Effect of import and export in strength of economy of Pakistan in current

scenario

Imports

Introduction:
An import means getting goods into one country from another country in an
impropriate method.
Major Imports of Pakistan:
 Petrolium and petroleum product
 Edible oil
 Chemicals
 Capital goods
 Industrial raw material, steel and Aluminum
 Consumer products
 Agriculture machinery
 Textile Machinery, Fertilizers

Current Scenario
Today , Pakistan faces a severe balance-of-payments disaster and can cover only
about four-six weeks’ value of imports. The current account deficit has upgraded by $2.6
billion and stood at 8.547 billion during July-April 2008-2009 as against $11.173 billion in
corresponding period of last year, threby showing an enhancement of 23.5 percent. The
financial capital account stood at $ 6290 milloin in million in corresponding period of
last year which shows a decline of $ 2682 million.

Pakistan will face a serious B.O.P problem next year partly because: The united
state has not compensated over $ 1.2 billion the country paid on the war on the terror.
Under the Coalition Support fund the U.S recompenses Pakistan for terrorism related
actions. The govt. has received $447 million since Sep.2008 leaving a balance of over $ 1
billion.
Exports

Introduction:
Export are the goods and things which are furnished in one country and purchased by the
residents of another country

Major exports of Pakistan:

 Rice
 Furniture
 Cotton
 Cement
 Tiles and Marble
 Apparel
 Sports goods
 Surgical instruments
 Electrical Appliances
 Carpets
 Ice cream
 Livestock meal
 Chicken
 Powdered milk
 Wheat
 Vegetables and fruits
 Fish
 Leather goods

Current scenario:
Pakistan’s export had started increasing during ongoing financial year after continuously
tumbling in last three to four years. The exports fell to $20.448 billion in financial year 2016-17

Registering a 15.75 percent decline during first seven months (july-january) of the ongoing fiscal
year and recorded at $12.97 billion. Secretary commerce reiterated that exports would increase
the $23 billion bank mark by the end of current finanacial year.
Causes of low export and high import in Pakistan:

Lack of Finance faculty to textile:

One main reason of low exports is lack of finance facilities to the sector by govt. All Pakistan
Taxtile Mills Assosiation (APTMA) has told that government,s actions are not matching with its
words for the textile industry. Prime minester yusf Raza Gilani said at the © textile industry
influence towards the country,s economy. Chairman APTMA Tariq mehmood said the faderal
budget 2009-10 is a total negatin of acknowledgement of the role of textile industry on the part
of the prime minester. According to him, reintroduction of minimum tax on domestic sales
would invite unavoidable liquidity problematic areas, which is already reached to the alarming
level . He said that textile industry has negative generation of funds because of high rate of
interests and mark ups.

Increasing cost of production:

The cost of production of textile rises due to many reasons increasing the interest rate double
digit inflation & deteriorating value of Pakistani rupee. The abobe all reasons increased the cost
of fabrication of textile industry which construct problem for a textile industry to compete in
international market.

Political instability and internal issues of Pakistan:

Pakistan has been the victim of political instability which is also a great issue of having energy
crisis and severe adverse balance of payments. Pakistan’s textile industry is going through one
of hardest period in decades. The global recession which has hit globle textile really hard is not
only reason for concern. The high cost of production subsequent from an instant increase in the
energy costs. Drpreciation of Pakistani rupee during last years raised the cost of imported
inputs. In addition, double digit inflation and great cost of financing has extremely affected
inputs.

Electical crisis:
Due to electrical crisis and load-sledding the textile production capacity of various sub-sectors
has been reduced by up to 30%. The joint meeting of APTMA & other related organization was
held at APTMA House to verbalize a foint strategy to to address the alarming electricity crisis
being faced by the textile industry. In this meeting it was decide that a joint working constitute
will be formed. The joint working group will meet soon to designed plan to pursue the following
Achievements; immediate total freedom from electricity load shedding for textile industry value
chain; Rationalization and reduction of electricity tariff.
increase the export and Factors which decrease the import:

Increase the production of raw material:

The production of country can be increased by increasing the production of raw material. Raw
material can be increased by increasing the production area. To increase the production area,
we have to use the good quality of seeds, the proper fertilizer is also used.The labour shoud be
well trained and well organized. We should use the modern and technological machinery for
the cultivation. There should be relief for the former.

Development of industry:
The state of industry in Pakistan is not very good. We have to develop it very much. There is
lack of modern machinery and lack of technology. Technological persons are also not available.
The management is also main factor which affect the production of industry.

Production of electricity:
The production of electricity also affect the production of exportable goods. The production of
goods can be increased by increasing the production of electricity. The production of electricity
can be increased by using the natural resources. The very suitable resource is to produce
through the water. There is lack of dam which can store the water which is used to produce the
electricity so there should be the construction of dams which may store the large amount of
water and can be produced the electricity which may increase the export of the country.

Better govt. policy:

The better government policy also matters. If there is good management the production of the
export can be increased. It is because smart work more matters than the hard work. So the
managemet is the backbone of the any departmet.

