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Trade Deficit…..
a negative balance of trade is known as a trade deficit or, informally, a
trade gap
?
TRADE OVER DECADES
Factors Effecting Trade Deficit
The reasons of TRADE DEFICIT in Exchange rates:
Pakistan….. Pakistani rupee (PKR)
per US$1
• Failed Trade Policy.
• Less Production against high Demand. 60.50 (01/11/07)
60.75
• Instability of the Government (05/08/2007)
Structure. 58 (2004)
• Less adaptation of the Modern 57.752 (2003)
Technology. 59.7238 (2002)
• Prices of goods manufactured at 61.9272 (2001)
home 53.6482 (2000)
51.90 (1999)
• Exchange Rates 44.550 (1998)
• Trade agreements & barriers 40.185 (1997)
• Other Taxes & tariff and trade 35.266 (1996)
measures 30.930 (1995)
• Business Cycle @ home & abroad.
Macro Economy of Pakistan
Ultimate Objective:
7.5% GDP
1) Create jobs, 2) Raise incomes and 3) Reduce poverty
4.2% Fiscal Deficit 7.9%
Inflation
Public debt 53.4% Tax-GDP
External Liab. 162797000 population ratio:10.5%
27.1% Saving: 18%
Per Capita
Income US$ 925.
Investments:
23% Banking
Trade spread:6.4-7.8%
Export : $10.15B
Trade deficit: 9%
Import : $20.48B
Current account: 5%
Source:
SBP
Major Export Pattern of Pakistan 2005-2007
Major Export Pattern of Pakistan 1996-2007
Pakistan Imports 1996-1997 (% Shares )
16
Pakistan Imports 2006-2007 (% Shares )
17
Major Import Pattern of Pakistan 2005-2007
Major Import Pattern of Pakistan 1990-2007
JAPAN.. A SURPLUS STATE.
• Japan has continued to produce a trade
surplus since 1981.
• In terms of Japan's international trade
exports showed an annual increase of
14.6 percent to 75.25 trillion yen,
marking the fifth consecutive year of
increase.
• Imports grew by 18.3 percent to 67.34
trillion yen, thus increasing for the fourth
consecutive year.
Japan….
• Major reasons JAPAN is a historical surplus
state.
– Advancement of Technology
– High skilled Labor.
– Effective trade Policy.
– Strong government support.
– Productions meet the demands.
FOREIGN TRADE AND
COMPONENT RATIO OF F.T.
THANK YOU &
ALLAH HAFIZ
References
• www.wikipedia.org
• www.Accountancy.com.pk
• www.sbp.gov.pk
• www.statpak.com.pk
• www.pakboi.gov.pk
• www.stat.go.jp/english