Pakistan's export trap and revealed comparative advantage

Business Recorder reported that Pakistan's exports totalled USD 30.67 billion in 2025, a 0.12 percent share of global exports valued at USD 25.61 trillion. The analysis says the country's shipments are concentrated in a narrow band of textiles, agro-food and a few manufactured goods. Bed linen alone accounts for 14 percent of national exports, with USD 4.42 billion shipped from a global market of USD 23.6 billion.

Men's suits and rice push the concentration further, and together with bed linen they make up nearly one-third of export earnings. The article warns that this dependence leaves the economy vulnerable to setbacks in those sectors. Woven cotton fabrics, cotton yarn and leather apparel also show strong specialisation, while pharmaceuticals, telephone sets, tractors and motorcycles all record disadvantages.

The article argues that Pakistan's success lies in labour-intensive cotton textiles, leather goods and some agro-food items, whereas the export base has not diversified into higher-value lines. It calls for upgrading existing strengths into branded and sustainable products, and for diversifying into footwear, processed foods and pharmaceuticals, supported by stable policies and skills investment. According to Business Recorder, the window to act is open but will not remain so indefinitely.