Pakistan's trade deficit in 2016 was $23.9 billion, with imports exceeding exports. Exports were led by house linens and rice, while imports were led by refined petroleum and crude petroleum. China was both the largest export destination and import origin. While initiatives like CPEC and TIFA aim to expand trade, Pakistan faces challenges of reducing its fiscal and trade deficits, attracting investment, and diversifying its export base beyond textiles.

2. • Total Exports: US$ 20,533,792.83
• Total Imports: US$ 46,998,269.11
• Negative Trade Balance: US$ -26,464,476.27
• Effectively Applied Tariff Weighted Average (customs duty) for Pakistan
is 10.09% Tariff
• The Most Favored Nation (MFN) Weighted Average tariff is 11.32%
• The trade growth is 8.08% compared to a world growth of -4.43%.
• GDP of Pakistan is 283,659,980,700 in current US$
• Exports of goods and services as percentage of GDP is 8.69%
• Imports of goods and services as percentage of GDP is 15.82%
• Pakistan is the 66th largest export economy
in the world

3. • Exports in Pakistan increased to 248128
PKR Million in October
• 214367 PKR Million in September of 2018.

5. • Last five years the exports of Pakistan have decreased at an annual rate
of -4.1%, from $29.1B in 2011 to $24.2B in 2016.
• The most recent exports are led by House Linens which represent
12.5% of the total exports of Pakistan, followed by Rice, which
account for 7.42%.
• In 2016 Pakistan exported $24.2B

6. • The top export destinations of Pakistan are:
 The United States ($3.58B)
China ($1.94B)
 Germany ($1.7B)
 Afghanistan ($1.68B)
 The United Kingdom ($1.43B)

8. • In 2016 Pakistan imported $48.1B
• 49th largest importer in the world
• Last five years the imports of Pakistan have increased at an annualized rate
of 1.3%, from $44.6B in 2011 to 48.1B in 2016
• The Most recent imports are led by Refined Petroleum which represent
11.1% of the total imports of Pakistan, followed by Crude Petroleum,
which account for 3.75%

9. • The top import origin of Pakistan are:
 China ($14.2B)
 The United Arab Emirates ($5.84B)
 The United States ($2.06B)
 Indonesia ($2.02B)
 Japan ($2.01B)

11. • As of 2016 Pakistan had a negative trade balance of $23.9B in net imports

12. • The statistic shows Pakistan's trade balance from 2007 to 2017
• Trade balance is the value of exported goods minus the value of imported
goods
• In 2017, Pakistan's trade deficit amounted to around 36.18 billion U.S. dollars

14.  China-Pakistan Economic Corridor (CPEC)
• Important opportunity to expand trade with China
• Reducing the costs of land transportation
• More effective if it is well connected to large markets and production centers
in different provinces in Pakistan

15.  Trade and Investment Framework Agreement (TIFA)
• Signed between Pakistan and the United States
• In 2003
• Provides a forum for discussion of bilateral trade issues
• Most recent TIFA intercessional meeting was held in Islamabad in June 2017
 Rapid Globalization & Population Growth
• Expansion of markets
• Ease of communication and rapid transportation of goods and services presents
vast opportunities to Pakistani exporters to increase our exports
• Increasing world population and growing global prosperity is fueling the
demand for new products, becoming prosperous and keen to buy goods and
services of Pakistan, offer vast market for our products

16.  World Trade Organization
• Improve dealing with trade issues
• give new assurance to member countries
 Importing Raw Material
• Greater possibility of acquiring competitive advantage by importing raw
material
• Unavailability locally on the one hand
• joint venture agreements with businessmen of the countries
 Economic Cooperation Organization Trade Agreement (ECOTA)
• This agreement includes Iran, Tajikistan, Afghanistan, Pakistan and Turkey
• Agreement opens up trade between key regional peers
• Increase industrialization in the country

18.  Accelerating the Growth Rate
• The United States, the European Union, China and the Middle East – are
experiencing an economic slowdown
• Resulting in lower demand for our products
• Already facing tough competition from the increasing number of competitors
• The challenge is to accelerate the growth rate of Pakistan
• Increased exports of goods and services
 Long Term Challenges
• Reducing the fiscal and current account deficits
• Expanding investment, enhancing electricity production
• Reducing dependence on foreign donors, and improving governance through an
improved political system

19.  Attract Investors
• Energy crises are creating crises of confidence among the importers
• Uncertainty of timely delivery of exports orders
• Challenge is to attract foreign investment in our exports sector
• To meet the stringent social and environmental compliance conditions of foreign
importers
 Economic Risk
• Textiles account for most of Pakistan's export earnings
• The country is considerably exposed to shifts in global demand
• Generalized System of Preferences (GPS) Plus status granted by the European
Union (EU) improved the situation and supports the country’s trade openness

20.  Structural Weaknesses
• The recurring high fiscal deficits
• Low GDP per capita
• Lackluster investment expenditure
• Heavy reliance on commodity imports
• Security risks and financial sector volatility
 Other Challenges
• We Consume More and Save Less ( Macroeconomic Imbalance )
• We Import More and Export Less
• Government Spends More than it Earns as Revenues.
• Cost of Doing Business is High
• Crisis of Governance and Implementation Weaknesses

22. • Despite massive strides made by Pakistan in the field of economic
development during six decades of existence, the export profile is not
as impressive as it should have been
• Reliance on too few exportable items, Pakistan should expand
production base i.e. Enhancing Product Diversification in Exports
• Still Pakistan international trade is suffering from deficit due to low
demand for its exports
• Pakistan requires:
•Skills Up-gradation
•Gaining Self-Sufficiency in Import-Dependent
Products/Sectors