Shahid Sattar and Amna Urooj

Industrial economic size refers to the scale or size of industrial activities within an economy, typically measured by the total output, employment, or capital investment of the industrial sector. It is a key indicator of the level of economic development and competitiveness of a country or region. The size of the industrial sector can vary greatly between countries, depending on factors such as natural resources, labor force, technological advancements, infrastructure, and government policies.

A larger industrial economic size can provide several benefits, such as higher productivity, employment opportunities, and economic growth. However, it also requires significant investment in infrastructure and technology, as well as skilled labor force to sustain its operations.

Some of the features of the economic size of Pakistan’s textile industry include:

1. Limited Scope: Efficiency, Innovation and Sustainability are the key elements that indicate the scope of an industry. An efficient industry can produce high-quality textiles at a lower cost, allowing it to offer competitive prices in the international market. In contrast, an inefficient industry may struggle to compete, leading to lower revenues and reduced growth potential. Innovation is also critical for the textile industry’s long-term success.

Limited access to capital in the industrial sector of Pakistan, coupled with unprofessional managers, results in low productivity for several reasons. Firstly, without adequate access to capital, industrial units are unable to invest in modern technologies, equipment, and infrastructure that can boost productivity. Secondly, unprofessional managers may lack the necessary skills and experience to manage operations effectively, resulting in inefficiencies and waste. In addition, limited access to capital often leads to a reliance on informal financing sources, such as family and friends, which may be insufficient to support the growth and expansion of industrial units. This results in a lack of competitiveness and innovation in the market.

Firms in Pakistan have not achieved the same level of growth and competitiveness as those in India or other regional players, due to various factors such as political instability, regulatory unpredictability, limited access to finance, and lower levels of human capital development.

The “Seth Culture” has hampered the country’s productivity and competitiveness. It has contributed to a lack of competition and innovation in the Pakistani economy, as businesses are often owned and operated by a small group of individuals who prioritize their own interests over those of the broader economy. This has led to a concentration of wealth and power among a few elites, which has limited economic opportunities for others and stifled entrepreneurialism contributing to a low level of productivity, with the country’s workers producing far less output per hour than workers in other countries. This, in turn, has limited the country’s ability to compete in the global market and attract foreign investment.

Pakistan has a high prevalence of zombie firms, a decline in private investments, and a limited presence of large firms, which suggests inefficiencies in resource allocation. The low presence of high-growth firms (HGFs) and a small number of superstars (top exporters) impede growth and diversification of exports. Furthermore, the crowding-out of private sector credit by government borrowing has reduced incentives for innovation.

The differences in productivity explain variation in standards of living among countries, with productivity limiting distortions being high in Pakistan. Some of these distortions include size-dependent policies, high import duties, and entry-level distortions. These distortions create barriers to entry, reduce the number of firms in the market, limit innovation, and stimulate informality. Removing these distortions could potentially increase aggregate productivity by 40%. Pakistan faces productivity challenges, with publicly listed firms experiencing a decline in aggregate total factor productivity over the period 2012-2020. Poor managerial practices and limited technology adoption are some of the reasons for this decline. Innovation and productivity are strongly linked, and patent applications and investment in R&D have declined in Pakistan in the past decade. Growth in international trade and global value chains have significant effects on development.

In Pakistan’s case, its per capita GDP growth has been inconsistent and generally low for the past two decades, with occasional periods of rapid growth interrupted by external vulnerabilities and Balance of Payments crises. The country’s growth model is centered on consumption and government expenditure rather than investment and exports, leading to a lack of investment, savings, and export culture. With limited foreign direct investment and low exports, financing the current account imbalance has become a challenge, resulting in foreign exchange shortages and a depreciation of the Pakistani rupee. As a result, Pakistan is facing challenges in liquidity, debt sustainability and therefore a limited scope.

In Pakistan, small industrial unit sizes have been identified as a major factor that hamper productivity and innovation in the industrial sector. Small industrial unit sizes in Pakistan limit access to resources and economies of scale, hindering investment in research and development, technology, and expansion. Initiatives to promote the growth of small and medium-sized enterprises aim to increase productivity and competitiveness.

2. Variations in Industry Structure: The structure of Pakistan’s textile industry refers to the various stages involved in textile production, such as fiber production, spinning, weaving, knitting, dyeing, printing, and finishing. The structure of the textile industry can vary from country to country, depending on factors such as access to raw materials, labor costs, and technological advancements.

