Recent times have witnessed Pakistan underscore a renewed emphasis on shifting toward an export-bias economy. However, even after the last government’s unprecedented focus, Pakistan’s exports compared to India remain relatively insignificant. According to the Organization of Economic Complexity’s estimates, India’s exports of products stood at $284 billion compared to Pakistan’s $25.5 billion in the year 2020. The difference becomes more apparent when the exports of the two countries are compared to the Muslim trading partners.
In the year 2020, according to the OEC’s estimates, Pakistan’s exports to the United Arab Emirates were valued at $1.09 billion, whereas India’s exports to the same were valued at around $18.1 billion. Similarly, Pakistan’s exports to Saudi Arabia were valued at $516 million, whereas India’s exports to Saudi Arabia were valued at $6.37 billion.
Comparison of 🇮🇳 & 🇵🇰's exports to Muslim countries
— Economy of Pakistan (@Pakistanomy) May 17, 2022
Read More: Pakistan’s exports increased by 43%
Moreover, Turkey, Iran, Egypt, Iraq, and Qatar are also major trading partners of India whos exports to the countries are valued at $4.78 billion, $2.24 billion, $2.25 billion, $1.46 billion, and $1.34 billion, respectively. In contrast, Pakistan’s exports to the same countries registered a stark difference as the exports were valued at $0.39 billion, $3.2K, $0.08 billion, $0.02 billion, and $0.18 billion, respectively. Cumulatively, India’s exports to the aforementioned countries valued at $43.79 billion compared to Pakistan’s measly $2.3 billion exports.
Analysts argue that in order for Pakistan to compete in the international market and become a competitive geoeconomic state as envisioned in the country’s first-ever public National Security Policy, the country would have to significantly reduce the electricity cost per unit and increase the gas availability to the industrial sector of the country. Moreover, Pakistan would also have to shift towards a knowledge base economy and focus on emerging technologies such as Artificial Intelligence, Data Science, and other related fields.
It is pertinent to mention that Pakistan’s I.T. exports in F.Y. 21-22 were valued at around $2.5 billion, whereas India’s I.T. exports in the corresponding period stood at around $140 billion.
Separately, Indian exports touched $670bn in FY22 as services hit a record $250bn. In contrast, According to the data released by the Ministry of Commerce, Pakistan recorded exports worth $23.22 billion in the first nine months of the current fiscal year. Moreover, Pakistan has also been struggling to cope with the burgeoning trade deficit. Last month, the Pakistan Bureau of Statistics released data that showed that the trade deficit had reached a whopping $35.39 billion during July-March FY2022.