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Import and Export of Pakistan

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  • 1. Managerial Economics Final Project Presentation Madam Amna Majeed Import and Export Analysis of Pakistan Group Members Rehana Liaqat 113 Hadiqa Saif 114 M.Bilal 112 Agha Baqir 115
  • 2. Introduction 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 including Pakistan.
  • 3. IMPORTS  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. EXPORTS  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.
  • 4. Major Export Market
  • 5. Structure of Exports
  • 6. 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
  • 7. 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.
  • 8. Conclusion 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.

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