International trade flows of pakistan
-
Upload
nasirulmulk -
Category
Business
-
view
48 -
download
0
Transcript of International trade flows of pakistan
International Trade flows of Pakistan
Introduction
Islamic Republic of Pakistan is located in south Asia
It is the sixth most populous country with population exceeding than 200 million
It is the 36 largest economy in the world
Its share border with Afghanistan, India, Iran and China
Pakistan trade agreements
Commenced on 1 January 1995
Signed by 123 nations
Regulate International trade
Pakistan trade agreements (Contd.)
South Asian Free Trade Area(SAFTA)Came into force on 1 January 2006 .
SAFTA requires (India, Pakistan and Sri Lanka) to bring their duties down(1st phase ending 2007 and 2nd phase ending 2012)
The least developed nations in South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and Maldives)
Whereas Afghanistan as the 8th member state
Pakistan trade agreements (Contd.)
China–Pakistan Free Trade AgreementTrade volume reached to $20 billion by 2015
The second phase will lower tariffs further
Sanjeeda saddique
Pakistan's Import and Export Indicators and Statistics (2010)
Total value of exports US$20.29 billion
Primary exports – commoditiestextiles (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).
Pakistan's Import and Export Indicators and Statistics (2010)
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).
Muhammad yousaf
Historical Trade balance of Pakistan
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
Due to increase in deficit tariffs was raised from 20% - 25% to the 30%-35% in 300 luxury items by Pakistani government
This act brought decrease in imports and increase export, thus lowering the trade deficit
Reasons for Trade deficit
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
Political Instability
Higher inflation rate
Lower demand for its export