After the covid-19 pandemic, the export sector of Pakistan performed relatively better than other emerging economies. The demand for Pakistani products in the international market increased substantially. According to the Adviser to the Prime Minister on commerce, Abdul Razak Dawood, the USA, China, and the UK were the top export destinations of Pakistani products during the first four months of the fiscal year (2021-22).
Pakistan exports cotton, cereals, articles of leather, plastics, etc to the USA. The exports of these products have increased from the last fiscal year (2020-2021). Exports to the USA, during July-October 2020-2021 were recorded at US $2080 billion, showing a growth of 33%.
Cotton, copper, cereals, fish, salt, etc are the export products to China. There is an 82% increase in the exports to China and remained at 2nd top export destination of Pakistani products. The UK was at the third export destination of Pakistani products, showing a growth of 11% percent. The export products to the UK are cotton, fruits, nuts, melons, etc.
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 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.