Good quality of material:

The good quality of products also matter in increase the export of any country. Good quality of
goods will be appreseated in the othe country so it will increae the export of the country. It will
also increase the value of country in other countries.
 Rolle od industry in strength the economy of Pakistan

Introdution:
The Industrial Revolution led to the development of factories for large-scale production with
consequent changes in society. Originally the factories were steam-powered, but later
transitioned to electricity once an electrical grid was developed.

Types Of Industry:

There are four types of industry. These are primary, secondary, tertiary and quaternary.

Primary industry involves getting raw materials e.g. mining, farming and fishing.

Secondary industry involves manufacturing e.g. making cars and steel.

Tertiary industries provide a service e.g. teaching and nursing.

Industrial System:
Factories have inputs, processes and outputs. Inputs can be the raw materials need to make something.
Inputs can also be labour, buildings, capital and machinery. Processes are the things which go on within
the factory. This is usually the manufacturing of goods. It can also be design and research - anything
needed to make something. Outputs are the things which leave the factory. This can include the finished
product, profit or even waste.

Affect The Location Of Industry:

There are many factors which affect the location of industry. These include raw materials, labour supply,
markets, transport and Government Policy.

Major Industries:
 Agriculture (see also Agribusiness) Fishing industry. Timber industry. ...
 Chemical industry. Pharmaceutical industry.
 Computer industry. Software industry.
 Construction industry.
 Defense industry. Arms industry.
 Education industry.
 Energy industry. Electrical power industry. Petroleum industry
Minor Industries:

 Paper Industry
 Plastic
 Shipbuilding
Efeects Of Industrial Devlopment On Economy In Pakistan In Current
Scenario:

With a population of 220 million, a geo-strategic location, the required human resources and natural
endowments, Pakistan has all the potential to grow as a developed industrial national. Unfortunately, it is
still a developing nation even after lapse of more than six decades since it appeared on the world map as
a sovereign and independent nation. Having rich in natural resources, the country has been going
through major challenges and issues hitting the industrialization include growing power crisis, chronic
energy shortage, high interest rate, administrative bottlenecks, bad governance, lack of institutional
framework, political wrangling and worsening law and order situation.

Problems Occur In Industrial Development:

 Energy Crisis
 Interest Rate
 Poor Governance
 Security Concerns

Major Industries That Are Working In Pakistan:

Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for
about 66% of the merchandise exports and almost 40% of the employed labour
force. Cotton and cotton-based products account for 61% of export earnings of Pakistan. Food industry
,Machine Industry ,Plastic Industry

Industrial Effect On The Economy Of Pakistan 2018 :

According to this table Pakistan Industrial Development in 2018 is very bad.

Industrial development has a lot of effect on your economy. If your industrial sector is strong then your economy is
also strong .It removes unemployment from your country. A: Industrialization is the process by which
an economy moves from primarily agrarian production to mass produced, technologically advanced
goods and services. This phase is characterized by exponential leaps in productivity, shifts from rural to
urban labor and increased standards of living. In case of Pakistan, the shares of services are increasing
in all sectors of economy over the period. In fact, the growth rate of services sector is higher than the
growth rate of agriculture and industrial sector. Services sector accounts for 54 percent of GDP and little
over one-third of total employment. But due to some reason Pakistan industrial development is so bad in
2018 year. Due to security issues no one can invest in Pakistan. In Pakistan the rate of electricity is also
high so industries cannot effort costly electricity. Interest rate is also high. Only private firm is working in
Pakistan. New government has decided to promote industrial development.

 Low Investment and Low Savings

 Lack of Technical Know-how
 Inadequate Industrial Credit
 Lack of Industrial Research
 Adverse Balance of Payment
 Corruption

Advantages Of Industrilization On Economy:

Better industrial development makes country strong . If we have all firms in our country we never
import anything from other country. If our import is less then export economy will be better. Industrial
development makes economy strong. Industrial development removes unemployment. Foreign
companies tried to invest in Pakistan and this step gives a lot of positive response to the economy of
Pakistan. And big thing is that by industrialization we reduce the import. If our import is less then
export our economy will be better.
 Suggestion:
The following measures are suggested to improve industrial sector of Pakistan:
1) More allocation of funds for industrial research is required, which is necessary, for the industrial
development.
2) Industrial sector can be promoted by increasing capital.
3) Saving and investment should be increased to develop industrial sector.
4) To promote industrial sector, there should be technical know-how.
5) Tax concession is also needed to increase the investment in new industries.
6) In time supply of raw material is necessary for the improvement of industrial sector.
7) Advanced infrastructure is necessary for industrial development of Pakistan.
8) Financial institutions should provide credit facilities to industrial sector at flexible terms and
conditions.
9) There should be expansion of markets, at domestic and foreign level, of industrial goods.
10) Foreign investment should be encouraged; more incentives should be given to investors.
11) Political stability is compulsory for the development of industrial sector.
12) High degree of technical education is required to produce skilled, technical and efficient work
force.
13) Problem of load-shedding and irregular supply of electricity should be removed.
14) Commercial policy and self-reliance policy should be adopted to remove industrial
backwardness.
15) Foreign exchange reserves and the balance of payment position should be favourable to
develop industrial sector.

CONCLUSION:
Ø Use of advanced technology
Ø Development in infrastructure
Ø Provision of credit facilities
Ø Increase in industrial consultancy firms