Foreign Trade of Pakistan
Commercial Geography
Foreign Trade of Pakistan
INTRODUCTION
When Pakistan came into being her economy was completely based on
agriculture.The experts consisted of agricultural products only.For the
economic development of the country there was need for diversification
of her trade and a change in her pattern.The government of Pakistan
decided to industrialize the country as rapidly as possible.Export
promotion was regarded as one of the highest national commitments by the
government.Various measures were adopted for export
improvement.Pakistan participated in International Trade Conferences and
Fairs.The Export Promotion Bureau and Export Promotion Council were
set up to provide assistance and information to potential foreign
buyers.A large number of concessions and incentives were given to the
export trade section etc.As a result the pattern of trade in Pakistan
changed.Experts increased and now these include industrial finished
products as well as raw materials.
In spite of the different measures taken by the government for boosting
the export,still our imports are greater than the exports.The balance
of trade is unfavourable and deficit.
The year 1991-92 was estimated to have closed with a balance of payment
deficit of dollar 2.6 billion plus.Indeed as far as one may go back the
balance of payment has been in the red, with the figure hovering over
dollar 1 billion through out the last ten years or so.
CHIEF EXPORT ITEMS OF PAKISTAN
Following are the main items which may be included in our export list:
1.Cotton:
Cotton ranks at the top of the export list of Pakistan.Pakistan
occupies first position in Asia and second position in the world as an
exporter of cotton and cotton products.Export of Raw cotton,cotton cloth
and cotton yarn together contribute approximately 40 to 42% to the
total export earning of Pakistan.Karachi with the cotton growing
hinterland has almost the monopoly of the trade.
(a) Cotton Cloth:
Cotton fabrics are at the top of our export list.We export a large
amount of cotton cloth every year.Due to increasing demand,its export
has gone higher enough.
Some of the customers of cotton cloth are U.K,U.S..,U.S.S.R., Hong Kong,Japan,Singapore,W.Germany and Sudan.
(b) Cotton Yarn :
It is another important export item of our country.Its export is
increasing every year. Important Customers are Japan,U.K,Hong
Kong,W.Germany,U.S.A.,Sri Lanka,and Burma.
(c) Raw Cotton:
Pakistan grows surplus amount of best quality long staple American
Upland Cotton which is very much demanded all over the world.Our main
customers of raw cotton are U.K.,China,Japan,Hong
Kong,Belgium,Indonesia,Italy,Singapore and Bangladesh.
2.Rice:
Pakistan has emerged as one of the leading exporters of rice .In the
previous years rice was at the top of our export list but due to
fluctuation in the world market,its demand has decreased.Best qualities
like Basmati and Irri-6 are exported.Pakistan exports rice to almost
all the Gulf States and Middle Eastern,European,East Asian and some
African countries.
3.Carpets,Rugs And Mats:
Pakistan earns a large amount of foreign exchange by exporting very
fine quality carpets (both hand and machine made) rugs and mats.Due to
heavy competition in world's market their demand is increasing.
U.S.A. is an important buyer of Pakistani carpets,rugs and mats.Other
customers are mostly European countries including
France,U.K.,Italy,Switzerland,W.Germany,Belgium etc.
4.Fish And Fish Preparations :
Fish is exported,fresh,canned and dried.Shrimps are exported to Japan
and U.S.A. canned fish finds its market mostly in W.Europe.Middle
Eastern and South Asian countries (specially Sri Lanka) are also
important customers of Pakistani fish and fish preparation.
5.Leather And Hides:
Pakistan produces hides and skin worth approximately 2 crore every
year of which 40 % are exported.Now,because of leather industries in our
country export of hides and
skin.Italy,Spain,Japan,France,China,Romania,W.Germ any etc.are
important markets in this regard.
6.Synthetic Textile Products:
Pakistani Synthetic Textle Products are popular in various foreign
countries.Thes are mainly exported to Middle Eastern,African and South
american countries.
7.Petroleum Products:
There are 3 oil refineries in Pakistan where crude petroleum is
imported and a number of petroleum products are being produced.Some of
the surplus products are exported to India,Turkey,Sri Lanka,Singapore
etc.
8.Sports Goods:
Pakistan has a worthy name in exporting sports goods to more than 100
countries,principally to W.Germany,U.K.,Italy,U.S.A.,France etc.
9.Surgical Instruments:
Pakistan is also exporting surgical equipments to China,Japan,America and Canada.
Besides the above mentioned items,Pakistan exports a number of
miscellaneous items like raw wool,Tobacco,Fruits,Vegetables etc . to
various countries.
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CHIEF IMPORT ITEMS OF PAKISTAN
Following are the main items of our country:
1.Mineral Oil:
Our country is not self sufficient in our mineral oil requirements.The
present oil production of our own country meets only about 24% of the
country's requirements.So to meet the deficiency,we have to import a
large amount of mineral oil from other countries.We import mineral oil
from Saudi Arabia,Iran,U.A.E and other Middle East countries.
