ector-wise Pakistan’s export base is narrow. Textiles are its largest export sector. These include items like cotton yarn, fabrics, garments and home textiles (bed wear, towels).

Traditionally, our exports have been less than half of our imports. This causes a large trade deficit. Even with significant curbs on imports currently our exports are still less than 50 percent of our import bill. The trade deficit is covered through remittances that stand at $30 billion, slightly higher than our annual goods exports.

Agricultural commodities have emerged as the second largest export sector. A significant portion of food exports comes from rice, with both basmati and non-basmati varieties. Among fruits and vegetables, mangoes, kinnow, dates and potatoes are exported. Pakistan also exports small quantities of seafoodthat include fish and shrimp products.

We are also into sports goods exports, led by football and cricket equipment. The sports goods exports are worth less than half a billion dollars. Sports exports reach this level when the demand for our footballs surges (periodically). Sports goods contribute about 2-3 percent of Pakistan’s total exports.

We are also into leather goods exports that include finished leather, leather garments and footwear. The leather goods exports have never achieved their true potential. Hundreds of thousands of animals are slaughtered on a daily basis in Pakistan. But the processing and finishing lacks quality. This results in low value being placed on our leather products. We are inefficient in producing value added leather products so that countries like India and Bangladesh beat us when it comes to the price of the products.

We also export chemicals, pharmaceuticals, fertilisers and some basic pharmaceutical raw material. There is a false impression that we have a sizable market in these sectors. The fact is that we import much more chemicals and pharmaceutical raw materials than we export and have a negligible share in the global markets in these fields.

The fertiliser export is nominal. We import phosphate based fertilisers as well as some urea to supplement the local supplies. For a few years we have been exporting cement, particularly after the massive devaluation of rupee. The export now exceeds $500 million annually.

We have the potential to increase our exports to many times the current levels. However, the exports remain stagnant due to certain factors topped by corruption. It is most unfortunate that the exporters have to grease palms to secure clearabce so that the goods can be shipped in time. If the clearance is delayed, the ship leaves without the cargo and the next ship might take a month. The exporters therefore pay bribes from the beginning to the end to ensure that the goods move smoothly.

The exporters have to grease palms to secure clearance so that the goods can be shipped in time. If the clearance is delayed the ship leaves without the cargo and the next ship for the same destination might take a month. 

There is need to find more destinations for our exports. The United States is our largest market currently, primarily purchasing textiles and apparel. China has recently emerged as a significant importer of Pakistani cotton, seafood and minerals. China is also the largest importer of non-textile goods from Pakistan. These include agricultural products (rice, seafood and fruits), minerals and chemicals. Over recent years, Pakistan has expanded its agricultural and mineral exports to China under the China-Pakistan Economic Corridor framework and preferential trade agreements.

The United Kingdom is a major buyer of textile products, leather goods and sportswear. Germany is another key market for textile products and sports goods. The United Arab Emirates imports food products, textiles and construction materials. Afghanistan is a major market for food

Non-textile exports account for around 25-30 percent of all Pakistan’s exports. Engineering goods (including machinery, automotive parts and equipment) account for around 1-1.5 percent of Pakistan’s total exports (roughly $300-500 million annually). IT has emerged as a fast growing export sector. Its exports crossed $3 billion last year. It is expected to cross $4 billion this year.

India and Pakistan are major competitors in the textile market. India is far ahead in this regard. They also compete in basmati rice, where both countries have strong global demand. However, Indian basmati (or long grain rice) yield is double that of Pakistani varieties. Only long grain rice cultivated in Pakistan using pirated Indian seed is competitive in the global market.

India offers much better finish in leather products and footwear and is far ahead of Pakistan in the international markets. Pakistan has an upper hand in the export of mangoes and citrus fruit but in vegetables India leads the way. India and Pakistan were at the same level at the start of the century in auto-parts exports. Now our auto-parts exports pale in comparison with India. India is also among the largest exports of pharmaceuticals in the world. We are behind even Bangladesh in this field.

Pakistan is a cotton-producing country. Its textile industry developed rapidly in basic textiles (cotton yarn and cotton fabric). These products add nominal value to cotton. The textile tycoons failed to convert the fabric and yarn into apparel that is the highest value added sub-sector of textiles and labour-intensive.

Small entrepreneurs developed the apparel market for Pakistan. Apparel exports now account for 45-50 percent of Pakistan’s total textile exports. The value is around $7-8 billion out of the total $15-16 billion textile export figure.

Bangladesh, a non-cotton producing country is one of the largest apparel exporters globally. Its annual apparel exports have exceeded $50 billion in recent years. The country focuses heavily on ready-made garments and benefits from economies of scale and international trade agreements. Anual apparel exports from Pakistan are equivalent to only 1.5 months of apparel exports from Bangladesh. Value addition is the only way to take textile exports to new heights.

The writer is a senior economic reporter