IDR 2018: Pakistan's Declining Manufactured Exports
|South Asia Manufacturing. Source: UNIDO IDR 2018|
Industrial Development Report 2018:
United Nations Industrial Development Organization, also called UNIDO, is a UN agency whose charter is to "promote and accelerate inclusive and sustainable industrial development (ISID) in Member States". It publishes an annual industrial development report that is "an established source of reference on industrial development. Previous editions have been examining the driving forces of industrialization and the positive factors that can lead to social inclusiveness and environmental sustainability. They have examined crucial components of the production side of industrialization, such as capacity building, energy efficiency, employment creation and technological change, to mention just a few."
Here are key data points from IDR 2018 on selected countries, including Pakistan:
Pakistan MVA per capita 2010 $134 2015 $146
Pakistan Manufactured Exports per capita 2010 $102 2015 $94
Bangladesh MVA per capita 2010 $122 2015 $182
Bangladesh Manufactured Exports per capita 2010 $121 2015 $152
India MVA per capita 2010 $228 2015 $298
India Manufactured Exports per capita 2010 $152 2015 $186
China MVA per capita 2010 $1,432 2015 $2,048
China Manufactured Exports per capita 2010 $1,132 2015 $1,601
Pakistan's Export Performance:
Pakistan's manufacturing sector is performing poorly relative to Bangladesh and India, according to the United Nations Industrial Development Organization 2018 report. UNIDO data shows that Pakistan's per capita manufacturing value added is not only lower than its neighbors' but it's also growing more slowly since 2010. In fact, Pakistan's manufactured exports per capita have declined in the last decade. Pakistan's exports have declined from about 15% of GDP to about 8% since 2003. The nation's trade deficits are growing at an alarming rate as the imports continue to far outstrip exports. This situation is not sustainable. Chinese Ambassador Yao Jing has offered a helping hand to increase Chinese investment and trade in Pakistan. Pakistan's new government led by Prime Minister Imran Khan should take the Chinese Ambassador's plan seriously. Finance Minister Asad Umar needs to form a high-powered team of top bureaucrats and leading businessmen on a comprehensive plan to attract investments in export-oriented industries and diversify and grow exports to China and other countries.
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