Pakistan’s Export Strength Remains Concentrated in Narrow Markets: Analysis.

Pakistan’s merchandise exports stood at $30.67 billion in 2025, giving the country just 0.12% of global exports worth $25.61 trillion, while its strongest comparative advantages remain concentrated in textiles, leather and selected agricultural products, according to an analysis published by Business Recorder.

The analysis of revealed comparative advantage (RCA) shows that Pakistan has developed strong global competitiveness in a relatively limited range of products. However, many of these markets are either comparatively small or highly competitive, restricting the scope for rapid expansion.

Bed linen is one of the clearest examples. Pakistan exported $4.42 billion of the product against a global market of $23.6 billion, producing an RCA of 156. Bed linen alone represented around 14% of Pakistan’s total exports in 2025.

Men’s wear and rice are two other major strengths. Pakistan exported $3.13 billion in men’s wear, with an RCA of 47, while rice exports reached $2.42 billion, with an RCA of 60. Together with bed linen, these three categories account for almost one-third of Pakistan’s export earnings.

Pakistan also shows significant competitiveness across other textile products, including cotton fabrics, shirts, hosiery, cotton yarn, jerseys and made-up textile articles. Leather products, gloves, carpets and sports goods also record relatively high RCAs, demonstrating established production capabilities in labour-intensive industries.

Agriculture and food products represent another area of comparative advantage. Rice remains dominant, while meat, potatoes, fruits, fish, spices, oilseeds and tobacco also show varying degrees of export competitiveness. However, the analysis points to limited value addition, with Pakistan often exporting raw or minimally processed agricultural products rather than capturing higher-value segments.

The gap becomes more visible in large technology-intensive global markets. Pakistan’s presence remains limited in pharmaceuticals, electronics, machinery, automobiles and several chemical products. For example, global exports of smartphones were worth about $714 billion, but Pakistan’s exports were only $15 million, giving an RCA of just 0.02.

Research by the Pakistan Institute of Development Economics similarly identifies a narrow export base, limited product diversification, high trade costs, energy constraints, certification challenges and tariff structures as structural barriers to stronger export performance.

The analysis suggests that Pakistan needs to pursue two parallel tracks: upgrading industries where it already has an advantage through branding, processing, quality certification and product sophistication, while also developing capabilities in larger and faster-growing markets. Pharmaceuticals, processed food, chemicals, plastics and selected manufacturing sectors could provide avenues for diversification.

For Pakistan, the challenge is therefore not simply to increase the volume of existing exports but to broaden the export basket and move towards higher-value products. Greater investment in skills, infrastructure, technology, trade facilitation and a predictable policy environment would be important for achieving that shift.