Foreign Trade of Pakistan
INTRODUCTION
When Pakistan came into being her
economy was completely based on agriculture. The experts 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. Export promotion was regarded as one of the highest national
commitments by the government. Various measures were adopted for export
improvement. Pakistan participated in International Trade Conferences and
Fairs. The Export Promotion Bureau and Export Promotion Council were set up to
provide assistance and information to potential foreign buyers. A large number
of concessions and incentives were given to the export trade section etc. As a
result the pattern of trade in Pakistan changed. Experts increased and now
these include industrial finished products as well as raw materials.
In spite of the different measures
taken by the government for boosting the export, still our imports are greater
than the exports. The balance of trade is unfavorable and deficit.
The year 1991-92 was estimated to
have closed with a balance of payment deficit of dollar 2.6 billion plus. Indeed
as far as one may go back the balance of payment has been in the red, with the
figure hovering over dollar 1 billion through out the last ten years or so.
CHIEF EXPORT
ITEMS OF PAKISTAN
Following are the main items which may
be included in our export list:
1. Cotton
Cotton ranks at the top of the export
list of Pakistan. Pakistan occupies first position in Asia and second position
in the world as an exporter of cotton and cotton products. Export of Raw
cotton, cotton cloth and cotton yarn together contribute approximately 40 to
42% to the total export earning of Pakistan. Karachi with the cotton growing
hinterland has almost the monopoly of the trade.
(a) Cotton
Cloth
Cotton fabrics are at the top of our
export list. We export a large amount of cotton cloth every year. Due to
increasing demand, its export has gone higher enough.
Some of the customers of cotton cloth
are U.K,U.S..,U.S.S.R., Hong Kong, Japan, Singapore, W.Germany and Sudan.
(b) Cotton
Yarn
It is another important export item
of our country. Its export is increasing every year. Important Customers are
Japan, U.K, Hong Kong, W.Germany, U.S.A., Sri Lanka, and Burma.
(c) Raw
Cotton
Pakistan grows surplus amount of best
quality long staple American Upland Cotton which is very much demanded all over
the world. Our main customers of raw cotton are U.K., China, Japan, Hong Kong, Belgium,
Indonesia, Italy, Singapore and Bangladesh.
2. Rice
Pakistan has emerged as one of the
leading exporters of rice .In the previous years rice was at the top of our
export list but due to fluctuation in the world market, its demand has
decreased. Best qualities like Basmati and Irri-6 are exported. Pakistan
exports rice to almost all the Gulf States and Middle Eastern, European, East Asian
and some African countries.
3. Carpets, Rugs
And Mats
Pakistan earns a large amount of
foreign exchange by exporting very fine quality carpets (both hand and machine
made) rugs and mats. Due to heavy competition in world’s market their demand is
increasing.
U.S.A. is an important buyer of
Pakistani carpets, rugs and mats. Other customers are mostly European countries
including France, U.K., Italy, Switzerland, W.Germany, Belgium etc.
4. Fish And
Fish Preparations
Fish is exported, fresh, canned and dried.
Shrimps are exported to Japan and U.S.A. canned fish finds its market mostly in
W.Europe. Middle Eastern and South Asian countries (Specially Sri Lanka) are
also important customers of Pakistani fish and fish preparation.
5. Leather
And Hides
Pakistan produces hides and skin
worth approximately 2 Crore every year of which 40 % are exported. Now, because
of leather industries in our country export of hides and skin. Italy, Spain, Japan,
France, China, Romania, W.Germany etc. are important markets in this regard.
6. Synthetic
Textile Products
Pakistani Synthetic Textile Products
are popular in various foreign countries. These are mainly exported to Middle
Eastern, African and South American Countries.
7. Petroleum
Products
There are 3 oil refineries in
Pakistan where crude petroleum is imported and a number of petroleum products
are being produced. Some of the surplus products are exported to India, Turkey,
Sri Lanka, Singapore etc.
8. Sports
Goods
Pakistan has a worthy name in
exporting sports goods to more than 100 countries, principally to W.Germany, U.K.,
Italy, U.S.A., France etc.
9. Surgical
Instruments
Pakistan is also exporting surgical
equipments to China, Japan, America and Canada.
Besides the above mentioned items, Pakistan
exports a number of miscellaneous items like raw wool, Tobacco, Fruits,
Vegetables etc. to various countries.
CHIEF IMPORT
ITEMS OF PAKISTAN
Following are the main items of our
country:
1. Mineral
Oil
Our country is not self sufficient in
our mineral oil requirements. The present oil production of our own country
meets only about 24% of the country’s requirements. So to meet the deficiency, we
have to import a large amount of mineral oil from other countries. We import
mineral oil from Saudi Arabia, Iran, U.A.E and other Middle East countries.
