Exporting from Pakistan

Exporting From Pakistan

Exporting from Pakistan: A Step-by-Step Guide for Women Entrepreneurs

Exporting from Pakistan is no longer a mystery shrouded in bureaucratic complexity—especially for women entrepreneurs eager to reach international markets. This guide breaks down the process into manageable steps, highlights current export regulations, and offers practical examples to help you succeed.

Let’s clarify one thing upfront: exporting doesn’t mean stuffing a suitcase with clothes or jewelry and selling it at a friend’s apartment overseas. While such methods might generate some income, they neither contribute to Pakistan’s documented export base nor do they build your business’s global credibility.

If you’re serious about creating a sustainable export business from Pakistan, this guide is for you.

Exporting From Pakistan - Trade Development Authority of Pakistan (TDAP)

Trade Development Authority of Pakistan is actively engaged in facilitating exporters from Pakistan. For details of their services visit the following link:

TDAP | Trade Development Authority of Pakistan

Exporting from Pakistan - Going global checklist

As you decide to start reaching global markets with your products, some of the basic things to consider are as follows:

Develop a product
Calculate Inputs Cost
Lead Time
Negotiation with buyers
Issuing a Proforma Invoice & accepting an order
Letter of Credit (L/C) for the order
Shipment Scheduling & Shipping of Goods
Freight Forwarders

Step 1: Develop a Unique Product

Your first step is to create a product that stands out. It doesn’t need to be entirely new—but it should offer something different.

Mini Scenario: Fatima, a Karachi-based designer, took traditional bridal wear and added modern Western cuts to appeal to customers in Canada and the UK. Her fusion pieces stood out in a crowded marketplace.

Tip: Consider trends in your target market. For example, Banarsi prints in home textiles are gaining traction in the U.S. niche decor scene.

Step 2: Calculate Your Input Costs

A detailed cost breakdown is essential for pricing and profitability. Record every input:

Raw materials (get supplier invoices)
Labor and man-hours
Utilities (electricity, water)
Overheads (rent, admin costs)

Mini Scenario: Ayesha, exporting handcrafted clutches, calculated her unit cost to be PKR 1,200. She priced her export at PKR 3,600 to cover costs, logistics, and profit.

💡 Also, determine your HS-Code (Harmonized System Code). The correct code ensures proper customs handling and accurate freight estimation.

Understanding the part about Costing Inputs:

As you design your product try to put it on paper. You can write what went into the product as raw material along with its costs. As you prepare costing of your product remember to get invoices for all the products you buy.

Then add the number of man-hours used with cost and the electricity and rent as well as other overheads. This will give you a benchmark figure for cost per unit.

In exports the main earning factor is quantities. You should have the ability to sell at competitive rates and in bulk quantities. So your calculation will be in dozens, perhaps depending on the product. If its designers product these will be in lesser numbers.

Make sure to find out the HS-Code under which you can export your products. The correct HS-Code results in correct freight pricing for your buyer which improves your costing as well.

Now that you have arrived at a cost and the time it takes to put together the raw material and the initial order you can safely give a 'Lead Time'.

Step 3: Set Realistic Lead Times

Initial export orders often require 45–60 days lead time. Repeat orders can be processed faster once systems are in place.

Why Lead Time Matters: Unexpected events—power outages, supply delays, political instability, or global crises like pandemics—can disrupt schedules. Always negotiate a realistic timeline with buyers.

Understanding 'Lead Time' and its importance in Exports:

Lead Time is usually higher for the first order and with subsequent orders it becomes less. For example, for your initial order you might need a lead time of 45 - 60 days depending upon your product while for subsequent orders it may be 30 days or so.

This is because for the initial order you need to 'source' all the inputs which also includes locating vendors that offer best rates, local as well as foreign, testing for quality, calculation of consumption with trial runs etc. Once all these sources have been established and you have given your first order, repeats are comparatively easier.

Always remember to give adequate 'lead time' as dynamics of business can get impacted by unforeseen events. Take, for example, the recent COVID-19 pandemic. All of a sudden, many industries were placed under lock-down which was important to safeguard the labor and other staff members of these industries.

This was, of course, a major global event that impacted the whole world. However, many other unforeseen events of a simpler nature may result in delaying any of the basic requirements such as raw material procurement, labor availability or electricity/water outages, that's why, for the initial order adequate lead time of 60-90 days should be negotiated in consultation with the buyer.

Step 4: Identify and Negotiate with Foreign Buyers

You can find buyers through:

International exhibitions
B2B marketplaces (e.g., Alibaba, Tradekey)
Pakistan’s TDAP (Trade Development Authority of Pakistan) missions
Social media platforms

There are typically two kinds of buyers:

Manufacturing Buyers – Outsource production to you.
Design Buyers – Purchase your original designs (less common, but great for creative entrepreneurs).

When negotiating, ensure your price includes:

Product cost
Shipping/freight
Commission/agent fees
Profit margin (typically 3x your cost)

Mini Scenario: Nimra quoted $90 for her handmade shawls, factoring in $30 for production, $10 for logistics, and $20 for contingencies, securing a solid $30 profit.

