ASSIGNMENT NO 5

GOVERNMENT AND ECONOMY

TOPIC: PAKISTAN MAJOR IMPORT & EXPORT COMMODITIES & COUNTRIES SECTION: C SUBMITTED BY: AQIFA WARIS L1F09BBAM2239 SUBMITTED TO: PROF.FARZANA RIZVI

PAKISTAN MAJOR IMPORT & EXPORT COMMODITIES & COUNTRIES:

Pakistans international trade is suffering from huge amount of deficit due to low demand for its exports. Domestic political instability also accounts for trade deficit. Pakistan is a member of several international organizations such as
ECO (Economic Cooperation Organization), SAFTA (South Asian Free Trade Area), WIPO (World Intellectual Property Organization) and WTO (World Trade Organization)

List of Pakistan's FTAs

Pak-Afghanistan Trade Agreement Agreement on South Asian Free Trade Area Pak-Malaysia Trade Agreements Pak-China Trade Agreements Pak-Sri Lanka Free Trade Agreement Pak-Iran Preferential Trade Agreement Pak-Mauritius Preferential Trade Agreement

Pakistan export:
Total value of exports: US$20.29 billion

Pakistan exports - commodities:

1).Primary commodities: Rice ( basmati rice ) Fish & fish preparations Fruits ( oranges, mangoes) Vegetables Fruit & Vegetable juices Tobacco ( unmanufactured & manufactured both such as cigarettes) Wheat & wheat flour. Spices ( chillies) Mutton & beef Sugar refined Feeding stuff for animals. Oil seeds & nuts Crude fertilizer

2).Textile Manufacturers: Synthetic textiles Readymade garments Bed linen Raw cotton Cotton cloth, fabrics, thread, bags, sacks. Cotton yarn Cotton waste Art Silk & synthetic textile Towel Knitwear Tents & canvas goods Lace & Embroidery 3). Metal & Minerals: Petroleum (Petroleum crude & Petroleum products) Cutlery Jewelry Marbles & stones Pig iron 4).Engineering manufacturing goods:

Chemicals and Pharmaceutical products. Rubber manufacturers Paper & paper board. Machinery & transport equipment Electric Machinery and Appliances( electric fans, electric parts) Household equipment

5). Others: Sports goods ( footballs, sports gloves) Carpets, rugs & tents. Leather goods ( leather & canvas footwear)

Surgical instruments. Cement Handicrafts Furniture Articles of plastic

Pakistan major export partners:

USA UAE Afghanistan UK China Hong kong Germany Japan Dubai

Conclusion on Exports of Pakistan:

Although Pakistan trade with a large number of countries its exports are however highly concentrated in few countries including USA, Germany, Japan, UK, Hong Kong, Dubai and Saudi Arabia which account for one-half of its exports. The United States is largest export market for Pakistan, accounting for 28.4 percent of its exports followed by UK and Germany. Japan is fast vanishing as export market for Pakistan as its share in total exports has been on decline for one decade, reaching less than one percent from 5.7 percent a decade ago. Pakistan needs to diversify its exports not only in terms of commodities but also in terms of markets. Heavy concentration of exports in few commodities and few markets can lead to export instability. Other issues which need to be addressed include low value added and poor quality, obsolete use of machinery and technology, higher wastage of inputs adding to the cost of production, low labor productivity, little spending on research and development, export houses lacking capacity to meet bulk orders, inability to meet requirements of consumers I terms of fashion and design, non-adherence to contracted quality and delivery schedule, lack of marketing techniques etc.

Pakistan Import:
Pakistan imports were worth 3757 Million USD in April of 2012. Historically, from 2003 until 2012, Pakistan Imports averaged 2324.6 Million USD reaching an all time high of 3694.0 Million USD in September of 2008 and a record low of 918.7 Million USD in February of 2003. Pakistans imports are also highly concentrated in few items namely, machinery, petroleum and petroleum products, chemicals, transport equipment, edible oil, iron and steel, fertilizer and tea. These imports accounted for 73% of total imports. Among these categories machinery, petroleum/petroleum products and chemicals accounted for 53.4% of total imports. 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. By 2011, experts forecasts that Pakistan's oil imports will rise to US$13.221 billion from the US$10.089 billion in 2010.

Pakistan Primary imports - commodities:

1).MACHINERY & TRANSPORT EQUIPMENT

Power generators Transportation equipment, Vehicles and spare parts. Road motor vehicles Telecom & sound recording equipments Electrical machinery & apparatus Construction & mining machinery Textile & agriculture machinery Aircrafts ,ships & boats Railway vehicles

2).CHEMICALS & RELATED PRODUCTS:

Organic & inorganic chemicals Medicines & medical products or instruments. Manufactured fertilizer Insecticides

3).OTHERS: Crude Petroleum & petroleum products, Plastics & Plastic material. Edible oils, palm oil, soyabean oil & oil seeds Iron ore, concentrates and steel, Tea Paper Board Perfumes Coke Synthetic & artificial silk yarn Rubber tyres & tubes Gas natural & manufactured Dyeing colours Pulses Musical instruments & parts Wood & cork Jute Milk & cream Powdered milk for babies Chocolate & ice cream Optical goods

Gold jewelry

Pakistan major import partners:

China Saudi Arabia UAE USA Kuwait Malaysia India Japan Germany Uk

CONCLUSION ON IMPORTS OF PAKISTAN:

Pakistans imports are highly concentrated in few countries. Over 40 percent of them continue to originate from just seven countries namely, the USA, Japan, Kuwait, Saudi Arabia, Germany, UK and Malaysia. Saudi Arabia is emerging as major supplier to Pakistan followed by the USA and Japan. The shares of USA and Japan, with some fluctuations, exhibited a declining trend because of the shift in the import of machinery/capital goods and raw materials to other sources. On the other hand, the share of Pakistans imports from Saudi Arabia has been rising due to higher imports of POL products. Malaysia share has shown rising, as well as, falling trends over the years mainly on account of fluctuations in palm oil prices.

PAKISTAN MAJOR IMPORT & EXPORT COUNTRIES:

West European Countries In this group U.K., France, W.Germany, Belgium, Nether lands and other 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. We import machines, electric goods, chemicals and various other items from these countries. 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. 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.

 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 Malaysia and Indonesia we import palm oil from them and Tea from Sri Lanka and Bangladesh. R.C.D. Countries Iran, Turkey and newly Independent Central Asian Republics namely Tajikistan, Uzbekistan, Azerbaijan and Turkmanistan are included in this group. Pakistani exports to Turkey and Iran are quite enough. Although all these countries are trying to make their balances of trade favourable, but inspite of various measures taken by the concerned countries, still Pakistans imports are greater than exports, so the balance of trade remains to the favour of these countries. 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.