2. Machinery
As our country is in its developing
stage, we have to import different kinds of machinery to meet the demands of
various industries. The machines are usually imported from Japan, U.S.A. and European
countries.
3. Edible Oil
The production of edible oil is not
sufficient to meet the demand of our Ghee industry. Although the government has
taken various measures to boost up the production of oil seeds, but inspite of
those our country is still deficient in edible oil so we have to import enough
amount of edible oil e.g. soyabean oil from U.S.A. and Palm oil from Malaysia
and Indonesia.
4. Chemicals
And Drugs
The economy of our country mainly
demands on agriculture, so to get higher yield from different crops spray of
various chemicals is essential. Thus to meet all these demands of our
agricultural sector, we have to import various kinds of chemicals and drugs
from other countries. The chemicals and drugs are mainly imported from Japan,
Germany, U.S.A, U.K, and other European countries.
5. Dyes And
Colours
Various Industries of our country use
a number of dyes and colours as raw material in their products such as textile,
inting etc. so to meet the demand of all these industries, various kinds of
colours and dyes are imported. These colours and dyes are mainly imported from
Japan ,U.K.,U.S.A. etc.
6. Tea
Our country produces a very small
quantity of tea which is sufficient to meet the demand of our country. So various
tea companies port huge amount of tea. Tea is mainly imported from Sri Lanka, Bangladesh,
India and Kenya.
7. Electric
Goods
Different kinds of electrical goods
are needed in our country .The local industries are not in the position to meet
the required demand so we have to import a large number of electric goods from
Japan, S.A., U.K. and other European countries.
8. Transport
Equipments
Our country needs different kinds of
transport equipments e.g. buses, cars, rickshaws, motorcycles. So demand of
these are high and hence they are imported from Japan, Italy and other
countries.
9. Paper And
Paper Products
Before 1971,we had a number of paper
mills our eastern wing and our requirements were fulfilled from the eastern.
Although, after 1971 some paper mills were set up in the waster wing, are still
deficient in paper especially in paper for newspaper industry. We have to
import a large amount of news print paper and other kinds of paper from Canada,
Japan, Sweden, U.S.A. etc.
DIRECTION OF TRADE
The global concentration of
Pakistan’s trade can be broadly classified to the following major groups of
countries:
1. West
European Countries
In this group U.K., France, W.Germany,
Belgium, Nether lands and other Scandinavian countries can be included: These
countries are the main buyers of our export goods e.g. Cotton cloth, carpets,
rugs, sports goods and many other items and we import machines, electric goods,
chemicals and various other items from these countries. Our exports are less in
comparison to the imports from these countries and balance of trade is in
favour of these countries.
2. Middle
East Countries
Saudi Arabia, Iraq, U.A.E. and other
Arab countries can be included in this group. These countries are the top
buyers of our export goods, such as rice, cotton cloth and various other items,
but due to oil crises and Iran-Iraq war, our export to these countries has
declined to some extent, but our imports from these countries have increased
enough. We import mineral oil and various other items from these countries. Thus
due to heavy imports from these countries, the balance of trade is in their
favour.
3. Asian
Countries
Japan, Hong Kong, China, Singapore, Malaysia,
Indonesia and various other countries can be included in this group. Our exports
to these countries has been decreasing every year, and imports have increase
too much so due to these circumstance the balance of trade go in the favour of
these countries. Japan is the top buyer of our export goods in Asian countries,
but we have to import large amount of machinery, chemicals, transport
equipments and various other items from Japan. Besides Japan we do trade with
others. Asian countries, such as we import palm oil from Malaysia and Indonesia
and Tea from Sri Lanka and Bangladesh.
4. North
American Countries
U.S.A., Mexico, Canada and other
countries can be included in this group. The exports of our country to North
American group is not progressive, but we import so many kinds of goods, such
as machinery, electrical goods, soybean oil and requirements for our armed
forces and various other items, and our imports are about three times greater
than our exports. So due to all these conditions the balance of trade remains
in favour of these countries.
5. R.C.D.
Countries
In this group are included Iran, Turkey
and newly Independent Central Asian Republics namely Tajikistan, Uzbekistan,
Azerbaijan and Turkmenistan. Pakistani exports to Turkey and Iran are quite
enough. Although all these countries are trying to make their balances of trade
favorable, but inspite of various measures taken by the concerned countries
still Pakistan’s imports are greater than exports, so the balance of trade
remains to the favour of these countries.
6. East
European Countries
This group includes countries of Eastern
Europe such as Poland, U.S.S.R., Romania, Hungary, Yugoslavia, Greece and
others. Such countries import large amount of our export goods such as rice,
cotton cloth, sports goods, carpets and various other items, but our imports
are comparatively less than our exports, so balance of trade is in favour of
our country.
Besides the above we do trade with so
many African, central and South American countries and also the various Asian
and Oceania countries.
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