1. A PRESENTATION ON EXPORT INDUSTRY OF PAKISTAN
PRESENTED TO : PRESENTED BY :
DR. GURDIP SINGH PRINCE KUMAR
NANDINI TRIPATHI
ABHISHEK KUMAR
PAPPU KUMAR SHAH

2. Pakistan Capital : Islamabad Largest city : Karachi
Official language : English, Urdu
Area : Total – 881,913 km
Water – 3.1 %
Population : 199,085,847
GDP : Total – $ billion
Per capita - $ billion

3. History of Pakistan
Originally part of British India. The British used the divide between the Muslims & Hindu’s in a strategy to maintain control.
Pakistan was formed in 1947 out of partition from British controlled India.
During the split from India, a mass migration of over 15 Million. Muslims were going to Pakistan as Hindus were leaving for India.
The creation of Pakistan was tumultuous, resulting in chaos, riots, deaths & crimes against humanity. This deepened the rift between Muslims and Hindus.

4. History of Pakistan
After Partition - Pakistan & East Pakistan on the other side of India.
East Pakistan rebelled and split from Pakistan in the India/Pakistan war to become Bangladesh.
Pakistan itself is divided into four main areas: Baluchistan, North- West Frontier Province (NWFP), Punjab, & Sindh.
Another province, Kashmir, is still under dispute with India & has been the cause of war between the countries in 1947, 1965, 1971 &

5. PAKISTAN EXPORT INDUSTRY

6. Introduction
Pakistan has done fairly well economically since her independence more than six decades ago and is the 27th largest economy in the world with a per capita income of more than US$3500 in Purchasing Power Parity .
However its exports performance has been lacklustre and far below her potential, constituting a meagre 0.15% of total world exports.
It becomes all the more depressing if compared with other countries which started their development process at the same time as Pakistan and with almost the same initial conditions
During the last two decades China’s exports have increased over six fold, India's exports have grown over five times. Similarly Vietnam, Turkey and even Bangladesh have also done well in their efforts to promote their exports.
In comparison, Pakistan’s exports have increased only 2.7 times over this period, reflecting its less than satisfactory performance, placing it among the low achievers on this score.

7. Pakistan’s Exports Performance

8. MAJOR EXPORTS 1. Raw cotton, Textile products and Cotton yarn.
2. Rice.
3. Leather and leather products.
4. Carpets and rugs, Tents.
5. Synthetic textiles.
6. Surgical instruments.
7. Sports goods.
8. Readymade garments.
9. Vegetable, fruit and fish.
10. Engineering goods.
11. Chemicals and Pharmaceutical products.

9. Pakistan’s Major Exports-Composition

10. Exports of Pakistan
Exports were targeted at $18.6 billion or 12.9 percent higher than last year.
Export of food group declined by 3.5 percent.
This declined is caused by a 2.6 percent and 14.3 percent decline in exports of rice and fruits.
Export of rice declined due to lesser production caused by adverse weather condition which kept the domestic price higher.

11. Exports of Pakistan
It was more profitable to sell within the country than to export. Exports of textile manufactures grew by 0.2 percent.
Prominent among these are export of knitwear 13.9 percent, readymade garments 6.8 percent, made up articles 8.9 percent, cotton yarn 4.6 percent and towels 2.6 percent.
Exports of other textile materials registered a high double digit growth of percent.
Export of raw cotton, cotton cloth and bed wear on the other hand registered a decline.

12. Directions of Exports of Pakistan
Although Pakistan trade with a large number of countries its exports are however highly concentrated in few countries including USA, Germany, Japan, UK, Hong Kong, Dubai and Saudi Arabia which account for one-half of its exports.
The United States is largest export market for Pakistan, accounting for percent of its exports followed by UK and Germany.
Japan is fast vanishing as export market for Pakistan as its share in total exports has been on decline for one decade, reaching less than one percent from 5.7 percent a decade ago.

13. Pakistan’s Major Exports-Destinations

14. ISSUES TO BE CONSIDERED SERIOUSLY
Pakistan needs to diversify its exports not only in terms of commodities but also in terms of markets.
Heavy concentration of exports in few commodities and few markets can lead to export instability.
Other issues which need to be addressed include low value added and poor quality, obsolete use of machinery and technology, higher wastage of inputs adding to the cost of production, low labor productivity, little spending on research and development, export houses lacking capacity to meet bulk orders, inability to meet requirements of consumers I terms of fashion and design, non-adherence to contracted quality and delivery schedule, lack of marketing techniques etc.

15. SWOT ANALYSIS

16. Pakistan’s Exports-Strengths
Pakistan has a strong comparative advantage in agricultural commodities due to its soil endowment, climate, irrigation network and human force.
Growing pool of skilled human resource particularly in finance, information technology and engineering is becoming a sound base for exports of services
Extensive network of Pakistani business Diaspora with strong ethnic ties is a solid demand which needs to be scientifically cultivated
Ninth largest English speaking nation in the world facilitating its integration with global trading system

17. Pakistan’s Exports-Weaknesses
Heavy concentration on traditional resource-base and low value added products mainly produced for domestic captive market for selling at high prices, dampening the urge to export by improving quality
Relying on labor-intensive technology with limited production base of high quality manufactures due to lack of R&D culture and facilities in industrial sector of Pakistan
Increasing costs of production making our products expensive in the world markets. Delayed delivery due to energy crises and law and order/security situation
Exports of few items to limited destinations resulting in cut throat competition among our exporters fetching lower prices
Absence of a clear long-term strategy with regard to export promotion over the past six decades.

18. Pakistan’s Exports-Opportunities
Increasing world population and growing global prosperity fueling the demand for new products
Globalization with attendant expansion of markets, ease of communication and rapid transportation of goods and services
Increasing outsourcing opportunities from developed countries because of increasing costs of production there
Greater possibility of acquiring competitive advantage by importing raw material not available locally

19. Pakistan’s Exports-Opportunities
Award of the Generalised System of Preferences Plus(GSP+) status on 1st January 2014 is expected to provide a further boost to the country’s growth prospects through increased trade and foreign investment with the EU.
Relocation of industries from developed countries to developing countries in the wake of global restructuring
Joint venture agreements with businessmen of the countries having raw material but lack expertise and resources
Growing prosperity of Pakistani Diaspora keen to buy goods and services of Pakistan

20. Pakistan’s Exports-Threats
Pakistan’s image as an exporter of low quality, low prices of selected goods and services, restricting demand for high quality products from Pakistan, a Catch-22 position
Law and order/security situation deterring the importers to visit Pakistan or participate in our trade exhibitions
Energy crises creating crises of confidence among the importers about the certainty of timely delivery of exports orders

21. Pakistan’s Exports-Threats
Emergence of strong competitors in the region in the same groups where Pakistan has the comparative edge
Increasing concerns of the importing countries about social and environmental issues- the green technologies, child labour, gender balance, bonded labour etc.
Shifting of Pakistani industrialists to other countries due to push/pull factors
Pakistan’s major export markets – the United States, the European Union, China and the Middle East – are experiencing an economic slowdown

22. CONCLUSIONS
Despite massive strides made by Pakistan in the field of economic development during six decades of existence, her export profile is not as impressive as it should have been.
Her reliance on too few exportable items and too few trading partners have made the country vulnerable to external as well as internal shocks.
Pakistan will have to expand her production base, diversify it on need basis and craft an aggressive long term export strategy
She also need to rationalize her economic policies in sync with this strategy making concerted efforts to enhance our exports by diversifying them, finding new markets and encouraging value addition to our exportable items.

23. THANK YOU