MAJOR IMPORTS AND EXPORTS OF PAKISTAN
1. MAJOR EXPORTS 1. Raw cotton, Textile products and Cotton
yarn. 2. Rice. 3. Leather and leather products. 4. Carpets and rugs, Tents. 5.
Synthetic textiles. 6. Surgical instruments. 7. Sports goods. 8. Readymade
garments. 9. Vegetable, fruit and fish. 10. Engineering goods. 11. Chemicals
and Pharmaceutical products.
2.
Export of rice declined due to lesser production caused by adverse weather
condition which kept the domestic price higher.Ø
This declined is caused by a 2.6 percent and 14.3 percent decline in exports of
rice and fruits. Ø
Export of food group declined by 3.5 percent. Ø
Exports were targeted at $18.6 billion or 12.9 percent higher than last year. ØExports of Pakistan
3.
Export of raw cotton, cotton cloth and bed wear on the other hand registered a
decline.Ø
Exports of other textile materials registered a high double digit growth of
17.2 percent. Ø
Prominent among these are export of knitwear 13.9 percent, readymade garments
6.8 percent, made up articles 8.9 percent, cotton yarn 4.6 percent and towels
2.6 percent. Ø It
was more profitable to sell within the country than to export. Exports of
textile manufactures grew by 0.2 percent.
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MAJOR IMPORTS AND EXPORTS OF PAKISTAN |
4. Japan
is fast vanishing as export market for Pakistan as its share in total exports
has been on decline for one decade, reaching less than one percent from 5.7
percent a decade ago.ØThe
United States is largest export market for Pakistan, accounting for 28.4
percent of its exports followed by UK and Germany. ØAlthough Pakistan trade with a
large number of countries its exports are however highly concentrated in few
countries including USA, Germany, Japan, UK, Hong Kong, Dubai and Saudi Arabia
which account for one- half of its exports. ØDirection
of Exports of Pakistan
5.
Other issues which need to be addressed include low value added and poor
quality, obsolete use of machinery and technology, higher wastage of inputs
adding to the cost of production, low labor productivity, little spending on
research and development, export houses lacking capacity to meet bulk orders, inability
to meet requirements of consumers I terms of fashion and design, non-adherence
to contracted quality and delivery schedule, lack of marketing techniques etc.Ø Heavy concentration of
exports in few commodities and few markets can lead to export instability. Ø Pakistan needs to
diversify its exports not only in terms of commodities but also in terms of
markets. ØISSUES
TO BE CONSIDERED SERIOUSLY
6. Major
Imports of Pakistan 1. Machinery. 2. Petroleum. 3. Chemicals. 4. Vehicles and
spare parts. 5. Edible Oil. 6. Wheat. 7. Tea. 8. Fertilizers. 9. Plastic
material. 10. Paper Board 11. Iron ore and steel. 12. Pharmaceutical products.
7.
These imports accounted for 73% of total imports during 2006-07. Among these
categories machinery, petroleum/petroleum products and chemicals accounted for
53.4% of total imports.Ø
Pakistan’s imports are also highly concentrated in few items namely, machinery,
petroleum and petroleum products, chemicals, transport equipment, edible oil,
iron and steel, fertilizer and tea. ØImports
of Pakistan
8.
The shares of USA and Japan, with some fluctuations, exhibited a declining
trend becauØ
Saudi Arabia is emerging as major supplier to Pakistan followed by the USA and
Japan. Ø Over
40 percent of them continue to originate from just seven countries namely, the
USA, Japan, Kuwait, Saudi Arabia, Germany, UK and Malaysia. Ø Pakistan’s imports are
highly concentrated in few countries. ØDirection
of Imports of Pakistan se of the shift in the import of machinery/capital goods
and raw materials to other sources.
9.
Malaysia share has shown rising, as well as, falling trends over the years
mainly on account of fluctuations in palm oil prices.Ø On the other hand, the share of
Pakistan’s imports from Saudi Arabia has been rising due to higher imports of
POL products.
10.
In the commercial policy it is to be decided that what will be the exports and
imports of the country, whether the foreign trade sector will be consisting of
consumer goods or the producer goods and whether the trade will be free or
restricted.Ø It
is an economic policy which is concerned with those decisions, strategies and
instruments which influence the foreign trade sector of an economy. ØCOMMERCIAL POLICY
11.
