Pakistan`s Dismal Export Performance: A Survey of Empirical Literature

Junaid Ahmed
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Junaid Ahmed: Pakistan Institute of Development Economics

No 2025:10, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: Pakistan`s export performance has remained chronically weak despite numerous trade liberalisation efforts and its strategically advantageous geographic position. This study synthesises over three decades of empirical literature to understand the structural, institutional, and policy-related impediments to the country`s lagging exports. The evidence demonstrates that high tariffs on intermediate inputs, limited compliance with international certification standards, energy sector inefficiencies, and exchange rate volatility significantly undermine export competitiveness. These challenges are further exacerbated by a narrow export base concentrated in low-value-added textiles, ineffective subsidy schemes, and limited utilisation of trade agreements. As a result, Pakistan has struggled to diversify into higher-value-added sectors. Addressing these constraints requires coordinated reforms, including tariff rationalisation, development of certification and quality infrastructure, improvement of the business and regulatory environment, and targeted support for sectoral upgrading to facilitate sustainable export growth.

Keywords: Competitiveness; Diversification; Exports; Pakistan; Trade barriers (search for similar items in EconPapers)
JEL-codes: F13 F14 F18 F19 (search for similar items in EconPapers)
Pages: 59
Date: 2025
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