Foreign Trade of Pakistan

FOREIGN TRADE
Foreign trade is exchange of capital, goods, and services across international borders or territories. In
most countries, it represents a significant share of gross domestic product (GDP). Industrialization,
advanced transportation, globalization, multinational corporations, and outsourcing are all having a
major impact on the international trade system. Increasing international trade is crucial to the
continuance of globalization. Without international trade, nations would be limited to the goods and
services produced within their own borders.
Foreign trade Pakistan
INTRODUCTION
When Pakistan came into being her economy was completely based on agriculture. The exports
consisted of agricultural products only. For the economic development of the country there was need
for diversification of her trade and a change in her pattern. The government of Pakistan decided to
industrialize the country as rapidly as possible. taken by the government for boosting the export, still
our imports are greater than the exports. The balance of trade is unfavorable and deficit.
CHIEF EXPORT ITEMS OF PAKISTAN
Following are the main items which may be included in our export list:
1.Cotton:
(a) Cotton Cloth:
(b) Cotton Yarn:
(c) Raw Cotton:
2. Rice:
3. Carpets, Rugs And Mats:
4. Fish and Fish Preparations:
5. Leather And Hides:
6. Synthetic Textile Products:
7. Petroleum Products:
8. Sports Goods:
9. Surgical Instruments:
CHIEF IMPORT ITEMS OF PAKISTAN
Following are the main items of our country:
1.Mineral Oil:.
2. Machinery:
3. Edible Oil:
4. Chemicals And Drugs:
5. Dyes And Colors:
6. Tea:
7. Electric Goods:
8. Transport Equipments:
9. Paper And Paper Products:..
One of the most important statistics of a country is its Balance of trade difference between
its Exports and Imports. For layman; Import is the goods coming and export is goods going out of the
country. The difference between the monetary value of Exports and Imports is called Trade
Surplus (exports is greater than imports) or Trade Deficit (imports greater than exports)..
THE REASONS BEHIND THE CONSTANT TRADE DEFICIT IN PAKISTAN
Over the stretch of the past six to seven years, Pakistan's trade deficit has only worsened instead of
improving. The element of self-reliance lacking in the mechanism of Pakistan's economy is one major
reason as to why Pakistan has to import goods mainly on heavy prices from other countries. In
comparison to the heavily priced imports that mostly comprise of manufactured goods, the exports of
Pakistan in the international market constitute chiefly of raw materials or semi-manufactured goods
that are a great deal cheaper and lesser in demand as compared to the market of manufactured
goods.
Another factor that contributes towards exacerbating Pakistan's trade deficit is the paucity of variety in
the gamut of Pakistani exports. The textile sector constitutes a major part of our exports and although
the exports of Pakistan have increased from before they still contribute very little to the overall Gross
National Product of the country.
Basically the main reason of a deficit balance of payment is because, goods that are being produced in
Pakistan has a lot of competition in the world market and Pakistani goods are unable to compete with
the excellent qualities of the international products
Pakistan trade pattern and trade policy have continuously been moving towards fewer and fewer
controls, lower tariffs and more openness..
Conclusion
Despite an inconsistent system of rule, Pakistan has almost surprisingly followed a consistent foreign
policy. China has been an all-weather friend while the US a fair-weather one. However, the past few
years, particularly since 9/11 and Pakistan's shift in its policy of supporting the Taliban rule in the
neighboring Afghanistan and subsequent surge of militancy in its own backyard, has caused some
long-term shifts in Pakistan's foreign policy, particularly with regard to its neighboring countries. Under
the new democratic set up, which faces daunting economic and political challenges at home, foreign
policy is likely to be both interesting and significant in the near future. Ties are likely to improve with
India, Afghanistan and Iran while the newfound friendship with the Gulf states will most likely get
better. Economy and economic interests will be the most dominant factor behind Pakistan's foreign
policy in the new era rather than politics.
China, as a growing economic giant and an old ally of Pakistan, will remain at the top of Pakistan's list
of foreign policy.
A wind of change is also blowing for Pakistan's ties with another economic giant, India. Old rivalry is
seemingly disappearing and is being replaced with overtures of economic and cultural cooperation.
Past two years have seen considerable growth in both trade and cultural exchanges between the two
countries which is a trend that is likely to continue under the new democratic regime.
Pakistan's relations with the US will continue to remain the focus of the international media and press It
seems quite likely that Pakistan's engagement with the US as well as its other western allies will
continue under the new government against the religious terrorism.
The economic and diplomatic ties between Iran and Pakistan are likely to thrive in the near future for
several reasons. One of the key reasons is the proposed gas pipeline that is to reach India through
Pakistan from southern Iran (also known as the IPI - Iran, Pakistan & India pipeline or Peace Pipeline).
The current government of Pakistan faces a host of daunting challenges; both political and economic.
The challenges have to be met head on with a balanced mix of internal and external policies. In an age
where economic growth and development has become the yardstick against which all governments
and their performance is measured, effective foreign policy will be critical for the future of Pakistan.
Good relationship with neighbors and countries that can share economic gains with Pakistan are likely
to remain Pakistan's top priority in its foreign policy.

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FOREIGN TRADE

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