Which industries to target for export?

[Menace2Society]

What industries can Pakistan target to improve capacity for exports?

Finished goods markets need to be targeted. Too much low end raw material industry at the moment.

What can Pakistan do?

Look at this. Motherboard manufacture in Taiwan.

Taiwan shipped US$317.7 billion worth of goods around the globe in 2017

1. Electrical machinery, equipment: US$141.5 billion (44.5% of total exports)
2. Machinery including computers: $36.6 billion (11.5%)
3. Plastics, plastic articles: $20.3 billion (6.4%)
4. Optical, technical, medical apparatus: $16.4 billion (5.2%)
5. Mineral fuels including oil: $10.9 billion (3.4%)
6. Vehicles: $9.7 billion (3.1%)
7. Iron, steel: $9.7 billion (3%)
8. Organic chemicals: $9.6 billion (3.0%)
9. Articles of iron or steel: $7.7 billion (2.4%)
10. Copper: $4.7 billion (1.5%)

If Taiwan can do this or Vietnam, why not Pakistan?

 

[Kabira]

Rice, wheat and cotton.

 

[Menace2Society]

Pakistan shipped US$21.9 billion worth of goods around the globe in 2017.

1. Miscellaneous textiles, worn clothing: US$4 billion (18.1% of total exports)
2. Cotton: $3.5 billion (16%)
3. Knit or crochet clothing, accessories: $2.5 billion (11.5%)
4. Clothing, accessories (not knit or crochet): $2.5 billion (11.3%)
5. Cereals: $1.8 billion (8%)
6. Leather/animal gut articles: $632 million (2.9%)
7. Sugar, sugar confectionery: $511.9 million (2.3%)
8. Optical, technical, medical apparatus: $410.6 million (1.9%)
9. Fish: $406.9 million (1.9%)
10. Salt, sulphur, stone, cement: $385.5 million (1.8%)

Pretty pathetic. Number 8 has potential? The rest is just low value.

Taiwan's Machinery including computers exports is nearly double that of Pakistan's entire export revenue!

 

[Indus Pakistan]

Pretty pathetic. Number 8 has potential? The rest is just low value.

The ex-pat workers send home about the same money as all of Pakistan's exports.

 

[Menace2Society]

The ex-pat workers send home about the same money as all of Pakistan's exports.

Its going to require extremely consistent hard work for a number of decades. What a sad sad reality. What has Pakistan been doing for the last 20 years.

A country like this should be exporting $300 billion plus.

 

[Nilgiri]

If Taiwan can do this or Vietnam, why not Pakistan?

Because you need to educate and train your workforce much more...and have good business environment with fair standards applied (so you get good quality investment and long term gestation/cultivation of such). But Pakistan has too much corruption still and there is big perception problem....and most political elite seem to be more concerned with optics and short term fixes rather than deep much needed reform.

Wheres East Asian countries by and large were able to project stability, good worker training, good bargaining power for businesses (not worried about being shaken down by whichever political thug)....and basically variant versions of the model of Japan (the original) which was proven.

It is all about getting that first chunk of 100 - 500 billion dollar capital investment over a decent spread of years and then using the buffers generated from that to invest more dynamically into new growth sectors....but you need the leadership and bureaucracy that is able to deliver that.

@Indus Pakistan @django @farhan_9909 @That Guy @Chak Bamu

 

[Menace2Society]

Lets take a look at Vietnam.

Vietnam shipped US$246.9 billion worth of goods around the globe in 2017.

1. Electrical machinery, equipment: US$94 billion (38.1% of total exports)
2. Footwear: $19.9 billion (8%)
3. Machinery including computers: $14.6 billion (5.9%)
4. Clothing, accessories (not knit or crochet): $13.8 billion (5.6%)
5. Knit or crochet clothing, accessories: $13 billion (5.3%)
6. Furniture, bedding, lighting, signs, prefab buildings: $8.9 billion (3.6%)
7. Optical, technical, medical apparatus: $5.6 billion (2.3%)
8. Fish: $5 billion (2%)
9. Coffee, tea, spices: $4.6 billion (1.9%)
10. Leather/animal gut articles: $4 billion (1.6%)

 

[Death Professor]

ye October ka month zara guzar jye, tou clarity waghera hogi, k direction kiya hai.

