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    Trade

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    Pakistan engages in international trade to obtain goods and services it cannot produce domestically. Trade provides benefits like specialization, access to foreign exchange, increased national income and jobs. Pakistan exports primary commodities, processed goods and manufactured items to over 106 countries. Its top exports are cotton, fruits/vegetables, leather and fish. Major imports include food, machinery, fertilizers and petroleum. Measures to increase exports include reducing unnecessary imports, maintaining quality, and developing infrastructure. Maintaining a positive balance of payments is important for economic health.

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    Trade

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    Pakistan engages in international trade to obtain goods and services it cannot produce domestically. Trade provides benefits like specialization, access to foreign exchange, increased national income and jobs. Pakistan exports primary commodities, processed goods and manufactured items to over 106 countries. Its top exports are cotton, fruits/vegetables, leather and fish. Major imports include food, machinery, fertilizers and petroleum. Measures to increase exports include reducing unnecessary imports, maintaining quality, and developing infrastructure. Maintaining a positive balance of payments is important for economic health.

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    Pakistan engages in international trade to obtain goods and services it cannot produce domestically. Trade provides benefits like specialization, access to foreign exchange, increased national income and jobs. Pakistan exports primary commodities, processed goods and manufactured items to over 106 countries. Its top exports are cotton, fruits/vegetables, leather and fish. Major imports include food, machinery, fertilizers and petroleum. Measures to increase exports include reducing unnecessary imports, maintaining quality, and developing infrastructure. Maintaining a positive balance of payments is important for economic health.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    30 views17 pages

    Trade

    Uploaded by

    Codec ABD
    Pakistan engages in international trade to obtain goods and services it cannot produce domestically. Trade provides benefits like specialization, access to foreign exchange, increased national income and jobs. Pakistan exports primary commodities, processed goods and manufactured items to over 106 countries. Its top exports are cotton, fruits/vegetables, leather and fish. Major imports include food, machinery, fertilizers and petroleum. Measures to increase exports include reducing unnecessary imports, maintaining quality, and developing infrastructure. Maintaining a positive balance of payments is important for economic health.

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    of 17

    TRADE

    By Sameen and Mahsa


    Reason for trade

    • No country in the world is


    self-sufficient. To provide
    goods and services an
    exchange needs to be
    done.
    • Trade can be within the
    country or with
    other foreign countries as
    well.
    Benefits
    It allows specialization of goods, for example Pakistan in
    cotton.
    Foreign exchange helps to import other things the country
    is in need.
    Country increases national income, and making of products
    increases jobs.
    IMPORT AND EXPORT
    • Like all other countries Pakistan also needs trade to survive. 
    • An export is represented by a flow of foreign exchange coming
    into the country. EXAMPLE, Cotton shirts, Fish, Leather etc.
    • An import is represented by the flow of foreign exchange leaving
    the country. Crude Oil for our power sector.
    MAJOR EXPORTS AND DIRECTION

    • Primary commodities, (e.g raw cotton, fruits and vegies, leather,


    fish).
    • Processed goods, (e.g cotton yarn).
    • Manufactured goods, (e.g ready-made garments, rugs, sports goods
    etc).
    • About 106 countries import from Pakistan. 27.2% goes to 5
    countries. Which are China, UK, Germany, USA and UAE.
    Pakistan's position in international market

    • Pakistan is not a major trading player, it accounts only about


    0.10% of world's exports.
    • But it is strong in some export items, for example it accounts
    for 15.31% of worlds carpet and rugs, 2.16% of textile and
    clothing, 2.13% of worlds leather and leather products and
    0.41% of the fish.
    IMPORTS BY PAKISTAN
    • Pakistan imports a fairly large amount of items from other countries. The
    items can be grouped as follows:
    • Food, machinery, synthetic fiber, fertilizers, iron, steel, and petroleum and
    petroleum products.
    • Pakistan is importing from 100+ countries. 52% are from following:
    • Saudi Arabia, USA, UAE, Japan, Germany and China.
    MEASURES TO
    INCREASE EXPORT
    • Reduce unnecessary
    imports, especially
    consumer goods.
    • Maintain good quality
    of product, deliver on
    time, and make more value
    added products.
    • Establishment of airports,
    EPZ's and give incentives to
    investors and industrialists.
    BALANCE OF
    PAYMENT
    • It refers to value of
    exports-value of imports.
    • When a country imports
    more items than exported,
    it has a negative trade
    balance and vice versa, is
    positive trade balance.
    CAUSES OF NEGATIVE BALANCE AND
    FIXES

    • Import of consumer, capital, goods. Import of mineral oil, raw


    materials, and less exports due to poor quality.
    • To correct the balance there are measures to take like, stop
    import of service industry, improve standards, ban export of
    raw materials, ban import of luxury items and put trade barriers.  
    Other Terms in trade:
    • TRADE BARRIER: Set of restrictions which makes it difficult
    for countries to trade goods, services etc.
    • Industrial Estates: An area for the purpose of industrial
    development.
    • Trading blocs: Refer to regional groupings of
    international economies for greater economic cooperation and
    facilitation. They involve lower or zero restriction between
    members and strong barriers against non-member countries. For
    example Pakistan is a member of SAARC.
    GDP AND GNP

    • GDP(gross domestic product) is the value of a nation's finished goods


    and services during a specific time period.
    • GNP(gross national product) is the value of  all finished goods and
    services owned by the country's residents over a specific time period.
    This can be inside the country or international as well.
    • Factors that affect GDP are: Natural resources, physical or capital
    infrastructure, population or labour, human capital, law and technology.
    TRADE WITH
    EUROPEON UNION

    ADVANTAGES: EU countries are politically


    and economically stable.
    Pakistan has good relations with them since
    1947. We can export more to them which
    gives us more foreign exchange.
    They have a Stable market.
    DISADVANTAGES: They have trade barriers,
    restrict trade with Pakistan due to poor law
    and order, and child labor etc.
    Imports may compete with local products.
    And no land link is present.
    TRADE WITH CHINA

    • ADVANTAGES: Pakistan has strong relations with China. They do not have
    trade barriers.
    • China is the 2nd largest economy and is the world's tech hub. We can also
    trade with local currencies and export varieties of products to China.
    • DISADANTAGES: They may compete with local products.
    • Pakistan may face trade restriction from EU because of relation with China. 
    SOME MORE TERMS:
    • FOREIGN EXCHANGE: Currency earned by export from foreign countries( US Dollar,
    GBP, etc. )
    • Uses of foreign exchange: Reduce debt, boost industries, correct balance of
    payment, development projects to take place etc.
    • CURRENCY DEVALUATION: When local currency loses its value.
    • CURRENCY APPRECIATION: When local currency gains value.
    • Causes: Negative Trade Balance, Political Uncertainty and Depletion of
    foreign exchange.
    IMPORTANT MEASURES
    • Some measures to be taken for the country's benefit.
    • As the currency is devaluating a lot, Pakistan needs to act upon it. Fixing law and order and
    provide a secure environment for industrialist and businessmen to invest in the country is
    important so that the current economical status could be solved.
    • The country should try to reduce imports, especially consumer goods and put heavy
    taxes on import of luxury items. 
    • As Pakistan is energy deficient, the country imports a lot of oil. We need to find an alternative.
    Also finding alternatives for other things the country needs in the country itself Etc.
    THANKS FOR STAYING
    TILL THE END!!!

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