Pakistan’s economic growth mainly relies on its exports by receiving foreign income to finance its imports, service debt, stabilise its currency and overcome the persistent balance of payment deficit. Increasing export sales can raise capital investment spending by generating revenue and profit for business activities.
The higher investment enhances the potential for export by promoting a country’s productive capacity. According to the Bureau of Statistics, the country has experienced a rise in its exports in the initial months of the previous fiscal year. The rise in exports was due to the massive depreciation in rupee value and a steady rise in global demand.
Pakistan’s export sector needs to increase investment, reduce tariffs structure with high penetration in global markets, and increase infrastructure and technological advancement to bolster its exports. Furthermore, there is a need for rational government policies and complex incentives for the industry like other competing Asian countries that have managed growth by pursuing export-led growth strategies with high savings and investment rates.
Pakistan should capitalise on exportable services and products requiring minimal infrastructure and investments and also needs to improve export competitiveness in the global market by providing incentives to industries to move their production from low-value to high-value products.
Given the importance of exports, the government has taken several measures, including reducing duty on raw materials to promote country exports. Currently, Pakistan’s exports have experienced a rising trend by achieving a growth of 25% in the first nine months of the current fiscal year and reaching $23.3 billion from $18.6 billion.
The export sector of Pakistan is comprised of textile and non-textile products, produced mainly by resource-based, low technology, and labor-intensive industries. Pakistan’s non-textile sector has seen a growth rate of 24.28% to $9.11 billion in the first nine months of the current fiscal year (9MFY22) due to the revival of international orders and government support schemes.
Exports of leather garments and gloves have increased by 7.95% and 8.74%. Realising the fast and sustainable development of the export sector, Pakistan is committed to developing an export-oriented economy.
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