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 of Pakistan

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We don’t need AID… we need

TRADE…!

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.

TRADE

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

IMPORTS

Statistical analysis:

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Imports from main countries

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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

EXPORT

Statistical Analysis:

Exports to main countries:

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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.

Pakistan exports impact on economy:

1985

-86

1987

-88

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-20

2001

-02

2003

-04

2005

-06

2007

-080

50001000015000200002500030000350004000045000

ExportImport

Graph of export and import (in $ million) from 1985-2008

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%)

Annual increase/decrease in imports

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.

Annual increase/decrease in exports:

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.

Total value of trade and trade balance:

GDP growth rate 2000-2011

Import export affecting GDP:

2006-2009:

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2006-2014:

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Targets set by the Government (Ministry of Commerce)

Indicator Target 2009-2012

Exports Target $US Billion 17.8 - 23.5 Exports growth Projection 6% in 2009-10 $US Billion 18.8

10% in 2010-11 $US Billion 20.713% in 2011-12 $US Billion 23.5

Competitiveness Ranking 101 < 75 Engineering Sector Export Share 1.5% - 5% Expansion of Regional Trade 17% - 25%

Targets for 2009-2012

Targets:

2009-10: US$ Billion 18.8 2010-11: US$ Billion 21.5 2011-12: US$ Billion 23.5

Export of Fish and Sea Food Actual exports: 2009-10: US$ Million 289 2010-11: US$ Million 300 (Till February 2011

Target and actual performance

Actual Exports:• 2009-10: US$ Billion 19.5 • 2010-11: US$ Billion 13.2 (Till

February 2011). It is estimated that government is likely to achieve exports of $US Billion 22

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

Expenditures on strategic trade policy framework

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%.

Macroeconomic Performance of Pakistan

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.

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Current trade performance:

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.

Conclusion