Monday, 1 August 2011

Pakistan's Import and Export

Pakistan’s international trade is suffering from huge amount of deficit due to low demand for its exports. Domestic political instability also accounts for trade deficit. The trade deficit stood at US$3.946 billion in 2010. Pakistan is a member of several international organizations such as ECO (Economic Cooperation Organization), SAFTA(South Asian Free Trade Area) , WIPO(World INtellectual Property Organization) and WTO (World Trade Organization).

Steps have been taken to liberalize the trade and investment regimes of the country. Due to increasing current account deficit, the trade gap range of maximum tariffs was raised from 20%-25% to the 30%-35% on 300 luxury items by Pakistani government in the 2008-09 budget. This measure brought about the decrease in imports and the increase in exports, thus lowering trade deficits from US$9.261 billion in 2009 to US$3.946 billion in 2010.

Pakistan's failure to explore and exploit its own oil and gas resources to its full capacity has led to them relying on imports  to meet the growing energy demands in the country. By 2011, experts forecasts that Pakistan's oil imports will rise to US$13.221 billion from the US$10.089 billion in 2010.
List of Pakistan's FTAs

Pak-Afghanistan Trade Agreement

Agreement on South Asian Free Trade Area

Pak-Malaysia Trade Agreements

Pak-China Trade Agreements

Pak-Sri Lanka Free Trade Agreement

Pak-Iran Preferential Trade Agreement

Pak-Mauritius Preferential Trade Agreement
Pakistan's Import and Export Indicators and Statistics at a Glance (2010)

Total value of exports: US$20.29 billion

Primary exports - commodities: textiles (garments, bed linen, cotton cloth, yarn), circe, leather goods, sports goods, chemicals, manufactures, carpets and rugs

Primary export partners: US (15.87 percent of total valor of exports), UAE (12.35 percent), Afghanistan (8.48 percent), UK (4.7 percent), China (4.44 percent).

Total value of imports: US$32.71 billion

Primary imports - commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Primary import partners: China (15.35 percent of total imports), Saudi Arabia (10.54 percent), UAE (9.8 percent), US (4.81 percent), Kuwait (4.73 percent), Malaysia (4.43 percent), India (4.02 percent).

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