Economics

Trade trends of Pakistan

INTRODUCTION
International Trade has always a key role in the economy of any country. Without international trade we would all be much poorer. There would be some items like pineapples, clothes, uranium, oil, other consumer goods etc that we would simply have to go without. Then there would be other items like aircrafts, automobiles, drinks that we could only produce very inefficiently. International trade has the potential benefit for all the participating countries. The report contains the material about the imports and exports of Pakistan. The export data in this report relate to Pakistan` s exports to foreign countries via sea, land and air routes. Bulk of the foreign sea-borne trade is recorded at the Karachi port. Pakistan` s trade via land route is carried on with the neighboring countries, through Torkham, Chaman, Lahore, Quetta and Gilgit. Export statistics are a complete record of physical movement of merchandise out of Pakistan o foreign countries. Imported goods subsequently re-exported to foreign countries without further processing were included in up to July 1967 but from August 1967 onwards re-exports data have been tabulated and presented separately. The following are excluded from export statistics: i) Defense stores. ii) Gold and silver coins or bullion and currency notes. iii) Non-dutiable articles of baggage and personal effects of passengers. iv) Trade in-transit through Pakistan. Generally it is seen that Pakistan is most often having trade deficits, only “thrice” it has got surplus. The balance of trade in deficits is not a good sign for the trade of a country. In this report we shall see at which balance Pakistan is and previously what were it balances of trades. The data provided in this report is fresh up till October 2007 and most of data of the report is from the period July-October October 2007.

Why do countries trade with each other and what do they gain out of it?
There are several reasons for it: • They produce more than they need certain goods, that is not consumed domestically is exported. • If a country has an absolute advantage in producing a good then it can gain benefit by exporting it. A country has an absolute advantage over another in the production of a good if it can produce it with less resource than the other. • If a country has a comparative advantage in producing a good, then it may go for exporting. A country has a comparative advantage over another in the production of a good if it can produce it at a lower opportunity cost. i.e. if it has to forgo less of other goods in order to produce it. • If a country has lack of resources for the production then it has to go for the import of those resources. • If a country is unable to produce certain goods and equipment then it has to import it from the countries having abundance. etc.

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Trade trends of Pakistan

Terminologies
There are certain terminologies which are used in this report, so before we go on, it is necessary to understand them.

Exports
Exports refer to the sending goods abroad for the purpose of sale. When a country has an abundance of certain goods then it go for selling it to other countries and this phenomenon is known as exports.

Imports
Imports refer to the purchasing goods from other countries. When a country has lack of certain products or do not have certain resources then it can get it by other countries and this phenomenon is known as imports.

Re-exports
Re-exports refers to selling imported goods to other foreign countries. When a country subsequently re-exports the imported goods to foreign countries without further processing, the goods would be recognized as re-exports.

Re-imports
Re-import refers to the bringing back into a country (goods made from its exported raw materials).When the goods are brought back to the country which are made from the raw material which it had exported ,the phenomenon is known as re-import. Balance of Trade Balance of trade is the difference between exports and imports. If exports exceed the imports then it is in Surplus and if imports exceed imports then it will be known as Deficit. Balance of Trade = Exports – Imports Terms of Trade The price index of exports divided by the price index of imports and then expressed as a percentage. This means that the terms of trade will be 100 in the base year. In the real world where countries have many exports and many imports, the terms of trade are given by: Average price of exports Average price of imports

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Methods and Materials
In the report “Trade Trends of Pakistan” we have encompassed different issues of trades of Pakistan. What are the imports and exports of Pakistan? What are the major sources of imports and exports? What are the policies of Govt. regarding imports and exports? What are the trends of balance of trades? Which are the major import markets of Pakistan? Which are the major export markets of Pakistan? Which are the major imports, export territories? Pakistan trades with different regions. What is the structure of imports and exports of Pakistan? Which are the years when Pakistan got surplus of balance of trade? We have collected the data relevant to our report from different sources. Some of the sources are: -Federal bureau of Statistics regional office Multan. -Searching on the Internet. -Consultation of different books.

Objectives of the Report
The objectives of the report “trade trends of Pakistan” are following: • To see Pakistan's imports and exports and their trends • To predict about the future prospects of trades in Pakistan • To see what are the balance of trades in different years and its trends. • To see whether today's trade is better from the past or not?

EXPORT OF PAKISTAN
Pakistan is endowed with rich and varied natural resources. Pakistani products are found all over the world and compete favorably with those from anywhere in the world. From cotton to handmade footballs, leather goods, medical instruments, rice and fruit, every Pakistani product is in a position to compete. The need is to promote them through proper publicity. The government recognizes the importance of publicity. Export Promotion Bureau provides leadership and direction, also undertakes a number of responsibilities that range from promotional activities to advisory services. One of the most important marketing tools in promoting export strategy is fairs and exhibitions. EPB arranges for the participation of exporters in various trade fairs. The overall objectives to be achieved from such promotional events are: a. To maximize exports and market share with the help of experienced exporters with critical mass/product range and a proven track record. b. To promote new & small-to-medium exporters (SMEX) with a successful track record of aggressive growth, irrespective of the size of current level of export.

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c. To increase geographical spread in developed countries of our exports in the core and developmental categories, with the help of experienced & medium-to-large size exporters with an aggressive track record of growth. d. To increase geographical spread in non-developed countries for the core products with the help of medium-to-large, and small but aggressive, entrepreneurial exporters. e. To increase exports of our developmental categories in selected geography with medium-to-large exporters/businessmen with proven track records of success in similar geographical areas abroad or in Pakistan as far as possible. f. To support exposure of Pakistan's exports in regional trade blocks. g. To encourage women entrepreneurship. h. To project a correct, modern and enterprising image of Pakistan as an exporting country. i. Whatever we do, we do with excellence.

Despite EPB efforts to make such events a success, various administrative flaws have created an embarrassing situation for both exporters and Pakistani missions abroad. Late arrival of Pakistani exhibitors and goods at the fair and failure to display items properly items well in time has jeopardized the very purpose of participation in these events. Such situations have occurred in trade fairs in Kenya, Damascus and South Africa. It not only wastes time but also foreign exchange. It ruins the country’s image and harms export rather than help them. The foreign buyers feel that when a country cannot properly arrange its participation in trade fairs, its exporters are unlikely to meet their supply deadlines. Their business goes to other competitors. If Pakistan wants to attract foreign buyers it must overcome these flaws, and ensure they are not repeated in other events.

Major Exports of Pakistan
i) Exports by commodities or products
Major exports of Pakistan are almost 22 which are given in the table given below. Percentage of share wise main export products are knit wear (15.14%), cotton fabrics (12.48%), bed wear (8.23%), cotton yarn (6.47%), Articles of apparel and clothing accessories (5.72%) and rice (4.7 %) etc. All the details of exports by commodities with their related share in total exports are given in the following table.

