The Ministry of Commerce has announced a new five-year policy to take the country’s exports to $57 billion by the year 2025. Under this new policy, the Government’s target is to increase exports, including textile, leather, rice, food, beverages, fruits, and vegetables. The government also aims to increase exports of surgical instruments to $810 million. The government has set a monitoring system and formed an executive committee for the implementation of the trade policy.
Recently, there has been a record increase in Pakistan’s exports to the United States and China during the fiscal year 2021. The substantial increase in the export sector is due to the fall in the exchange rate of Pakistan. A lower exchange rate causes a decrease in the export prices which increases the demand for exports. A rise in the productivity of a country also contributes to increasing the demand for exports.
The country’s exports comprised largely of cotton-related goods like garments and textiles. If Pakistan continues to make quality ready-made goods from raw materials like cotton and rayon, the country can expand its export base to even more countries in Europe and other continents.
The export sector of Pakistan plays an important role in economic growth. Growing export sales provides revenues and profit for business which can then feed through to an increase in capital investment spending. Higher investment increases a country’s productive capacity which then increases the potential for export.