strengths of pakistan international trade

8/6/2019 Strengths of Pakistan International Trade

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Pakistan international trade

STRENGTHS OF PAKISTAN INTERNATIONAL TRADE:

The followings are the strengths.

1. -Imported Machinery and plants in most of companies, which provide better quality to over all process and flourish the impact of Pakistan at foreign level

2 -Pakistans fisheries industry has gone at the boos for previous few years3- Textile growth of Pakistan has attracted the international trade and now Pakistan isimporting the textile goods to other countries.4- Availability of foreign investment and loans has also played an important role insoftening the demand for bank credit. The moderation in fixed investment demand incement, construction and textile is more of a reflection of the fact that these industries

AND ALL OTHER STRENGHTS OF PAKISTAN TRADE had already expanded their capacities in recent years and floatation of debt instruments (e.g., chemical, cement,real estate and ship yard) in the domestic market cement, real estate and ship yard.5- In the domestic market the compressive strength is a very important factor of Pakistan international trade.5- Large productive industries in Pakistan are currently operating at their maximumcapacity due to the boom in commercial and industrial construction within Pakistantowards international trade.6- Higher GDP growth and investment attract the international trade.

7 Cement and other manufacturing sectors demand growth rate was double the GDP growth rate in last three years and enhance the foreign trade in Pakistan.

8- GDP growth is expected to continue to have same positive impact on demand growth.9- Government development expenditures count for one third of total consumption and reduced the problems.

10- Infrastructure development in a region triggers private development projects having even positive impact on manufacturing of Pakistani goods and demands.

11- .Pakistani industries are one the largest exporter in Asia, major markets are of Afghanistan and Iraq will be after peace. Its increased GDP by exports, providing cements in Large Dams Project and earthquake rehabilitations projects.

University of management and technology


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12 -Laboratory testing facilities meeting all American and European standards and Vertical cement grinding mills, Cement industry called major Performance Blue Chip in

current .13- Today, we find a relatively better scenario as compare to past. Most of the plants,that used to operate on furnace oil, have now been converted into coal system, whichhas substantially reduced cost of production.

WEAKNESSES

1 - The stage of industrial development, in most of the segments, is still at a very low level of technology and the existing industrial base is very narrow and consists of

very basic industries such as cement, sugar, textile, cigarette, edible oil, fertilizer, sodaash, caustic soda, PVC etc.2- Impact of terrorism has dropped the economy of Pakistan3- Urban areas have reduced the cultivated area, which has negative impact of trade for foreign countries..4- Since cement is a specialized product, requiring sophisticated infrastructure and

production location. So, most of the cement industries in Pakistan are located near/within mountainous regions that are rich in clay, iron and mineral capacity.Structure of Cement industry in Pakistan is as such that there is not muchsubstitutability to buyers. Which shows that the Cross elasticity of demand is negligible.5. - The customer has no choice at all to switch between two brands.

6-The freight charges are a massive 20% of the retail prices. The plants located very close to each other and tapping the same market will have to expand their marketswhich will increase their freight expenses.

7-Consumers face a tough decision with regards to prefer which brand over whichbecause of the similar pricing of different industries. The formation of cartel by thecement manufacturers have exploited local consumers a lot and this has led to theconcentrated degree of oligopoly,

8 - where the firms are acting as a single unit to perform their monopoly. Their combined market power is simply a diluted version of the dominance that a single firmwith a monopoly market share can exert

9- Pakistans tourism industry has flopped in previous few years with 44 dollars.

10- The floods and natural disasters have negative effect on economy.

THREATS



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1. Unanticipated increase in interest rates or less than expected demand growth might create severe crises for the sector couple of years.

2. Lack of demand or depressed demand in future will prove to be lethal for the sector that has just started to recover from the miseries of 90s.

3. Lack of demand forced DIFFERENT INDUSTRIES units to operate at very low capacity utilization in nineties. There was a fierce competition among all the

production units in all over the world.4. A price war was witnessed which ended up with no conqueror. Similar

apprehensions exist for the future when there will be plenty of excess capacity.5. Main component of the cost is fuel. Pakistan's major industries have converted their

plants to coal considering it to be the cheapest fuel, but its price in international markets has gone up by more than 300 per cent in the last one year, which directly

relate increasing the cost of production.6- The demand of manufacture goods falls heavily during rainy weather in the country,which directly affects the running cost of a unit.

7- Instead of appreciating the marketing skills of industries entrepreneurs to explorenew markets for industries.

8- It is only the government, which can provide relief to the consumers by cutting down or abolishing the central excise duty.

9- Lower capacity utilization will reduce benefits of economies of scale. High leveragewill also adversely affect profitability of new plants.

10- New plants will gain market share at the cost of older players, which are not undergoing expansion. Large idle capacity is will create panic in players and thismay result in price wars in the coming years.

11- IMF Package in Future can cause to decrease GDP and economical development inPakistan. Which will also be cause to stop development of infrastructure? So it will have huge effect on industries also.

opportunities1- The local manufacturing industries faces high upfront fuel costs. In order tofacilitate their conversion to coal, which is widely available in the country, thegovernment has given incentives for imported plant and equipment for coal firing units.

1. The demand of Pakistani products is expected to continue to grow at the rate of 20 per cent for about four years to come. It may then follow traditional growthrate of seven per cent per year. Announcement of major dams will dramatically increase this demand.



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2. . Deregulation after accession of Pakistan to WTO is expected to open thewindow of competition from cheaper markets.

3. There may be no tariff after this deregulation on import of cement allowing itsentry into Pakistan from cheaper market at lower rate.

4. The banking sector of Pakistan is increasing the efficiency day by day.


strengths of pakistan international trade

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