Pakistan increases cashew import demand

After the first 5 months of 2024, Vietnam exported more than USD 660,000 of cashew nuts to Pakistan. This number is expected to increase in the coming time when the importer Sharfuddin Paracha & Company raises the issue of increasing orders.

Mrs. Nguyen Thi Diep Ha, Head of the Vietnam Trade Office in Pakistan, said that cashews are one of the main agricultural products exported to Pakistan, along with tea, pepper, rubber, cassava, and seafood.

However, Vietnam's cashew export turnover to Pakistan is still limited due to geographical distance. For comparison, tea exports in the first 5 months reached more than USD 23 million, pepper more than USD 13 million, seafood more than USD 2 million, and rubber more than USD 4 million.

Cashew is Vietnam's main agricultural export product. In 2023, this item brought USD 3.6 billion, an increase of 24% in volume and 18% in turnover compared to 2022. It is forecasted that 2024 cashew exports will reach USD 4 billion.

In May 2024, Vietnam's exports to Pakistan reached USD 37,344,183, up 4.3% over the previous month. In the first 5 months of 2024, Vietnam's exports to Pakistan reached USD 168,620,206, up 12.6% over the same period last year. Vietnam's imports from Pakistan reached USD 21,769,786, up 15.5% over the previous month. In the first 5 months of 2024, Vietnam's imports from Pakistan reached USD 155,936,985, up 57.6% over the same period last year.

Pakistan has a need to export corn. In 2023, this item brought Pakistan nearly USD 350 million. More than half of Pakistan's corn exports were to Vietnam. The remaining main markets are Malaysia, Sri Lanka, and the Philippines.

According to Mrs. Diep Ha, Pakistan is a market that does not require high quality and does not have overly complicated regulations on technical standards, animal and plant quarantine standards, food hygiene and safety standards, environmental protection standards, traceability standards, labor standards, etc.

The unstable security and political situation are the obstacles to exporting to this country. In addition to inconvenient transportation and cultural differences, Vietnamese businesses have difficulty going to Pakistan to survey the market, promote products, and find customers.

Another problem is that import partners in Pakistan often lack foreign currency to pay. In addition, Pakistan customs currently stipulates that all imported shipments remaining in the port for more than 30 days will be put on the list of confiscated and auctioned.

"Enterprises exporting to Pakistan should pay attention to shipments with delayed payment, especially after 30 days from the time of arrival at Karachi port, to avoid incurring costs and fines from the port and shipping lines, or being confiscated and auctioned by customs," the Vietnam Trade Office in Pakistan noted.

Despite some remaining problems, two-way trade turnover between Vietnam and Pakistan tends to increase. In the first 5 months of the year, Vietnam's exports to Pakistan reached over USD 168 million, up 12.6% over the same period in 2023. Imports were over USD 155 million, up 57.6%.

Recently, Pakistan's Information Minister Attaullah Tarar announced that Pakistan will issue free visas to businessmen and tourists from 126 countries, including Vietnam. This decision took effect on August 14.

Visas will be issued within 24 hours and valid for 90 days. The visa application form will also be shortened to 30 items, compared to nearly 100 items previously.

Pakistani Prime Minister Shehbaz Sharif hopes the new visa policy will help Pakistan become a more attractive destination for foreign investment and tourists.

In 2024, Pakistan will have a good rice crop, with an output of 9 million tons and exported 6 million tons of rice, reaching a turnover of USD 3.6 billion. This is also the main agricultural export product of South Asian countries. Pakistan's main markets are Indonesia, Afghanistan, Malaysia, UAE...

Pakistan's GDP growth in the 2024-2025 fiscal year is expected to be around 3.6%, with industry at 4.4%, agriculture at 2%, and services at 4.1%. The investment-to-GDP ratio is 14.2%. The country's GDP grew by 2.4% in the previous year, mainly driven by agriculture (up to 6.3%).

According to the Annual Plan Coordination Committee (APCC) report of Pakistan, the national savings are targeted at 13.3% of GDP. The budget deficit is expected to come down to 12% of GDP. In 2024, Pakistan's GDP growth will be driven by agriculture due to bumper harvests of wheat, cotton, and rice. The industry will grow by 1.2%, and services will increase by 1.2%.