PAKISTAN STUDIES NOTES-GRADE 10TH

Chapter # 6 – Economic Development

6.2.3   State Pakistan’s main Trading Partners and the Goods Pakistan Exports or Imports from them.

The concept of trading partners

The concept of trading partners revolves around countries engaged in foreign trade activities. Essentially, these are nations with which a country conducts exports and imports. For instance, Pakistan imports mineral oil from Saudi Arabia and exports meat to it, thereby establishing Saudi Arabia as one of Pakistan’s trading partners.

Pakistan Position in International Market

SOURCE: PAKISTAN BUREAU OF STATISTICS & TRADE DEVELOPMENT AUTHORITY OF PAKISTAN MINISTRY OF COMMERCE (FY 2021-22) https://www.pbs.gov.pk/

1. Export Growth: Pakistan experienced a significant increase in total exports, with a growth rate of 40.06% compared to the previous year. This indicates a growing presence and competitiveness in international trade.
2. Export Partners: The top export partner countries for Pakistan include the United States, United Arab Emirates, China, United Kingdom, and Germany. This diversified list suggests that Pakistan has established trade relationships with key global players across different regions.
3. Import Growth: Pakistan also witnessed a notable increase in total imports, with a growth rate of 35.49% compared to the previous year. This could indicate increasing domestic demand or a need for imported goods for various sectors of the economy.
4. Import Partners: The top import partner countries for Pakistan include China, United Arab Emirates, United States, Saudi Arabia, and Indonesia. Similar to exports, Pakistan’s import partners are diversified, indicating reliance on various countries for fulfilling its import requirements.
5. Trade Balance: Pakistan’s total imports ($10,284,000 million) exceed its total exports ($5,661,128 million), suggesting a trade deficit. While this is a common scenario for many countries, it highlights the need for Pakistan to focus on strategies to enhance export competitiveness and reduce dependency on imports.
6. Competitiveness: The growth rates in both exports and imports signify that Pakistan is actively engaged in international trade and is striving to strengthen its position in the global market. However, sustaining and improving this competitiveness will require continuous efforts in areas such as product quality, innovation, infrastructure development, and trade policies.