Macroeconomics

Pakistan Trade Relation

with the World
 Introduction

Pakistan has a fiercely

Pakistan is the second
independent foreign policy,
largestMuslim-majority Pakistan has a strategic
especially when it comes to
country in terms of geo-political location at the
issues such as development
population (afterIndonesia) corridor of world major
of nuclear weapons,
and its status as adeclared maritime oil supply lines,
construction of nuclear
nuclear power, being the and has close proximity to
reactors, foreign military
only Islamic nation to have the resource and oil rich
purchases and other issues
that status, plays a part in central Asian countries.
that are vital to its national
its international role.
interests.
The Foreign Policy
Theforeign policy of
Pakistansets out in the way
it interacts with foreign
nations and to determine its
standard of interactions for
its organizations,
corporations and individual
citizens.
Backed by the semi-
agricultural and semi-
industrializedeconomy,
Pakistan is the42th
largest(nominal GDP)
and25th largest(purchasing
power) economic power in
the world, with a defense
budget of $6.98 billion, which
accounts for
approximately0.37% of
Pakistan has bilateral and
global military spending.
multilateral trade
agreements with many
nations and international
organizations. It is a member
of theWorld Trade
Organization, part of
theSouth Asian Free Trade
Area agreement (SAFTA) and
theChina-Pakistan Free
Continue of Foreign
Fluctuating world
policy
demand for its
exports, domestic
political uncertainty,
and the impact of
occasional droughts
on its agricultural
production have all
contributed to
variability in
Pakistan's trade
deficit.
Pakistan's exports
continue to be
dominated by cotton
textiles and apparel.
Imports include
petroleum and
petroleum products,
edible oil, chemicals,
fertilizer, capital
goods, industrial
raw materials, and
 Trading partners of
Pakistan
Color indicate leading
merchandise export destination
for indicated country
Color indicate leading source of
merchandise imports for
indicated country
 Continue of Trade
partners

Although Pakistan trade with a

large number of countries its
exports are however highly
Pakistans imports are highly
concentrated in few countries
concentrated in few countries.
including USA, Germany, Japan, UK,
Over 40 percent of them continue
Hong Kong, Dubai and Saudi Arabia
to originate from just seven
which account for one- half of its
countries namely, the USA, Japan,
exports. The United States is
Kuwait, Saudi Arabia, Germany, UK
largest export market for Pakistan,
and Malaysia.
accounting for 28.4 percent of its
exports followed by UK and
Germany.
PAKISTAN MAIN EXPORTS
Cotton($4 billiion)
Miscellaneous Textiles, worn clthing($3.8
billion)
Knit or crochet clothing, accessories($2.4
billion)
Clothing, accesseries(not knit or crochet)
($2.1 billion)
Cereals($1.9 billion)

Leather/animal gut articles($687.6 million)

Salt, Sulphur, stone, cement($507.6
million)
Raw hides, Skin nor furskin, leather($425.1
million)
Fruits, nuts($415.3 million)
Optical, technical, medical
apparatus($369.2 million)
Pakistan export graph
2016
Exports 184497.00
Pakistan export graph for 2011-
2016
Pakistan Main imports

Electronic Equipment($1.8
Billion)
Machines, engine,
Pumps($836.8 million)
Organic Chemicals($378.3
million)
Manmade Filaments($378.3
million)

Iron and steel($324.8 million)

Plastics($232.4 million)

Fertilizers($232.4 million)

Manmade staple fibers($170.7

million)
Rubber(4163.4 million)
Pakistan import graph
Imports 445466 2016
Pakistan imports graph for
2011-2016
Pakistan Balance of Trade 2016

Balance of Trade=export-
import
BOT= 184497-445466
BOT=-260969
Pakistan Balance of Trade 2011-
2016
 Following Remittances,
Pakistan's Exports also fall

- THE TRADE DEFICIT

IN SEPTEMBER
WIDENED ONE-THIRD
TO $2.3 BILLION
OVER THE SAME
MONTH OF PREVIOUS
YEAR. EXPORTS FELL
10.6% IN THE
MONTH, WHILE
IMPORTS INCREASED
11.5%.
 CAUSES AND
Neighbors SUGGESTION
relationship Separate politic
Unbalance ratio Policy
of import
/export recommendation
Exports raw Promote Industry
material sector
lack of Training require
research

Security Strict law

Energy Energy plant

resource
 Importance of trade

Development Meeting the Imports for

of the Economy shortages better living
standard

Growth of the
Improving Economy- Production; Source of
quality of Employment; Foreign
Expansion; Demand of
production other goods;
Exchange
 More Importance

Decrease in Removal of
Market
Unemploym food
expansion
ent shortage

Improve
quality of
local
products
Conclusion