For instance, Pakistan’s textile industry has a significant focus on the production of cotton yarn and fabric, with the country being one of the largest cotton producers globally. This structure reflects the abundance of cotton as a raw material in Pakistan, making it an attractive location for textile manufacturing. In contrast, some other countries may have a more diversified structure, with a focus on producing finished garments or value-added products, such as high-end fabrics or technical textiles.

Comparing the economic sizes of textile industries across different countries can be challenging due to these structural differences. However, since different countries have different industry structures, this measure may not accurately reflect the relative competitiveness of their textile industries. For example, if a country produces a high volume of raw cotton, it may have a larger economic size than a country that specializes in producing high-end fabrics, even if the latter’s textile industry is more advanced and technologically sophisticated.

When comparing the economic size of Pakistan’s textile industry to other countries, it is essential to consider the specific structure of each industry to make a fair comparison. This means looking at metrics beyond just the value of goods produced, such as employment levels, export volumes, or technological advancements. By doing so, we can gain a more nuanced understanding of the textile industry’s performance in different countries and identify areas for improvement.

3. Different Economic Environments: The economic environment in which the Pakistan textile industry operates refers to the various factors that impact the industry’s performance, such as trade policies, labor laws, and infrastructure. These factors can vary significantly between countries, creating different economic environments that can influence the industry’s economic size and overall competitiveness.

Trade policies, for example, impact the Pakistan textile industry’s ability to compete in the global market. Tariffs, subsidies, and quotas can affect the cost of imported and exported goods, making it more or less attractive for businesses to operate in Pakistan. Changes in trade policies can lead to fluctuations in demand for Pakistani textile products, affecting the industry’s economic size and growth potential. The recent discontinuation of the ZRI Package, for example, has created an economic catastrophe for the industry, closing 20% of the industry due to higher electricity tariff.

Labor laws are also an essential factor in the economic environment that can impact the Pakistan textile industry’s performance. The cost of labor, labor regulations, and the availability of skilled workers can all affect the industry’s competitiveness. In some countries, labor laws may be more restrictive, leading to higher costs and potentially reducing the industry’s economic size.

Infrastructure is another critical factor in the economic environment that can influence the Pakistan textile industry’s performance. The availability and quality of transport networks, power supply, and communication systems can impact the industry’s efficiency and productivity. A lack of infrastructure can lead to delays in production, increased costs, and reduced competitiveness.

Different economic environments can create different challenges and opportunities for the industry, impacting its economic size and overall competitiveness. To address these challenges, policymakers and industry stakeholders need to work together to create an enabling environment that supports the industry’s growth and development. This may involve reforms to trade policies, labor laws, and infrastructure development initiatives to support the industry’s economic size and competitiveness. Restoration of the ZRI Package in this scenario is necessary.

4. Changing Global Market Conditions: The global textile market is subject to constant change, driven by factors such as evolving consumer preferences, technological advancements, and changes in international trade policies. These changes can have a significant impact on the performance of Pakistan’s textile industry, both positively and negatively.

Consumer preferences are a major driver of change in the global textile market. As consumers become more aware of sustainability and ethical issues, they may demand eco-friendly and socially responsible products. This can create opportunities for Pakistan’s textile industry, which has been working towards sustainability and ethical production practices. On the other hand, changes in consumer preferences towards new materials, designs, and styles can also pose challenges to the industry, requiring businesses to invest in research and development to stay competitive.

Technological advancements are another major factor that can impact the Pakistan textile industry’s performance. Innovations in production processes, such as automation and digitalization, can increase efficiency, reduce costs, and improve product quality. However, these advancements also require significant investments in technology and skilled labor, which can be challenging for smaller businesses in the industry.

For Pakistan to attain higher economic growth, it must enhance its textile sector by incorporating value addition, specifically in the highly productive cotton-focused industry. The Pakistani textile millers need to concentrate on specialized yarn to cater to the burgeoning market for athleisure and sportswear. Nevertheless, the country’s fixation on short staple fiber raw cotton and the existing MMF tariff regime impedes its ability to keep pace with the rest of the world, causing it to disregard the rapidly expanding MMF market that dominates more than 70% of the global textile trade.

International trade policies are also an important factor that can influence the global textile market and, consequently, the Pakistan textile industry’s performance. Changes in trade policies, such as tariffs, subsidies, and trade agreements, can affect the cost of imports and exports, creating opportunities or challenges for businesses in Pakistan. For example, the recent trade tensions between the US and China have created opportunities for Pakistan’s textile industry to increase exports to the US market.

