ISLAMABAD: Exports to Italy and remittances to Pakistan have surpassed US $ 2 billion, marking the biggest yearly increase in both sectors when compared to any other prospective market, BOL News reports on Thursday.
Pakistan’s profits from Italy in exports and remittances surpassed $ 2 billion in Fiscal Year 2021-2022, breaking previous milestones of growth.
A significant rise in Foreign Direct Investment (FDI) from Italy was also observed throughout the record-breaking year, according to a news release posted here.
For the year, Italy became the world’s seven billion dollar export nation for Pakistan, with a record increase in export volume to $ 1146 million, while remittances from Italy were also on the verge of reaching billion dollars, with a total of $ 857 million during the year.
June 2022 also set a new record for the biggest monthly export volume to Italy, surpassing $ 144 million.
Italy has the largest rise in worker remittances among all countries with a large Pakistani diaspora, as well as in exports among Pakistan’s top 10 export destinations.
This tremendous increase in exports and remittances has occurred at a time when European economies in general, and the Italian economy in particular, are faltering and facing many obstacles as a result of the Ukraine crisis.
Exports to Italy of $1.15 billion in the fiscal year 2021-22 are 46 percent greater than the previous year, while remittances are 41 percent higher for the same time.
During a press conference, Pakistan’s Ambassador to Italy, Jauhar Saleem, praised Pakistani exporters for their initiative and hard work, as well as the Pakistani diaspora in Italy for standing behind the country in a difficult economic environment.
He also revealed that Pakistan achieved a record trade surplus of $573 million in fiscal year 2021-22, which was 91% greater than the previous year.
According to the ambassador, the value-added industries were the key drivers of the remarkable export development, with exports of plastic items growing by 208%, sports goods by 80%, leather by 42%, home textiles by 36%, and clothes by 35%. The ambassador also stated that, even though the pandemic affected the global footwear market, which saw a contraction in demand throughout the year, Pakistan’s footwear exports to Italy increased by 19 percent in the year, making Italy the third largest export destination for Pakistani footwear. Italy is also the fifth largest destination for Pakistani home textiles and the sixth major exporter of clothes.
Ambassador Saleem further stated that, with the resumption of market activity in Italy following the removal of pandemic-related limitations, the Pakistan Embassy in Italy was stepping up its efforts to connect Pakistani businesses with Italian enterprises to continue export and FDI development.
During the fiscal year recently ended, Pakistan attracted Italian investment in food processing, chemicals, construction, leather, footwear, energy-related equipment, and information technology. The Ambassador also mentioned that recent joint ventures between renowned Pakistani and Italian footwear manufacturers were allowing Pakistani enterprises to transfer technology, international marketing capabilities, and supply chain management.
Furthermore, Italy was offering technical assistance in the agricultural sector, particularly regarding olives and olive products. Similarly, Italy is helping efforts in Gilgit Baltistan to reduce the risks of Glacial Lake Outburst Floods (GLOF) and hydrogeological hazards by building an evidence-based assessment and monitoring system for glaciers.
Ambassador Jauhar Saleem also informed the media that Italy has declared plans to hire 69,700 seasonal workers from chosen countries in 2022. Pakistan has already been included in the Italian Seasonal Work Visa Programme for 2022, which will provide many chances for our agricultural and service industry employees to work in Italy.
He also stated that the Italian government had decreased the timescales for work visa processing, which has long been a demand among Pakistani employees. With a record surge in remittances over the previous three years, Italy has become the European Union’s top contributor to this financial sector.
In 2021-22, Italy accounted for around 25% of total EU worker remittances to Pakistan. The ambassador noted that Italy’s dynamic diaspora had contributed to the biggest rise in worker remittances among all remittance destinations in the globe, making Italy Pakistan’s eighth largest remittances destination internationally and number one inside the EU.
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