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Trade in Pakistan: Submitted To: Sir Imam Ali

Pakistan's imports have been rising faster than exports in recent years due to infrastructure projects under the China-Pakistan Economic Corridor. Pakistan's top imports in FY2017-2018 included oil, machinery, vehicles, and iron and steel. Its top exports included cotton, knit fabrics and clothing, and cereals. While exports grew 12.8% in FY2018, the trade deficit remains high due to stronger import growth and political instability hampering demand for Pakistani exports. Reducing import dependence and developing domestic industries could help Pakistan balance its trade and strengthen its economy.

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122 views8 pages

Trade in Pakistan: Submitted To: Sir Imam Ali

Pakistan's imports have been rising faster than exports in recent years due to infrastructure projects under the China-Pakistan Economic Corridor. Pakistan's top imports in FY2017-2018 included oil, machinery, vehicles, and iron and steel. Its top exports included cotton, knit fabrics and clothing, and cereals. While exports grew 12.8% in FY2018, the trade deficit remains high due to stronger import growth and political instability hampering demand for Pakistani exports. Reducing import dependence and developing domestic industries could help Pakistan balance its trade and strengthen its economy.

Uploaded by

ANJUM KHAN
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2019

Trade in Pakistan

SUBMITTED TO: SIR IMAM ALI


SUBMITTED BY: ANJUM KHAN (BITF17M019)

UNIVERSITY OF PUNJAB, LAHORE


Trade in Pakistan

What is “trade”?
Trade is a basic economic concept involving the buying and selling of goods and
services, or the exchange of goods or services between parties on the base of Terms
like Export and Import.
What is “Export”?
An Export in international trade is a good or service produced in one country that is
bought by someone in another country. The seller of such goods and services is an
exporter; the foreign buyer is an importer.
What is “Import”?
An Import is a good brought into a jurisdiction(power), especially across a national
border, from an external source. The party bringing in the good is called an importer.
An import in the receiving country is an export from the sending country.
Import vs Export
Import Export

Comes IN to the country (we brought it). Goes OUT to another country (we sold
it).
When another country has an When we have the advantage
advantage
Example: Pakistan imports Plastic Example: Pakistan exports Rice.
instruments.

Primary export commodities:


Primary export commodities include
• Rice
• Raw cotton
• Fruits and Vegetables
• textiles,
• leather goods, and sports goods,
• carpets/rugs,
• medical instruments

Primary Imports commodities:


Primary import commodities include
• Machinery and Petroleum.
• Chemicals.
• Vehicles and spare parts.
• Edible Oil and Wheat.
• Tea and Fertilizers.
• Plastic material and Paper Board
• Iron ore and steel.
• Pharmaceutical products.
Impotence of Pakistan:
Pakistan is a member of several international organizations such as
ECO (Economic Cooperation Organization): The Economic Cooperation
Organization was the successor organisation of what was the Regional Cooperation for
Development (RCD), founded in 1964, which ended activities in 1979. In 1985 Iran, Pakistan
and Turkey joined to form the ECO.,

SAFTA (South Asian Free Trade Area): leaders of India, Pakistan, Bangladesh, Bhutan,
Maldives, Nepal and Sri Lanka have agreed upon to create a 'South Asian Free Trade Area'
(SAFTA). SAFTAcame into force since January 1, 2006 replacing South Asian Preferential
Trade Agreement (SAPTA) which was operative among SAARC countries, since December 7,
1995.,

WIPO (World Intellectual Property Organization): The World Intellectual Property


Organization (WIPO) is one of the 16 specialized agencies of the United Nations. WIPO
currently has 191 member states.,

WTO (World Trade Organization): The World Trade Organization (WTO) is a multilateral
organization whose objective is to help trade flow smoothly, freely, fairly and predictably.
Pakistan Date of Accession is 1 January 1995.
Issues:
• Pakistan’s international trade is suffering from huge amount of deficit due to low
demand for its exports.
• Domestic political instability also accounts for trade deficit.
• The trade deficit stood at US $3.946 billion in 2010.
FY2017 overall exports and imports:

Export Import
Export (in US$ 21,878 Import (in US$ 57,440
mil) mil)
No. of products 2,792 No. of products 4,162
No. of partners 194 No. of partners 209

List FY2017 FY2018 FY2019 JUL-MAR


USD TO PKP EXCHANGE 104.6971 109.8444 132.3305
RATES
EXPORT (US$ BILLION) 22.003 24.824 18.008
EXPORT GROWTH 0.1% 12.8%
IMPORT (US$ BILLION) 48.683 56.002 39.314
IMPORT GROWTH 18% 15%
Export and Import rate

EXPORT Goods FY17-18:

Fish Salt, cement


Optical, medical… 3% 3%
Cotton
Sugar
4% Knit or accessories
Cotton Clothing
Leather
28%
5% Cereals
Cereals Leather
14%
Sugar
Knit or accessories Optical, medical apparatus
Clothing 20%
20% Fish
Salt, cement

IMPORT GOODS FY17-18:


Oil seed, 2.40% Vegetable, 1.70%
Animal and
Plastics, 4%
Vegetable oil,
4.10%

Organic Chenical, 5% Oil, 23.90%

Vehicles, 4.60%

Iron, Steel, 6%

Electrical machinery, Machinery including


8.30% computer, 11.90%

Oil Machinery including computer Electrical machinery


Iron, Steel Vehicles Organic Chenical
Animal and Vegetable oil Plastics Oil seed
Vegetable

FY2019:
Exports in Pakistan increased to 3 PKR Million in April from 275384 PKR Million in
March of 2019.
Exports in Pakistan averaged 45475.05 PKR Million from 1957 until 2019, reaching an
all-time high of 295541 PKR Million in April of 2019 and a record low of 51 PKR Million
in April of 1958.

Top Trading Partners:


Top Trading Partners 2018
(70.1%) of Pakistani exports in 2018 were delivered to the above 15 trade partners.
Some of them are following:

Main Point:
• Pakistan's imports are showing rising trend at a relatively faster rate (18.0
percent) due to the increased economic activity as part of China Pakistan
Economic Corridor (CPEC), particularly in the Energy sector. The construction
projects under CPEC require heavy machinery that has to be imported. It is also
observed that the economy is currently being led both by investments as well as
consumption, resulting in relatively higher levels of imports.
Overview of FY2018:
In addition to its southern coastline along the Arabian Sea and Gulf of Oman,
Pakistan shares land borders with China in the northeast, India to the east, Iran
to the southwest and Afghanistan to the west.
• Pakistan shipped US$23.7 billion worth of products around the globe in
2018.That figure represents just 0.1% of overall global exports estimated at
$17.546 trillion for 2018.
Conclusion:
After the above analysis, it can be observed that the ratio of imported good has
reached an alarming ratio as compared to the exported goods. In order to bring a
balance in between the ratio of imports and exports, our country must first stop
depending upon other countries for its goods and start developing goods of its own.
Only then, will it be able to reduce the ratio of annual imports and become one of the
Developed countries of the World.

General Knowledge:
• The economy of Pakistan is the 23rd largest in the world in terms
of purchasing power parity (PPP), and 40th largest in terms of
nominal gross domestic product(GDP).
• Pakistan has a population of over 207 million (the world's 5th-largest),
giving it a nominal GDP per capita of $1,340 in 2019,[,which ranks 147th, in
the world and giving it a PPP GDP per capita of 5,709 in 2018, which
ranks 130th in the world for 2018. However, Pakistan's undocumented
economy is estimated to be 36% of its overall economy, which is not taken
into consideration when calculating per capita income.

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