Disadvantages of Export

Export are heavily on the upside in mostly all respects and in societies. Its downside is very little and limited to only undeveloped countries. The main problem that arises out of exports is the scarcity of locally available essential goods. Undeveloped countries, in the rat race to earn foreign exchange at any cost, are bent upon exporting even essential goods like fruits, vegetables, meats, eggs, and other poultry and dairy goods which fall short for local consumption. The result on one hand a common man is deprived of these essential items adversely affecting his health, and on the other, these governments only earn a little fraction of foreign exchange forming a very little percentage of overall foreign exchange earnings. In Pakistan, eating fruit is luxury for a common man. Although it is an agricultural country it is unable to produce fruits, vegetables, and other products in such quantities, as not only to cater to its peoples needs but also export in maximum amount.s

Advantages of Export

Export is the other part of foreign trade by which goods and services are sold abroad. It has the following advantages:

1. Foreign Exchange Earnings: For a country foreign exchange is extremely important element in its economic system. To maximize its earnings of foreign exchange the country formulates effective foreign policies, establishes good relations with bordering and other countries, enters economic blocs. Export is one of the most important sources of foreign exchange earnings. If a country falls short of it, it seeks help from IMF (International Monetary Fund).
2. Economic Development: Export business brings economic development. Increase in export takes production to a high levels which in turn creates employment which is a significant indicator of good economic growth and development.
3. Identity of the Country: If a country produces high quality products at reasonable prices it makes a prominent place in foreign importing countries. People buy the goods by the name of that country with great confidence . Japan , Germany, U.K, France, U.S.A, and many other developed European countries have attained this respectable status. Customers across the world and readily buy products made in Japan, U.S.A , U.K., because these countries have gained customers confidence by providing quality products.

Major Exports of Pakistan

The Major export oriented industries of Pakistan are as follows:

• Textile Industry: Textile industry enjoys 60% share in overall exports of Pakistan. The garments produced in Pakistan are very famous abroad. The towels used in Wimbledon are produced in Pakistan.
• Sports Goods: Pakistan is very famous in making sports goods. The cricket bats made in Sialkot are used by many great batsmen of Pakistan and other countries. The footballs made in Pakistan have repeatedly been used in major football events including world cups.
• Surgical Instruments: Pakistan produces high quality surgical products. The demand for surgical goods of Pakistan is increasing and Pakistan can earn huge foreign exchange from this industry.
• Rice: Basmati Rice produced in Pakistan is famous all over the world. Pakistan exports "Basmati" "Irri" rice to many countries and it is also an important source of foreign exchange for the country.

Disallowing Import of Luxuries

Government can for the time being put restriction on import of luxuries goods like expensive cars etc, or it can at least levy heavy duty on it to discourage such lavishness for a developing country like Pakistan.

Increasing Import Duty:
Government must levy high import duty on consumer products which are no productive and contribute very little to the economy. An economy is not improved there are more foreign cars on the roads.

Increase in Exports

Instead of concentrating on decreasing imports, we must also not forget the importance of increasing exports. Imports in the productive areas can not be reduced and rise in the value of imports due to the rise in oil prices can also not be avoided. Therefore, we must increase exports by identifying new markets, arranging foreign and local exhibitions for Pakistani Products, providing low export refinancing rate and by exempting taxes related to exports oriented industries. Decrease In Export Duty: To increase exports, the Government must reduce export duty or in the best care remove any export duty for the time being to encourage people to produce more and export it.