After the Coronavirus pandemic, which severely impacted the global economy, including Pakistan’s, it is now stricken by the biggest flood in recent memory. This is one of the worst economic periods Pakistan has ever had.
Exports have been a vital component of the Pakistani economy, but this sector has demonstrated a decreasing tendency, and the likelihood of a turnaround is improbable.
The export portfolio is dreadful and significantly impacts the country’s economic conditions, with widespread ramifications for the unfortunate citizens.
In addition to natural climate considerations, Pakistani exports are hampered by a lack of innovation and a high investment deficit. The export sector is dominated by a mafia-like elite that effectively controls official policies, and succeeding governments typically acquiesce to their demands without exerting pressure to raise exports in real terms.
In this regard, it is emphasised that exports are classified based on whether they are agricultural or industrial goods.
Despite the country’s largely agrarian economy, approximately 80.39 % of Pakistan’s total exports were industrial, and 19.08 % were agricultural, despite the country’s largely agrarian economy.
The remaining 0.52 per cent of the total was tied to the petroleum industry. It is important to note that the allocation between agricultural and industrial products has not changed considerably in many years, which is one of the causes of the export sector’s poor performance.
It is also important to note that Pakistan’s exquisite rice accounts for more than a third of agricultural exports. In contrast, nine of the top ten industrial exports originate from the textile industry, indicating a fundamental problem in policy planning at the highest level.
Perception is significantly impeded.
In addition, it is projected that agricultural consumer items account for around 57% of overall agricultural exports, while agricultural intermediary goods and raw materials account for 43% of total exports.
Upon examination of the contrast, it is discovered that industrial consumer items account for around 62% of this sector’s overall exports, whilst intermediate industrial goods and raw materials account for 33%.
The remaining industrial capital contributes to total exports. Many economic
According to experts, this pathetic scene will worsen if prompt action is not taken.
It is also observed that industrial consumer goods are exported to the developed world, mainly the United States and the European Union. Bangladesh and China typically import intermediate industrial goods and raw materials in the form of textile items.
Particularly Bangladesh is expanding as a market for Pakistani goods since they are of high quality and are reasonably priced. It is observed, however, that most of Pakistan’s manufactured items are of a poor value-added consumer nature and that Pakistan’s industry was unable to fine-tune its act owing to a lack of electricity and other problems that lowered its competitiveness in the global marketplace.
It is generally recognised and criticised that Pakistan’s industrial products are mostly shipped to the United States, China, the European Union, and Bangladesh, thereby limiting its export portfolio. In the comparative analysis, this restriction represents a grave threat to any economy and must be avoided at all costs.
Afghanistan, the United Arab Emirates, Kenya, Saudi Arabia, and South Korea are the most desirable destinations for the export of agricultural products. More than 36% of total exports to these nations are estimated to be agricultural.
Pakistan has an agricultural economy, and most of its exports are agricultural products, particularly in the textile and leather industries. Exporting is deemed easier.
Pakistan exports agricultural goods to countries that are located closer to it.
It was evident that the Pakistani export sector takes the safe route and avoids taking chances, such as exploring new regions and places and attempting to add new markets.
Pakistani exports went primarily to the United States, the United Kingdom, China, Afghanistan, and Germany, with an estimated $3.18 billion in exports to the United States and $1.47 billion to the United Kingdom.
It is recognised, however, that Pakistani goods do not qualify based on merit, and these exports are conducted on a quota basis in Europe.
In the United States, competition is fierce, and Pakistani exporters struggle to market their goods. The limitation of access to the region by Pakistani exporters is mostly due to factors that influential groups strongly exploit.
It is a lengthy process, but it is the only way to improve the existing export position of the country.