International Trade

policy of Pakistan

Waqas Talib
‘’Pakistan's trade policy is formulated with the aim of
maximizing gains from international trade through
the promotion of freer trade in the context of a
global multilateral trading system, and the
encouragement of efficient and competitive
domestic production activities”
Foreign relations of Pakistan

 The Islamic Republic of Pakistan maintains a large network of

diplomatic relations across the world. Pakistan is the second
largest Muslim-majority country in terms of population (after
Indonesia[1]) and is the only Muslim majority nation to have
possession of nuclear weapons. Pakistan has trade relations
with the EU[4] It maintains trade relations with several
countries in East and South Asia, as well as many European
countries. Pakistan also has geostrategic hotspots such as
Afghanistan, China, India and Iran as immediate neighbors.
 Pakistan maintains a close ties with the
People's Republic of China, Turkey, Saudi Arabia and
Gulf Arab states, Pakistan is a member of the United Nations
, Shanghai Cooperation Organization (SCO),
Organization of Islamic Cooperation (OIC) and more.
Pakistan-China
relations
 The two sides agreed that
China and Pakistan are All-
Weather Strategic
Cooperative Partners and iron
brothers; friendship between
the two countries is time-
tested and unbreakable. The
Chinese side reiterated that
the China-Pakistan
relationship is a priority in its
foreign relations.
 China has played a significant role in
the development, economy and
security of Pakistan, with relationship
beginning in 1950 when Pakistan was
among the first countries to enter into
official diplomatic relations with the
Republic of China (on Taiwan Island)
and recognizes the
People's Republic of China (PRC) on
Mainland China as the sole
representative. Since the advent of the
21st century, Pakistan and China have
strengthened their relations through
bilateral trade, military agreements and
supporting each other on key issues.
Pakistan–United States relations
 The United States has played an important role in the young history of
Pakistan, being one of the first countries to recognize their independence
on 14 August 1947.[49] The relationship between the two countries went
through varying levels of friendliness, but Pakistan consistently found
themselves on the United States side of issues faced during the Cold War.
International Trade policy

Pakistan has one of the most protectionist trade policies in

the world. A recent report by the World Bank has argued
that the country's trade policy has an anti-export bias,
since by affording greater import protection to businesses
it incentivizes production for domestic rather than export
markets.
Trade Barriers
 On May 19, 2022, the Government of Pakistan through the
Ministry of Commerce under the authority enacted and
enforced a Special Regulatory Order (SRO) number 598(1)
2022, imposing a temporary ban on the imports of thirty-three
(33) luxury/ non-essential items. According to local sources,
the major impetus behind this decision is to control the flight
of capital and control the current account deficit of the
country.
Exports
 Pakistan exports of
goods worth USD 27.53
billion in 2022. As per
Pakistan export
statistics, its top 10
exports accounted for
62% of the overall value
of its global shipments.
However, Pakistan
export is very less than
its import and recorded
USD 26 billion of trade
deficit in 2022.
Exports
 Textiles
 Cotton
 Knitted Clothing
 Not Knitted Clothing
 Cereals
 Articles of Leather
 Salt, Lime & Cement
 Edible Fruits & Nuts
 Optical
 Leather
Imports
 Mineral fuels including oil
 Electrical machinery, equipment
 Machinery including computers
 Iron, steel
 Pharmaceuticals
 Vehicles
 Plastics, plastic articles
 Organic chemicals
 Oil seeds
 Trade Balance
 Total Exports 2021 $28.79 Billion
 Total Imports 2021 $72.89 Billion
 Trade Balance (Deficit) 2021 $44.09 Billion
 Exports of goods and services (% of GDP) (2022) 10.47%
 Imports of goods and services (% of GDP) (2022) 21.85%
 Largest Goods Export Partners of Pakistan
 Pakistan has bilateral and multilateral trade with various countries and
trade groups. It is also a member of WTO (World Trade Organization).
United States, China, United Kingdom and Afghanistan are its largest
export partners.