2.Machinery:
As our country is in its developing stage,we have to import different
kinds of machinery to meet the demands of various industries.The
machines are usually imported from Japan,U.S.A. and Europeian countries.
3.Edible Oil:
The production of edible oil is is not sufficient to meet the demand
of our Ghee industry.Although the government has taken various measures
to boost up the production of oil seeds,but inspite of those our
country is still deficient in edible oil so we have to import enough
amount of edible oil e.g. soyabean oil from U.S.A. and Palm oil from
Malaysia and Indonesia.
4.Chemicals And Drugs:
The economy of our country mainly demands on agriculture,so to get
higher yield from different crops spray of various chemicals is
essential.Thus to meet all these demands of our agricultural sector,we
have to import various kinds of chemicals and drugs from other
countries.The chemicals and drugs are mainly imported from
Japan,Germany,U.S.A.,U.K., and other European countries.
5.Dyes And Colours:
Various Industries of our country use a number of dyes and colours as
raw material in their products such as textile,inting etc. so to meet
the demand of all these industries,various kinds of colours and dyes are
imported.These colours and dyes are mainly imported from Japan
,U.K.,U.S.A. etc.
6.Tea:
Our country produces a very small quantity of tea which is sufficient
to meet the demand of our country.So various tea companies port huge
amount of tea.Tea is mainly imported from Sri Lanka,Bangladesh,India and
Kenya.
7.Electric Goods:
Different kinds of electrical goods are needed in our country .The
local industries are not in in the position to meet the required demand
so we have to import a large number of electric goods from
Japan,S.A.,U.K. and other European countries.
8.Transport Equipments:
Our country needs different kinds of transport equipments e.g.
buses,cars,rickshaws,motorcycles.So demand of these are high and hence
they are imported from Japan,Italy and other countries.
9.Paper And Paper Products:
Before 1971,we had a number of paper mills our eastern wing and our
requirements were fulfilled from the eastern .Although,after
1971 some paper mills were set up in the wster wing,are still deficient
in paper especially in paper for newspaper industry.We have to import a
large amount of news print paper and other kinds of paper from
Cnada,Japan,Sweden,U.S.A. etc.
DIRECTION OF TRADE
The global concentration of Pakistan's trade can be broadly classified to the following major groups of countries:
1.West European Countries:
In this group U.K.,France,W.Germany,Belgium,Nether lands and other
Scandinavian countries can be included:These countries are the main
buyers of our export goods e.g.Cotton cloth ,
,carpets,rugs,sports goods and many other items and we import
machines,electric goods,chemicals and various other items from these
countries.Our exports are less in comparison to the imports from these
countries and balance of trade is in favour of these countries.
2.Middle East Countries:
Saudi Arabia,Iraq,U.A.E. and other Arab countries can be included in
this group.These countries are the top buyers of our export goods,such
as rice,cotton cloth and various other items,but due to oil crises and
Iran-Iraq war,our export to these countries has declined to some extent,
but our imports from these countries have increased enough.We import
mineral oil and various other items from these countries.Thus due to
heavy imports from these countries,the balance of trade is in their
favour.
3.Asian Countries:
Japan,Hong Kong,China,Singapore,Malaysia,Indonesia and various other
countries can be included in this group.Our exports to these countries
has been decreasing every year,and imports have increase too much so due
to these circumstance the balance of trade go in the favour of these
countries.Japan is the top buyer of our export goods in Asian
countries,but we have to import large amount of
machinery,chemicals,transport equipments and various other items from
Japan.Besides Japan we do trade with others.Asian countries,such as we
import palm oil from Malaysia and Indonesia and Tea from Sri Lanka and
Bangladesh.
4.North American Countries:
U.S.A.,Mexico,Canada and other countries can be included in this
group.The exports of our country to North American group is not
progressive,but we import so many kinds of goods,such as
machinery,electrical goods,soybean oil and requirements for our armed
forces and various other items,and our imports are about three times
greater than our exports.So due to all these conditions the balance of
trade remains in favour of these countries.
5.R.C.D. Countries:
In this group are included Iran,Turkey and newly Independent Central
Asian Republics namely Tajikistan,Uzbekistan,Azerbaijan and
Turkmanistan.Pakistani exports to Turkey and Iran are quite
enough.Although all these countries are trying to make their balances of
trade favourable,but inspite of various measures taken by the
concerned countries still Pakistan's imports are greater than
exports,so the balance of trade remains to the favour of these
countries.
6.East European Countries:
This group includes countries of eastern Europe such as Poland,
U.S.S.R., Romania, Hungary, Yugoslavia, Greece and others.Such countries
import large amount of our export goods such as rice, cotton cloth,
sports goods,carpets and various other items ,but our imports are
comparatively less than our exports,so balance of trade is in favour of
our country.
Besides the above we do trade with so many African,central and South
American countries and also the various Asian and Oceania countries.