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Trade trends of Pakistan

Table: Major export products and their share in total exports S# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Products Rice Fish and fish preparations Fruit, vegetables & preparation there of Raw cotton Tobacco unmanufactured Raw wool Knit wear Cotton fabrics Bed wear Cotton yarn Articles of apparel& clothing accessories(excl. knitwear) Textile made ups (excl. towels & bed wears) Towels Synthetic textile fabrics Tarpaulin and other canvas goods Leather clothes and accessories Petroleum products Leather Sports goods(excl. toys) Carpets, carpeting, rugs and mats Surgical instruments Footwear Others % Share in total exports 4.79 1.08 1.02 0.40 0.08 0.0025 15.14 12.48 8.23 6.47 5.72 3.77 3.49 2.54 0.36 3.54 3.09 2.26 2.05 1.68 1.31 0.89 19.56

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R ice

Trade trends of Pakistan

Exports by commodities
5% 1% 1% 0% 0% 1% 1% 2% 2% 2% 3% 4% 0% 3% 3% 4% 6% 6% 8% 12% 20% 0% 15%

F ish and fish preparations F ruit, vegetables & preparation there of R aw cotton Tobacco unmanufactured R aw wool Knit w ear C otton fabrics B ed w ear C otton yarn A rticles of apparel& clothing accessories(excl. knitw ear) Textile made ups (excl. tow els & bed wears) Tow els Synthetic textile fabrics Tarpaulin and other canvas goods Leather clothes and accessories P etroleum products Leather Sports goods(excl. toys) C arpets, carpeting, rugs and mats Surgical instruments F ootw ear Others

ii) Exports by product groups
According to the product groups Pakistan` s exports are divided in 3 groups i.e. Primary commodities, textile manufactures and other manufactures. By seeing the table given below, we can see that textile group is much heavy than the others. Primary commodities group has the least weightage of all the three product groups. Table: Commodity groups and there share in total exports S# Product/commodity group 1 2 3 4 Primary Commodities Textiles manufactures Other manufactures others % share in total exports 7.37 58.2 14.82 19.56

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Exports by porduct groups
20% 15% 58% 7% Primary Commodities Textiles manufactures Other manufactures others

iii) Exports by Economic Categories
The Export products are divided in three economic categories i.e. Primary Commodities, Semi-manufactures and Manufactured goods. And manufactured goods are most prominent in exports of Pakistan, with the share of 78.01 % exports.

Table: Exports by Economic Categories
S.# 1 2 3 Economic Category Primary Commodities Semi- manufactures Manufactured goods % Share in total exports 11.25 10.74 78.01

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Exports by economic categories
100 80 60 40 20 0

% export

C o m

m

P

e m

Major Export Markets
i) Major Countries of Pakistan` s Export Market
The export market of Pakistan consist of many countries, but export` s concentration is toward 7 to 8 countries. Five major countries of Pakistan` s exports are USA , United Kingdom, United Arab Emirates, Hong Kong, Germany. USA is at the top with the share of 25.62 percent, after that comes United Kingdom with the share 6.99 percent, then comes the United Arab Emirates with the share of 5.33 percent, after that comes Germany and Hong Kong with the shares of 4.85 and 4.15 respectively.

Table: Exports to Major Countries
Countries 1 U.S.A. July – October, 2007 %Share

M

S

a n u fa c

ri m

i-

.

tu re d

a n u f.

d .

2 3 4 5 6 7 8 9 10 11 12 13

United Kingdom United Arab Emirates Germany Hong Kong Italy Afghanistan France Saudi Arabia Spain Cyprus Dubai Netherlands

25.62 6.99 5.31 4.85 4.15 4.08 3.24 2.77 2.56 2.44 2.37 2.35 2.32

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Economics 14 15 16 17 18 19 20 China Japan India Turkey Canada Bangladesh Korea Others TOTAL

Trade trends of Pakistan 2.12 1.54 1.52 1.47 1.40 1.31 1.27 20.31 100

5 major export countries
30 25 20 15 10 5 0
. .A U .S

% exports

om

te s E m ira

U ni te

ii) Major Territories/Regions of Pakistan’s Export Market
Pakistan exports to 11 major regions which are shown in the table given below. According the exports percentage share major five of them are North America , European Union ,Middle East, Other Asia and Other Africa. Among them European Union is at the top position with the 29.65 % of exports from Pakistan.

U ni te

d

A

ra b

G er m an y H on g K on g

d

K

in gd

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Trade trends of Pakistan

Table: Exports by Territories/Regions
Territories/Regions July – October, 2007 %Share

1 2 3 4 5 6 7 8 9 10 11

Latin and Central America South America North America Eastern Europe European Union E.F.T.A Other Europe Middle East Other Asia Other Africa Oceania TOTAL

0.57 1.01 27.02 0.42 29.65 0.39 0.04 15.96 19.48 3.99 1.16 100

5 major export territories/regions
40 30 20 10 0 North America European Union Middle East Other Asia Other Africa

% exports

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IMPORTS OF PAKISTAN
Major Imports of Pakistan
i) Imports By Products or commodities
Pakistan has approximately 19 major imports like Palm oil, tea, Pulses ,Soybean oil, Transport equipment ,machinery, Petroleum products, Steel , fiber and Paper etc. According to the percentage of share in total imports the big ones are Machinery, Chemicals, Petroleum crude, Transport equipment, Palm oil, Iron & Steel. Machinery is at the top with the 19.16 % of imports. Table: Imports by commodities or products S# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Products Palm oil Tea Pulses Soybean oil Milk and milk food for infants Machinery Transport equipment Petroleum crude Petroleum products Synthetic and artificial silk yarn Synthetic fiber Chemicals Fertilizers manufactured Medicinal products Insecticides Iron and steel Iron and steel scrap Paper and paper products Tires and tubes Others % share in total imports 4.23 1.26 0.60 0.34 0.10 19.16 5.04 12.42 8.78 0.81 0.87 15.84 2.24 1.43 1.33 4.12 1.0 1.02 0.74 21.18

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Trade trends of Pakistan

Imports by commodities

1% 1% 4% 0% 0% 19%

P alm oil Tea P ulses Soybean oil M ilk and milk food for infants M achinery Transport equipment

21% 1% 1% 1% 4% 1% 1% 2% 15% 1% 1% 9%

P etroleum crude P etroleum products Synthetic and artificial silk yarn Synthetic fiber Chemicals

5%

Fertilizers manufactured M edicinal products Insecticides

12%

Iron and steel Iron and steel scrap P aper and paper products Tires and tubes Other

ii) Imports by Product Groups
Pakistan` s imports products are categorized in 7 groups i.e. Food group, Machinery & Transport equipment ,Petroleum group, Textile group, Chemical group, Metal group and Miscellaneous groups. Among these groups, machinery & transport equipment group is at the top with the 24.2 % share of the total imports. At the 2 nd number is petroleum group with the 21.2 % share and at the third number is chemical group with 20.84 % share of total imports. It is much obvious that Pakistan` s imports are concentrated towards these three groups. Table: Imports by Product Groups S # 1 2 3 4 5 6 7 8 Commodity Groups Food group Machinery& transport equipment Petroleum group Textile group Chemical group Metal group Miscellaneous Others % share in imports 6.53 24.2 21.2 1.68 20.84 5.12 1.76 18.65

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Food group Machinery& transport equipment

Imports by commodity groups
19% 2% 5% 21% 2% 7% 23%

Petroleum group Textile group Chemical group Metal group

21%

Miscellaneous Others

iii) Imports By Economic Categories
Pakistan` s imports are divided in four economic categories i.e. Consumer goods, Capital goods, Raw material for consumer goods and raw material for capital goods. Pakistan’s imports majorly consist of Raw material for consumer goods which has a share of 48.10 %. And at the second number is Capital goods with 32.06 % share of total imports. Table: Imports by Economic Categories:
S.# Economic Category % Share in total imports

1 2 3 4

Consumer Goods Raw Material for Consumer Goods Raw Material for Capital Goods Capital Goods

12.38

48.10
7.46 32.06

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Trade trends of Pakistan

By Eco. Categories
60 50 40 30 20 10 0 Cons.G Raw m. Con.G Raw mat. Cap. G Capital G Imports