Therefore, it is crucial for Pakistan’s textile industry to stay informed and adaptable to changing global market conditions. By monitoring trends in consumer preferences, investing in new technologies, and keeping up-to-date with changes in international trade policies, the industry can remain competitive and adapt to changing market conditions, maintaining its economic size and growth potential.

In conclusion, Pakistan’s growth model, which relied on state intervention and protectionist policies, has hindered its industrial sector’s growth, leading to a narrow export base and limited diversification. The country requires policy reforms to promote competition and innovation, such as improving access to finance for small and medium-sized businesses, reforming regulations, and investing in education and skills development. The textile industry is vital to Pakistan’s economy, but it faces challenges such as limited scope, low productivity, and declining investment and exports. To address these, the country must remove entry barriers, promote innovation, productivity, and sustainability, and prioritize transparency and accountability in business operations. By implementing these policies, Pakistan can promote growth in its industrial sector and continue to make a positive impact on the economy.

Shahid Sattar and Sarim Karim

Women hold up half the sky, but whether they are compensated for this effort in Pakistan remains questionable. As of last year, Pakistan stood only above Afghanistan as the second-most unequal country along gender lines in the world (WEF, 2022). Women face disproportionately higher risks of poverty, financial and economic exclusion, and unemployment (PPAF, 2013). However, exports and economic growth offer a glimmer of hope in an otherwise bleak scenario. All evidence points to export-led growth, especially within textile and apparels, majorly aiding women’s development too. Analysis of both historical trends and contemporary data reveals a nexus between gender, export growth, and economic development. After all, women comprise half of the population, and therefore failure to emancipate them leaves half of a nation’s human capital and labour underutilized. Including women in development creates new opportunities for innovation and intellectual development, once their unique experiences are incorporated into workplaces and industry. All successful developed countries have valued women and their significant contributions. The argument that follows posits that it is necessary to include women in economic growth and export-led development is the most effective means to do so.

First, an illustration of women’s economic situation in Pakistan will help to contextualize the need for development. Among numerous indices of gender inequality, such as the aforementioned Gender Gap Report from the World Economic Forum, Pakistan performs poorly. 33.6% of girls are out-of-school, and 46.5% of women are illiterate. Women make up 75% of the absolute poor in Pakistan, according to the Pakistan Poverty Alleviation Fund (PPAF). Despite this, they remain essential components of the nation’s economy. In agriculture especially, where 76% of Pakistani women find employment, and female labour makes up a higher proportion of the workforce than male labour. Additionally, 30% of industrial workers in textiles are women, with almost half of Faisalabad’s 1.3 million workers being female labour (Ansari, 2023). A major driver of gender inequality has been Pakistan’ protectionist structures. A World Bank study of 54 countries found that tariff protections depress the real incomes of women, and disproportionately hurt their consumption (Artuc et. al, 2021). This is because the majority of female-oriented and marketed products in Pakistan are imported, as well as because women spend more of their budget on agricultural products. Men also earn more income from agricultural labour as compared to women, even though women make up the majority of the labour force in agriculture. The study concluded that tariffs hurt women disproportionately more than men, and that lifting tariffs would raise real incomes for women by 2.5%.

Gender parity as a development goal is essential for four key reasons. Firstly, there is an undeniable moral component. Women comprise half the population and are equally deserving of inclusion in growth. One’s capacity to innovate, be productive, and contribute to the economy has no correlation with one’s gender. Secondly, gender gaps in the labour market (e.g wage differentials, discrimination in advancement, exclusion from specific sectors) and low female labour force participation rate result in total income losses as high as 27% of GDP (Cubenes and Teignier, 2012). Thirdly, the case studies of many countries have shown a strong link between a rise in female employment leading to a decrease in fertility rates. Pakistan is currently struggling with overpopulation, and women often find their capacity for work and education minimized once they have a child. Expansion of employment and education opportunities for women reduce these phenomena. Fourthly, a 20 year study in Bangladesh found that female employment caused by export expansion generated a larger rise in educational enrollment than the Bangladeshi government’s biggest education subsidy (Heath and Mobarak, 2012). Therefore, there is strong evidence to suggest that gender equity is a valuable goal, and exports are a means to achieving it.

