The Prospects of Comparative Advantage in Pakistan’s Exports of Pharmaceutical Products

Abstract

Pharmaceutical sector of Pakistan has a huge potential in exports. Pakistan can gain in terms of sustainable growth and strong industrial development if properly accommodated with the trade favourable policies. Literature on export competitiveness of various products is available however, research on specifically pharmaceutical sector has not been done. This study is an attempt to fill the gap by investigating the Revealed Comparative Advantage of pharmaceutical exports of Pakistan. RCA index is used in this study (from 2004 to 2023) and the index has revealed that there is comparative advantage in exports in 2 out 5 product groups of HS level 4 and in 7 product groups of HS level 6, Pakistan possess comparative advantage in export. This margin can be increased with proper policy making which will lead to the sustainable growth of Pakistan.