In case of Pakistan the commercial policy is also consist of above mentioned
policies.Ø (3)
Tarrif Policy. Ø (2)
Foreign exchange policy and Ø
(1) Export and import Policy Ø
All this means that commercial policy can be decomposed into
12. Instruments
of Commercial Policy The commercial policy is consisted of following
instruments. 1. Tarrif (Import Tax) 2. Quota System 3. Exchange Control 4.
Export subsidies 5. Voluntary Export Restraints 6. State Trading 7. Multiple
Exchange rate system
13. OBJECTIVES
: 1. To increase Exports: The under developed countries are preys to “Trade
Gap”. It means that their exports are less than their imports. As a result they
have to face deficit in their balance of payments. 2. Diversification in
Exports: To remove deficit in balance of payments not only the exports should
be boosted up, but a diversification in exports be also brought. The quality of
exports is improved.
14. The
new markets for exports be discovered the share of manufactured goods in
exports be increased for this all, the exporters be encouraged. 3. Protection
to Infant Industries: The purpose of import policy is to protect the infant
domestic industries. As the industries of under developed countries like
Pakistan can not compete with industries of developed countries. Therefore if
the domestic markets are supplied with foreign products the process of
industrialization in home country will never start. The country will remain
backward.
15. Therefore
in order to protect the infant industries, the commercial policy aims at
imposing import duties, quota system and exchange control etc. 4. Improvement
in Terms of Trade: The ratio between the prices of exports and prices of
imports is known as terms of trade The terms of trade of developing countries
like Pakistan goes on to fall. It means that they have to give more exports
against their imports. In other words the prices of exports go on to fall while
the prices of imports go on to increase in case of developing countries.
16. 5.
Stability in Internal and External Value of Currency: Whenever a country faces
deficit in its balance of payments, the external value of the currency goes on
to fall. This not only leads to decrease the international value of the
currency but inflation is also generated in the country. Thus commercial policy
can be applied to bring internal and external stability in the value of
currency
17. 6.
Commercial Links: The commercial policy can be applied to make commercial links
with other countries. For this purpose the trade delegates can be sent abroad.
The trade fairs and exhibitions can be arranged. In this way, a country can
popularize its products and exports. Consequently the exports are boosted up
and balance of payments will improve.
18. TARRIF
AND QUOTAS Tarrif: A tariff is a tax imposed on imports, which are goods coming
into a country. The tax may range from a few percent of the cost of the good to
well over 100% of the cost of the goods. This tax is ultimately passed on to
consumers, resulting in higher prices.
19.
This can lead to fewer choices of goods and a lower quality for consumers. The
amount of chocolate, fruits and vegetables, and automotive parts you have to
choose from are all subject to the effects of tariffs.q The additional tax, or tariff,
on imported goods can discourage foreign countries or businesses from trying to
sell products in a foreign country. The additional taxes make the foreign
import either too expensive or not nearly as competitive as it would be if the
tariff didn't exist. qTariff
Effects
20. Quota:
A quota sets a numerical limit on how much of a product can be imported into a
country. This helps to protect producers of domestic products from facing too
much competition and ultimately going out of business. Ultimately, quotas
benefit and protect the producers of a good in a domestic economy, though the
consumers end up paying more if the domestically produced goods are priced
higher than imports.
21.
Essentially, the import quota prevents or limits domestic consumers from buying
imported goods. The import quota reduces the supply of imports.q The numerical limits
imposed on imported goods through quotas ultimately leads to higher prices paid
by consumers. qQuota
Effects
:
22. Export
Subsidies: Government help to exporters, generally in two forms (1)Service
subsidy: trade information, trade shows, feasibility studies, foreign
representation, etc. (2) Cash subsidy: (a) rebate on imported raw materials and
duty-free import of manufacturing equipment (called indirect cash subsidy); or
(b) drawback as a percentage of the value of exports (called direct cash
subsidy).
23. Although
World trade Organization (WTO, formerly GATT) recognizes that subsidies hinder
fair competition and distort trade practices, it has not been able to define
precisely what kind of assistance constitutes a subsidy. REBATE: A rebate is an
amount paid by way of reduction, return, or refund on what has already been
paid or contributed. It is a type of sales promotion that marketers use
primarily as incentives or supplements to product sales.
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