Openness to trade has been particularly beneficial for women. Trade liberalization is responsible for increasing female employment to 20% since 1991 (World Bank, 2020). Export growth has also aided female entrepreneurship, as approximately 50% of Pakistan’s women-owned or women-managed companies are in the textile exporting sector (Lopez-Acevedo and Robertson, 2016). Women have been responsible for the introduction of several value-added textile products since 2015 which have benefited both the domestic and export market (Zahid and Kamarudin, 2019). Export-led growth has also created opportunities for advancement amongst women. For example, universities across Pakistan like NCA, Punjab University, and the Millenium Colleges have established departments specifically focused on textiles in response to the growth of that industry. These departments build various skills from design to management. A survey of these institutes found that 88% of textile design students are female, with some universities like Gujarat University having enrollment as high as 94% female students (Zahid and Kamarudin, 2019). These results show that women pursue skill acquisition given the conditions to do so, and textiles are an inclusive sector for their advancement. Within the industry, women have found success in positions as designers with 75.5% of designers in textiles being women (Zahid and Kamarudin, 2019). Out of the 15 surveyed producers in East Punjab, 11 producers had over 60% of their design and practitioner staff comprising women. These uptakes in female enrollment and employment coincided with the growth of the textile industry and exports post-2000. Pakistan’s admission into the EU’s General System of Preferences Plus (GSP+) also bodes well for gender parity, as ratifying conventions on equality is a requirement for membership.

Historical precedence explains the link between gender parity and export growth. In fact, despite the successes listed above, Pakistan is still an outlier compared to its South Asian competitors like Bangladesh, India, and Sri Lanka who have all seen greater gains for women coinciding with greater export growth (Lopez-Acevedo and Robertson, 2016). Pakistan has failed to fully harness its export potential and therefore has stunted its women’s potential too. A study in 2022 explored the experience of Bangladeshi women employed in the textile export sector, using interviews and statistical data on income growth and financial asset growth. It found that women attained financial independence, empowerment, and social mobility due to paid employment (Mamun and Hoque, 2022). The proportion of bank accounts opened in a woman’s name rather than joint accounts opened under a husband’s name also grew in Bangladesh as exports expanded. This implies a growing level of financial literacy, allowing many women to buy plots of land, and begin schooling for themselves or their children. Furthermore, their contribution to household budgets gave women the leverage to negotiate greater respect and autonomy amongst their communities (Mamun and Hoque, 2023). In Pakistan, only 13% of women have bank accounts, which aggravates poverty and maintains cycles of dependency between women and men (Joles, 2023). Empirical research into labour market trends among South Asian exports also explains why textile exports are specifically good for women. Firstly, textile and apparel exporters have more elasticity with regards to exports than other sectors. This implies that textile and apparel have a larger potential for generating employment in response to a rise in exports than other sectors. Much of this is due to the labour-intensive nature of this industry, paired with low-skill requirements for labour to find employment in it (Lopez-Acevedo and Robertson, 2016). Meaning that women without education or only agricultural work experience are still able to find work in textiles. Second, the export elasticity for labour demand across South Asia was higher for female workers compared to their male counterparts. Thus implying that female workers are more likely to benefit from the employment generated by textile export growth (Lopez-Acevedo and Robertson, 2016). With an abundance of historical, theoretical, and empirical evidence to support the pursuit of exports as a means to gender parity, Pakistan must orient itself towards export-led growth.

Unfortunately, the nation’s export industry is witnessing a reversal of gains. Surveys show that the number of female employees in the exporting sector has been falling due to a contraction of the industry and its export potential (Zahid and Kamarudin, 2019). Similar problems are faced by women workers in Faisalabad’s textile industry. The ‘Manchester of Pakistan’ provides jobs for hundreds of thousands of women, many of whom travel from rural areas because they lack other sources of income (Ansari, 2023). The reversal of the Regionally Competitive Export Tariff (RCET) paired with withdrawn exemptions on gas and electricity bills, has placed a massive cost burden on exporters, who must make difficult decisions between layoffs, shutdowns, or decreasing capacity in order to sustain themselves. Women workers suffer in this scenario, as factory closures cause unemployment and threaten to return them to poverty.

To harness the potential of both growth and gender parity, Pakistan must prioritize exports and address the challenges faced by its textile sector. Evidence shows that export-led development offers a solution to Pakistan’s numerous crises, from its imbalanced Balance of Payments, to unemployment, and gender inequality. The current supply-side initiatives are not enough to address these concerns, and measures like increased tariffs and taxes are actually driving women further into poverty rather than helping them. It is therefore imperative for Pakistan to motivate export growth and use it as a tool for addressing its internal issues rather than wasting its potential and sacrificing the livelihoods of its people.

