Managerial Economics Final Project
Madam Amna Majeed
Import and Export Analysis of Pakistan
Rehana Liaqat 113
Hadiqa Saif 114
Agha Baqir 115
There is no country in the world today which produces all the
commodities it needs. Every country, therefore, tries to produce
those commodities in which it has comparative advantage. It
exchanges part of those commodities with the commodities
produced by other countries relatively more efficiently. The
relative differences in factor endowments, technology, taste
etc., among the nations of the world have greatly widened the
basis of international trade. The developed countries are
generally exporting consumer and industrial goods to the
developing world and import primary goods from them. The
developing countries, depending upon their state of
industrialization, are mostly exporting raw material and semifinished goods and getting finished goods and services from the
advanced countries. The low income countries are thus at a
disadvantageous position. However, the main contributions of
trade to economic development of the low income countries
Good or service brought into one country from another or goods
and services produced by the foreign sector and purchased by
the domestic economy. Along with exports, imports form the
backbone of international trade. The higher the value of imports
entering a country, compared to the value of exports, the more
negative that country's balance of trade becomes.
A function of international trade whereby goods produced in one
country are shipped to another country for future sale or trade.
The sale of such goods adds to the producing nation's gross
output. If used for trade, exports are exchanged for other
products or services. Exports are one of the oldest forms of
economic transfer, and occur on a large scale between nations
that have fewer restrictions on trade, such as tariffs or subsidies.
Imports of Pakistan
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. These imports accounted for 73%
of total imports during 2006-07
Major Source of Imports
As it has shown in graph
the imports of Pakistan
from USA have declined in
the years after 20072008.Whereas in other
countries it has ups and
downs not a single
rotation or continuous has
been found. Subtotal is
also showing an decrease
from 2007-2010 and after
that year imports again
raised up to 32.0 and then
a fall of 1.5.
Pakistan international trade is suffering from huge
amount of deficit due to low demand for its exports.
Domestic political instability also accounts for trade
deficit. By 2011 exports forecast that Pakistan oil
imports will raise. Pakistan basically is an agrarian
society supported to some extent by the industrial one.
Pakistan has a good business deals with its partner, but
unlocking it imports more than the exports.
Exports, moreover, are mostly composed of raw
materials instead of manufactured or finished goods.