% imports

categories

Major Import Markets
i) Major Countries of Pakistan` s Import Market
Pakistan` s imports comes through twenty major countries. According to the percentage of imports the major ten are Saudi Arabia , USA, China, Japan, Germany, Dubai, Kuwait, Malaysia, Indonesia and Korea. The maximum imports are by Saudi Arabia ,after that from China and then from USA. All the details are provided in the following table. Table: Imports From Major Countries

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Trade trends of Pakistan

Countries

July – October, 2007 %Share

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Saudi Arabia China U.S.A Japan Dubai Kuwait Malaysia Germany Indonesia Korea India United Kingdom Australia Thailand Russian Federation Switzerland Italy Singapore Oman Iran(Islamic Rep.) Others TOTAL

12.04 10.06 7.79 7.19 6.80 4.96 4.12 3.93 3.16 2.59 2.30 2.20 2.11 2.03 1.89 1.72 1.66 1.56 1.40 1.15 19.34 100

10 major import countries
15 10 5 0
U. S. A Ja pa n D ub ai Ku w M ai t al ay si a G er m a Ind ny o Ko nes ia re a Re .o f Ar ab C hi na ia

% imports

Pakistan` s imports come from 11 regions .These regions are Latin & Central America, South America, Eastern Europe, European Union, E.F.T.A, Other Europe, Middle East,

Sa

ii)Major Region/Territories of Pakistan` s Import Market

ud i

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Other Asia, Other Africa, Oceania. The major imports are from the regions Middle East, European Union and Other Asia. All the details are provided in the following table. Table: Cumulative Imports by Territories/Regions
Territories/Regions July – October, 2007 %Share

1 2 3 4 5 6 7 8 9 10 11

Latin and Central America South America North America Eastern Europe European Union E.F.T.A Other Europe Middle East Other Asia Other Africa Oceania TOTAL

0.07 0.88 8.97 2.77 14.85 1.75 0.01 29.29 36.10 3.08 2.23 100

5 major import territories/regions
40 30 20 10 0

% imports European America Middle East Africa Other Other

Asia

Pakistan’s Trade with Different Economic Groups
Trade Between Pakistan & ASEAN Countries

Union

North

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Trade trends of Pakistan

With the ASEAN countries Pakistan’s trade balance is mostly in deficit. Imports are mostly gained from these countries, but export to these countries is very low. Table: Trade Between Pakistan & ASEAN Countries (Million US) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 293.130 270.470 257.723 360.171 287.985 Imports 1285.757 1418.396 1070.098 1163.300 1228.790 Balance of Trade -992.63 -1147.93 -812.38 -803.13 -940.81

Fig: Trade Between Pakistan & ASEAN Countries (Million US)

Trade between Pakistan & ECO Countries
With the ECO Countries Pakistan` s trade is positive as it has got surplus in the year 2001-02.Deficit in the previous years is not so big except two years. Table: Trade Between Pakistan & ECO Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 213.752 141.254 221.375 292.310 317.201 Imports 231.338 332.851 317.655 457.000 221.075 Balance of Trade -17.59 -191.60 -96.28 -164.69 +96.13

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Trade trends of Pakistan

Fig: Trade Between Pakistan & ECO Countries (Million US $)

Trade between Pakistan & EU Countries
Pakistan` s Major trade is carried out with this economic group. And Pakistan’s trade has got surplus with these countries from 1997-98 to 2001-02.

Table: Trade Between Pakistan & EU Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 2638.000 2498.491 2519.373 2421.310 2512.482 Imports 1870.805 1801.176 1704.947 1594.950 1752.746 Balance of Trade +767.20 +697.32 +814.43 +826.36 +759.74

Fig: Trade Between Pakistan & EU Countries (Million US $)

Trade between Pakistan and G-8 Countries
With the G-8 countries also Pakistan` s major trade is going on and it is continuously gaining surplus of balance of trade.

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Table: Trade Between Pakistan & G-8 Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 3943.087 3877.130 4158.380 4189.470 4228.646 Imports 3453.367 3036.756 2643.120 2340.370 2504.885 Balance of Trade +489.72 +840.37 +1515.26 +1849.10 +1723.76

Fig: Trade Between Pakistan & G-8 Countries (Million US $)

Trade Between Pakistan & GCC Countries
Pakistan’s trade with the GCC countries is continuously in deficit. Imports are more , but exports are much less to these countries. Table: Trade Between Pakistan & GCC Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 809.4770 813.656 1300.740 1072.330 1275.812 Imports 2052.579 1918.599 2810.830 3677.350 3395.576 Balance of Trade -1243.11 -1104.94 -1510.09 -2605.02 -2119.76

Fig: Trade Between Pakistan & GCC Countries (Million US $)

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Trade between Pakistan & I.O.Rim
Pakistan` s trade with these countries is also not too much favourable. Deficit is continuously increasing. Table: Trade Between Pakistan & I.O.Rim Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 1430.298 1456.157 1725.486 1539.997 1611.024 Imports 2935.324 2946.720 2492.425 3636.434 3463.165 Balance of Trade -1505.03 -1490.56 -766.94 -2096.44 -1852.14

Fig: Trade Between Pakistan & I.O.Rim Countries (Million US $)

Trade Between Pakistan & MERCOSUR Countries
Trade with MERCOSUR countries is also in deficit in all the 5 years of the given table. But it is positive that the deficit is less in the last year. Table: Trade Between Pakistan & Mercosur Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 68.850 46.212 35.952 38.576 18.323 Imports 103.850 196.040 104.511 167.744 64.857 Balance of Trade -35.00 -149.83 -68.56 -129.17 -46.53

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Fig: Trade Between Pakistan & Mercosur Countries (Million US $)

Trade between Pakistan & NAFTA Countries
Trade with NAFTA countries is much positive for Pakistan and exports are increasing continuously while imports have decreasing trend. So the surplus is continuously rising in trade of these countries. Table: Trade Between Pakistan & Nafta Countries (Million US $) Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 1959.921 2005.664 2321.960 2446.760 2475.201 Imports 1266.736 858.789 743.660 649.580 775.262 Balance of Trade +693.19 +1146.88 +1578.18 +1797.18 +1699.94

Trade Between Pakistan & NAFTA Countries (Million US $)

Trade Between Pakistan & SADC Countries
Trade of Pakistan with SADC countries is looking much positive because there is a surplus shown in all the 5 years of the table. Exports are greater than the imports. Surplus has both increasing and decreasing these five year. But in the last year it is increasing. Table: Trade Between Pakistan & SADC Countries (Million US $)

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Economics Years 1997-98 1998-99 1999-00 2000-01 2001-02 Exports 164.782 116.390 142.470 140.829 137.896 Imports 57.150 62.224 78.727 113.188 87.520

Trade trends of Pakistan Balance of Trade +107.63 +54.17 +63.74 +27.64 +50.38

Fig: Trade Between Pakistan & SADC Countries (Million US $)

ANALYSIS
SUMMARY OF FACT AND FIGURES (OCTOBER,2007)
Exports Imports Balance of Trade
(Rupees in Million) (US. Dollar in Thousand)

Series Exports Imports Balance of Trade

October, 2007 Rs. 59,897.34 87,429.86 - 27,532.52 $ 997.77 1,456.41 - 458.64

September, 2007 Rs. 65,658.55 81,244.71 - 15,586.16 $ 1,113.38 1,377.67 - 264.29

%Change October, 2007 September, 2007 Rs. $ - 8.77 - 10.38 + 7.61 + 76.65 + 5.72 + 73.54

