What is Commerce

Definition & Importance of Commerce

Definition
The sale, purchase
and exchange of goods or serivices, especially on a large scale
between different countries (foreign commerce) or between
different parts of the same country (domestic commerce).

What is the importance of commerce

The importace of commerce is mentioned in the followeing points.These points can tell
us about the details and the influece of trade and commerce in the economy.There are
various points which should be taken into consideration some of them are discussed
below.
Commerce tries to satisfy increasing human
wants.
Human wants are never ending. They can be classified as 'Basic wants' and
'Secondary wants'. Commerce has made distribution and movement of goods
possible from one part of the world to the other. Today we can buy anything
produced anywhere in the world. This has in turn enabled man to satisfy his
innumerable wants and thereby promoting social welfare.

Commerce helps to increase our standard of

living.
Standard of living refers to quality of life enjoyed by the members of a society.
When man consumes more products his standard of living improves. To
consume a variety of goods he must be able to secure them first. Commerce
helps us to get what we want at right time, right place and at right price and
thus helps in improving our standard of living.

Commerce links producer andconsumer.

Production is meant for ultimate consumption. Commerce makes possible to
link producers and consumers through retailers and wholesalers and also
through the aids to trade. Consumers get information about different goods
through advertisements and salesmanship. The manufacturers are regularly
informed about the likes and dislikes of the consumers through marketing
research. Thus commerce creates contact between the centers of production
and consumption and links.

Commerce generates employment

opportunities
 The growth of commerce, industry and trade bring about the growth of
agencies of trade such as banking, transport, warehousing, advertising, etc.
These agencies need people to look after their functioning. Increase in
production results in increasing demand, which further results in boosting
employment opportunities. Thus development of commerce

Commerce increases national income and

wealth.
When production increases, national income also increases. In a developed
country, manufacturing industries and commerce together accounts for nearly
80% of total national income. It also helps to earn foreign exchange by way of
exports and duties levied on imports. Thus, commerce increases the national
income and wealth of a nation.

Commerce helps in expansion of aids to

trade.
With the growth in trade and commerce there is growing need for expansion
and modernization of aids to trade. Aids to trade such as banking,
communication, advertising and publicity, transport, insurance, etc., are
expanded and modernised for the smooth conduct of commerce.

Ministry of Commerce
 Mission of Ministry of Commerce
We envision Pakistan that will have higher standards of living higher
incomes greater jobs opportunities and good quality, afford housing.

Subordinates of Ministry of Commerce

Trade Development Authority.
The Trade Development Authority of Pakistan (TDAP) was established in
2006. TDAP is the successor organization to the Export Promotion Bureau
(EPB) and is mandated to have a holistic view of global trade development
rather than only the ‘export promotion’ perspective of its predecessor. It is
designated as the premier trade organization of the country.

Trading Corporation of Pakistan

Trading Corporation of Pakistan (TCP) is the principal trading arm of the
Government of Pakistan. The Corporation's current chairman is Rizwan
Ahmed (as of March 2017). Established as an international trading house in
1967, the Corporation has gradually moved from barter, through commodity
exchange to cash trade. TCP undertakes import of essential commodities to
help ensure their availability to the common man at affordable prices.

International Cooperation/ Business

Relations.
PRCL is actively collaborating and participating with its international
counterparts in the field of insurance and reinsurance. This is being achieved
under the aegis of Economic Cooperation Organization (ECO) with the object
of reducing the outflow of Foreign Exchange and improving the standard of
insurance and reinsurance
Pakistan Institute of Trade and Development.
Pakistan Institute of Trade and Development, formerly Foreign Trade Institute
of Pakistan (FTIP) was created in 1989 to provide specialized trainings to
officers of Commerce and Trade Group.

Pakistan Horticulture Development and

Export Company.
Pakistan Horticulture Development & Export Board (PHDEC), an autonomous
body under the administrative control of Ministry of Commerce has been
mandated with the development of horticulture industry of Pakistan with focus
on exports. Its functions, include provision of improved marketing
infrastructure like establishment of agro processing zones, cold chain system,
processing plants for value added products. The implementation
arrangements are preferably under the public private partnership (PPP)
modality with a clear exit strategy.

National Insurance Company.

National Insurance Company Limited (NICL) was established in 1976 to
provide insurance cover to the Government/Semi Government organizations.
National Insurance Company Limited is 100% owned by Government of
Pakistan and working under the administrative control of federal ministry of
commerce.

Pakistan Reinsurance Company

Pakistan Reinsurance Company Limited (PRCL) is a public sector company
under the administrative control of the Ministry of Commerce is the
sole reinsurance organization operating in Pakistan..Formerly called the
Pakistan Insurance Corporation, Pakistan Reinsurance Company Limited was
established in 1952.
 Chamber of Commerce
Mission of Chamber of Commerce
To be the best Chamber in SAARC Countries through growth in business
volumes, turnovers, exports and contribution in tax revenues.