Understanding Negotiations with Buyers

As you enter into negotiations with a foreign buyer (a separate page on how to find foreign buyers) your homework should be complete. There are two kinds of foreign buyers - one that give orders for manufacturing i.e. they outsource manufacturing - this is the more prevalent practice. The second type of buyer is who takes your designs and sells them. A difficult option and not much in practice though still more possible with women as they make their own designs. These buyers usually go to the exhibitions to pick up new ideas and styles.

As you enter into negotiations with either; the price you quote should be competitive yet give you a good return. A rule of thumb in pricing goods for exports is 3 times of your cost so that you cover:

i) The actual cost with shipping and freight
ii) Any amount you may have to pay to agents/brokers and any unforeseen costs
iii) Profit margin

If you do not keep a profit margin your business will die. You should be getting your service charges as 'salary' which will be built in the 'cost' part of the product. The cost will be:

Cost = Raw Material + Labor + Overhead

Your payout comes from the overhead part of the cost. As your business grows bigger you will move the administrative expenses out of 'cost' and below the contribution margin.

Step 5: Issue a Proforma Invoice

Once a price is agreed, issue a Proforma Invoice detailing:

Product description
Quantity
Price (FOB or C&F)
Delivery timeline
Payment terms
Bank account details

If the buyer agrees, they’ll issue a Purchase Order (PO), and in most cases, an L/C (Letter of Credit).

Understanding Issuing a Proforma Invoice & accepting an order:

You offer her/him a price on FOB or C&F i.e. 'Freight on Board' or 'Cost and Freight' so now you have negotiated the price and given your buyer a lead time. If they ask send them a sample (you can charge for it if it is a costly item).

If the deal is struck and they place an order with you, send them your company's details along with bank account in the Invoice. The buyer will issue a Purchase Oder (PO) which you will accept (if you think it is okay) and then they should send an L/C (Letter of Credit) in your company's/firm's name.

Step 6: Secure a Letter of Credit (L/C)

L/Cs protect both buyer and seller. Work with your bank to:

Verify L/C terms and conditions
Confirm shipping dates and documentation requirements
Request extensions ahead of time if delays occur

💡 Make sure your business is registered with Pakistan Single Window (PSW) and WEBOC (Web-Based One Customs) for seamless trade clearance.

Understanding Letter of Credit for the order:

Review the terms of the L/C along with your banker. Ensure that all the clauses are in place and the shipment schedule has taken into account the lead time.

You will have to ship by the date given in the L/C or obtain an extension well ahead in case you feel you will be late in shipping the goods.

Do a good job at exporting your products and you will have a regular source of very good income for a long time. Maintain quality and ship on time.

Step 7: Schedule Shipment Wisely

Plan shipping logistics carefully:

Choose cost-effective packaging to maximize container space
Decide between FCL (Full Container Load) or LCL (Less than Container Load)
Factor in customs processing time

Late shipments may lead to penalties or discounts, damaging your reputation.

Mini Scenario: Samina shipped a bulk order of hand-painted ceramics using LCL. By optimizing her box sizes and stacking, she reduced shipping costs by 20%.

Understanding Shipment Scheduling:

Shipment scheduling for your export from Pakistan requires meticulous planning which also includes the type of packaging you do to save on space in the container carrying your goods. Always try to adjust quantities in such a manner that maximum number of items are filled in the given space.

The timing of the shipment is to be decided well in advance so that no extra costs are incurred due to delay in shipment. If it is not planned properly, the buyer can ask for discounts which would not reflect positively for any business.

In order to learn shipping of goods in terms of per container load and CBM as well as other aspects of shipping, visit the link- Shipping of Goods.

Step 8: Partner with Reliable Freight Forwarders

A good freight forwarder handles:

Booking carriers (sea, air, road)
Documentation (Bill of Lading, Commercial Invoice, Packing List)
Customs clearance

For light, high-value items (like jewelry or stitched clothing or perishable goods), air freight may be ideal. For heavier or bulk items (textiles, furniture), sea freight is cost-effective.

The most expensive is air lift as it charges on a per kilogram basis and is suitable mainly for perishable goods in smaller quantities.

TDAP and organizations like the Pakistan Freight Forwarders Association (PAFFA) can help you connect with reputable service providers.

Step 9: Keep Documentation Accurate

Maintain thorough records:

Invoice and packing list
L/C or payment receipt
Certificate of Origin (via Chamber of Commerce)
Insurance and inspection reports (if applicable)

Incorrect documentation is one of the top reasons for export delays and payment issues.

Step 10: Comply with Regulatory Requirements

Ensure your business is compliant with the latest:

State Bank of Pakistan regulations for export payments
FBR (Federal Board of Revenue) rules regarding tax filings
Pakistan Single Window PSW & Web-Based One Customs (WEBOC) registrations for digital customs processing

Visit: Pakistan Single Window (PSW) and Trade Development Authority of Pakistan (TDAP) for guidance.

Exporting from Pakistan - Top 10 Export Items

Exports from Pakistan have been increasing on a year to year basis. Some of the major exports and trading partners of Pakistan are as shown below:

Courtesy: Pakistan Today - Top 10 Exports from Pakistan

Courtesy: Mashable Pakistan - Major Trading partners

Final Thoughts

Exporting from Pakistan is entirely achievable with the right planning, pricing, and partnerships. It opens doors to international recognition, scalable income, and contributes to Pakistan’s economy.

Exporting isn't just a business—it’s a mission. With consistency and quality, your brand can find a permanent spot in the global marketplace.