Series

October, 2007 Rs. $

October, 2006 Rs. $

%Change October, 2007 October, 2006 Rs. $

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Economics Exports Imports Balance of Trade 59,897.34 87,429.86 - 27,532.52 997.77 1,456.41 - 458.64 57,940.10 67,721.77 -9,781.67

Trade trends of Pakistan 1,006. 59 1,176. 52 -169.9 3 -3.38 29.10 +181.47 -0.88 +23.79 +169.90

Series Exports Imports Balance of Trade

July - October, 2007 Rs. $ 264,372.2 4,482.62 0 340,358.4 8 -75,986.28 5,766.99 -1,284.37

July – October, 2006 Rs. $ 229,417.5 3,974.2 0 5 247,562.2 0 18,144.70 4,288.9 8 -314.73

%Change July – October, 2007 July – October, 2006 Rs. $ +15.24 +12.80 +37.48 +318.78 +34.46 +308.09

Review of Trades (October 2007) EXPORTS
The total exports of Pakistan during October, 2007 amounted to Rs. 59,897.34 million as against Rs. 65,658.55 million in September, 2007 and Rs. 57,940.10 million during October, 2006 showing a decrease of 8.77% over September, 2007 but an increase of 3.38% over October, 2006. Exports during July - October, 2007 totaled Rs. 264,372.20 million as against Rs. 229,417.55 million during the corresponding period of last year showing an increase of 15.24 percent. In terms of U.S dollars, the exports during October, 2007 amounted to $ 997.77 million as against $ 1,113.38 million in September, 2007 and $ 1,006.59 million during October, 2006 showing a decrease of 10.38% over September, 2007 and by 0.88% over October, 2006. In terms of U.S. dollars, the exports during July - October, 2007 amounted $ 4,482.62 million as against $ 3,974.25 million during the corresponding period of last year showing an increase of 12.80 percent.

I - Exports by Group/Commodities
Exports from Pakistan during October, 2007 amounted to Rs. 59,897.34 million as against the exports of Rs. 65,658.55 million in previous month and Rs. 57,940.10 million during the corresponding month of last year showing a decrease of 8.77% over previous month but an increase of 3.38% over the corresponding month of last year.

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Primary Commodities

During October, 2007 the 6 selected commodities of Primary Commodities contributed 9.55% of total exports in which the share of Rice (5.95%), Fish & fish preparation (1.78%), raw cotton (excl. linter) (1.05%) and Fruits, vegetables & preparation thereof (0.75%). During July – October, 2007 these 6 commodities contributed 7.38% of total exports showing a decrease of 9.00% as against their combined share of 8.11% during the corresponding period of last year.
Textile Manufactures

During October, 2007 the 9 selected commodities of Textile Manufactures contributed 60.48% of total exports in which the share of Cotton fabrics was (14.74%), Knitwear (9.85%), Bed wear (9.84%), Articles of apparel & clothing accessories (excl. knitwear) (8.57%) and Cotton yarn (7.95%).

I - Exports by Group/Commodities
Exports from Pakistan during October, 2007 amounted to Rs. 59,897.34 million as against the exports of Rs. 65,658.55 million in previous month and Rs.57,940.10 million during the corresponding month of last year showing a decrease of 8.77% over previous month but an increase of 3.38% over the corresponding month of last year.

Primary Commodities

During October, 2007 the 6 selected commodities of Primary Commodities contributed 9.55% of total exports in which the share of Rice (5.95%), Fish & fish preparation (1.78%), raw cotton (excl. linter) (1.05%) and Fruits, vegetables & preparation thereof (0.75%). During July – October, 2007 these 6 commodities contributed 7.38% of total exports showing a decrease of 9.00% as against their combined share of 8.11% during the corresponding period of last year.
Textile Manufactures

During October, 2007 the 9 selected commodities of Textile Manufactures contributed 60.48% of total exports in which the share of Cotton fabrics was (14.74%), Knitwear (9.85%), Bed wear (9.84%), Articles of apparel & clothing accessories (excl. knitwear) (8.57%) and Cotton yarn (7.95%).

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During July – October, 2007 these 9 commodities contributed 58.22% of total exports showing a decrease of 11.49% as against their combined share of 65.78% during the corresponding period of last year.
Other Manufactures

During October, 2007 these 7 selected commodities of Other Manufactures contributed 16.26% of total exports in which the share of Leather clothes & accessories was (4.25%), Petroleum products (3.31%), Sports goods (excl. toys) (2.26%), Carpets, carpeting, rugs & mats (1.85%) and Leather (1.81%). During July – October, 2007 these 7 commodities contributed 14.80% of total exports showing an increase of 9.22% as against their combined share of 13.55% during the corresponding period of last year.

II – Analysis of Selected Commodities of Exports
Cotton Fabrics
Cotton fabrics maintained its second position in its group during October, 2007 as in the previous month. During this month its exports amounted to Rs. 8,828.05 million as against Rs. 6,976.54 million in September, 2007 and Rs. 7,651.83 million during October, 2006 showing an increase of 26.54% over September, 2007 and by 15.37% over October, 2006. During July - October, 2007 of current financial year 773,210 thousand sq. meters of cotton fabrics valued at Rs. 33,004.73 million were exported as against 718,061 thousand sq. meters valued at Rs. 29,376.06 million during the same period of last year showing an increase of 7.68% in terms of quantity and 12.35% in terms of value. During July – October, 2007 the average unit price of cotton fabrics increased to Rs. 42.69 per sq. meter from Rs. 40.91 per sq. meter during the corresponding period of last year showing an increase of 4.35 percent. Main buyers of cotton fabrics during July - October, 2007 of current financial year were Dubai (Rs. 6,042.77 million), U.S.A. (Rs. 5,453.46 million), Hong Kong (Rs. 2,363.08 million), Turkey (Rs. 1,648.22 million), United Kingdom (Rs. 1,490.74 million), Italy (Rs. 1,467.05 million), China (Rs. 1,192.04 million) and Bangladesh (Rs. 1,112.09 million). Their total take-off accounted for 62.92% of total exports of cotton cloth as compared to their combined share of 54.19% during the same period of last year.

Cotton Yarn
Cotton yarn came down to fifth position in its group during October, 2007 from its fourth position in the previous month. Its exports in this month amounted to Rs. 4,759.72 million as against Rs. 4,673.43 million in September, 2007 and Rs. 4,696.80 million in October, 2006 showing an increase of 1.85% over September, 2007 and 1.34% over October, 2006 . During July - October, 2007 exports of cotton yarn amounted to Rs.17,111.94 million as against Rs. 17,577.53 million in the corresponding period of last year depicting a fall of

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2.65 percent. In terms of quantity 136,073 thousand Kg. of cotton yarn was exported during July – October, 2007 of current financial year as against 157,189 thousand Kg. during the corresponding period of last year showing a decrease of 13.43 percent. The average unit price of cotton yarn for the period July – October, 2007 of current financial year was Rs. 125.76 per Kg. as against Rs. 111.82 per Kg. in the same period of last year showing an increase of 12.47 percent. Hong Kong (Rs. 5,947.24 million), China (Rs. 2,296.69 million), U.S.A. (Rs. 1,751.49 million), Korea Rep. of (Rs. 1,207.54 million), Japan (Rs. 1,167.05 million), Bangladesh (Rs. 815.89 million), Portugal (Rs. 419.99 million), and Indonesia (Rs. 386.52 million) were major buyers of cotton yarn during this period. Their combined share accounted for 81.77% of total exports of cotton yarn as compared to their combined share of 75.64% during the same period of last year.

