international trade flows of pakistan

International Trade flows of Pakistan

Introduction

Islamic Republic of Pakistan is located in south Asia

It is the sixth most populous country with population exceeding than 200 million

It is the 36 largest economy in the world

Its share border with Afghanistan, India, Iran and China

Pakistan trade agreements

Commenced on 1 January 1995

Signed by 123 nations

Regulate International trade

Pakistan trade agreements (Contd.)

South Asian Free Trade Area(SAFTA)Came into force on 1 January 2006 .

SAFTA requires (India, Pakistan and Sri Lanka) to bring their duties down(1st phase ending 2007 and 2nd phase ending 2012)

The least developed nations in South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and Maldives)

Whereas Afghanistan as the 8th member state

Pakistan trade agreements (Contd.)

China–Pakistan Free Trade AgreementTrade volume reached to $20 billion by 2015

The second phase will lower tariffs further

Sanjeeda saddique

Pakistan's Import and Export Indicators and Statistics (2010)

Total value of exports US$20.29 billion

Primary exports – commoditiestextiles (garments, bed linen, cotton cloth, yarn), Circe, leather goods, sports goods, chemicals, manufactures, carpets and rugs

Primary export partners:  US (15.87 percent of total valor of exports), UAE (12.35 percent), Afghanistan (8.48 percent), UK (4.7 percent), China (4.44 percent).

Pakistan's Import and Export Indicators and Statistics (2010)

Total value of imports: US$32.71 billion

Primary imports - commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Primary import partners:

 China (15.35 percent of total imports) Saudi Arabia (10.54 percent) UAE (9.8 percent) US (4.81 percent) Kuwait (4.73 percent) Malaysia (4.43 percent) India (4.02 percent).

Muhammad yousaf

Historical Trade balance of Pakistan

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

Due to increase in deficit tariffs was raised from 20% - 25% to the 30%-35% in 300 luxury items by Pakistani government

This act brought decrease in imports and increase export, thus lowering the trade deficit

Reasons for Trade deficit

Pakistan's failure to explore and exploit its own oil and gas resources to its full capacity has led to them relying on imports  to meet the growing energy demands in the country

Political Instability

Higher inflation rate

Lower demand for its export