Export Competitiveness and Comparative Advantage of Pakistan’s Non-agricultural Production Sectors: Trends and Analysis

The composition and volume of global trade has witnessed significant changes during the last two decades. Trade liberalisation, rising income and technological advancements, have been the main determinants. Against the backdrop of a rapidly changing global export pattern, and the success of Southeast Asian economies, there is a strong case for Pakistan to pursue an export-led growth strategy that leads ultimately to improve living standards. However, given Pakistan’s past macroeconomic performance and its current export structure, such a turnaround would require a major structural transformation of the economy and changes in its export specialisation patterns.