Shahid Sattar and Sarim Karim

Pakistan’s development history has been in a state of crisis for decades. One major factor underlying this struggle is an imbalance in the Balance of Payments which can only be corrected through enhanced foreign exchange earnings via exports. The economy is currently instead reliant on unsustainable sources, such as remittances, foreign loans, and tariffs, alongside indirect taxes, to service a heavily import-based economy. Pakistan is among the seven most trade-averse countries in the world with the highest average tariff amongst 70 countries, and there is a strong undercurrent of import substitution within its economic policies. The automobile industry, fertilizers, capital inputs, all constitute protected industries with tariffs as high as 500% on imports. Pakistan’s policy sphere remains loyal to an anachronistic development model where industries are offered protection until the state deems them competitive. However this protectionist tendency has yielded no solutions to the myriad macroeconomic crises, such as an untenable debt burden, high inflation, and rising poverty.

Export-led industrialization is a development strategy which aims to expand trade of goods for which the nation has a comparative advantage. This model involves developing export surpluses in sectors with comparative advantage. An orientation towards exports has proven successful across the world, from Singapore to Rwanda. Exports provide revenue, which stabilize an economy, balance budgets, and fund structural transition towards industrialization. Secondly, exports facilitate a ‘learning by doing’ approach whereby producers and policy-makers gain expertise through competition with the international market. These externalities form the backbone of export-led development. Pakistan stands to gain immensely from prioritizing its export sector, whose expansion guarantees higher economic growth rates, greater employment, fiscal stability, and a plethora of positive externalities explained in the following.

1. Rising exports have a positive impact on economic growth, as evidenced by the global average of GDP growth rates increasing by 1-2% after the trade liberalization waves following the establishment of the WTO.

• In the case of Pakistan, the country observed its highest growth rates during periods of rising exports, with exports playing a significant role in determining growth.
• The World Bank identified exports as a significant factor behind Pakistan’s recovery after the contraction of the economy in 2019 due to the pandemic.

2. As a result of export growth, average incomes and wages experienced a substantial increase ranging from 10% to 20%.

• Since 1990, export growth has played a crucial role in raising average incomes by 24%.
• For the poorest 40% of the global population, trade has had an even more significant impact, leading to a 50% increase in their incomes.

3. Exports and trade openness have an effect on reducing prices.

• When countries engage in trade, resources are allocated more efficiently, avoiding the wastage of producing goods that require scarce factor inputs.
• Exposure to more competition also drives prices down.
• According to a 2020 study by the World Bank, 45 out of 54 countries examined experienced a decrease in consumer prices as a result of trade, indicating the positive impact of trade on prices.
• This effect is particularly strong on food and agricultural products.

4. Export-led development plays an instrumental role in alleviating poverty. Over the past three decades, there has been a significant increase of 15% in the share of developing countries in global trade since 1990.

• This increase has coincided with a remarkable reduction of global extreme poverty by half. The correlation between the expansion of trade opportunities for developing countries and the substantial reduction in poverty levels highlights the effect of trade in poverty alleviation efforts.

5. There is a strong connection between employment and export-led growth, as they are cointegrated.

• Increasing exports have the capacity to create jobs across all segments of the market.
• Pakistan’s major exporting industry, that of textiles and garment production, is also its largest employer.
• Notably, an OECD study conducted in 2012 revealed that openness to trade is associated with improved working conditions when compared to protectionist measures.
• This suggests that trade openness promotes better employment opportunities and fosters favorable working conditions, emphasizing the positive relationship between trade and labor markets.

6. Competition stimulated by exports leads to the expansion of competitiveness and productivity among local producers. When domestic producers are exposed to international competition, they are encouraged to innovate, improve efficiency, and enhance the quality of their products.

• The presence of foreign competitors in the market drives local producers to adopt more advanced technologies and practices, which ultimately boosts their competitiveness.
• As a result, increased competitiveness leads to higher productivity levels among local producers, benefiting both the domestic economy and consumers who receive better quality, lower prices, and greater variety.

7. Commitment to export-led growth and subsequent liberalization of barriers to trade generates an increase in foreign direct investment (FDI) and other forms of investment.

