Q.v Study the foreign trade of Pakistan, its composition, direction and changes in balance.

Ans: International Trade of Pakistan:
Some countries have a large quantity of mineral reserves. Other countries
themselves goods for their needs at cheaper rates. Other countries are
are very advanced in the field of agriculture. Some countries can produce
obliged to export their manpower to foreign countries. The vast imbalance of
goods of needs makes the basis of the beginning of international trade.
Every country wants to limit its needs so that it has to import very few goods.
On the other hand, efforts are made to export larger quantities of goods
manufactured in their country to other countries. This earns foreign
exchange.
Exports of Pakistan:
According to Pakistan Economic Survey 2018-19, the total volume of
Pakistan’s exports is nearly 19.17 billion American dollars. The important
exports of Pakistan are as follows:
1. Rice:
Pakistan produces excellent qualities of rice. Trading of rice with foreign
countries is under the supervision of a government organization called Rice
Trading Corporation. This organization buys rice from private companies and
factories and exports to countries like- Saudi Arabia, United Arab Emirates,
Kuwait, Abu Dhabi, Iraq, Iran, Brazil, Libya, Sri Lanka, Singapore, Indonesia,
Britain, Canada, Germany and America. According to the facts and figures of
Pakistan Economic Survey 2018-19, Pakistan exported rice worth nearly
1487 million dollars.
2. Cotton and Cotton Products:
Different types of cotton is cultivated in our country. According to the facts
and figures of Pakistan Economic Survey 2018-19, Pakistan earned foreign
exchange of nearly 9991 million dollars through cotton and its products.
Pakistan exports the following cotton and its products.
a. Raw Cotton:
Pakistan’s raw cotton is of excellent quality and very fine. It is in great
demand in foreign countries. Pakistan mostly exports raw cotton to Canada,
America, Japan, Hong Kong, Britain, Italy, France, Poland, Germany and
Belgium etc.
b. Cotton Cloth:
Cotton cloth plays an important role in the exports of Pakistan Pakistan
I mostly exports cotton cloth to Britain, America, Sri Lanka, Afghanistan,
Russia, Germany, Hong Kong and Poland.                                                                                                                               Cotton Yarn:
Excellent quality and fine cotton yam is produced in large quantities in
Pakistan. There is a great demand for it abroad. Countries which import our
yarn include Russia, Sudan, America, Poland, Germany, Iran, Britain,
France and some African countries.
Hosiery Goods:
Like the other cotton products, the hosiery goods industry in Pakistan is also
important. It produces vests, socks, handkerchiefs, sweaters and towels.
Hosiery goods are exported to Middle Eastern countries, America and
Europe.
Ready made Garments:
Garments manufactured in Pakistan are gaining popularity abroad.
Readymade garments from our country are exported to Saudi Arabia, United
Arab Emirates, Iran, Iraq, France, Germany, Britain, Sri Lanka, Malaysia,
and America.
3. Sports Goods:
According to the facts and figures of Pakistan Economic Survey 2018-19, the
foreign exchange earned from the export of sports goods is nearly 222
million dollars,
4. Leather and Leather Goods:
Animals give us milk, butter and meat. Their hides also help us meet our
various needs. There are many tanneries in Pakistan to dye and prepare
leather. Leather has helped in the development of the shoe making industry
and goods like suitcases, bags, jackets, sacks and other products. Leather
goods are mostly exported to Japan, Germany, France, Britain; America,
Italy, Russia, Spain, China, Bangladesh and Middle Eastern countries.
According to the facts and figures of Pakistan Economic Survey 2018-19.
Pakistan exported nearly 546 million dollars worth of leather and leather
products.
5. Carpets; Blankets and Mats:
Pakistan holds a special position in carpet weaving. Lahore, Faisalabad,
Multan, Jhang, and Sangla Hill are famous for carpet weaving. We export
our carpets, blankets and mats to Germany, Switzerland, Belgium, Italy,
France, America and Britain etc. According to the facts and figures of
Pakistan Economic Survey. 2018-19, Pakistan earned nearly 50 million
dollars in foreign exchange through the export of these products.
6. Cement:
Pakistan has progressed greatly in the cement industry. After fulfiling
national needs it is exported to Saudi Arabia, United Arab Emirates, Kuwait,
Bahrain, India, etc. According to the facts and figures of Pakistan Economic
Survey 2018-19, Pakistan exported cement worth 221 million dollars.
7. Surgical Instruments and Medical Equipments:
Pakistani manufactured surgical instruments and medical instruments are
famous all over the world. These instruments are exported to Latin America,
Africa, Britain, France and Germany etc. According to the facts and figures
of Pakistan Economic Survey 2018-19, Pakistan earned foreign exchange
worth 280 million dollars from surgical instruments and medical equipments.                                                                    8. Fish and Fish Products:
Fish has great importance in human nutrition. Fish from Pakistan is in grea
demand all over the world. China, United Arab Emirates, Thailand, Kore
Malaysia, Indonesia, Hong Kong, Middle East and Sri Lanka to ste
important buyers countries of our fish and fish products. According to the
facts and figures of Pakistan Economic Survey 2018-19, Pakistan expores
fish and fish products worth nearly 294 million dollars.
9. Dry Fruits, Fruits and Vegetables:
Pakistan exports dry fruits to Italy, Britain, America, Prab counties,
