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PHOTO: EXPRESS Agricultural and industrial products can be further classified on the basis of their stages of production, according to the World Integrated Trade Solutions (WITS). Agricultural consumer goods constitute approximately 57% of total exports of agricultural goods while agricultural intermediate goods and raw material account for 43% of total exports. Rice constitutes a major proportion of agricultural consumer goods. Similarly, industrial consumer goods constitute approximately 62% of total exports of industrial goods while industrial intermediate goods and raw material constitute 33%. The rest are industrial capital goods. Industrial consumer goods are destined to the developed and advanced trading partners such as the US and EU while industrial intermediate goods and raw material, particularly in the form of textile products, are destined to China and Bangladesh. In 2013, the proportion of exports of both agricultural and industrial consumer goods was lower. This not only indicates lower capacity of domestic producers, but also the desire of local suppliers of raw material and intermediate goods to sell more to the world market, where the price is more likely to be competitive. First, it is important to note that Pakistan typically produces low value-added consumer goods and its manufacturing industries have struggled in recent years due to shortage of electricity and other challenges that reduce their competitiveness relative to the rest of the world. Exports projected to grow to $28 billion in fiscal year 2018-19 Second, the prices of commodities were higher in 2013, suggesting that producers of intermediate goods and raw material may have fetched better prices by selling to foreign producers.

For the original version including any supplementary images or video, visit https://tribune.com.pk/story/1732381/2-pakistan-12-8b-untapped-potential-exports/

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