Export Policies of Pakistan

Exports are important to Pakistan's growing economy.

Though the progress was often overshadowed by political and social instability, between the years of 2005 and 2010, Pakistan's economy has grown substantially. A liberalized export policy has aided near steady increases in the country's exports each year and bolstered economic growth.

Main Exports

Textiles account for half of Pakistan's exports.

In 2004, Pakistan's four main exports were textiles, apparel, rice and sporting goods; these categories remain relatively constant and benefit from policies like subsidies, tariff exemptions and protection from load shedding. Textiles, meaning raw fabrics and yarns, typically account for about half of the country's total exports.

Principal Markets

Dubai is the center of Pakistan's nearest major importer of its goods.

Pakistan's main export markets are the United States, the United Arab Emirates, the United Kingdom and Germany. These four markets typically take in close to half of Pakistan's exports.

The EDF

Pakistan's Federal Minister for Commerce chairs the Export Development Fund (EDF), which supports exporting industries with subsidies and other enabling policies. The EDF states that it attempts to align its policies to mutually support other members of the so-called "Developing 8": Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria and Turkey.

India

As of 2010, political tension between Pakistan and India is heightened and volatile, and the two countries do not engage in open trade. As a result, Pakistan and Afghanistan have developed policies to lessen the situation's detriment on the region's trade. Afghanistan may import goods from India, but they must not travel by Wagah (the only road crossing the India-Pakistan border); in return, Pakistan may export goods to Central Asia by way of Afghanistan.

Currency

Five Pakistani rupees.

As Pakistan's currency is relatively weak, residents' lower purchasing power of imports can cause inflation. Policy that encourages exports is one tool to combat the resulting inflation from imports.

References

• The Word Bank: Pakistan - Policy and Performance
• "Daily Times of Pakistan" newspaper: Pakistan's export share in world trade declines to 0.13%
• Asia Trade Hub: Incentives for Exporters