Balance of trade of Pakistan.

2. Balance of Trade Of Pakistan
Submitted by:
Muhammad Talha Khan.(15-ARID-5113)

3. INTRODUCTION
Balance :
A state of equilibrium or equal distribution of weight, amount etc.
Trade:
The act or process of buying ,selling or exchange commodities at
either wholesale within country or between countries. Also called domestic
trade or foreign trade.

4. Balance of Trade:
The difference between the value of import and value of export over an year.
Calculating Balance of trade:
BOT= Value of import- Value of export.
Trade Deficit V/S Trade Surplus:
A country that imports more goods and services than it exports in terms of value
has a trade deficit. Conversely, a country that exports more goods and services than
it imports has a trade surplus.
Balance of trade is the largest component of balance of payments.

5. History of Balance of Trade of Pakistan:
Foreign trade start from 1950.
Pakistan become member of WTO on 01-01-1995.
BOT of Pakistan is continuously suffering from trade deficit FY1973 till now.

6. Type Of Trade

7. Balance of trade in Pakistan

9. Comparison with different countries of the World

10. FACTORS AFFECTING BALANCE OF TRADE:
Factors that can affect the balance of trade include:
 The cost of production (land, labour, capital, taxes, incentives, etc.) in the
exporting.
economy vis-à-vis those in the importing economy.
 The cost and availability of raw materials, intermediate goods and other
inputs.
 Currency exchange rate movements.
 Multilateral, bilateral and unilateral taxes or restrictions on trade.
 Non-tariff barriers such as environmental, health or safety standards.
 The availability of adequate foreign exchange with which to pay for imports .
 Prices of goods manufactured at home (influenced by the responsiveness of
supply.

11. Ways to Improve Balance of Trade:
Consume less and save more.
Depreciate the exchange rate.
Tax capital inflows.