Trade of Pakistan
Subject : Geography Of Pakistan
Export VS Import
Import and export are terms that are
commonly heard in international trade and
these are activities that are carried out by all
countries of the world.
In general, import refers to an item coming
inside a country from any other country while
export refers to an item going out of the
country to any other country of the world.
Since no country in the world is self sufficient,
all countries both import as well as export.
Export VS Import
Export is the term used to selling of
products or service from any other country
while import is the activity of buying the
same from other countries
Both exports and imports are essential for
the development of any country as no
nation is self sufficient
Problem arises when imports are too high
while exports are to low leading to a
serious balance of payment problem for a
country.
Facts and Figures
For the last 5 years it has averaged 6-7% growth.
Pakistan had the narrow export base but due to govt. efforts it
has been increased in the last five years.
During the last five years, inflation has increased to a great
extent. Currently the inflation rate is 25%.
Pakistan earns a major portion of foreign exchange from the
export of its products such as cotton products, scientific,
medical & hospital equipment, Toys, bicycles and other
sporting goods, etc.
Civilian aircraft, Computer accessories, Telecommunications
equipment, Tanks, artillery, missiles, rockets, guns &
ammunition, etc are the major imports.
Major Export Market
MAJOR EXPORTS
1. Raw cotton, Textile products and Cotton yarn.
2. Rice.
3. Leather and leather products.
4. Carpets and rugs, Tents.
5. Synthetic textiles.
6. Surgical instruments.
7. Sports goods.
8. Readymade garments.
9. Vegetable, fruit and fish.
10. Engineering goods.
11. Chemicals and Pharmaceutical products.
Exports of Pakistan
Exports were targeted at $18.6 billion or 12.9 percent
higher than last year.
Export of food group declined by 3.5 percent.
This declined is caused by a 2.6 percent and 14.3
percent decline in exports of rice and fruits.
Export of rice declined due to lesser production caused
by adverse weather condition which kept the domestic
price higher.
Exports of textile manufactures grew by 0.2 percent.
Prominent among these are export of knitwear 13.9
percent, readymade garments 6.8 percent, made up
articles 8.9 percent, cotton yarn 4.6 percent and towels
2.6 percent.
Export of raw cotton, cotton cloth and bed wear on the
other hand registered a decline.
Direction of Exports of Pakistan
Although Pakistan trade with a large number of countries
its exports are however highly concentrated in few
countries including USA, Germany, Japan, UK, Hong
Kong, Dubai and Saudi Arabia which account for one-
half of its exports.
The United States is largest export market for Pakistan,
accounting for 28.4 percent of its exports followed by
UK and Germany.
Japan is fast vanishing as export market for Pakistan as
its share in total exports has been on decline for one
decade, reaching less than one percent from 5.7 percent a
decade ago.
REASONS FOR DEFICIT
IN BALANCE OF TRADE
TRADE DEFICITE
The negative difference of
the value of goods and
services exported out of a
country less the value of
goods and services imported
into the country
REASONS FOR TRADE DEFICITE IN Pakistan
ELECTRICITY SHORTFALL
POLITICAL INSTABILITY
BUISNESS OPPORTUNITIES
RISING OIL PRICES
COUNTRY CROP SMUGGLING
LABOR FORCE
Electricity shortfall
Pakistan now faces a huge
electricity shortfall. Recently
in southern Punjab and the
port city of Karachi, traders
and businessmen burned
tyres and marched in the
streets to protest power cuts.
Political instability:
Continuing political instability in Islamabad
has also weakened investor confidence in
Pakistan, putting downwards pressure on the
stock exchange, which recently recorded its
lowest day of trading in terms of volume.
Business Opportunities
it is a matter of great concern that
despite the enormous potential and
attractive business opportunities in
Pakistan, the potential investors did
not come out with money at the
desired level due to various reasons,
especially the unpredictable policies
and law and order situation in the
country.
Rising oil prices:
Rising oil prices and the import of
machinery have severely burdened
the balance of trade as the trade
deficit reached $3.5 billion in just
nine months in the previous years.
labor force
There exists surplus labor force in
Pakistan, the quality of such a labor is
relatively poor in terms of productivity. A
good quality labor with technological, and
managerial competencies is considered to
be significant in improving the
competitiveness of countries for inward
FDI. But there appears to be a lack of such
qualities and skills in labor force in
Pakistan.
Country crop smuggling:
Much of the country’s crop was
smuggled to the country’s
neighbour, Afghanistan, where so
much farming land is dedicated to
growing a $3bn poppy crop that
severe food shortages caused such
a brisk smuggling trade that the
Pakistani army had to seal the
border on occasions.
Major Imports of Pakistan
1. Machinery.
2. Petroleum.
3. Chemicals.
4. Vehicles and spare parts.
5. Edible Oil.
6. Wheat.
7. Tea.
8. Fertilizers.
9. Plastic material.
10. Paper Board
11. Iron ore and steel.
12. Pharmaceutical products.
Imports of Pakistan
Pakistan’s imports are also highly concentrated in few
items namely, machinery, petroleum and petroleum
products, chemicals, transport equipment, edible oil, iron
and steel, fertilizer and tea.
These imports accounted for 73% of total imports during
2006-07. Among these categories machinery,
petroleum/petroleum products and chemicals accounted
for 53.4% of total imports.
Direction of Imports of Pakistan
Pakistan’s imports are highly concentrated in few
countries.
Over 40 percent of them continue to originate from just
seven countries namely, the USA, Japan, Kuwait, Saudi
Arabia, Germany, UK and Malaysia.
Saudi Arabia is emerging as major supplier to Pakistan
followed by the USA and Japan.
The shares of USA and Japan, with some fluctuations,
exhibited a declining trend because of the shift in the
import of machinery/capital goods and raw materials to
other sources.