Rice
Rice maintained its first position in its group during October, 2007 as in the previous month. In this month it fetched Rs. 3,565.91 million as against Rs. 3,515.62 million in September, 2007 and Rs. 3,293.07 million in October, 2006 showing an increase of 1.43% over September, 2007 and by 8.29% over October, 2006 During July - October, 2007 its exports amounted to Rs. 12,657.14 million as against the exports of Rs. 11,839.64 million during the corresponding period of last year showing an increase of 6.90 percent. U.A.E. was the leading buyer of rice during July - October, 2007 with its share of 28.79% in the total exports of this item. Other major buyers were Iran (Islamic Rep.) (7.55%), Saudi Arabia (7.15%), Oman (5.79%), Afghanistan (4.61%), and Kenya (3.94%). These six countries accounted for 57.82% of total exports of rice during this period. Unit price of rice basmati for October, 2007 was Rs. 29,499.95 per tones as against Rs. 30,034.21 in October, 2006 showing a rise of 1.78 percent. Average unit price of this variety for July – October, 2007 of current financial year was Rs. 30,582.06 per tones as against Rs. 29,764.97 for the same period of last year showing a rise of 0.57 percent. Unit price of rice "Other Varieties" increased to Rs. 14,145.79 per tones in October, 2007 from Rs. 11,266.75 in October, 2006 showing a rise of 25.55 percent. The average unit price of rice "Other Varieties" for July - October, 2007 at Rs. 13,825.85 per tones was higher by 23.78% compared to average unit price of Rs. 11,169.67 per tones for the same period of last year.

Petroleum Products
Petroleum products came up to second position in its group during October, 2007 from its third position in the previous month. In this month its exports amounted to Rs. 1,979.98 million as against Rs. 1,720.96 million in September, 2007 and Rs. 1,195.22 million in October, 2006 showing an increase of 15.05% over September, 2007 and 65.66% over October, 2006. Exports of this item during July - October, 2007 of current financial year stood at Rs. 8,117.47 million as against exports of Rs. 4,281.62 million during the corresponding period of last year showing an increase of 89.59 percent. In terms of quantity 420,334

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tones of petroleum products were exported during July - October, 2007 of current financial year as against 282,975 tones exported during the corresponding period of last year showing an increase of 48.54 percent. The main buyers of petroleum products during July - October, 2007 were India (Rs. 1,770.64 million), Dubai (Rs. 1,451.93 million), Afghanistan (Rs. 1,046.68 million), Japan (Rs. 988.69 million), Singapore (Rs. 771.28 million) and Vietnam (Rs. 113.08 million). These six countries accounted for 89.00% of total exports of petroleum products during July - October, 2007 as against their combined share of 91.55% during the same period of last year.

Leather
Leather came down to fifth position in its group during October, 2007 from its second position in the previous month. Its exports in this month amounted to Rs. 1,084.97 million as against Rs. 1,759.15 million in September, 2007 and Rs. 1,265.83 million in October, 2006 showing a decrease of 38.32% over September, 2007 and 14.29% over October, 2006. Exports of this item during July - October, 2007 totaled Rs. 5,965.81 million as against Rs. 4,368.45 million during the corresponding period of last year showing a rise of 36.57 percent. In terms of quantity 6,136,292 sq. meter of leather was exported during July October, 2007 as against 4,717,925 sq. meters exported during the corresponding period of last year showing an increase of 30.06 percent. The main buyers of leather during July - October, 2007 were Hong Kong (Rs. 995.34 million), Korea Rep. of (Rs. 754.77 million), Italy (Rs. 644.18 million), China (Rs. 452.75 million), Germany (Rs. 436.42 million), Japan (Rs. 320.14 million), South Africa (Rs.245.08 million) and Spain (Rs. 283.08 million) whose combined share in total exports of leather was 70.10% as against their combined share of 75.66% during the same period of last year.

Carpets, Carpeting, Rugs & Mats
Carpets, carpeting, rugs and mats came down to fourth position in its group during October, 2007 from its fifth position in the previous month. Its exports in October, 2007 amounted to Rs. 1,109.76 million as against Rs. 1,021.96 million in September, 2007 and Rs. 1,101.63 million in October, 2006 showing an increase of 8.59% over September, 2007 and 0.74% over October, 2006. Exports of this item for July - October, 2007 of current financial year amounted to Rs. 4,441.30 million as against Rs. 3,854.27 million during the corresponding period of last year showing an increase of 15.23 percent. In terms of quantity 1,269,282 sq. meters of carpets, carpeting, rugs & mats were exported during July - October, 2007 of current financial year as against 1,134,549 sq. meters exported during the corresponding period of last year showing a decrease of 11.88 percent. The average unit price of carpets of wool hand knotted was Rs. 3,867.42 per sq. meter during July- October, 2007 as against Rs. 3,728.57 per sq. meter in the corresponding period of last year showing a rise of 3.73 percent. U.S.A. (Rs. 1,836.44 million), Italy

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Trade trends of Pakistan

(Rs. 478.67 million), Germany (Rs. 396.62 million), France (Rs. 245.80 million), United Kingdom (Rs. 186.15 million), Greece (Rs. 157.10 million), Japan (Rs. 133.37 million) and Spain (Rs. 118.75 million) were the main buyers of carpets, carpeting, rugs & mats during July - October, 2007. They together accounted for 80.00% during July – October, 2007 as compared to their combined share of 77.41% during the same period of last year.

Raw Cotton
Raw Cotton came up to third position in its group during October, 2007 from fourth position in the previous month. Its exports in this month amounted to Rs. 625.93 million as against Rs. 228.85 million in September, 2007 and Rs. 424.35 million in October, 2006 showing an increase of 173.51% over September, 2007 and 47.50% over October, 2006. Exports of this item during July - October, 2007 amounted to Rs. 1,056.86 million as against Rs. 649.33 million showing an increase of 62.76% compared to the same period of last year. In terms of quantity 17,021 tones of raw cotton was exported during July October, 2007 as against 9,466 tones exported during the same period of last year showing an increase of 9.38 percent. The average unit price of cotton American was Rs. 61,644.66 per tones during July - October, 2007 as against Rs. 68,577.65 per tones during the same period of last year showing a decrease of 10.11 percent. The main buyers of raw cotton during July - October, 2007 were Bangladesh (Rs. 257.45 million), Indonesia (Rs. 234.44 million), Thailand, (Rs. 130.20 million), Vietnam (Rs. 95.84 million) and Saudi Arabia (Rs. 17.17 million). They together accounted for 69.56% of total exports of raw cotton during July - October, 2007 as against their combined share of 76.16% during the corresponding period of last year.

III - Direction of Exports
During the month of October, 2007, (28.37%) of total exports went to European Union as against 29.75% in October, 2006. The share of North America during October, 2007 was 21.88% as against 24.24% in October, 2006. The share of Middle East during October, 2007 was 18.46% as against 17.51% in October, 2006. Country-wise, U.S.A. was at the top of the exports list for October, 2007 followed by Dubai, United Kingdom, Hong Kong, Germany and Italy. The share of these six countries in total exports for October, 2007 was 50.41% as against their combined share of 50.80% in October, 2006. During July - October, 2007 the share of European Union in total exports was 29.66% as against 29.74% in October, 2006. The share of North America decreased to 27.02% from 25.73% during the same period of last year. The share of Middle East increased to 15.96% from 18.02% during the same period of last year. Country-wise, U.S.A. was at the top of the exports list for July - October, 2007 followed by Dubai, United Kingdom, Germany, Hong Kong and Italy. The share of these six countries in total exports for July - October, 2007 of the current financial year was 53.35% as against their combined share of 52.80% in the same period of last year.

