innovation and skills and media sectors are in the final stages, Jauhar Saleem said.
Italy and Pakistan have agreed in principle to negotiate a labor agreement that will give Pakistan comprehensive market access to Italian labor market.
Mr Saleem said Pakistan has been included in the Italian Seasonal Work Visa for 2022, which would offer immense opportunity for “our labor force working in agriculture and services sectors to come and work in Italy with legal entry mode,” he went on adding.
The ambassador further said that Italian firms are investing in energy, food processing, leather, textile, construction, and furnishing. Once, he said, the travel restrictions are eased there will be an increased number of Italian investors visiting Pakistan, hopes Saleem.