• This is primarily because trade liberalization removes barriers such as tariffs and controls that hinder capital flows. When these barriers are eliminated, countries become more attractive for investments, as investors are encouraged by the ease of doing business and the potential for market access.
• Furthermore, supply chain integration plays a significant role in motivating technology transfers and investment. As countries integrate into global supply chains, they gain access to advanced technologies and expertise from their trading partners.
• This exchange of knowledge and technology fosters innovation and promotes investment in industries that can take advantage of the integrated supply chains.

8. Exports lead to diversification, which enhances economic resilience in the face of exogenous shocks.

• Through trade, countries can expand their markets and reduce dependence on a single market for revenue. This diversification helps mitigate the risk of volatility and demand fluctuations by spreading economic activities across multiple markets.
• Moreover, diversification also extends to product diversification, where countries are no longer reliant on a narrow range of products to generate revenue. By diversifying their product offerings, countries become more resilient against supply shocks and are better equipped to handle disruptions in specific sectors.
• This diversification also promotes the expansion of production capabilities and increases the overall competitiveness of the nation.

9. Exports play a significant role in fostering fiscal stability for countries.

• Export earnings generated through trade can be utilized to service foreign debt obligations and cover the costs of importing goods and services.
• By promoting exports, countries can generate a surplus in their balance of trade, which helps balance the current account deficit.
• In the case of Pakistan, increasing exports can help address the current account deficit challenging the country.
• By expanding its export base and improving trade performance, Pakistan can earn foreign exchange that can be utilized to address the deficit, reduce dependency on external borrowing, and enhance fiscal stability.

10. Exports facilitate various aspects related to technology and knowledge transfers, skill sharing, adoption of new technology, and incentives for innovation.Through trade, countries have the opportunity to exchange technologies and knowledge with their trading partners

• This transfer of technology can occur through direct investment, licensing agreements, or collaborative research and development initiatives. By engaging in trade, countries can learn from each other, acquire new skills and knowledge, and apply them to their own industries.
• Trade also serves as a platform for skill sharing, as it creates opportunities for workers to gain exposure to different work practices, technologies, and management techniques. The interaction between workers from different countries and companies fosters the exchange of skills and expertise, leading to the development of a more knowledgeable and skilled workforce.
• Additionally, trade encourages the adoption of new technologies by exposing domestic industries to foreign products and processes. As countries import goods and services that incorporate advanced technologies, they are prompted to upgrade their own technologies to remain competitive. This adoption of new technology enhances productivity and efficiency in domestic industries.
• Furthermore, trade provides incentives for innovation. When companies compete in global markets, they are motivated to innovate and develop new products, processes, and services to meet the evolving demands of customers worldwide. The pressure to stay competitive drives companies to invest in research and development, leading to technological advancements and innovation.

11. Trade has enabled the global dissemination of technologies important for ecological sustainability

• It connects countries, facilitates knowledge sharing, and encourages innovation in the renewable energy sector.
• Technology that was prohibitively expensive or advanced has become available due to trade.
• Trade promotes quality improvement and environmentally friendly practices among local producers by enforcing international sustainability standards.

12. Export growth fosters increased female labor force participation through the creation of new job opportunities

• The ratio of employed women to the total population rose to over 20% since 1991, as a result of trade liberalization, according to the World Bank.
• Additionally, trade has enabled more women to transition from informal and domestic labor into the formal sector, providing them with better working conditions and greater economic empowerment.

It should be clear that export-led growth offers a sustainable and equitable model for Pakistan’s economic development. However, without implementation none of the reforms, policies, or plans will generate results. For example, the GoP introduced the Regionally Competitive Energy Tariff (RCET) in 2018 and quickly reneged on it merely four years later. The textile sector’s investments into increased capacity, expansion, and over $5 billion in R&D were suddenly rendered moot. The four years of export growth could not be translated into development due to inconsistent implementation of policy. Similarly, Pakistan has thrice attempted to reform its railways since 2018, and failed to follow through on any of its proposed acts. The issue of half-hearted implementation reduces investor confidence, and prevents exports from being able to actualize their growth potential.

The nation must orient towards export-led growth. Trade benefits all members of society through employment, income, and reduced prices. It fosters structural transition via enhancing innovation, knowledge capital, and easing access to green technology. Exports are also responsible for fiscal stability, balancing current account deficits, and improving foreign exchange. These benefits can no longer be ignored as Pakistan attempts to navigate its contemporary economic turmoil. Only by embracing an export culture and actively pursuing export growth can the nation achieve the outcomes it desperately needs.