TRADE AND MANUFACTURING DATA FOR SELECTED COMMODITIES
BACKGROUND OF THE FOREIGN TRADE IN PAKISTAN
Pakistan is a developing country in the South East where the economy is mainly based on agriculture. From 1947 to date, Pakistan has for most of the years been experiencing a trade deficit. Globalization and competition with other developing countries of the region pose a future challenge for the economy of Pakistan and the gap has consistently increased between imports and exports. Though, Pakistan has made good progress in both exports and imports but the imports has grown relatively more as compared to the exports. As a result, Pakistan is now facing trade deficit, which has become more ...view middle of the document...
On the import side, the consumer goods decreased from 40% to 15% in between 1947 to 1996. (See Husain, 1998, p 296-300). On the other hand, the import bills have increased rapidly which has had a negative effect on the economy of the Pakistan. ´´Sharp increases in crude oil prices, such as those of 1979-81 and 1990, raised the nation's import bill significantly``. In addition, government tightened the import licenses and reversed the policy for import liberalization in 1979. It affected foreign trade in a negative manner and the imports continued to exceed the exports. The narrow base exports of the country remain unchanged. Most of the decline of export commodities was in the beginning of the period 1988 due to the decrease of the prices of traditional commodities like rice, cotton and fish etc. (See Husain, 1998, p 282-298).
Pakistan is a big importer of the commodities such as minerals, fuels and lubricants, food and live animals, crude materials, animals and vegetables oils, machinery and transport, chemicals and manufactured goods. Other imports which are growing fastest nowadays are computer accessories, telecommunication equipments, military equipments and civilian aircrafts etc.
These have a significant effect on the balance of trade and the import bills are growing faster than export bills. As a result, the trade deficit of Pakistan is growing with the passage of time due to increasing gap between imports and exports of the country.
In sum, although the exports of the country have increased but the imports also grew relatively more, especially in last two decades. The trade deficit is growing every year. This is an alarming rate for an emerging market. (UNIVERSITY)
The imports and exports of certain commodities affect the manufacturing industry. Some of the sectors/industries performances are discussed by the business councils that...