Exploring Potential, Achievements and Problems in Pakistan’s Sports Sector

Abstract

Objective

The objective of this study is to assess the potential, performance, and achievements of the sports sector.

Research Gap

Attention is paid to sports industry and sports activities internationally, but inhouse industry needs serious facilitation in terms of industrial  development and research.

Design/Methodology/Approach

This study uses mixed methods to assess sectoral export potential, focusing on intensive and extensive margins. Employing the Amiti and Freund (2008) technique, it delivers a dynamic analysis of export market changes, supported by key informant interviews and secondary data.

Findings

Findings show that the export growth of Pakistan's sports goods industry from 2010 to 2020 has been highly volatile, marked by periods of increase and decline. Despite a few strong growth years, the overall export value showed a decrease, largely due to a reliance on existing products, indicating a lack of innovation in goods. The COVID-19 pandemic caused significant losses in 2020. However, the sector's potential for revival remains strong, supported by its reputation for quality products. The growth is witnessed from intensive margins in the industry while the sports industrial cluster/EPZ needs due attention.

Practical Implications

Pakistan's sports goods industry must focus on innovation and product diversification to boost exports. Developing industrial clusters and Export Processing Zones (EPZs) can enhance growth, while improving supply chain resilience is essential for industrial management. Capacity building of the workforce is essential for supporting competitiveness. Influencing the sector's strong reputation through effective branding and marketing can help capture new markets.

Originality/value

This research is original and finds decomposed margins in sports sector in Pakistan and realizes the potential, need for innovation, investment and robust policy support.