Pakistan Economy Lecture Easy Slides

 A network that allows trade is called a market.
 Trade exists due to the specialization and division of labor.

 Trade involves multiple parties participating in the voluntary negotiation .
 Exchange of one's goods and services .
 Medium of exchange.
 Now, trade is simpler and effective compared to earlier forms of trade, such
as
bartering.
 The main contributions of trade is economic development .
 International trade is common now a days.
 People are trading globally too.
Trade sector includes:
 Import
 Export
WHAT IS IMPORTS???
Goods or services that were produced abroad.
WHAT IS EXPORT???
Goods or services produced locally and sold
abroad.
 A good or service brought into one country from another
country.
 Major Imports of Pakistan:
 Machinery
 Petroleum
 Chemicals
 Vehicles and spare parts
 Edible Oil
 Wheat
 Tea
 Fertilizers
 Plastic material
 Paper Board
 Iron ore and steel
 A function of international trade whereby goods produced in one country
are shipped to another country for future sale or trade.
 Major export of Pakistan:
 Pakistan Export lots of different items to a dozen of countries. Following is
the
list of Export items.
 Rice
 Cotton
 Sport goods
 Electrical Appliances
 Cook wares
 Leather bags
 Chemical and cement
 Mangoes and vegetables
 Exports were targeted at $18.6 billion or 12.9%
 Export of food group declined by 3.5%
 Caused by decline in exports of rice 2.6% and fruits14.3%.
 Export of rice declined.
 Exports of textile grew by 0.2%.
 Knitwear 13.9%.
 Readymade garments 6.8%.
 Made up articles 8.9%.
 Cotton yarn 4.6%.
 Towels 2.6%.
 Other textile materials growth 17.2%.
 Export of raw cotton, cotton cloth and bed wear on the other hand registered
a
decline.
45000
40000
35000
30000
25000
20000 Export
15000 Import
10000
5000
0
 In 2011, imports from the Asian are 56.2% of total imports.
 In 2010 changes noted in the import bill were:
 India (+50.2%),
 China (+19.5%)
 France (+17.7%)
 In fiscal year 2009-10, growth of 8.03%
 The energy situation improves, overall STPF target of $23.5
billion can be achieved by June 30, 2012.
 In 2011 International trade Rs 52,503 million
 In 2011, total exports Rs 17,778 million.
 Imports of Rs 34,725 million.
 Trade deficit is Rs 16,947 million.
 Deficits of Rs 19,554 million (-13.3%) for the previous quarter .
 Rs 14,646 million (+15.7%) for the corresponding quarter of
2010.
 GDP growth rate 2000-
2011
 2006-
2009:
 2006-
2014:
Targets set by the Government (Ministry of Commerce)
Indicator Target 2009-2012
 Exports Target $US Billion 17.8 -

23.5 $US Billion 18.8
 Exports growth Projection 6%in in
10% 2009-10$US Billion 20.7
2010-11
13% in 2011-12 $US Billion 23.5
 Competitiveness Ranking 101 < 75
 Engineering Sector Export 1.5% - 5%
Share 17% - 25%
 Expansion of Regional Trade
Actual Exports:
Targets:
• 2009-10: US$ Billion 19.5
 2009-10: US$ Billion
18.8 • 2010-11: US$ Billion 13.2 (Till
February 2011). It is estimated
 2010-11: US$ Billion 21.5
that government is likely to
 2011-12: US$ Billion 23.5
achieve exports of $US Billion
22
 Export of Fish and Sea Food
 Actual exports:
 2009-10: US$ Million 289
 2010-11: US$ Million 300 (Till February 2011
Objectives:
 Ministry of Commerce planned to spend Rs. 35 billion (2009-2012)
for
 implementation of STPF.
The amount shall be spent on research and development.

Progress:
 The current status of the funding of STPF initiatives is not satisfactory,
after completion of all formalities.
 Ministry of Finance has released only 1 billion and pended the
release of Rs 2.5 billion due to financial constraints.
 This has put STPF implementation in jeopardy
 During the study period (1957-2010) the macroeconomic performance
of Pakistan remained unsatisfactory. Its main indicators are:
 GDP
 Economic growth
 Inflation
 Import
 Export
 Trade effect upon GDP :
 Trade balance effect the GDP, if other factors are kept constant, a surplus
increases GDP and deficit reduces it.
 Economic growth:
 The strength of an economy can be judged from its economic growth:
 During 1973, 1985, and 2005: the real GDP growth rate showed
upward
movement.
 During 1977: The GDP growth rate of Pakistan touched its lowest level
of 1.70%.
 Inflation:
 Inflation adversely affects the overall economic growth.
 In short, during 1957-2015 the country experienced double digit inflation .
 Import:
 Commodities (goods or services) bought from a foreign country.
 The China is largest import market for Pakistan.
 Export:
 It’s refers to selling goods and services produced in the home country to
other
markets.
 The United States is largest export market for Pakistan.
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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 A network that allows trade is called a market.

 Trade exists due to the specialization and division of labor.

Indicator Target 2009-2012

 Exports Target $US Billion 17.8 -

The amount shall be spent on research and development.

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