Pakistani exports are serious in comparison to imports for a long time which has led to a significant imbalance in the economic equations of the country.
The pressure imposed by rising imports forced the financial administrators to attempt to reduce the pressure by taking administrative measures. There was a reduction in imports that slightly improved the balance of payments.
However, it is widely thought that the enormous possibilities of $12.8 billion in untapped export opportunities isn’t being utilized and inadequate measures are employed to tap into the export portfolio.
The overall growth portfolio was positive and all sectors saw growth.
Exports decrease by 23.95 percent, and trade deficit of 46 percent for July
The major increase was noted in the food industry which was up by an impressive 31%, which demonstrates the enormous potential of this industry. The manufacturing goods sector, too, was up by a respectable 17% and also showed the potential for growth in this sector.
An excellent note is the growth in exports of unmilled sugar and wheat. However the growth of textiles was slow, at 8%, but the sector has been experiencing problems for a while.
In continuation of their excellent run, the exports of knitwear and readymade clothing were up by 10% and 12% respectively, giving a very positive impetus.
In this regard was the increase in raw cotton, which was up by 39%, proving how Pakistani cotton was able to hold its own in a highly global market.
Furthermore, exports of chemical and pharmaceutical goods showed a growth of 36 percent.
The main factors that are believed to be responsible for the increase in the growth of exports could be the large export subsidies as well as the depreciation of currencies. The currency devaluation was anticipated to boost the growth rate of exports however it’s not known how much of the expansion is offset due to the decline in value of the currency.
Another aspect that is believed to boost export growth is the dramatic increase in the supply of electricity for manufacturing industries specifically.
Exports are classified by categorizing them into industrial and agricultural products. The research shows that 80.39 percent of the total exports to Pakistan were industrial while 19.08 percent of them were agricultural items.
The exquisite rice of Pakistan accounts for more than a third of total exports from the agriculture sector. 90% of top 10 industrial items are from the textile sector.
According to estimates, consumer items comprise approximately 57% of all exports of products belonging to the agricultural industry. intermediate agricultural goods and raw materials comprise 43% of all exports.
On the other hand industrial consumer products account for around 62% of the total exports from this sector , whereas industrial intermediate products and raw materials make up 33 percent.
The remainder is classified in the category of industrial capital items, and they make a small contribution to total exports.
Bangladesh especially is growing slowly as a market for Pakistani products as they are
They are well-made and can be purchased at a reasonable price.
However, it’s evident that the products produced in Pakistan tend to be of a low value-added nature. The industry was not able to refine its operations due to the lack of energy as well as other factors that diminished their overall competitiveness on the global market.
The industrial products of Pakistan are mainly exported to the US, China, EU and Bangladesh. The countries with the most appealing designs where export products related to agricultural products are are
Afghanistan, the UAE, Kenya, Saudi Arabia and South Korea.
According to estimates, over 36% of the total exports to these countries are agricultural in nature.
It’s evident since Pakistan is an agrarian country and the bulk of its exports relate to agricultural products, particularly in the leather and textile sector.
It is believed to be simpler to export agricultural goods to countries nearer to Pakistan in terms of distance. Pakistani exports saw the bulk being shipped towards America, UK, China, Afghanistan and Germany.
The results were positive and it is time to consider policies that are long-term to boost exports.
The indicators shown by the manufacturing sectors are extremely positive, and the industry could be further bolstered.