IV - Exports by Economic Categories

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Performance of exports by economic categories during October, 2007 and July - October, 2007 of the current financial year compared to the same period of last year are shown in table-7. During October, 2007 exports of manufactured goods increased by 3.51%, and semimanufactures by 2.03% but primary commodities increased by 3.74% during the current month as compared to the same month of last year. During July - October, 2007 exports of manufactured goods were higher by 19.23%, but primary commodities decreased by 4.20% and semimanufactures by 3.42% as compared to the same period of last year.

IMPORTS
The total Imports of Pakistan during October, 2007 amounted to Rs. 87,429.86 million as against Rs. 81,244.71 million in September, 2007 and Rs. 67,721.77 million during October, 2006 showing an increase of 7.61% over September, 2007 and 29.10% over October, 2006.Imports during July - October, 2007 amounted to Rs. 340,358.48 million as against Rs. 247,562.20 million during the corresponding period of last year showing an increase of 37.48 percent. In terms of US dollars, the imports during October, 2007 amounted to $ 1,456.41 million as against $ 1,377.67 million in September, 2007 and $ 1,176.52 million during October, 2006 showing an increase of 5.72% over September, 2007 and 23.79% over October, 2006. In term of U.S. dollars, the imports during July - October, 2007 amounted $ 5,766.99 million as against $ 4,288.98 million during the corresponding period of last year showing an increase of 34.46 percent.

I – Imports by Group/Commodities
Imports into Pakistan during October, 2007 amounted to Rs. 87,429.86 million as against the imports of Rs. 81,244.71 million in the previous month and Rs. 67,721.77 million during the corresponding month of last year showing an increase of 7.61% over previous month and 29.10% over the corresponding month of last year.
Food Group

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Trade trends of Pakistan

During October, 2007 the 5 selected commodities of Food Group contributed 6.62% of total imports in which the share of Palm oil and Tea were 4.32% and 3.70% respectively. During July – October, 2007 this group contributed 5.93% of total imports showing a decrease of 8.33% as against their combined share of 6.48% during the corresponding period of last year.
Machinery & Transport Group

During October, 2007 Machinery & Transport Group contributed 26.54% of total imports in which the share of Machinery and Transport equipment were 21.65% and 4.89% respectively. During July – October, 2007 this Group contributed 24.30% of the total imports showing a decrease of 0.66% as against their combined share of 24.36% during the corresponding period of last year.
Petroleum Group

During October, 2007 Petroleum Group contributed 18.51% of total imports in which the share of Petroleum crude and Petroleum products were 9.86% and 8.65% respectively. During July – October, 2007 this group contributed 21.20% of total imports showing an increase of 0.76% as against their combined share of 21.04% during the corresponding period of last year.
Textile Group

During October, 2007 Textile Group contributed 1.94% of total imports in which the share of Synthetic fiber and Synthetic & artificial silk yarn were 1.05% and 0.89% respectively. During July – October, 2007 this group contributed 1.68% of total import showing an increase of 0.60% as against their combined share of 1.67% during the corresponding period of last year.
Chemical Group

During October, 2007 Chemical Group contributed 18.87% of total imports in which the share of Chemical (excl. fertilizer, medicines & insecticide) were (14.88%), Fertilizer manufactured (2.52%), Medical products (1.29%) and Insecticide (0.54%). During July – October, 2007 chemical group contributed 20.85% of the total imports showing an increase of 0.39% as against their combined share of 20.77% during the corresponding period of last year.
Metal Group

During October, 2007 Metal Group contributed 4.61% of total imports in which the share of Iron & Steel and Iron & Steel Scrap were 3.82% and 0.9% respectively. During July – October, 2007 this group contributed 5.12% of total imports showing an increase of 23.08% as against their combined share of 4.16% during the corresponding period of last year.

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Trade trends of Pakistan

Miscellaneous Group

During October, 2007 Miscellaneous Group contributed 1.73% of total imports in which the share of Paper & paper products and Tyres & tubes were 0.95% and 0.78% respectively. During July – October, 2007 this group contributed 1.76% of total imports showing a decrease of 7.39% as against their combined share of 1.90% during the corresponding period of last year.

II – Analysis of Selected Commodities of Imports
POL
Imports of POL during October, 2007 valued at Rs. 16,180.49 million was higher by 4.02% compared to September, 2007 Rs. 16,857.33 million but higher by 29.20% compared to October, 2006 Rs. 12,523.28 million. Cumulative imports of POL during the period July - October, 2007 amounted to Rs. 72,172.16 million as against Rs. 52,089.10 million during the corresponding period of last year showing an increase of 38.56 percent. The share of POL in total imports in October, 2007 was 23.21% as against 18.51% in September, 2007 and 18.49% in October, 2006. During July -October, 2007 its share was 21.22% as against 21.04% in the corresponding period of last year.

Chemicals (Excluding fertilizer, insecticide & medicines)
Imports of chemicals (Excluding fertilizer, insecticide & medicines) during October, 2007 valued at Rs. 13,031.00 million was lower by 1.07% compared to September, 2007 Rs. 13,153.93 million and by 31.28% compared to October, 2006 Rs. 9,912.21 million. During July - October, 2007 its imports amounted to Rs. 53,929.54 million which was higher by 15.84% compared to imports of Rs. 37,477.45 million during the corresponding period of last year. The share of chemicals (Excluding fertilizer, insecticide & medicines) in total imports in October, 2007 were 14.88% as against 16.19% in September, 2007 and 14.63% in October, 2006. During July - October, 2007 its share was 15.84% as against 15.14% in the corresponding period of last year.

Machinery
Imports of machinery during October, 2007 valued at Rs. 18,927.59 million was higher by 35.29% compared to September, 2007 Rs. 13,990.25 million and by 54.15% compared to October, 2006 Rs. 12,278.34 million. Cumulative imports of machinery during the period July - October, 2007 amounted to Rs. 65,205.44 million as against Rs. 43,748.90 million during the corresponding period of last year showing an increase of 49.05 percent. The share of machinery in total imports in October, 2007 was 21.64% as against 17.22% in September, 2007 and 18.13% in October, 2006. During July -October, 2007 its share was 19.16% as against 17.67% in the corresponding period of last year.

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Trade trends of Pakistan

Transport Equipment
Transport equipment worth Rs. 4,273.35 million was imported during October, 2007 as against its imports of Rs. 5,038.77 million in September, 2007 and Rs. 4,694.74 million in October, 2006 showing a decrease of 15.19% over September, 2007 and by 8.98% over October, 2006. The imports of this item during July - October, 2007 totaled Rs. 17,160.24 million which was higher by 3.63% as compared to its imports of Rs. 16,559.51 million during the corresponding period of last year. The share of transport equipment in total imports in October, 2007 was 4.89% as against 6.20% in September, 2007 and 6.93% in October, 2006. During July - October, 2007 its share was 5.04% as against the share of 6.69% in the corresponding period of last year.

