Pakistan’s Textile Reliant Export Industry
The sports goods industry is a worthy, (but not so worthy) rival to agriculture and textile-based exports, with PKR 65,000 million worth of exports in the last year.
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The country’s import-export gap is hidden from no one. Throughout the years, many have called on the governments to focus on export industries to save Pakistan from the current account deficit. However, innovation is severely lacking in industries' approach to solving this problem. In the past 5 years or so, Pakistan has mainly relied on textiles and agriculture to generate greenback. However, considering the incoming shortage of raw materials such as cotton, the threat of a widening deficit increases.
In the past few years, many policy measures and administrative issues have hindered the sports industry to grow. For instance, the energy crisis in the country has caused increasing costs for businesses that have little left to invest in innovation and development of their product. Additionally, the lack of skilled human resources is another threat to the sports industry. Due to rising demand and market-driven competition, many producers have shifted from handmade goods to manufactured goods. However, trained operators are hard to find, and again extra training adds to the cost of a business. Moreover, a limited domestic market for the goods doesn’t promise a bright future for the industry.
On the other hand, an affinity with the status quo has led the government to rely on agriculture for the majority of its exports. The country’s primary contributor to GDP. Many have already raised issues with regressive technologies and abrasive fertilizer use. But heavy reliance on raw exports has been unable to prepare Pakistan for the crisis that is to follow.
GRAPHICS OF THE DAY
Pakistan's sports industry's and agriculture produce share in exports has been decreasing, whereas, textiles takes the lead.
Thus raising speculations for FY 23!
The trade deficit is represented by a negative trade growth rate.
Imports exceed exports in both cases (World vs. Pakistan) with Pakistan plummeting significantly more.
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