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Exporting from Pakistan

Pakistan Forums provides a platform for exporters in Pakistan which deals in discussions related to Elements of Export Success, discussions & suggestions about starting an Export Business, International Trade, Export Procedures, Export Trends, Sample Documents, Forms, and all other Negotiable Instruments used for exporting from Pakistan.

Before committing resources to any venture in the export business, it is good to evaluate and assess the advantages, disadvantages, and risk involved in exporting into a new market. You may want to have discussions with online trade community who have years of experience in the import & export business.

Before discussing the challenges, let’s see on the brighter side that what are benefits or advantages are there for exporting from Pakistan.

  • Increased Sales and Profits--- If a company sells goods or services to a market that it had never before will boost its sales and will no doubt increase the revenues. Foreign Sales increase the overall profitability of a company once export developmental costs have been covered.
  • Gain Global Market Shares--- Exporters in Pakistan by exporting goods from Pakistan can be able to participate in the global market and consequently gain a piece of share from the huge international marketplace
  • Diversification--- Exporting from Pakistan the goods to multiple markets allows companies to diversify business and as a result, spread their risks. Also, the international market doesn’t tie exporters to the changes in the business cycle of a particular country or domestic market.
  • Lower Per Unit Costs--- exporting business allows exporters in Pakistan to capture an additional foreign market which will increase & expand production to meet the demand of the international market. Increased production most often results in lower per unit costs. And it leads lead to greater use of existing capacities.
  • Others include: increased potentials for company expansion, compensate seasonal demands, gaining new knowledge and experience

But there are also many challenges that come along with the advantages when venturing in the international marketplace such as:

  • Product Modification--- Companies may need sometimes to modify the products to meet that particular country’s safety, security codes and restrictions or labeling & packaging requirements.
  • Financial Risk--- Collection of payments is a complicated and time-consuming task and the financial risk is higher in exporting from Pakistan or from any other country. Share & ask others the payments methods for international transactions that are best suitable and less time-consuming.
  • Export Licenses and Documentation--- Some companies have to obtain an export license to export their goods. In many cases, it is more involved than for domestic sales and may be a challenge for exporters in Pakistan.
  • Market Information--- finding information on foreign markets & analyzing is difficult and time-consuming but at the same time, it is most probably the most important part of any business model. It includes reliable information on business practices, market characteristics & cultural barriers which may be hard to get in case of less developed countries.

When you enter in export business, you require careful planning, knowledge of procedures, some capital, access to quality product, market know-how, competitive pricing strategy, management commitment, resources and realizing the challenges and opportunities. Without these elements, it is almost impossible to be a successful trader in the export business.

Your ideas and expert opinions can help exporters exporting from Pakistan in smooth entry into new markets, keep pace with domestic and international competition and eventually realize the profit.