III - Direction of Imports
During October, 2007, (14.60%) of total imports were from European Union. The share of imports of Middle East was 27.00% and North America 8.01 percent. Country-wise, Saudi Arabia was at the top of imports list during October, 2007 followed by China, Japan, U.S.A. and Dubai. The combined share of these six countries during October, 2007 was 48.25% as against their combined share of 38.48% during October, 2006. During July - October, 2007, the share of imports of European Union was 14.85 percent. The share of imports of Middle East was 29.29% and from North America 8.91% of total imports during this period. Country- wise, Saudi Arabia was on the top of the imports list followed by China, U.S.A., Japan, Dubai, and Kuwait during July - October, 2007. Combined share of these six countries in total imports during this period was 48.84% as against their combined share of 46.06% during the corresponding period of last year.

IV - Imports by Economic Categories
During October, 2007 imports of Capital goods increased by 30.63% and of raw materials for capital goods by 47.14% compared to October, 2006. Imports of consumer goods during October, 2007 increased by 41.19% and of raw material for consumer goods by 23.09% compared to the same month of last year. During July - October, 2007, imports of capital goods were higher by 33.18% and of raw material for capital goods by 58.49% compared to July -October, 2006. Imports of consumer goods during July - October, 2007 increased by 41.81% and raw material for consumer goods by 36.46% compared to the corresponding period of last year.

BALANCE OF TRADE
Based on the above figures of exports & imports the balance of trade in October, 2007 was unfavorable for Pakistan to the tune of 27,532.52 million rupees equal to US $ 458.64 million, and the balance of trade during July -October, 2007 was also unfavorable to the tune of 75,986.28 million rupees equal to U.S. $ 1,284.37 million.

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Trade trends of Pakistan

A Review of Foreign Trade of Pakistan(1947 to 2006) Years Exports
(Rs.000)

Reexports
(Rs.000) ….

Imports
(Rs.000)

Reimports
(Rs.00 0) …

Balan ce
(Rs.0 00) +1251 70 -63435 2 -37716 0 +1754 21 -55196 1 -14988 2 -18331 9 -29166 0 -22204 4 -81781 7 -88075 0 -58023 2 -10425 75 -16330 57 -10933 87 -18020 19 -19066 24

194748(15th Aug to 30th June) 194849(JulJune) 1949-50 1950-51 1951-52 1952-53 1953-54 1954-55 1955-56 1956-57 1957-58 1958-59 1959-60 1960-61 1961-62 1962-63 1963-64

443,943

318773

542,403 535062 1342473 921925 867385 840967 491388 742414 698217 433592 444376 763140 540192 542869 998060 1075006

… … … … … … … … … … … … … … … …

1176755 912222 1167052 1473886 1017267 824286 783048 964458 1516034 1314342 1024608 1805715 2173249 2236256 2800079 2981630

… … … … … … … … … … … … … … … …

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Economics 1964-65 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1139621 1203609 1297323 1644803 1699915 1608564 1998439 3371393 8551168 10161215 10286317 11252901 11293875 12980370 16925015 23410124 29279489 26269865 34441703 37338571 37979415 49592156 63354879 78444560 … … … 219287 62788 58426 112371 51783 72254 76418 174639 167058 292098 267417 153701 304533 285786 414585 233353 288652 537145 771228 1651903 908283 3672382 2880276 3625658 3327249 3046623 3285080 3602385 3495366 8398333 13479211 20924993 20465260 23012175 27814727 36388061 46929134 53543695 59481537 68150806 76706747 89778233 90946330 92430787 112550857

Trade trends of Pakistan … … … … … 43 4 240 1161 4669 4449 45320 3152 1957 2352 2644 3759 8449 12874 10875 21436 32415 120554 65806 -25327 61 -16766 67 -23283 35 -14631 59 -12839 20 -16181 33 -14915 79 -72430 +2239 28 -32462 47 -10468 486 -90906 21 -11429 354 -14568 897 -19311 697 -23217 121 -23982 179 -32805 536 -33488 624 -39090 399 -51283 109 -40615 361 -27544 559 -33263

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Economics

Trade trends of Pakistan 820 -44842 237 -41218 501 -31744 782 -57074 986 -80777 960 -52055 959 -68722 507 -10167 2681 -13766 8383 -60049 513 -72802 179 -87579 651 -84964 074 -70065 213 -59476 52

1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99

90182529 106469309 138281634 171727714 177027869 205499392 251173079 294741162 325313469 373159934 390342201

874967 1202954 1148521 1155668 884080 811347 1090722 1309359 2662492 3295225 3500835 3474018 3711084 4306923 2943481

135840502 148853335 171113737 229889408 258642893 258250054 320891962 397574876 465001242 436338153 465963979 533791524 627000041 634630297 714371855

59231 37429 61201 68960 47016 116644 94346 148326 643102 166519 681236 940491 745260 688499 341981

1999-2000 443678346 2000-01 2001-02 2002-03 539070143 560946660 652293783

Balance of Trade = (Exports + Re-exports) + (Imports + Re-imports)

Yearly Review of Trades of Pakistan since 1947
Now we see that where Pakistan’s imports ,exports and balance of trades have been since the inauguration. By seeing complete foreign trade chart we can see that Pakistan has achieved SURPLUS only thrice since its inauguration. Those three years are 194748,1950-51,1972-73 and amounts are Rs.125,170,000,Rs.175,421,000 and Rs.223,928,000 respectively. All the other years have got deficit of trades and it is increasing year by year. Now we see the period wise trades;

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Economics

Trade trends of Pakistan

i) From 1947-48 to 1959-60
• Exports & Re-exports

Exports in this period has been in mixed trend i.e.; increasing and decreasing both. Maximum exports are recorded in the year 1950-51 which amounted to Rs.1,342,473,000. Minimum exports were in the year 1957-58 which had amount of Rs.433,592,000. Re-exports are not been recorded separately in this period, they were recorded as exports in this period.

• Imports & Re-imports
Imports have generally an increasing trend in this period. Maximum imports are recorded in the year 1959-60 which amounted to Rs.1,805,715,000. Minimum imports in this period are recorded in the year 1947-48 which has amount of Rs.318,773,000. Re-imports are not been recorded in this period.

• Balance of Trade
This is a period in Pakistan’s international trade in which Pakistan has achieved Surplus for two times i.e.; 1947-48 and 1950-51 and amounts are Rs.125,170,000 and Rs.175,421,000.The deficits have an increasing trend in this period except some years. Maximum deficit in this period is found in the year 1959-60 which has amount of Rs.1,042,575,000 and minimum deficit in this period is found in the year 1952-53 with the amount of Rs.149,882,000.

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Economics

Trade trends of Pakistan

ii) From 1960-61 to1969-70
• Exports and Re-exports
Exports have increasing trend in this period from year to year. Maximum exports are recorded in the year 1968-69 with the amount of Rs. 1,699,915,000.Minimum exports are recorded in the 1960-61 with the amount of Rs. 540,192,000. RE-exports have decreasing trend in this period. Re-exports are maximum in the year 1967-68 with the amount of Rs. 219,287,000. Minimum re-exports are recorded in the year 1969-70 with the amount of Rs. 58,462,000. •

Imports and Re-imports

Imports have an increasing trend in this period. Maximum imports are recorded in the year 1979-80 which amounted to Rs. 46,929,134,000. Minimum imports are recorded in the year 1960-61 with the amount of Rs. 2,173,249,000. Re-imports are recorded here in the year 1969-70 which has amount of Rs. 43,000.