SriLanka, Singapore and Malaysia. Fruits and fresh vegetable are exported
to Iran, Germany, Middle East and some countries of Europe Pres
sherbets, chutneys, marmalade and jams etc. prepared in Patan ans
exported to Arab countries. According to the facts and figures of Pakabin
Economic Survey 2018-19, Pakistan earned nearly 537 million dollars
foreign exchange from export of dry fruits, fruits and vegetables.
10. Chemical and Pharmaceutical Products:
In the past many years, the chemicals pharmaceutical industry has greatly
progressed. Many countries of Middle East and Africa are buyers of our
chemicals and pharmaceuticals. According to the facts and figures of
Pakistan Economic Survey 2018-19, Pakistan exported nearly 840 million
dollars worth of these products.
. Imports of Pakistan:
According to the facts and figures of Pakistan Economic Survey 2018-19, the
volume of Pakistan’s imports is approximately 45.47 billion dollars. The
important imports of Pakistan are given below:
1. Petroleum and Petroleum Products:
Pakistan has to spend a great amount of foreign exchange on import of
petroleum. To lessen the amount of foreign exchange spent, many products
of petrol and gas are being manufactured in Pakistan. To fulfill its needs
Pakistan imports oil, petrol, diesel and other petroleum products like plastic
etc from Saudi Arabia, Kuwait, Abu Dhabi, Iran and Iraq. According to the
facts and figures of Pakistan Economic Survey 2018-19, Pakistan spent
approximately 8002 million dollars on imports of petroleum and its products
2. Iron and Steel:
To fulfill the national requirement for iron and to run our factories, steel and
its manufactured products are imported from Germany, Belgium, Britain,
France, America, Japan, and Australia. With the help of Russia we have
established a steel mill in Karachi. According to the facts and figures
Pakistan Economic Survey 2018-19, Pakistan imported iron and steel
products worth 1658 million dollars.
3. Machinery:
A very big factory for production of iron and heavy machinery has been
established at Taxila. Heavy machinery for different factories is manufactured in
Pakistan. Nevertheless, electric generators and excellent quality machinery is
imported. According to the facts and figures of Pakistan Economic Survey 2018-
19, Pakistan spent 4604 million dollars on import of machinery.                                                                                              4.  Fertilizar
There are many factories in Pakistart which manufacture chemical fertilizars
In order to fulfill national requirements some types of fertilizers are importes
from Irac, Tunisia, Italy and America. According to the facts and figures of
Pakistan Economic Survey 2018-19 Pakistan imported 716 million dollars
worth of chemical fertilizers.
5. Edible Oil:
Pakistan imports edible oill mostly from America Sri Lanka and Malaysia
According to the Economic Survey of Pakistan 2013-14, Pakistan spent
approximately 1454 million dollars on import of edible oil.
6. Tea:
Tea is consumed in large quantities in Pakistan Pakistan imports tea mostly
from Bangladesh, Kenya and Sri Lanka. A lot of foreign exchange is spent
on this. According to the facts and figures of Pakistan Economic Survey
2018-19, Pakistan imported tea worth approximately 446 million dollars
7. MiscellaneousS:
A large amount of foreign exchange is spent on the import of
pharmaceuticals. paper, amaments, milk products, dry fruits, pulses
electrical goods, computers, pesticides, mobiles and cars.
Composition of Pakistan Trade:
. Components of Exports:
According to the facts and figures of Pakistan Economic Survey 2018-19, the
total exports of Pakistan were in 3 fields-cotton and cotton products (58.5%).
rice approximately (8.7%), leather and leather goods (3.1%)-total (70.3%).
The share of the following in the total exports was-consumable goods 15%
semi finished goods 10%, finished goods 75%
. Components of Imports:
According to the facts and figures of Pakistan Economic Survey 2018-19, the
share of eight sectors (machinery, petroleum and petroleum manufactures
plastic goods, transport, edible oil, iron and steel, fertilizer and tea) in the
totall imports was approximately 51%. The share of imports was as follows-
heavy goods 30%, raw material for heavy goods 10%, raw material for
consumable goods 51% and consumable goods 9%.
. Directions of Pakistan Trade:
According to the facts and figures of Pakistan Economic Survey 2018-19,
Pakistan’s exports are mostly being bought by America, China, Britain,
Germany, Afghanistan, Spain, UAE, Italy, Bangladesh and France. The
share of these countries in Pakistan exports is 59%

Source: Pakistan Economic Survey
According to the facts and figures of Pakistan Economic Survey 2018-19,
Pakistan’s imports mostly come from China, UAE, Saudi Arabia, Indonesia,
America, Japan, India, Kuwait, Malaysia and Germany etc. According to
table below the share of these countries in Pakistan’s imports is 88%.

Source: Pakistan Economic Survey
. Balance of Trade:
The difference between the value of exports and imports of any country in a
given time frame is called balance of trade. If the value of exports is higher
than value of imports then this balance of trade is profitable for a country.
Contrary to this if the value of imports is higher than the value of export then
this is called trade deficit. This type of trade is unprofitable and a country
falls prey to debt. According to the facts and figures of Pakistan Economic
Survey 2018-19, Pakistan’s exports, are 19.17 billion American dollars and
imports are worth 45.47 billion American dollars. In this manner our trade
deficit was 26.3 billion dollars.