 

[Indus Pakistan]

Because you need to educate and train your workforce much more...and have good business environment with fair standards applied (so you get good quality investment and long term gestation/cultivation of such). But Pakistan has too much corruption still and there is big perception problem....and most political elite seem to be more concerned with optics and short term fixes rather than deep much needed reform.

Wheres East Asian countries by and large were able to project stability, good worker training, good bargaining power for businesses (not worried about being shaken down by whichever political thug)....and basically variant versions of the model of Japan (the original) which was proven.

It is all about getting that first chunk of 100 - 500 billion dollar capital investment over a decent spread of years and then using the buffers generated from that to invest more dynamically into new growth sectors....but you need the leadership and bureaucracy that is able to deliver that.

@Indus Pakistan @django @farhan_9909 @That Guy @Chak Bamu

Nah man. I would need to write a dissertation to cover this subject. Pakistan will not be able to do what East Asians have done for variety of reasons.

• The only geographic location we have that can connect with the global trading order is Karachi. Rest of the country is significant distance from ports and with inefficient transport it adds costs/problems which do not help with export industries.
• Karachi had the geographic potential but it has instead turned into a large mob city ran by a mafia. This is how it works. Every single rupee of exports and imports goes through Karachi. Various mafias in that city have become proficient at basically acting like gangsters that take their cut from this flow and make billions out of it. The culture in that city is how to scalp rather then how to export. A small elite there have made and make billions out of this extortion.
  
• Pakistani culture is driven by religion and it works against modern economic practices.Nothing in it develops the qualities needed of a modern worker. The stress is piety or pretend piety not hard work or competence. We saw example of that recently with appointment of Atif Mian a Ahmedi and how that turned into a drama. That should have been only involved economic criteria but religion exploded into the scene and sent the government scurrying.

It's going to take at least a generation before education and hyper pretend piety are sorted out.

 

[Death Professor]

Lets take a look at Vietnam.

Vietnam shipped US$246.9 billion worth of goods around the globe in 2017.

1. Electrical machinery, equipment: US$94 billion (38.1% of total exports)
2. Footwear: $19.9 billion (8%)
3. Machinery including computers: $14.6 billion (5.9%)
4. Clothing, accessories (not knit or crochet): $13.8 billion (5.6%)
5. Knit or crochet clothing, accessories: $13 billion (5.3%)
6. Furniture, bedding, lighting, signs, prefab buildings: $8.9 billion (3.6%)
7. Optical, technical, medical apparatus: $5.6 billion (2.3%)
8. Fish: $5 billion (2%)
9. Coffee, tea, spices: $4.6 billion (1.9%)
10. Leather/animal gut articles: $4 billion (1.6%)

well, unki imports dekho tou wo bhi theek thak ziyada hain. Machinery, computer etc. k liye infra structure chahiye jo k hamaray pass hai nahi, aur nahi ussay develop karnay k liye investment. What we can do put our efforts in an area where few changes can result in higher exports. Aur wo areas quite clear hain, look at Bangladesh, their exports mainly are non-knit suits sweaters etc. And that doesn't need any education or anything all it needs is a little bit managerial reforms. And you don't need to import cotton like they do.

Foot wear + clothing seedha seedha 40 B tou ye bun jata hai. Just need to focus on our strengths.

 

[Kabira]

Nah man. I would need to write a dissertation to cover this subject. Pakistan will not be able to do what East Asians have done for variety of reasons.

