The export sector of Pakistan has been dominated by textile and non-textile products mainly produced by resource-based, low technology, and labour-intensive industries. The non-textile products include rice, leather, surgical instruments, sports goods, fruits, fish, vegetables, chemical and pharmaceuticals, carpets, rugs, household furnishings, and cement.
Exports play an important role in the economy by influencing economic growth, employment, and balance of payment. Currently, exports from Pakistan continue to show an upward 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. Growing export sales generate revenues and profit for business activities, promoting an increase in capital investment spending. Higher investment promotes a country’s productive capacity, increasing the potential for export.
Pakistan’s non-textile sector has experienced a growth of 24.28% to $9.11 billion in the first nine months of the current fiscal year (9MFY22), attributed to the revival of international orders and government support schemes. The value-added goods have led to the overall growth of the non-textile sector. As a result, three of the country’s export categories have experienced growth, including leather garments, rice, and engineering goods.
Exports of leather garments increased by 7.95% and leather gloves by 8.74%. The export of engineering products has recorded a growth of 2.80% year-on-year in FY22. Moreover, rice export has witnessed a growth of 14.96% year-on-year to $1.79 billion. Furthermore, the government has introduced several measures, including reducing duty on raw materials to promote pharmaceutical, plastic, chemicals, engineering, and value-added textile products exports.
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