Assignment No.

1 Economy of Pakistan ME-23-24 Ahmad Siddique

Export Profile: Pakistan to Germany

(Analysing Trends and Identifying Potential Opportunities )
1. This assignment explores the export profile of Pakistan to Germany, analysing
trends and identifying potential export opportunities. It addresses the following questions:
a. Export profile. Is Pakistan's exports to Germany increasing or
decreasing? What are the main products exported?
b. German imports. What products does Germany import from other
countries?
c. Export opportunities. What potential export opportunities exist for
Pakistan, considering trends and import needs?
2. Export Profile Trend. There is an increasing trend in Pakistan's exports to
Germany. Between 1998 and 2022, exports grew at an annualised rate of 5.53%,
reaching $2.53 billion in 2022, making Germany Pakistan's 5th largest export partner.
3. Main Products Exported
a. Textiles and Apparel. Textiles and apparel remain the primary driver of
exports, constituting over 50% of the total value. Key categories include:
o House linens: $487 million (largest export category)
o Non-knit men's suits: $354 million
o Non-knit women's suits: $227 million
b. Other Significant Exports
o Rice: $212 million
o Leather products: $145 million
o Sports goods: $82 million
o Carpets: $78 million
o Surgical instruments: $32 million
4. German Imports
a. Top Import Categories. Germany, with a total import value of $1.3 trillion in
2022, offers a vast market for diverse products. This makes it the second-
largest importer in the world, behind only the United States. Analysing their
top import categories provides valuable insights:
o Machinery and mechanical appliances ($340 billion (2022)) . This
includes cars, car parts, industrial machinery, medical equipment, and
more. This category alone makes up roughly 26% of all German
imports.
o Vehicles ($230 billion). Germany imports many cars, trucks, and
other vehicles. This represents about 18% of their total imports.
o Chemical products ($153 billion). Pharmaceuticals, plastics, and other
chemicals are major import items. This comes in at around 12% of total
imports.
o Electrical equipment ($149 billion).This category includes computers,
smartphones, and other electronic devices. It accounts for roughly 11%
of all imports.
 o Mineral fuels and oil ($111 billion). Germany relies heavily on imports for
its energy needs. This segment represents about 8.5% of total imports.
b. Top Import Partners. While Pakistan doesn't significantly contribute to
these, the data highlights Germany's reliance on imports and potential for
diversification.
o China: $215 billion (2022)
o United States: $156 billion
o Netherlands: $149 billion
o France: $126 billion
o Italy: $89 billion
c. Interesting Facts
o Germany imported 26 million tons of coffee in 2022, making it the world's
second-largest coffee importer.
o The country imported 8 million bicycles in 2021, highlighting its growing
cycling culture.
o Germany is a major importer of renewable energy technology, supporting
their transition to clean energy sources.
5. Potential Export Opportunities for Pakistan. Leveraging the insights from
Germany's import profile and Pakistan's existing strengths, several promising export
opportunities emerge:
a. Expanding on Existing Exports
o Textiles and apparel. Capitalize on existing market share by focusing on
diversification, innovation, and sustainability while exploring technical
textiles for industrial, medical, and automotive applications, and
targeting high-fashion garments and accessories for niche markets
 2022 figures
 Total textile exports: $2.53 billion
 House linens: $487 million
 Non-knit men's suits: $354 million
 Non-knit women's suits: $227 million
o Agri-food. To meet stringent German requirements, improve quality
and safety standards, focusing on organic fruits and vegetables, value-
added food products, and processed spices.
 2022 figures
 Rice: $212 million
 Fruits and vegetables: $16 million
b. New Categories with High Potential
o Furniture. Wooden furniture, outdoor furniture, and furniture components
offer opportunities.
o Building materials. Natural stones, tiles, and sanitary ware
have the export potential.

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 o Cosmetics and personal care. Natural and organic cosmetics, and
herbal beauty products align with growing trends.
o Pharmaceuticals. Generic drugs and active pharmaceutical
ingredients (APIs) can be competitive exports.
o Auto parts and components. Electrical and mechanical parts cater
to the German automotive industry.
c. Emerging Sectors
o Renewable energy. Solar panels, wind turbines, and related
components align with Germany's green goals.
o E-commerce. Products specifically designed for online marketplaces
and platforms hold potential.
o Sustainable and eco-friendly products. Products promoting
sustainability across various categories have increasing demand.
d. Key Considerations
o Thorough market research. Conduct in-depth research to understand
specific product demand, competition, and quality requirements in
Germany.
o Value addition. Focus on value-added products with higher profit
margins, rather than solely on basic commodities.
o Certification and compliance. Ensure products meet all relevant
German and European Union (EU) standards and regulations.
References
 Observatory of Economic Complexity (OEC): https://oec.world/
 Trade Map: https://www.trademap.org/
 International Trade Centre (ITC): https://www.intracen.org/
 Trade Statistics of Pakistan: https://www.pbs.gov.pk/