• The only geographic location we have that can connect with the global trading order is Karachi. Rest of the country is significant distance from ports and with inefficient transport it adds costs/problems which do not help with export industries.
• Karachi had the geographic potential but it has instead turned into a large mob city ran by a mafia. This is how it works. Every single rupee of exports and imports goes through Karachi. Various mafias in that city have become proficient at basically acting like gangsters that take their cut from this flow and make billions out of it. The culture in that city is how to scalp rather then how to export. A small elite there have made and make billions out of this extortion.
  
• Pakistani culture is driven by religion and it works against modern economic practices.Nothing in it develops the qualities needed of a modern worker. The stress is piety or pretend piety not hard work or competence. We saw example of that recently with appointment of Atif Mian a Ahmedi and how that turned into a drama. That should have been only involved economic criteria but religion exploded into the scene and sent the government scurrying.

It's going to take at least a generation before education and hyper pretend piety are sorted out.

MQM was busy at giving imaginary 70% tax revenue generation figure then actually doing something. 97% of exports look like related to agriculture.

With trade almost at standstill between India and Pakistan. And even with Afghanistan depending on political situation. Only option left is Karachi for import and exports and Gwadar in near future. Upgraded train network under CPEC can help bring cost of transportation down as trucks tend to be way to expensive in comparison.

 

[Nilgiri]

Nah man. I would need to write a dissertation to cover this subject. Pakistan will not be able to do what East Asians have done for variety of reasons.

• The only geographic location we have that can connect with the global trading order is Karachi. Rest of the country is significant distance from ports and with inefficient transport it adds costs/problems which do not help with export industries.
• Karachi had the geographic potential but it has instead turned into a large mob city ran by a mafia. This is how it works. Every single rupee of exports and imports goes through Karachi. Various mafias in that city have become proficient at basically acting like gangsters that take their cut from this flow and make billions out of it. The culture in that city is how to scalp rather then how to export. A small elite there have made and make billions out of this extortion.
  
• Pakistani culture is driven by religion and it works against modern economic practices.Nothing in it develops the qualities needed of a modern worker. The stress is piety or pretend piety not hard work or competence. We saw example of that recently with appointment of Atif Mian a Ahmedi and how that turned into a drama. That should have been only involved economic criteria but religion exploded into the scene and sent the government scurrying.

It's going to take at least a generation before education and hyper pretend piety are sorted out.

Yup I am aware of these issues, they affect large portions of region as a whole too. Genuine free market is being suppressed at the cost of enriching a small cabal (And they have entrenched themselves in politics to keep the status quo, and focus on stoking all kind of other issues to keep the masses "employed"). This is why someone needs to bring about basic enforcement of rule of law....without that, everything is basically various forms of lip service, passing the buck and typical kick the can optics.

 

[Yaseen1]

Our future is linked with agriculturew

 

[BATMAN]

If Taiwan can do this or Vietnam, why not Pakistan?

Because Pakistanis think all problems can be resolved by damm darood.
You can even become PM of Pakistan with damm darood.

Our future is linked with agriculturew

Than we are screwed already.
Hold on, I heard in future (al-hamdulilah) Pakistan is going to war with India over blocked water!

 

[Indus Pakistan]

MQM was busy at giving imaginary 70% tax revenue generation figure then actually doing something. 97% of exports look like related to agriculture.

I often hear this bloated brag even from PDF members. The reality is 200 million people export/import nearly $80 billion and most of that goes through Karachi Port. Lot of the national trading concerns have their HQs in Karachi. For instance PIA is used by all of Pakistan. Ditto Steel Mills. Just because they are based their does not mean Karachi generates the tax revenue. The tax % is of trade carried across the entire country. If I buy a car from Islamabad and it is imported through Karachi Port the % tax will collected at point of entry. That does not mean Karachi generated the revenue. The best way to see which city or region is contributing is by looking at the exports. As you said most are agri based grown across the farming country of Pakistan. Karachi is merely a transit hub. The only city that impresses me is Sialkot as clearly despite being small it generates huge amount of exports - leather, sports, surgical etc.