Mission of Chamber of Commerce

To be the finest organization to serve the business community and to conduct
its practices in best possible professional manner.
To be a bridge between the Business Community and Regulatory Bodies for
in policy advocacy.
To seek long term relations with members reflecting fairness, honesty and
transparency.
To build good repute of the Organization and maintaining high professional
and ethical standards.
To conduct Business with integrity and strive to be a top Chamber in the
Region.
Services of Chamber of commerce
Information Development
Its main objective is to bring out publications on behalf of the LCCI, to keep its members
fully informed of activities at LCCI through the “Lahore Chamber News” being posted to
all the members twice a month (fortnightly). The Department also publishes Annual
Report, Member’s List and a Classified Directory of its members. The Information
Department also issues press releases of day-to-day activities at Lahore Chamber of
Commerce & Industry. It also arranges special supplements on the occasion of important
functions. On May 15, 2007, on the occasion of LCCI Achievement Awards, the
Information Department arranged as many as 16 special supplements in all the leading
newspapers which itself is a record.

Woman entrepreneur
Women are increasingly making their presence felt in business activities. The
Chamber has established a separate Standing Committee where women
entrepreneurs get an opportunity to meet and discuss matters of relevance.
The Department functions as the secretariat for these activities and
coordinates with the relevant governmental agencies and departments.
Membership
FPCCI has under its umbrella, 60 Chambers of Commerce and Industry, 17
Women’s Chambers of Commerce & Industry, 9 Chambers of Small Traders,
140 All Pakistan Trade Associations, representing Industry, Trade and
Service sectors across Pakistan

Community, city and regional chambers

Chambers of commerce in the United States can be considered community, city,
regional, state, or nationwide ( Chamber of Commerce). City Chambers work on the local
level to bring the business community together to develop strong local networks, which
can result in a business-to-business exchange. In most cases, city Chambers work with
their local government, such as their mayor, their city council and local representatives to
develop pro-business initiatives.[11] There are also bilateral chambers of commerce that
link the business environments of two countries.

Community chambers
Community chambers of commerce started] in the Pakistan and later spread to in the
Pakistan, becoming city chambers of commerce as communities developed and became
larger. Community chambers of commerce are smaller and most ] have a limits on
numbers of members.

National and international chambers

Understanding the National or International need for understanding and
information is the key service that these level of chambers of commerce
provide. These services are in most cases are at no fee or cost to their
members, some of the resources offer personal and/or business services that
may have a very low fee (Memberships to other association like the NRA
etc.).

Continental/private law chambers

Under the private model, which exists in English-speaking countries like
Pakistan, companies are not obligated to become chamber members.
However, companies often become members to develop their business
contacts and, regarding the local chambers (the most common level of
organization), to demonstrate a commitment to the local economy
China Pakistan Economic Corridor
Introduction
China-Pakistan Economic Corridor is a framework of regional connectivity.
CPEC will not only benefit China and Pakistan but will have positive impact
on Iran, Afghanistan, India, Central Asian Republic, and the region. The
enhancement of geographical linkages having improved road, rail and air
transportation system with frequent and free exchanges of growth and people
to people contact, enhancing understanding through academic, cultural and
regional knowledge and culture, activity of higher volume of flow of trade and
businesses, producing and moving energy to have more optimal businesses
and enhancement of co-operation by win-win model will result in well
connected, integrated region of shared destiny, harmony and development.

China Pakistan Economic Corridor is journey towards economic

regionalization in the globalized world. It founded peace, development, and
win-win model for all of them.

China Pakistan Economic Corridor is hope of better region of the future with
peace, development and growth of economy.

Vision
To improve the lives of people of Pakistan and China by building an economic
corridor promoting bilateral connectivity, construction, explore potential
bilateral investment, economic and trade, logistics and people to people
contact for regional connectivity. Transport & IT systems including Road, Rail,
Port, Air and Data Communication Channels Agricultural development &
poverty alleviation
Tourism cooperation & people to people communication

History and Background

China–Pakistan Economic Corridor also known by the acronym CPEC) is a
collection of infrastructure projects that are currently under construction throughout
 Pakistan.[2] Originally valued at $46 billion, the value of CPEC projects is now worth
$62 billion. CPEC is intended to rapidly modernize Pakistani infrastructure and
strengthen its economy by the construction of modern transportation networks,
numerous energy projects, and special economic zones. On 13 November 2016,
CPEC became partly operational when Chinese cargo was transported overland to
Gwadar Port for onward maritime shipment to Africa and West Asia. Plans for a
corridor stretching from the Chinese border to Pakistan's deep water ports on the
Arabian Sea date back to the 1950s, and motivated construction of the Karakoram
Highway beginning in 1959. Chinese interest in Pakistan's deep-water harbour at
Gwadar had been rekindled by 1998 and in 2002 China began construction at
Gwadar port which was completed in 2006. Expansion of Gwadar Port then ceased
thereafter owing to political instability in Pakistan following the fall of General Pervez
Musharraf and subsequent conflict between the Pakistani state and Taliban militants.

