Foreign Trade of Pakistan
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:
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.
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.Germany 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.
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.
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.
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.