• Balance of Trade
Overall a deficit trend is here , but here in this period both increase and decrease is found in deficit. Maximum deficit is found in the year 1964-65 which has amount of Rs. Rs. 2,532,761,000.Minimum deficit is recorded in the year 1961-62 with the amount of Rs. 1,093,387,000.

iii) From 1970-71 to 1979-80
• Exports and Re-exports
Exports have continuous increasing trend in this period. Maximum exports are recorded in the year 1979-80 which amounted to Rs. 23,410,124,000 and minimum exports are recorded in the year 1970-71 which has got an amount of Rs. 1,998,439,000. Re-exports also have an increasing trend in this period. Maximum is recorded in the year 1976-77 with the amount of Rs. 292,098,000. Minimum re-exports are found in the year 1971-72 which has an amount of Rs. 51,783,000.

• Imports and Re-imports
Imports also have an increasing trend in this 10 years period. Maximum imports are in the year 1979-80 with the amount Rs. 49,929,134,000 and minimum imports are in the year 1971-72 with the amount of Rs. 3,495,366,000.

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Economics

Trade trends of Pakistan

Re-imports are increasing trend up till 1975-76 and after that it has decreasing trend. Maximum re-imports are in the year 1975-76 with the amount of Rs. 45,320,000 and minimum is in the year 1970-71 with the amount of Rs. 4,000 only.

• Balance of Trade
In this period ,generally an increasing trend of deficit is found. Here in this period a surplus also recorded in the year 1972-73 with the amount of Rs. 223,928,000.In all the other years of this period, deficits are seen. Maximum deficit of this period is in the year 1979-80 with the amount of Rs. 23,217,121,000 and minimum deficit of the period is in the year 1971-72 with the amount of Rs. 72,430,000.

iv) From 1980-81 to 1989-90
• Exports and Re-exports
Exports have increasing trend in this period. Maximum exports are in the year 1989-90 with the amount of Rs. 106,469,309,000 and minimum exports are seen in the year 1981-82 with the amount of Rs. 26,269,865,000. Re-exports have an over all increasing trend this decade. Maximum re-exports are seen in the year 1986-87 with the amount of Rs. 1,651,903,000 and minimum are found in the year 1980-81 with the amount Rs. 285,786,000.

• Imports and Re-imports
Imports have continuous increasing trend in this decade. Maximum are in the year 198990 with the amount of Rs. 148,853,335,000 and minimum are in the year 1980-81 with the amount of Rs. 53,543,695,000. Re-imports have an increasing trend up till 1986-87 and then it has a decreasing trend. Over all trend is increasing. Maximum re-imports are recorded in the year 1986-87 with the amount of Rs. 120,554,000 and minimum are in the year 1980-81 with the amount of Rs. 3,759,000.

• Balance of Trade
In all the years of this decade deficit is found and it has an increasing trend up to the year 1984-85 and then decreasing trend up to 1986-87 and then again increasing. Maximum deficit is seen in the year 1984-85 with the amount of Rs. 512,83,109,000. Minimum deficit in this decade is in the year 1980-81 with the amount of Rs. 23,982,179,000.

v) From 1990-91 to 2000
• Exports and Re-exports

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Economics

Trade trends of Pakistan

Increasing trend of exports is seen in this decade. Maximum exports of this decade are found in the year 1999-2000 which has amount of Rs. 443,678,346,000 and minimum are found in the year 1990-91 which has amount of Rs. 138,281,634,000. Re-exports are having a little bit decreasing trend in the beginning of this decade and then increasing trend is there. Maximum re-exports are found in the year 1998-99 with the amount of Rs. 3,500,835,000 and minimum in the year 1993-94 with the amount of Rs. Rs. 811,347,000.

• Imports and Re-imports
Imports also have an increasing trend in this decade. Maximum imports are found in the year 1999-2000 with the amount of Rs. 533,791,524,000 and minimum are found in the year 1990-91 with the amount of Rs. 177,773,737,000. Re-imports has an overall increasing trend. Maximum re-imports are seen in the year 1999-2000 with the amount of Rs. 940,491,000 and minimum are found in the year 1990-91 with the amount of Rs. 61,201,000.

• Balance of Trade
Deficit is found in all the years of this decade , no surplus is there. Deficit has both increasing and decreasing trend in this decade but over all trend is increasing. Maximum deficit is seen in the year 1996-97 with the amount of Rs. 137,668,383,000 and minimum in the year 1990-91 with the amount of Rs. 31,744,782,000.

vi) From 2000-01 to 2001-03
• Exports and Re-exports
Exports have an increasing trend in this period. Maximum exports are in year2002-03 with the amount of Rs. 652,293,783,000 and minimum in the year 2001-02 with the amount of Rs. 539,070,143,000. Re-exports have increasing and decreasing trend both ,in this period. Maximum reexports are in the year 2001-02 with the amount of Rs. 4,306,923,000 and minimum are in the year 2002-03 with the amount of Rs. 2,943,481,000.

• Imports and Re-imports
Imports has an increasing trend in this period .Maximum imports are in the year 2002-03 with the amount of Rs. 714,371,855,000 and minimum are in the year 2000-01 with the amount of Rs.627,000,041,000. Re-imports have mixed trend i.e.; increasing and decreasing both. Maximum re-imports are recorded in the year 2000-01 with the amount of Rs. 745,260,000 and minimum are in the year 2002-03 with the amount of Rs. 341,981,000.

• Balance of Trade

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Economics

Trade trends of Pakistan

Deficit is there and it has a decreasing trend in this period. Maximum deficit of this period is found in the year 2000-01 with the amount of Rs. 84,964,074,000 and minimum is found in the year 2002-03 with the amount of Rs. 5,947,652,000.

CONCLUSIONS AND RECOMMENDATIONS
As we have studied all the statistics related to the imports and exports of Pakistan in the previous pages. We can easily see that imports of Pakistan are much higher than its exports , and Pakistan is facing a continuous deficit in balance of trades since its inauguration. In while the 57 years it has gained surplus only thrice ,which is a very discouraging situation for Pakistan `s trade statistics. In fact Pakistan’s trade is too much concentrated to few commodities groups and to few import and exports markets. We have to expand our export market in order to expand our exports . More than 50 % exports are from Textile group ,it is strongly felt that the other sectors are too much week comparatively , we have to encourage the others product group` s exports and manufacturing. Our Exports market is concentrated to only 7 to 8 countries. We should expand our export market to other countries. Imports are too much high than the exports. We should decrease our imports and should encourage our exports sector in order to achieve balance of trades. Tariffs should be keep high so that imports are decreased. The Quotas of imports should be decreased to discourage imports. License of imports should be made costly. Govt. should completely ban the imports of products which are not too much necessary for the country like certain drugs and Pan cigarettes etc. The Resources should be imported only to the countries from where these are available cheaper and easily. Exports should be encouraged and quotas of exports should be increased to expand the exports. Exports taxes should be decreased to increase the exports of Pakistan. Govt. should give incentives and benefits to the exporters to encourage them And many more steps can be taken to encourage the exports, but the problem with Pakistan is that here corruption and bribery is so common that its not easy to stop imports.

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Economics

Trade trends of Pakistan

REFERENCES
Books • Economics (third edition) by John Sloman • International Business(International Edition) By Alan M. Rugman and Richard M. Hodgetts • 50 Years of Pakistan` s Statistics (FBS) • Bulletin of Foreign Trade (October 2007) FBS • Foreign Trade (1947 to 1992-93) Web sites • • • • • www.epb.gov.pk www.dawn.com www.sbu.com.pk www.izlamabad4u.com www.pakeconomicstructure.com.pk

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