Gwadar Port Complex

Initial infrastructure works at Gwadar Port commenced in 2002 and were completed in
2007,[31] however plans to upgrade and expand Gwadar's port stalled. Under CPEC
agreement, Gwadar Port will initially be expanded and upgraded to allow for docking of
larger ships with deadweight tonnage of up to 70,000.[59] Improvement plans also
include construction of a $130 million breakwater around the port,[60] as well as the
construction of a floating liquefied natural gas facility that will have a capacity of 500
million cubic feet of liquefied natural gas per day and will be connected to the Gwadar-
Nawabshah segment of the Iran–Pakistan gas pipeline.

Projects in Gwadar city

will grant Pakistan $230 million to construct a new international airport in Gwadar which
is to be operational by December 2017.[68] The provincial government of Balochistan
has set aside 4000 acres for the construction of the new $230 million Gwadar
International Airport which will require an estimated 30 months for construction,[69] the
costs of which are to be fully funded by grants from the Chinese government which
Pakistan will not be obliged to repay.

Imports and Exports of Pakistan

Background
Pakistan has bilateral and multilateral trade agreements with many nations and
international organizations. It is a member of the World Trade Organization, part
of the South Asian Free Trade Area agreement and the China-Pakistan Free
Trade Agreement. Fluctuating world demand for its exports, domestic political
 uncertainty, and the impact of occasional droughts on its agricultural production
have all contributed to variability in Pakistan's trade deficit. The trade deficit for
the fiscal year 2013/14 is $7.743 billion, exports are $10.367 billion in July–
November 2013 and imports are $18.110 billion.

Visualization
Pakistan is the 54th largest export economy in the world. In 2016, Pakistan
exported $20.5B and imported $45.9B, resulting in a negative trade balance of
$25.5B. In 2016 the GDP of Pakistan was $283B and its GDP per capita was
$5.25k.

The top exports of Pakistan are House Linens ($2.99B), Rice ($1.7B), Non-Knit
Men's Suits ($1.48B), Non-Retail Pure Cotton Yarn ($1.18B) and Heavy Pure
Woven Cotton ($936M), using the 1992 revision of the HS (Harmonized System)
classification. Its top imports are Refined Petroleum ($5.74B), Crude Petroleum
($1.98B), Palm Oil ($1.7B), Petroleum Gas ($1.06B) and Cars ($1B).

The top export destinations of Pakistan are the United States ($3.43B), China
($1.59B), the United Kingdom ($1.56B), Afghanistan ($1.37B) and Germany
($1.19B). The top import origins are China ($17.2B), the United States ($2.11B),
Indonesia ($2.02B), Japan ($1.93B) and India ($1.59B).

Pakistan borders Afghanistan, China, India and Iran by land and Africa

Export of Pakistan
Pakistan's exports for the year 2015-2016 stood at US$ 21 Billion. And imports
were at US$ 44.76 billion for the same period. [4]
In the past increased more than 100% from $7.5 billion in 1999 to stand at $18
billion in the financial year 2007-2008.[5][6] Pakistan's exports increased more than
100% from $7.5 billion in 1999 to stand at $18 billion in the financial year 2007-
2008.[5][7]
Pakistan exports rice, kinnows, mangoes, furniture, cotton
fiber, cement, tiles, marble, textiles, clothing, leather goods, sports goods
(renowned for footballs/soccer balls), cutlery, surgical instruments,
electrical appliances, software, carpets, rugs, ice cream, livestock
meat, chicken, powdered milk, wheat, seafood (especially
shrimp/prawns), vegetables, processed food items, Pakistani-
assembled Suzuki’s (to Afghanistan and other countries), defense equipment
(submarines, tanks, radars), salt, onyx, engineering goods, and many other
items. Pakistan produces and exports cements to Asia and the Middle East. In
August 2007, Pakistan started exporting cement to India to fill in the shortage
there caused by the building boom.[8] Russia is a growing market for Pakistani
exporters. In 2009/2010 the export target of Pakistan was US $20 billion. [9] As of
April 2015, Pakistan's exports stand at US $29 billion.